My friends we are going to feel the effects of the bailouts this year for a very long time to come. I think I am going to quit my job and start another business and make it big enough -- there is no risk -- the government will back me up I'm sure...
There are many lessons that need to be learned from the financial crissis. One is that we have to realize there is not an endless supply of money. It was so easy for the Washington nimrods to bail out companies...$85B here, $100B there...no worries...like I always joked about in college...we have plenty of checks. But when you add up numbers with that many zeros it eventually gets to a point of no return.
Remember, it was OUR money that just bailed out these businesses...
If you were paying attention this week you no doubt had a moment when you thought all was going to end from a financial perspective. It really was that scary.
Now, are you ready? Are you sitting down? This is not over yet.
We have a coming crash that is going to make this week look like child's play. Social security. Just as with Fannie Mae and Freddie Mac, the Social Security warning bells have rung over and over, but no one has been able to deal with it due to politics and lack of courage. The amount of money that will be needed to fix Social Security will be significantly more then that poured into the bail outs this week. Can you say 80% tax rate?
I was reminded of Social Security this week when I heard something Joe Biden said. I do try not to listen to him but this one stuck. He said "Imagine if all the money that he [John McCain] wanted to put in the market were in the market today," Biden said. "Tens of thousands of elderly women would be in a worse situation than they are in today."
So this blow hard would want Government to do something and not the private market. Just like the Government did such a wonderful job overseeing the housing and financial markets...right?
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