Physician -- Heal Thyself

t would seem that the government is once again pursuing blunders, and is still playing "Let's save the bank". How can I say that on the day the Fed siezed WAMU, for a quick sale to JP Morgan Chase? It is the bailout plan, and it has a HUGE flaw.

First, and most important is the US is standing up to try to help resolve a GLOBAL credit crisis. That is to say, the US is part of the problem, and not the entire problem. And, the US is getting limited support from other countires to help resolve it. Yes, I think there is some European support, and maybe a few others, but nodody else is digging deep into taxpayers pockets to fix this so called "banking crisis". And, I am beginning to think it is just "so called".
Why? Well, let's start with acquisitions. If things were so bad, would JP Morgan Chase have money to absorb Bear Stearns and Lehmann Brothers in the same year? Would Bank of America be in a position to pick up Countrywide, and spend $50 Billion for Merril Lynch? Ok, these may be excellent investments for them, so I am excited for their prospects. But the cost was too high. It cost jobs, savings, and heartache for countless people. Just a casualty of an acquisition? Maybe, but my heart goes out to those people more than I can mention here.

So, what is the real goal of this huge government bailout anyway?

Get Don's perspective on the bank bailout plan here.

by The Freshman |  09/26/08