John La Grou on the Bailout

kinnon —  September 24, 2008 — 2 Comments

Serial entrepreneur (which is a good thing!) and very smart friend of mine (though being my friend may actually disprove that statement) John La Grou says this aboutThe Bailout“,

Let me get this straight… a small community of Wall Street executives has spent the last few years making tens of billions of dollars in salaries and bonuses based solely on their ability to game and rig the financial system, and now we’re essentially being asked to pay for their ill-gotten wealth.

Our political leaders (Fed, Treasury, Exec, etc.) have been saying for three years that our economy is on “sure footing.” In the words of Henry Paulson over the last 18 months, the housing crisis “will be contained to sub-prime.” Now, all of a sudden, he says we’re facing “global economic catastrophe.”

And you’re asking me to trust these men with $700B of public cash? Without oversight? Without restriction? Without penalties for failures?

Go read the entire post and then read John’s newest. And, I confess, I was for the Bailout before I was against it. (I’d make a good politician, dontcha think?)

You also might want to read the iMonk’s take on the “American Economic Crisis.”

kinnon

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A television editor, writer & director since 1978. A Christian since 1982. More than a little frustrated with the Church in the West since late in the last millennium.

2 responses to John La Grou on the Bailout

  1. Heavy Sigh …

    that bailout is the worst idea in recorded history.

    I’m not saying that any bailout is a bad idea, just the current plan is terrible. Here’s the thing … would you sign up to hand out large amounts of money with no oversight? Give over huge portions of our checks & balances? Hmmm … not so much.

    Senator Bernie Sanders of Vermont has a better idea … a poll tax on the richest 5% (i.e. those can afford it and those who benefitted from the financial deregulation of the last 10 years). According to his plan, such a tax would raise about 50% of the funds necessary for a bailout and would avoid having the rest of us pay twice for our mortgages (once when we pay the bank and once when we pay our taxes). link to sanders.senate.gov But I’m not bitter or anything.

    Reply
  2. Gosh it is interesting to watch this from the other side of the Pacific. Rupert Murdoch’s comments were fascinating, “I’m philosophically against it but they have to do it!”

    It seems to be that whether it happens or not, this could well be an acknowledged key historical event in the shift of financial power away from the US to other places in the world by the end of the century. The dwindling of the empire militarily, politically and now financially!

    In short, why should the world trust the US any longer? Hmmmm. Change is here to stay!

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