Sep 30 2008

Bring Back the Sunshine…Please!

Published by at 9:01 pm under Global Economy,US Economy

“If you are going through hell, keep going.” – Winston Churchill

 

As I have mentioned in previous posts, I am the type of person that prefers to look at the bright side of most situations.  This is not to suggest that I don’t see the challenges, but I normally won’t let obstacles or setbacks derail what I am planning or working towards.  Throughout my life I have always looked forward to a better future with more opportunities for myself and my family.  Now for the first time, I am beginning to wonder if I will be able to maintain the positive momentum that I have enjoyed for so long.  This forces me to consider that many of us have been very fortunate to live in relatively stable societies where we can take career and financial success for granted.  Our parents and grandparents dealt with The Great Depression, world wars and the Cuban Missile Crisis.  For many of us born over the past fifty years, 9/11 was the first major event that forced us to pause and recognize how vulnerable global stability truly is.

 

Suddenly it feels like every week brings more disturbing news and I am beginning to feel like the whole world has just entered a dark tunnel with no obvious opening at the other end.  This begs the question – when should we expect the global economic environment to get better?  I don’t have any inside information here, but my gut tells me that collectively we are still trying to figure out how bad it really is.  Until we do, we can’t expect to know how long before it gets better.

 

It baffles me somewhat that Henry Paulson and Ben Bernanke are convinced that $700 billion (plus $85 billion for AIG) will be enough to fix this massive financial disaster.  According to Stephen Lendman of the Baltimore Chronicle & Sentinal, “A $700 billion bailout (called the Emergency Economic Stabilization Act of 2008 – EESA) is just a down payment.  Trillions will be needed in the end.  Other nations contributing to help.  The problems are deeper and more intractable than anyone expected.  Before this ends, unimaginable amounts of capital will be written off.  Too much to even contemplate.  Bad investments contaminating good ones.  Threatening world financial structures with paralysis.  Severe economic damage to their economies as a result.”  Hopefully it isn’t quite this bad, but we know it isn’t good!

 

I certainly don’t like the idea of bailing out the greedy and foolish executives on Wall Street that were responsible for this mounting financial disaster, but I definitely don’t want to experience first hand what it feels like to live through a great depression either.  For this reason, I hope Congress passes the bailout and it works as well as Mssrs. Paulson and Bernanke have promised it will!

One response so far

One Response to “Bring Back the Sunshine…Please!”

  1. Semeleon 28 Oct 2008 at 11:22 pm

    Well said.

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