From Stealthmode Partners – Francine Hardaway’s Blog

by

Today is the first day of the rest of our lives. Americans on both sides of the political fence should know that the bailout of Fannie and Freddie means things will never be the same. Never mind the markets, which will gyrate up first (ah, problem solved) and then come back to reality (what are our Treasury bonds going to be worth). I’m talking real life. Beyond this euphoric week, when once again the markets will be high on financial cocaine. And then have to deal with coming down, which will probably include the merger of our automakers and the loss of more jobs.

Americans, you cannot have any more. There isn’t any more left. You spent it all. Americans especially Baby Boomers, have never been savers. Maybe it is the influence of their Depression-era parents, against whom they wanted to rebel. Boomers thought it was not worth while to save when you could invest and make more money.

A generation of financial planners underscored that philosophy, telling us that the stock market has always performed better than savings, and that the equity in our houses was a form of savings. And then, of course, things got even worse in the last ten years, what with the ability to day trade online and refinance the equity OUT of houses. Disintermediated, we have our own power to speculate.

So now, although we argue against socialized medicine, we hsve condoned socialized finance. The government has literally taken over the free markets.

This is horrible, but also laughable. The Republicans, notorious fiscal conservatives engineered the government takeover. And why not? For the last eight years they have been looking away from the problem. There are no other solutions.

But they are not the only ones to blame, because most of these problems were a long time in developing. And we can waste a lot of time laying blame rather than moving to solve the problem

Mort Zuckerman, conservative owner of The New York Daily News, put it best this morning on Mornig Joe. when he said the American people were going to have to accept a forced form of savings: increased taxes to pay for this bailout and all the others. He also said that neither candidate can afford to tell the truth about the situation we are in now, although he believes the American people know something is wrong.

So here’s my advice to you: vote for the first guy who tells you it will be necessary to raise taxes for a while.
You can’t get around it, so you might as well go for the guy who gives it to you straight. That will probably be Obama.

Younger people, watch what we did and do the opposite. We destroyed your planet and borrowed you into eternal debt. Do you know what “change” really means? Taxes. You will pay them, but if I were you, I’d also start to squirrel money away in a sock. Reduce, re-use, reycle. It will save the planet and probably your finances as well.

Advertisements