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Getting tough on finance

OK, right about now someone needs to slap the stock market silly. I don't mean a figurative slap like the chairman of the Federal Reserve proposing to cut interest rates. (That obviously did not work, anyway.) I mean someone going to the floor of the New York Stock Exchange and slapping brokers and investors. I mean come ON people, how long is this going to go on? You're panicking. STOP IT!

No, I'm not a financial analyst, nor do I play one on TV, but... I know ridiculous when I see it.



( 1 comment — Leave a comment )
Oct. 8th, 2008 01:38 am (UTC)
The whole thing is stupid. And the reason it is stupid is the same as the reason that the 1929 crash was stupid: easy lending and improved technology have made short term speculation too easy, attracting people to the market who are easily panicked and easily moved by emotional rather than rational causes. Consequently the entire market is driven by lemmings. If they decide to jump off a cliff into the sea, a huge percentage of them will do so without quetioning or thinking about it. Then you add in the computerized programs, that were written to predict short term trends and act on them. They aren't tuned for major slides like this, and tend to implode, dumping everything they can and adding to the panic.

Just think about this in line with the Bush administration's desires a few years ago to convert Social Security into "individual investment accounts" so that all that reserve cash could be poured into the stock market. Supposedly it was going to earn more than it ever could as it was presently designed. Imagine if they had been allowed to do that? Imagine those corporate execs bailing out with golden parachutes inflated by billions and billions of Social Security dollars, while the retirees and would-be retirees get... nothing. A negative gain. My mate, who has been relying on Fidelity to manage his retirement funds, has an on paper loss this year alone of $40,000. That was before today's idiocy. Now $40,000 is nothing to George Bush, but to us it's really a lot of money we can't afford to lose. Does George Bush care? I say hell no. Does John McCain care? Hell no again. Does Barack Obama care? Frankly, I don't think so.

The time for a bloody revolt against these wealthy politicians and corporate execs is drawing closer. If they don't see the writing on the wall soon, I'm afraid some of them are in for a very unpleasant surprise. Of course none of them have studied history, so they know nothing about what happened to the Romanovs or Louis XVI but it's out there waiting for them anyway.

Now we're getting a lot of cries for the Fed to cut interest rates yet again. This will fix nothing. It reduces the already infinitesimal gains on safer investments, encourages people and corporations to borrow even MORE beyond their means, and at best postpones a crisis for only a short time. Credit has collapsed because it needed to collapse. Nearly everyone in the US had already borrowed too much, not just individuals though god knows they are guilty, but corporations and the government itself too. There is nothing more to borrow. It had to stop. Even the so-called bailout has to rely on borrowing all that money somewhere to make good on all that bad debt. It's called "Robbing Peter to Pay Paul" and it doesn't work, it never has, it never will, and it's time for a lot of idiots to wake up to reality.
( 1 comment — Leave a comment )

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