and Washington’s obstinate refusal to learn.
No, I’m not talking about the second part of the bailout program. I’m not talking about the stimulus package, either. Those were bandages put in place to prevent us from failing. The bailouts were to save the banks, AIG, and the automotive industry etc….. We can argue the merits of the bailouts, but they weren’t designed to fix anything. The stimulus was enacted to get people back to work.
But, none of this stuff was created to fix the underlying causes of our economic disaster. Many people hold different views of what happened and why. For instance, one person would blame the economic collapse on the housing market. Others would blame it on the unregulated banking practices. Others still, would blame congress an their insipidly stupid practices. The Federal bank carries much blame as well. As does the current culture of entitlement. All of these things are related and all of these things worked to significantly harm our economy.
So, let’s look back and take stock of what we’ve done to fix this mess. First, we bailed out businesses we deemed to big to fail. This is entirely contrary to free market capitalism. They failed! What makes capitalism work is that when something fails, it goes away and something else, (presumably a better functioning “something else”) appears to fill the void. Well, we opted for what was behind door number two and bailed out these huge money pits.
Then, we enacted the stimulus package. This was intended to create jobs and kick start the economy. Some argue that it would have been much worse had we not done this, but I doubt it. Much of the money was sent right into more failed businesses and the pockets of individuals. Very few enduring jobs were created with a huge amount of money. But, no one is really asking why. Oh sure, as a conservative, I’m incensed about where that money went and for what, but let’s pretend for a moment that it wasn’t a huge crony payoff to send money back into Obama’s re-election campaign.
What was it that occurred that made people believe this would work? I mean, surely we would change something to alter the underlying difficulties. Because, if all we did was pick the banks and other huge companies back up, dusted them off and sent them back to doing what they were doing to get us in this mess in the first place, then we could hardly expect better results. Right? And, when we injected a huge amount of capital in the economy as we did with the stimulus, surely we put parameters in place to make sure that capital didn’t get sucked down the same money hole the rest of the capital went. Right?
Wouldn’t that be the definition of insanity? If we simply spent huge amounts of capitol out of the public coffers, picked some failures back up and pushed them back into the ring of competition and said “go get ‘em, tiger!”, then we could expect the exact same result as before. Right?
Well, yours truly has just finished an exhaust search of the policy changes, regulations, and safeguards put in place to ensure we don’t suffer from a similar financial meltdown that we did in 2008 and 2009. I’ll list them in order of effectiveness and importance. This is the comprehensive list of all of the significant changes placed before and after we entrusted all of these people with $trillions of the people’s money.
This was brilliant! Thank you Barack Obama, Tim Geithner and Larry Summers! You guys are the greatest. You complete imbeciles. If, and only if, the bank is telling us the truth, the inaction has allowed for this…
JPMorgan Chase Admits Big Losses On ‘Egregious’ Credit Trades
They were trading in derivatives, again.
Additional reading….. Jamie Dimon Derivatives Fiasco Highlights Obama Failure <– that’s a HuffPo story! I’ve no idea how it got posted there. And, What are Financial Derivatives – Common Derivatives Trading Examples <———– read at the bottom to see a cute “rant” in the comment section.