Posted by
Logical Party on Sunday, October 05, 2008 9:00:00 AM
Listening to the righteous indignation of the working class demand Congress not bail out greedy Wall Street scoundrels leaves one to wonder why the finger of blame isn’t being pointed at not only the architects of risky investments, but at the people who benefited by such investment decisions, namely every individual who liked 12% dividends and exploding asset appreciation of their securitirized mortgage portfolio chosen to back their 401K’s. We liked mini mansions no money down, no income or credit check and “interest only” loans ballooning balances to exceed home valuations – upside down loans with a “sky’s the limit” attitude toward appreciation, staking our house as our only nest egg.
Our ego and rage is channeled at multimillion dollar beneficiaries of selling such products, along with their annual bonuses. It is always more palpable for us to direct our anger at our co conspirators forgetting the role we played, like blaming one’s drug dealer for one’s own addiction. Our wrath is so great, we will cut our nose to spite our face, rejecting (and rejoicing) the bailout of conniving stockbrokers, ignoring the fact the ca-ca will hit the fan in a few months due to a lack of action to save this economy. Portfolios will shrink or disappear, home values will deteriorate, and jobs will be lost (Friday’s Job Report another big hit). Our revenge will be similar to the Captain of a sinking ship; we will win the battle, but lose a war.
This is the same canard we played out a months ago during the oil crisis, blaming Oil companies for the increase in crude oil, along with the stranglehold on our economy by Middle Eastern countries (with Big Oil’s complicity) who hate us. After two decades of talk we have no renewable energy and only two versions of Hybrids. It seems Oil companies are happy (or is it collusion?) Detroit never developed a car with more economically efficient gas mileage.
Like our stock portfolios, we bought their product, Hummers and SUV’s with gas mileage ranges that pre date our 70’s oil crisis. It’s like we didn’t learn, or forgot the past? We insisted Congress block drilling in America so we could be environmentally friendly. No oil, no renewables, and no Hybrids is no small wonder why our economy is beholden to Saudi Arabia.
House Republicans are forcing us to live out the truest nature of “win some, lose some” capitalism, and the GOP will decline any attempt to adopt socialistic measures to bail out failed “anything goes” laissez faire economics. Adherence to doctrine will translate to lots of medicine and pain for the sake of principles and ego.
What the Republicans are really leery of is the slippery slope; if we nationalize businesses, why not healthcare, education or housing, and the citizens anger is playing right into GOP hands.
Kudos to Wall Street. They have learned the important lesson that one should always grab onto the person pushing you off a cliff – it provides the perfect perspective we are currently overlooking by rejecting the bailout bill. The fault ultimately remains with us – the people who remained both silent and benefited from high risk gluttony and “good times.”
In the future don't overlook regulations because so much dividend income is filtering to one's 401K’s on risky investments; something too good usually is no good in the end, when it matters the most. No one complained then, so let’s not blame Wall Street as the lone gunman. Pride goeth before the fall, and we all bear the fruits of our labor, and our greed.
Sit back and relax. It ain't over.
David DiBello