The Opinions are my own!
The "Bail Out" will happen, the markets will recover! The drama of it all will pass! I am at least 90% sure of this!
Personally I think the banks need us more than we need them. In context you need to look back throughout history, ours, theirs, mankind's! People existed and thrived way before there was even MONEY. Believe it or not we can change from the Fed Central Bank model and prosper! We have had several iterations of what money is, from the constitutional standard of Gold and Silver to a Credit Standard based upon confidence and the lending of credit as opposed to tangible money.
Presidential candidate Ron Paul has repeatedly warned us about the folly of the Federal Reserve and paper money and from what I can tell this man appears to be telling us the truth, but are we listening??Regardless of all the political persuasions and talk there remains some underlying economical problems and these problems appear to have a global reach to them. The U.S. is not the only country taking steps to add liquidity to banks. So hang on as we work through a global recession.
Sooner or later every up has a down and visa versa and the markets reflect this via the cycles they are constantly going through. Again, regardless of politices I believe in people, which is the real value we have in each other so I know we can get through any crisis.
I am saddened by the increased losses in the employment sector during 2008 and the losses everyday people are experiencing due to the number of financial institution collapses on Wall Street and especially those happening to people who are but years away from retirement. This is the greatest tragedy. Who is going to bail them out? To this extent, the current state of affairs become more than just a theatrical affair and business as usual. There are real people getting hurt.
The way I see it the "credit" based monetary system took a long time to get it through the temple of power in Washington D.C., after all it essentially side tracked our constitution once it trumped our hard currency system which could never be controlled by a central bank. Gold is controlled by the people who possess it as opposed to credit, which is always privately controlled. Credit is made to look like money, but is not money. Wilson said it has the appearance of money and would be elastic, or something like that. Whether you agree or not as to the type of monetary system we have, we still have to deal with the reality we find our selves in and hopefully grow wiser so that mischiefs related to credit can be better regulated in the future.
Credit allows banks to lend, and sometimes recklessly (as we have just witnessed over the past 2 years with the bursting of the Real Estate Bubble and the credit meltdown) because in the final analysis credit is intangible, so theoretically there is an unlimited supply limited only by the public's willingness to borrow it at interest. It does not take a rocket scientist to realize how a system like this can be abused by politician and CEO alike and I think the evidence of such abuses are all around us.
So what to expect? That is the $64,000 question. The emergency powers needed to pass the bailout is already possessed by the Secretary of the Treasury and codified into law at 12USC95b so really the congress does not have to approve legislation to get the bail out approved via the emergency powers. You will have to read all the legislative history all the way back to the organic banking emergency of March 9, 1933 to understand the powers that were vested in the Secretary of the Treasury and the office of the President. Whether you agree with these powers or not, these special powers do in fact exisit.
One last thought and getting back to reality, if you are a HOME buyer getting in the game now is like buying depressed stocks. If you wait until better times PLEASE don't expect to get the deals that are out there today in the housing market. Like the gathering storm clouds, the storm will pass and the sun will be shinning again! If you are a SELLER and you have location working for you and have done your homework getting your house ready for this very competitive market you actually stand a very good chance that you will get your home sold.
I am hopeful that the next president will remember that there are actually real people living in the U.S.A who need a break for a change and that we would really appreciate it if the NEW powers to be in Washington could spend just a little more time trying to make the U.S.A a better place to live for the people who DON'T live on Wall Street.
When the man on Main Street is feeling good and doing good.......well them are good times for all!
Again, just my opinion.
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