Friday, November 21, 2008

Conservative Rx for Economy - No More Bailouts!!!

To my Conservative friends:

First it was the banks.... They had to have it or the entire credit markets would remain "Frozen" and the entire economy could collapse right out from under our feet!!!!

Then it was AIG.... The nations largest insurer must receive a bailout or the whole insurance industry will seize up and nobody anywhere would be able to insure a stick of furniture...

Then it was Fannie Mae and Freddie Mac - No way we can let the mortgage giants go asunder!!! Can do it, we must bail them out forthwith or else!!!

Lions and tigers and bears, oh my!!!!!

Now the U.S. Auto Giants need Uncle Sam's help with another $25 B or else!!! Or else what - We won't be able to buy an inferior product at a higher price????

And just last week, American Express became a bank so they can turn around the next day to say "Hey, Uncle Sam, we're a bank now - where's my check???"

What ever happened to free-market systems and self-responsibility??? I believe that is is downright healthy to take some companies out back, tie them to a tree and put them out of their misery..... Let 'em go bankrupt and restructure or cease to exist. The free market system should reward the good companies to flourish while the ones run poorly and foolishly, should go by the way of the eight-track tape and Vinyl records...

All of these "bailouts" were suppose to open up the credit markets and stabilize the markets.... Well as I sit here today, I look at my screen and the stock market is like a fat man who can't swim trying not to drown in the deep-end.... He comes up for a couple of quick gasps of air, but this fat bastard is going down fast!!! The Dow was hovering around the 11,000 mark in mid September when all these bailouts started.... As of right now, it closed at 7,552 - a 32% drop in 2 months and an astonishing 45% down from the 52 week high of 13,851 on December 11, 2007!!!!

Have the bailouts helped?? Some argue that it may have made the situation worse... Count me in that camp!!! Money talks folks and smart people don't put their money in a system that's broken. And man, this system is broken and very, very sick...

When you have a cancerous growth or tumor, the best course of action is always to remove it... Cut the whole damn malignant disease out... Don't treat it with a B-12 shot or some chicken-noodle soup from Aunt Bee!!! They always tell you - "feed a cold, starve a fever...") Who the hell is "they" anyway!!!! We have been feeding this disease with billion dollar bailouts and here's a newsflash - IT AINT WORKIN' PEOPLE!!!

No, the whole system is diseased and we need major surgery to cut out the bad loans, let the bad companies declare bankruptcy and restructure in order to compete with their foreign competitors and eliminate these atrocious union labor contracts that has crippled them (we'll do an article on Unions soon, I assure you).

Sometimes when you look at a house that is a wreck, it is sometimes less expensive to knock it down and start from scratch... In the short-term it is painful and hard to come to grips with the reality, but it is the right thing to do. That is what I think we need to do here with a lot of these companies and banks....

Start anew because Grandma's Rx of chicken soup and big fat Fed checks aint cuttin' it....

Just my thoughts.

GOP Mike