More Money … and Nobody Knows Anything
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I’ve been quiet the past two weeks as the financial crisis descended upon the world. Thinking about all the money that would be handed over to people who had over-compensated themselves while mismanaging their corporations.
Silence was advisable because I was annoyed at the apparent necessity of $700 billion bailout. I wondered where they pulled that number from, and why it hadn’t been justified. I didn’t want to see why taxpayers had to pay for the lack of regulatory oversight in the housing, mortgage, insurance, commercial and investment banking industries. Having previously worked in several companies in these fields, I’ve often thought of the players as the hairy armpit crew … sans deodorant, ethics, and class.
More money is why AIG asked for and got an additional $38 Billion. They will be back for more. The government will give it to them because it has given too much money not to ante up more and let them go under. How’s that for security?
I’m over my anger. I’ve moved on to finding the situation interesting. I’m fascinated by the fact that nobody knows anything. The financial pundits have few clues of what will happen next. This is uncharted territory, which makes it anybody’s game. What do you think? Your guess is as valid as anyone. What do you see for the future?
How much farther will the US stock market fall? How many markets worldwide will we take down with us? It gives the concept of a global economy a whole new meaning. When will credit become available for consumer purchases? What happens to foreclosures, especially those resulting from decreased market value? Is it reasonable to expect a person to pay a mortgage obligation that is more than the value of the property?
How many jobs will be lost in the next 2-3 years as a result of this financial crisis? Where’s the upside … the opportunities that grow out of adversary?
What’s a woman to do?
Don’t panic. This is about preserving your capital. Cash looks better every day. Look for online banks that pay the highest interest rates. Suze Orman suggested moving money into T-Bills and T-Bonds as safe places to stash funds. We have few options but to wait and see.
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October 13th, 2008 at 7:11 PM
This is a great topic and a lot to think about.
In troubling times it is all about keeping what we have, growing what we can and creating security in an insecure market.
I share your feelings on the bailout!
November 10th, 2008 at 5:51 AM
[...] predicted here less than a month ago, AIG is asking for another government handout. Or is it a hand [...]
June 10th, 2009 at 6:32 PM
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June 22nd, 2009 at 6:37 AM
Thats a good thema!
I think every country have this problems… Not the U.S. alone…
June 30th, 2009 at 8:53 AM
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July 7th, 2009 at 3:41 PM
ohhh great info!
July 8th, 2009 at 9:07 PM
I do not support goverment bailouts at all. Let these companies deal with their bad decisions and financial short comings. No need to reward them for poor performance.
July 9th, 2009 at 7:26 AM
I'm from Poland and we're very interested how the crisis would go in the US. Here the situation is the same – the exports are falling, the unemployment is growing and the banks don't have enough cash so they offer 10% interest in order to gain some capital from the people. I see no good in this – I think those big companies should be left to bankrupt, the rest in not democracy but communism.
July 26th, 2009 at 4:17 PM
I agree with Protein..every country has the same problem..
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