I'm obviously no Economist, nor is The Fuzz. It seems we always end up buying high and selling low. But I do know that there are people I won't "loan" money to. I might give it to them, but I've got better sense than to call it a "loan". It seems that the "experts" do things differently.
I saw a while back where one of those big banks hired a new guy and gave him $4,000,000 just to sign on. This was in addition to $1,000,000 of stock and I would assume his regular pay, what ever that is. Some of us would have to literally work for centuries to get that.
What The Fuzz wants to know is, if these guys are so smart, and worth so much to the bank, why am I and other taxpayers having to help them out? What do we want with a bunch of worthless loans? If they are no good to them, they're no good to us.
And now I hear that we are even going to buy bad debt from stupid foreign bankers. And all of this will be done with money that we don't have.
There seems to be a serious lack of reality to all this.
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Stuff I'd rather not bring up elsewhere. They always say not to talk about religion or politics around people you don't want to offend. But screw all that. This will be a place to spout all those half baked harebrained ideas that wander though my mind from time to time. To rant and rave and see if I make any sense to myself even.
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- How the News Makes Us Dumb
About Me
- Jandi for The Fuzz
- Struggling with life's constant change Just when you thought you had it figured out…
3 comments:
The reason those guys were worth so much was because they were making the banks so much money. They were inventing these securities, and making them valuable.
In effect, paying someone $4 million signing bonus is a deal if they are going to create $20 million of wealth out of thin air. And they did.
But sooner or later, thin air turns out to be thin air. Not even that good for breathing.
Allowing the banks to just fold will result in another great depression. If this happens then we may see 30% plus unemployment. This would be bad. So the bailout has to happen.
Exactly how will it happen? Got me. But I know it will happen.
It seems to me that rewarding banks for bad decisions with BILLIONS of dollars can't be a good idea.
I understand that bailing them out will help in the short term, but how does that effect the policies that got them into this mess in the first place? No one's learning lessons the hard way except for families that have been forclosed on.
Those who control the money are walking away with more in their pockets...
I hope we know what we're doing!
It looks to me like the guys who caused this will be the ones that come out ahead.
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