Why a Bailout?
Something has been bothering me and since I have this site to do so, I thought I would get it off of my chest. I think the bailout is complete bunk. The hipocricy that is running rampant in Washington right now is beyond measure and all of a sudden, the bailout is costing us more than it has cost us to create this country.
The very same politicians that have told us repeatedly that Evolution is to be taught in our schools don’t seem to believe that it should apply to anything beyond the limited scope that Darwin applied it to. Business, according to them, doesn’t evolve. Shouldn’t evolve. Why else are we bailing out the failures? Since when was anything “too big” to fail? Tell that to my friends the dinosaurs. Talk about your all time failure. An entire ecosystem upset. But, guess what, the world survived. It adapted and, yes even evolved, to what we see it as now.
Why then aren’t we letting suvival of the fittest work in our markets? Why do we insist in rescuing these companies who, through poor management, reckless spending and even more reckless lending, caused their own demise? Why, when these same companies are throwing $400,000 retreats and flying private jets to beg, are we still following through with it all?
It can’t be appeasment. It can’t be because the people demand it. We don’t. I have yet to see a poll done which resulted in a popular demand for this bailout. So why?
Political Gain. Self centered rationalizations.
They find themselves between the proverbial rock and a hard spot. If they don’t do something about the “crisis” and the markets do fail, they all stand a pretty good chance of not only losing their positions next cycle, but also actually having to cut back on spending and that means much less pork-barrelling. If they do do something about the “crisis” and the markets still fail, the same result is likely. On the other hand, if they do something about it and the “crisis” resolves itself (like it probably would if left alone) then they can claim all the publicity for it. They are the heros. And who doesn’t want to reward a hero with re-election and some leeway for a little extra pork?
I wish there were more people who wanted to hold Washington accountable. I wish there were more people who saw the market for what it is and would let these companies fail. I don’t want to pay for their lack of self regulation. I don’t want to pay for their greed.
Do You?