The utter stupidity of this financial crisis

(Be careful if you dare to read this. I am really ticked off.)

So let me get this straight. Over the past two years, the largest financial institutions in the world have created schemes that were so complex that only a few people could understand them. These schemes were built on a faulty and risky premise that prices in the housing market would go up for ever. They were aimed at giving housing loans to those that should not have even received consideration based on their past stewardship of their finances. These really risky loans were then packages up and spread around to all sorts of banks and financial institutions at a significant markup - - - and huge bonuses for the executives involved. Then, when the people that should not have qualified for the loans in the first place defaulted on their loans when housing values tanked, the banks that held the loans found they had little or no value any longer. The banks took on high risk and it turned out to be a very bad bet. Their short term money making schemes failed and there would be a price to be paid. Logically, those that made the bad bets should lose their business and their elevated standard of living.

But, no, wait! Our STUPID government leaders decided that the free enterprise system is no longer valid. They decide that instead of letting the natural consequences for absolute business foolishness take effect, they would bail out the foolish! No failures based on poor performance. No, instead they make me and you pay for the saving of poorly run businesses - - -to the tune of $700 billion dollars. And so there is no consequence for being a financial moron, as long as your company is well connected and well known. It gets better! The government doesn't really have the money! So either taxes will have to increase or we will have to go into greater national debt!

And just wait, this is only the first domino! As long as we are bailing out the financial industry, thre are other poorly run industries out there as well. Who's next?! How about several hundred billion for the auto industry? How about the airlines? Let's bail them out too! A bailout sets a very bad precedent for future foolishness.

My solution? Let bad companies fail and strip their leadership of any personal fortunes they gained. Yes, there would be a lot of short term pain. Maybe even 1929 type pain. But it would be short term. Companies that were wise in their decisions would rise to the top and assume the business that the foolish companies lost. In the long term, the market would correct itself and we would be better for it. New laws would follow that would protect the average American and provide new regulation for future business transactions.

That's all I have to say about that.

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Wealth gained hastily will dwindle,but whoever gathers little by little will increase it.
---Proverbs 13:11