Economy Collapses: Every Man for Himself
By Eddie Griffin, BASG
What in the world is going on? It’s anarchy!
Robber Barons stick up the federal piggy bank. Homeowners are being thrown out on the streets, houses being foreclosed on by mortgage companies, and mortgage companies are going bankrupt. It is a mad cycle of looting.
And, what do we do?
The government turns around and gives AIG $85 billion dollars to keep the financial markets from totally collapsing. With that same money, the government could have saved thousands of homeowners and stabilized the economy.
But no! That would have been too much like socialism. Bailing out poor homeowners would have been an unwarranted federal infringement upon the Free Market system.
So, what do we call the nationalization of AIG, Fannie Mae, and Freddie Mac?
I tell you what to call it. Call it ANARCHY.
The economy is fundamentally sound. Who said that? If the economy were fundamentally sound on yesterday, how did it suddenly become an overnight crisis? Obviously, somebody didn’t know what they were talking about.
One day chicken, next day feathers and I am supposed to believe that all was well on yesterday.
I watched at homeowners boarded up their houses and fled Hurricane Ike, hoping their homes would be safe against the storm. And, I remember some homeowners in New Orleans standing by their windows, ready to shoot any looter that came along and threatened their property. But when the mortgage companies and banker come along with eviction papers, it’s a different story. We will protect our homes to the death, but when the Robber Barons send out the constable out to do their dirty work, we capitulate like a helpless baby.
Wall Street got drunk? Who said that?
Wall Street got drunk only because King George II opened up the winery. This is what happen when drinking with friends, and the friend lets drunkard take control of the wheel.
But they also have erred through wine, and through strong drink are out of the way; the priest and the prophet have erred through strong drink, they are swallowed up of wine, they are out of the way through strong drink; they err in vision, they stumble in judgment. For all tables are full of vomit and filthiness, so that there is no place clean. (Isaiah 28:7-8)
All Tables are Full of Vomit
"All investors know they are taking a chance when buying stocks or mutual funds, but now one money market -- the safest of all stock investments -- has done something once unthinkable and actually lost money… The Reserve Fund's Primary Fund, the very first money market mutual fund ever established, had its value fall below $1 this week, thanks to investments in now-bankrupt Lehman Brothers… Falling below $1 is called “breaking the buck." ("First Stocks, Now Money Markets?" by Scott Mayerowitz, ABC NEWS Business Unit)
Drunk and Delusional
“The fundamental structure of money market funds remains sound. These funds are subject to strict regulation governing credit quality, liquidity, diversification and transparency,” the Investment Company Institute, the industry's trade association, said Wednesday.
Fundamentally sound? Where have I heard that song before? The same drunkards gulping from the keg are the same at the till.
And, that little nest egg we set aside for our retirement, or send a child to college, or weather economic hard times now has a crack in it, and the yoke of our investment is seeping out.
All I can say is: Every man for himself.
In the meantime, I am locking my doors, boarding up my windows, and standing watch with my shotgun, ready for the first invader who tries to come in and take my stuff. I’m putting a sign out for the constable that says, “Warning: Bad Dog”.