So just a few days ago my roommate and I were talking about the upcoming bail-out for all those big banks. Now I can’t complain too much because I work at a bank and while I’m IT which makes it a little less tense for us than it is for the real finance folk, it is still a stressful time for all parties here.
[Disclaimer: I am not an economist or in any way shape or form into finance, aside from the bits and pieces I’ve picked up from work. These are simply observations and opinions and I could be way off-base and if so I invite you to respond with your opinion.]
But this whole bailing out the banks. I want to know exactly why this is such a great idea. I mean from my very basic understanding of the market is that when you risk a lot, you stand to lose a lot. So if you are going to invest in something that tanks, well that’s your own blasted loss. So why is it that we now have to “save” all these people. Our beloved fearless leader (or village idiot as I like to call him) is now proposing that we spend about $700 billion in these bail-outs which could increase to $1 trillion. What I’m wondering is where that money is coming from because if I’m correct in my understanding those would be all our tax dollars. All those dollars that couldn’t be used for health-care (God forbid we actually help the poor/middle class in this country), also can’t be used for education (who needs an educated public anyway, you should be able to afford private school and if not well you’re not worth it), oh and let’s not forget social security can’t give too much to those old geezers, they’re gonna kick the bucket soon anyway, let’s just help them along. But we can help those giant investment banks that give their executives millions of dollars in bonuses. We can help those funds for all those people investing serious money in the market. Clearly we need to help the wealthy stay wealthy. Why on earth would we let them actually take a loss? Obviously we shouldn’t just let the market bottom out and then right itself as it should in normal circumstances and let people who took big risks lose their money. What ever happened to accepting the fact that with large risk there can be large losses as well as large gains? I just find it fascinating that we can afford to put this much money to save money for those that already have but it is a really battle to try to get any money invested for regular social services. Just makes me so proud to be an American, clearly trying to get away from the class system was totally overrated.
On a more serious note, it makes me really happy that I can’t afford to save money right now because it is all going to grad school. At least at the end of that I get a degree.