For The Record: Thoughts on the Bailout

Sorry for re-using a picture you’ve probably already seen, but it’s worth re-using.  Anyway, recently my friend Jason pointed me to an interesting editorial on the proper way to handle this financial crisis (and as he pointed out, spoiler = not a bailout).

Lately I’ve been thinking a lot about our economic situation. I mean really… does it make any sense to turn around and throw $750 billion at the people who ran their companies into the ground and screwed up our economy by unscrupulously approving mortgages left and right?  And does it make sense to place such a burden on the American taxpayer just to save the people that were never really able to afford their mortgages from the unfortunate experience of a foreclosure?

No, it doesn’t.

Some might call me harsh, but given my upbringing (son of frugal Cuban exiles, was taught you buy things when you have cash-in-hand) I can’t feel any sympathy for people that sign up for mortgages they can’t afford.  Knowing what you can or can’t afford is an essential life skill that should be practiced by all – NOT something that you want to leave up to a financier’s best judgement. I do, on the other hand, want to know why no one is talking about help for the American small business owner, or the 64-year-old middle class worker who just lost their 401(k) with AIG.  Why are we instead looking for the quickest way to devalue our currency just to line Wall Street’s pockets with new money to play with?

I mean shit, if the government is going burden our nation with an additional $750 billion dollar debt in order to rescue worthless corporations from bankruptcy, I think as American taxpayers we deserve executive control over those corporations.  Oh wait, that will never fly in xenophobic America – having a national bank would make us too much like the French.

He dicho.

For some more insight, check out the 25 harshest reactions to the bailout plan (via 10 Zen Monkeys).