Saturday, September 20, 2008

Financial Bailout

The Congress will relieve these financial barons of the burden of bad debt. Of that I am sure.
The only way it should be given is if all the executives in the top tier of management and their Boards of Directors be forced to return to their company all compensation including salary and bonuses received for the past decade, the time in which their outrageous, greedy pursuit of profit occurred. I want their corporate jets, penthouse apartments, golf club memberships, box tickets for professional sports and everything else that I have not mentioned. From what I have read some CEOs have already walked away with twenty or more million dollars. Others are protected with their golden parachutes worth millions more. How can we as a government or as citizens allow these predators to continue their fabulous life styles while the carnage goes on?
I continue to see AIG television adds nightly while this is going on. You would think they would have the decency to hold off while they are crawling on their bellies pleading, save me, save me.
On a previous occasion I wrote an article comparing the depression of 1928 to 2008. I concluded that the chips be allowed to fall and that in the end it would sort itself out and people would be able once again to afford purchasing a home. The costs had reached astronomical levels that any fool should realize could not be sustained. I guess that means that all those involved in my opinion were fools in spite of their huge obscene compensation.
How dare anyone compare this to the Chrysler loan given many years ago? Lee Iacocca paid back every cent borrowed plus interest. All the while the loan was in effect he received one dollar per year in salary. At the end an important segment of production was saved. What will we have with these robber barons; they will gobble up any entity weaker than themselves and create another monster that will have to be saved when it happens again.
Is anyone concerned about the other financial institutions that are not included in this bailout? While they struggle day by day to survive shouldn’t they also be granted relief?
President Clinton was in office when banks, investment and insurance were allowed to merge. This is when it all became so confusing and uncontrollable. The Republican Party as a whole has been crusading for decades now to eliminate all vestiges of FDR’s programs which were enacted to protect the little guys. Even during this crisis, McCain is touting privatizing Social Security, should that happen, this lifeline will disappear, while Wall Street gorges on the goodies placed at their disposal. Company pensions which people like me still live on are no longer available. People are forced into 401K’s. How many billions have they lost this week? How many college funds have been ravaged? People like me dutifully put money aside to aid grandchildren as well as parents who put off things they might like to own or do for the sake of their children’s futures.
What should really concern us is that this trillion dollar bailout is just the tip of the ice burg. Hedge funds that leverage one dollar against one hundred could tank at any time if they bet the wrong way. Bet is the proper term. These money making entities add nothing to the health of our country. They just suck the life blood out of the economy.
I really feel sorry for McCain, Obama and all the other people running for office. They have lofty goals. There will be nothing left to pay for their programs. The next administration will have its hands full trying to keep America solvent. When I think of the trillions in bonds owned by China and OPEC countries I shudder to think if we will not just be taken over as they purchase our assets at bargain basement costs.
Why do we as Americans allow this to happen? Are we so shallow that all we need is a can of beer and a football game to amuse us? My writing efforts have been a dismal effort. They have accomplished nothing of tangible benefit. That will not stop me from trying to make a difference. I am past the age of getting into the arena and taking them on but believe me I would enjoy it if I could.

Jack B. Walters
3961 N. Hillwood Circle
Tucson, AZ 85750
(520) 722-2958
September 20, 2008

No comments: