Wednesday, January 28, 2009

Voodoo economics, the return

Yesterday, the Stock Market fell more than 400 points.

“That’s a lot of points to lose,” observed the Mystery Woman. “How many points do they have?” She’s worried they are going to run out.

Here’s another of her imponderables: the trillions of dollars that have disappeared during this economic melt-down. “Where did the money go?” is a sensible question. Imagine that money stacked up on your desk. Can you see it? Poof. Where did it go?

Not baffled yet? Try to wrap your noggin around today’s concept of “good bank/bad bank” in the current bail-out think. To my ears, redundant.

It’s getting serious and still running full speed the wrong direction. Last week alone, more than 50,000 Americans lost their jobs. In our immediate family, two have been laid off and two more are at risk.

Nobody knows the answer. Do they?

Incredibly, the smart people in Washington continue to shovel bi-partisan money to Wall Street and to banks who hoard the money instead of lending it. Trillions have been misspent. But nobody knows for sure because there was no over-sight.

Yes, the banks and Wall Street are the very people who got us into all this trouble in the first place. Give them more money? That’s insane.

In fact, that’s the definition of insanity: doing the same thing over and over and expecting a different result. Insane.

5 comments:

Jeff Hebert said...

I tell you, what worries me about all this is that a) I don't know Jack about economics and b) I feel just like I did in the run-up to the Iraq War. Once again we have the government, driven by a relentless executive branch, telling us our very nation itself is at risk of imminent collapse. We're told we have to act RIGHT NOW or it's all going to explode in our faces. We don't have much time to really dig down into it all, we're just asked to trust the Smart Men In Washington Who Know Best. Anyone who asks questions or expresses hesitation is branded as a deliberate obstructionist who wants our nation to fail.

I got misled into one ghastly, costly, incredibly foolish and immoral course of action by the last Administration. I'm twice shy now.

I don't know enough to know, but I know enough to not like this very familiar smell.

Max Fischer said...

Amen, George. I was laid off last week. Going from six figures to zero is truly voodoo economics. All in the name of "the best interest of the shareholders". Brural.

JohnSBoles said...

Jeff, I had a couple of economics courses a lifetime ago and over the years it has occurred to me that those professors might only have read Ayn Rand. Free market, survival of the fittest, dog eat dog etc. I think recent events have shown the logical outcome of free and virtually unregulated markets.

Greed rears its ugly head and success is only as good as one's last quarter. There is no plan for a future beyond the next three months. This explains how the American auto industry will be righted and profitable in the next sixty days or so. We did just give them that which they required, right?

JohnSBoles said...

"I sincerely believe ... that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale."

Thomas Jefferson

Anonymous said...

I was very hopeful that Obama would really do something to turn this country around.I voted against him and would do so again but I truly wanted him to be a success.
It seems that everyone in Washington is drinking from the same cup.---Goose

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