September 23, 2008
-- by Dave Johnson
Since I am in New York I thought I would take a subway down to Wall Street this morning. Here it is, from behind the statue of George Washington, taken about 15 minutes ago. Now I am online from a Starbucks down the street.
Thinking about this financial crisis, I have an observation. Just a week ago there really wasn't that big of a problem as far as the Financial Elite were concerned. I mean, us out there in the hinterlands were feeling pain and trying to tell the Elite to pay attention. So we were "whiners." But the "fundamentals of the economy were found."
Now it is just ONE WEEK later and the entire world has collapsed and the Congress is working on a package to send ALL THE REST OF THE MONEY that the country can possibly borrow to Wall Street.
What happened? I think what happened is that something affected THEM, so it became IMPORTANT. This financial crisis is important because it affects the financial elite. And so we are presented with a "shut up and pay up" oackage to bail them out. Because THEY are important and we are NOT important, so the things that make them uncomfortable MUST be solved immediately.
But who is being asked to pay? We are. Not them, us. Have you once heard from Washington a suggestion that the rich and corporations start paying taxes again, to cover the costs of this massive bailout? Of course not.
They say that credit is drying up. My question is, according to the law of supply and demand is credit really drying up, or is the PRICE of credit rising to meet the cost of covering the risks of loaning to these clucks who screwed up the economy.
Posted by Dave Johnson at September 23, 2008 8:02 AM
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