Needed in 2009: More Failure

Real Failure is crucial, no neo failure, or Pseudo Failure

Your first commenter shows they know little about history and even less about economics. I will try to be short in my rebuttal.

Firstly, the market crash of ’29 was engineered by large banks in order to cause a capitol crunch which allowed the larger banks to buy out most of the small unassociated banks, and make the FED (A private company) even more powerful.

Wars and economics are by there very nature different animals with different rules and have a winner talk all outcome (usually), so applying the tactics and possible lessons of economics and business to war is simply a ludicrous analogy; similar to comparing skydiving to needlepoint.

Also, ” If we fail I am not sure people will want to give up there habit of eating?” Really, if GM fails we will all stop eating? Look my business will get hurt and I will have to cut costs, but I will look for opportunity not doomsday.

Remember, The ultimate result of shielding men from the effects of folly is to fill the world with fools.

Finally, and there is where you really show ignorance (in the same way those deluded people who think not keeping score keeps their kids from knowing they lost the game), It was not Vegas on wall street and stop watch Keith (far from superman) Oberman and MSNBC.

Simply put, and factually, Clinton pushed the home ownership idea on the country. Do you remember? I sure do! He did this by strongly suggesting to Fannie Mae and Freddie Mac, to give sub prime notes out. Sub-Prime means to questionable borrowers. NOT the interest on the note.

Since Mae and Mac, had pseudo government status, others (like Lehman Bros.) bought the notes being strongly encouraged to do so by the Like of Rubin (clinton’s sec of treas. Who after leaving the treas. Made 115 million at citigroup), and who lead the way on repealing the Glass-Steagall act, which prevented commercial banks from dabbling in wall street.

What you must understand is someone had to buy those ailing sub-prime notes to infuse money into Mae and Mac. So the repeal was organized, and then the nods and winks were given.

So you see once again a pseudo like entity causes the actual entity to look bad. Neo Con GW makes real conservatives look bad, even though he is not in fact a conservative. Pseudo free market enterprises like Mae and Mac make the Free Market system look unworkable.

However if we simply kept people in the government that have the same or less knowledge of economics and business as you do, we would be just fine. Hey George, say hi to Jeb for me.

D of CO @ Jan 05, 2009 01:03:42 AM

No protectionism, pleas

P Demski states that US companies should only have to compete with other US companies. That's absurd, especially in this climate. The Smoot-Hartley bill which imposed massive tariffs on foreign products in the 30's is considered to have greatly accelerated the depression. Taking choices away from the consumer is never good.

The other thing missed here is that we borrow money from all these countries so that we can buy goods. What happens when we tell them we want to borrow money but they can't sell their products here?

Steve of OH @ Jan 04, 2009 09:06:03 AM

Government Failure

Seems to me the Government, Congress, Senate, Federal Banking Regulators, the Judicial branches are all about to learn what it is to fail.

Anyway you look at it, we all get to go through whatever is ahead of us. Personally, I am just d*** glad I live in the United States of America. As the wise old Owl once said, you can fix your body with cosmetic surgeries (money to industries, financial, manufacturing, and energy). You can take it in, dole it out, and take it in again. (taxes) But there isn't one among us that can fix "Stupid".

So lets measure twice and cut once. I am getting tired of dumb guys from Harvard, MIT or where ever else they were taught, then claimed to know on their Resume's. The last thing we need is one more guy that is "All hat and no cattle" guiding Americas' prosperity.

How do I start a bank? Anyone know? LoL...I need a leg up here...

Tom in San Diego of CA @ Jan 04, 2009 00:42:31 AM

Apology to congressional stooges

PS. If there are any stooges reading this, I am sorry if you take offense at being called a stooge for having been snookered by Paulson & Bernanke. They scared the bejeezus out of a lot of people in September with their "sky is falling" routine. If you would only now rescind the second half of the TARP, you'll become official 'former stooges' in my book. With love, Dan in MN.

Dan of MN @ Jan 01, 2009 17:37:51 PM

No More Bailouts

P.Demski of OH brings up a good point that we should not applaud US companies failing when their foreign competition is aided by subsidies and/or slave labor. On the other hand, most of the bailouts of US financial companies have actually aided foreign holders of US debt - especially mortgage debt. Paulson & Bernanke were too chicken to do otherwise. When the US government explicitly guaranteed Fannie & Freddie mortgage-backed securities and backstopped most of Citi's mortgage-related debt, they were serving to indemnify against risk the foreign holders of that US mortgage debt. We should have let all holders of US mortgage debt - both foreign & domestic - take their losses. As it is, the losses are being foisted upon US taxpayers & future generations by additional federal debt and devaluation of the dollar by the wanton creation of new fiat dollars. Most of the damage - although yet undetermined in scale - has aleady been done by making the US taxpayer a co-signer on trillions of dollars' worth of obligations. Nevertheless, the second half of the TARP should still be rescinded. Better to limit the insane behavior to that which has already been perpetrated by Bernanke, Paulson and their stooges in congress.

Dan of MN @ Jan 01, 2009 17:32:52 PM

Competition of Failure

U.S. companies should only have to compete with each other not foreign, state-sublidized slave factories whose only U.S. import is Dollars.

U.S. markets and manufacturing should be protected as a resource of national security and sovereignty and any so-called bailout should be considered recompense for our government's failures in the past to put U.S. citizens ahead of greedy corporate chiefs.

Want to see a bailout? Wait until our government forgives all taxes on off-shore cash gleened from hardworking U.S. taxpayers by american firms with factories in foreign countries.

Thank you.

P.DEMSKI of OH @ Jan 01, 2009 11:08:52 AM

US ENTREPRENEURIAL CULTURE

The citizens of the US are largely amongst the most enterprising in the world.

In order to push back the ongoing flood waters of insolvency in virtually all corporate sectors, what government should without hesitation or doubt and as a top priority be doing immediately is rapidly introducing a new well funded Citizens Foundation and Assistance Unit to back, encourage, advise, train with minimal red tape enterprising individuals who have potentially good ideas and mainly untapped talent in the corporate sector, who would jump at the opportunity to create new initially small businesses.

A billion or two may not go far in keeping the banking and auto industry alive but not necessarily kicking, but would most certainly go a long way towards growing thousands and thousands of new seeds as our Forefathers did in establishing the great nation we became, with dynamism, foresight, sheer hard work, and total commitment to succeeding despite all odds, for our great country and for our great people.

The Unit should not favor particular areas. It must back big time the most important component, our fellow proud and courageous American brethren. It's time for everyone of us to roll up our shirtsleeves, look the current situation straight in the eye, disregard fear or reservations and go for it positively and fearlessly and successfully in simplicity not sophistication.

Some of the tens and perhaps hundreds of thousands of new seeds will fail, some will grow steadily and others become the foundation of great corporations which will get our fellow Americans back to work and prosperity and the task of rebuilding our economy, our great country.

It must be accompanied with a fanfare of public relations and advertising coast to coast, from TV to massive billboards like never before, five or $10 thousand per project approved could well turn our country's fortunes surprisingly around, and set an example to the Global economy and nations of the world, that with patience and perseverance anything can be achieved. This comment must be placed in the hands of our President and all members of government including his Economic Team.

GLOBAL1ADVISORY of NY @ Jan 01, 2009 08:34:24 AM

Speaking of failure

I fail to see the virtue of failure. Otherwise, the Detroit Lions football team would be celebrated instead of made the laughing stock of the football world. And their coach would have been rewarded with a big raise instead of being fired.

HillbillyBill of TN @ Jan 01, 2009 06:17:07 AM