Tuesday, September 30, 2008

BOING!!!

AND ANOTHER THING….

 

Check it out, Nancy.  You couldn’t keep your big, fat mouth shut and now the market (as predicted right here) has gained back most of its value.  I’m a little surprised it did it in a single day, but whatcha gonna do, right?  Who knows what tomorrow holds, but it’ll be a helluva lot harder to get a resuscitation order on a bill that doesn’t appear to be needed. 

 

How do you embolden the opposition that YOU created?  Why, have a market bounce, that’s how.  Now a bunch of people are looking at today’s gain that nearly erased yesterday’s loss and they’re saying “SEE?!?  WE WERE RIGHT!!  THAT’S THE WRONG PACKAGE AT THE WRONG PRICE TAG!!!”  That leaves YOU hoping for another huge drop so that you can get the bill passed.  Good for you, cheering for disaster again.  You people make me SICK!

The problem is that these gains are likely short term and though the basic, underlying fundamentals of the system are strong, there is a big, stinking, fetid, rotting hole right smack in the middle and if you listen closely you can hear the clock ticking toward a very large and uncomfortable contraction as the credit dries up and future expansion is based on cash and earnings alone.  That’s not a bad thing, mind you.  If we get back to a cash and real-earnings based economy rather than an expansion-on-credit economy growth will be solid, long lived, and wealth based.  The expansion and wealth generation will accrue to all segments of the population, not the credit-rich few who can leverage their contacts and assets into outsized returns.  Remember in the 60s and 70s when credit was expensive and hard to get?  Funny thing how history has a bad habit of acting like overly spicy food and coming back to haunt you…

 

The path forward without credit is narrow and very, very uncomfortable.  The outcome is good, but the path is bad.  You don’t want to go down that path alone.  Sure, you, Madame Big Mouth Partisan Aparatchick Speaker, have never had to break yourself of the credit-card habit and convert yourself to a cash economy, so you don’t understand what’s going to happen when you force the entire American economy to do the same.  Generally people choose that path on principal and rarely are happy when they’re forced down that path.  If people don’t choose it voluntarily, the path usually lies on the other side of a rubble strewn field known as “financial ruin”, but it leads to fundamentally sound prosperity—the kind of prosperity known in the 50s.  You know, wealth based on actual income and earnings and an honest day’s work—stuff you allege to give a shit about.  That kind of wealth and prosperity is slow, steady, cyclical, and generally predictable.  Add credit, though, and BOOM!!  Like gas on a campfire you have the expansions of the 80s and 90s with unprecedented growth…  until those chickens come home to roost.

 

You have a choice—keep the system lubricated, or welcome those chickens home.  But the short term consequence of those homeward bound chickens is very dire.  The long term benefits, though, are not so bad.  It’s a world most of us have never lived in, though.  It’ll be foreign at first, but we’ll get used to it. 

 

And you’ve got an even tougher sell to keep the system lubricated.  If only you’d kept your big, fat mouth shut and for once in your life actually ACTED like a leader, you sad, pathetic, little partisan woman.

 

Let me repeat myself from before…  “clap  clap  clap”.

3 Comments:

Blogger Little Breda said...

I think the bigest problem is the fact of the vocabulary used to describe this bail out plan is very poor. It would be better to call this a Collateral Rescue Plan or Bank Aid Program or even Government Investment Strategy. Having read this proposal, or what I could find of it, I now think that it would only be fiscally responsible for this thing to pass. The best part about the whole plan is the in the long run where presumably the Government would be able to sell these assets for a profit therefore knocking down the national debt, all be it ever so slightly.

At first I was blind but now I see.

-Little Breda

2:45 PM  
Blogger K said...

Joe,
Have you seen Dave Ramsey's plan? Let me know if you would like me to send it to you. I think it would work... only if the idiots in Washington would listen to someone who might know what they are talking about!

6:36 PM  
Blogger Brother Joe said...

Nope, haven't seen his plan, but I'm guessing it has something to do with balancing the budget and paying cash!!
Feel free to pass it along. I love Dave.

6:45 PM  

Post a Comment

Subscribe to Post Comments [Atom]

Links to this post:

Create a Link

<< Home