Image via Wikipedia Reports of financial giants like Lehman Brothers filing bankruptcy while others are being gobbled up by their competitors i.e. Merrill Lynch being bought by Bank of America have caused the international stock markets to fall and the US Market is sure to follow suit. It’s almost like a feeding frenzy amongst the sharks. The US Federal Government is picking and choosing which giants to support and which to let fall.
I guess the forest needed thinning in their view.
Reporters would like us to believe the entire cause of these bad times is the sub-prime mortgage lending that went on over the past 10 years. They would like to blame the government for the lack of overview in the investment world, but when it comes down to saving souls, no one is even looking at the homeowner, the mortgage holder — those people who have no choice but to default on their loans because of a tightening credit market. It seems that they cannot give credence to the simple solution that giving these people a way to turn their mortgage around and keep their home would stave off this headlong rush into economic disaster.
It’s pretty apparent that the overriding fear by investors is fueling the very thing that they are afraid of.
Government is not helping any. They proclaim to be taking the 30,000 foot view when instead they need to be down in the ditches where the root of the problem lies.
They wonder that the polls put McCain and O’Bama in such a tight race, but look at what’s happening. We have bank after bank failing, unemployment rising and businesses failing left and right. Prices are rising and there’s no credit for the average credit seeker. And it’s all linked to the stock market where investors whisper gloom and doom among themselves.
If the American people were confident in some sector – either government or banking, there would not be this overriding panic. But our Congress cannot even agree on the simplest of things. This Democratic majority House and Senate was supposed to right all these wrongs; pass legislation that would get America back on track to a balanced budget and economic prosperity, but the only legislation they’ve managed to pass was the increase in minimum wage. What good is that going to do when there are no jobs?
Is it any wonder that Americans don’t know which way to look for salvation?
You can’t plow a straight furrow if your mules are pulling in different directions.
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It’s really amazing to see this happening. You made a good point when you said “…but the only legislation they’ve managed to pass was the increase in minimum wage. What good is that going to do when there are no jobs?” Don’t you just love how the companies tried to blame the past on their current problems? 10 years ago the economy wasn’t as bad as it is now.
It’s all over the news and shows that United State is at it’s worse stage. i think the government temporarily bailed out the mortgage giant company Freddie Mac and Fannie Mae to save them from collapsing…and homeowners were forced to hand back the keys to their homes it doesn’t solve the problem in my perspective what about the taxpayers? that means more homeless people in the street, i think the people are more important than bailing out shareholders and management.
This post is especially apt as I read it Monday afternoon when the market has fallen almost 500 points! You are right. No one seems to know what to do and no one wants to take responsibility.
I dont think anyone institution can take responsibility for this. The fact remains that the banks could just not foresee this crisis. In retrospect it is easy to blame them, but the best financial experts could not predict this. Even one year back no one could have said that Lehman brothers would go bust.
But that doesnt absolve the govt of responsibility. This is upon us and the govt has to act. You have rightly said that the govt needs to at least manage expectations even if it cant do something tangible.
[...] Financial Giants Falling Like Flies [...]
@iris — this has been going on longer than the bail out of those two giants — that is just another example of how the government chose to help the big guys while ignoring the plight of the little ones.
@lvs — no I never said it was the fault of any one institution; it’s a combination of lack of oversight on these huge brokerage firms that have proven time and time again that they look for ways to “lie, cheat and steal” from the people so that the rich can get richer. Now the rich are screaming because their false wealth is evaporating and it’s the little guy who, by the sweat of his brow will pull us all out of the muck.