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Pins and Needles
Posted under My Observations by Mike
Watching what’s happening in Washington in the past week has gotten me on pins and needles. I’ve been watching the circus as intently as most Americans, probably a little more than others.
I work for a bank, a bank in California. And yes, it’s not a pretty sight right now. I keep looking around as other banks around us fail.
The bank I work for is on the FDIC’s list of troubled banks. But then again, what bank isn’t lately. I’ve watched reductions of staff (layoffs), hiring freezes, spending cuts and a general work slow downs.
And as a Republican I’ve been torn. On one hand I believe in the patriotic, free market democracy that this country was founded on. On the other hand I’m wishing to see businesses (my bank) survive this latest “crisis.” I know selfish.
The government should not be in the business of buying bad loans. Supporting business directly as opposed to support through regulation is wrong. This just smacks too closely to a socialist/Bolshevik answer. When governments directly support businesses that’ve made bad decisions, we’ve begun to slide that slippery slope.
My father taught me that when you dig yourself a hole, grab a shovel and start digging yourself out. The same is true of institutions that have dug themselves deep in the hole.
I’m not naïve to think that it’s just that simple. I realize that we live in a global economy and that what happens here affects others around the world. I also know that something will happen in Washington, soon or later to intervene.
After the House of Representatives shot down the “bipartisan” bill today, I continue to sit and wait…
on pins and needles.
I sit in the same boat. I’m not worried for my job, real hard to get laid off from a SAHD gig, but if the wife’s firm hits the skids we are in real doo doo.
I liked Jim Cramer’s idea of upping the FDIC insurance to $1 million, temporarily, to encourage people to leave their money in the banks rather than putting it into T-bills. Thought being if banks have the money, they would be more willing to lend money.
CNBC has been on all day.
Russs last blog post..Sorry, by Russ
Oh man, I was going to blog about this. I feel the same way. I don’t think our government should be bailing them out, but I don’t want to see our economy sink even more either. My IRA is worth less now than 10 years ago. I was better off hiding my cash under my mattress.
Daddy Forevers last blog post..My Destiny
I’m kind of glad I’m a slacker and don’t have a 401k right now. And I’m pretty sure Big Box Store isn’t going out of business any time soon.
That said, That Canadian Boy I Married is having a hard time getting people approve for loans for heating and/or cooling systems because no one wants to lend at them moment.
I have no idea how I feel about the bailout, other than utterly confused. I don’t quite understand it, in spite of reading and listening to anything I can get my hands on. I’m not a stupid person but it’s confusing the heck out of me.
Major Bedheads last blog post..This Is My Brain On Water
I too am torn about how this situation should be handled. However I was not broken hearted to see yesterday’s socailism bill voted down.
Weaselmommas last blog post..6 Random Things
I don’t think it’s American’s fault for these big companies getting in trouble. We’re a country that’s based on ‘the strongest survive’ in the business world. Why is that different now?
I agree- they should have to shovel theirselves back out. And maybe those CEOs who were getting millions of dollars in bonuses should have to give them back.
the cubicle’s backporchs last blog post..Jennifer Trivia Answers
I totally agree with you, 100%. I am so mad that the banks were allowed to dig themselves into this hole and on one hand I think - just let it go. They got themselves into it. But I am not very hip to the ways of our economic system and if letting it go means the disaster that everyone says it does, then I guess we had all better grab a pail and start bailing. I have a lot of internal conflict over it too. One thing I’m not conflicted about is hoping you come out the other side with your job still intact!!
HeatherPrides last blog post..A Pocketful of Wishes
Mike, my dad and your dad seem to have instilled the same values…values that I also hold near and dear. I’m on pins and needles too, and I’m so torn. Today, Neal Cavuto interviewed former NYSE Chairman Dick Grasso and Home Depot co-founder Ken Langone, and I was really shocked to hear them both say they’re in favor of the Bill. I really expected to of the “kings of capitalism” to be against it, and it has my head spinning even more.
Working in a bank must be fraught with stress right now. I hope you’re getting some time to let your brain rest.
Tricias last blog post..Fair. What’s That?
I’m really torn by this as well. Personally, think the plan, as crafted by the president, we just an attempt to throw money down a rat hole. Buying the bad debt to just to make it go away just doesn’t seem like good fiscal policy. Some of that debt may turn out to be fine…why not just insure it?
I have a tough time feeling bad for the banks. When we bought this house 3 years ago, I had to beg the banks to show me a fixed rate mortgage. Several of them went through the effort of preparing an ARM for us, even though that’s not what we wanted and had specifically asked not to be offered.
Why not find the fair market value for this debt and then offer it to the free market?
OhCaptains last blog post..Spending the day with my oldest daughter
Me, too. It’s so scary! I will vote, too, of course, but I don’t know that that the person who wins the election will have any impact on this economic crisis we are in. I’m afraid the worst has yet to come.
Half-Past Kissin’ Times last blog post..Weekly Winners
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