Sunday, September 14, 2008
This day will obviously be remembered in the history books, with the full ramification of these event not known for years to come. But I must say that today I am proud that Misters Bernanke and Paulson had the courage to stand up to the oligarchs. Winston Churchill once said that America always does the right thing, after it tries everything else first. I am sure it was an extremely painful decision to inflict the death blow to such a venerable institution as Lehman, but I am also sure it was the right thing to do. The sooner these leveraged, poorly run businesses get taken out, the sooner we can clean out our financial system and get back on solid ground. It's obvious that a combination of greed, leverage and fraud combined to take out some of our great financial institutions, but out of the ashes, new dynamic institutions will arise. This crisis seems far from over, so I hope that our leaders will continue to allow the market to unwind without further subsidy to insolvent institutions. The business of America is business, it is not leverage buy outs and real estate transactions. Hopefully, some of these great minds will turn away from coming up with "business models" and go to work for our struggling manufacturing sector. The sooner we realize that the fraudulent "service economy" cannot be sustained, the sooner we can regain our status. This delevereraging should also serve as a warning about our national debt. We all see how margin call can be a real bitch! We must stop spending, start saving and investing into our manufacturing sector. Green technology and energy independence with other innovations may still save us. The politicians have to stop flim-flamming us by paying for tax cuts with borrowing. We will all have to tighten our belts, and be a little wiser with our money. The sooner we bury these charlatans, the sooner we can get to work to saving our country!