Originally published over at my column at NolanChart.com:
It has been a while since I have written an article for my column; with all my days spent blogging about the political happenings post-Obama election, I just have not had the time to sit here and hammer out a good column. I have not forgotten to write, I just have not had the time to sit down and gather my thoughts and put my opinion to the current matters.
President Barack Obama has not been in the White House for 100 days yet and already it seems that our Country is headed for either one of two things; either economic disaster or outright European socialism. Although I tend to believe that one will follow the other, I do firmly believe that capitalism is in grave danger. I also believe that our Nation is going to be one that is going to become a society that rewards failure.
This applies in the area of the home mortgages; since when do we bail out people who have gotten in over their heads in debt? To be clear, I do understand that there were those who were victimized, and those who did this, to innocent people, should be prosecuted. However, those who knowingly got into mortgages that they knew they would not normally be able to afford, I have zero pity for. You make a stupid mistake you pay the consequences. That is how a free and democratic society works. You have to responsibility for your own actions.
Let me give you a personal example. When I was 19 years old, Discover Card sent me an application for a Credit Card. My parents came on as co-signers. Between the time that I first received that card and the time in 2004, when I finally filed for bankruptcy, I was over 14K in debt. Conversely it was over 18K of debt with the new truck that I bought, that I could not really afford; however because I had a job, I could make payments. One day the unthinkable happened, I lost my job; the gravy train stopped and threw me off. Those gravy trains never were known for their cordialness. After doing the obligatory and quite painful grunt and skid across the debt parking lot. I decided I had better go see a bankruptcy lawyer.
What does this have to do with what is happening now in the United States Government? It has quite a bit to do with it actually. Did the United States Government come in and offer to pay off my debt? No. Did the United States Government offer to come in and give me any kind of relief on my truck payments? Nope! I ended up losing that truck someone else owns it now. In other words, I was not rewarded for making stupid decisions, like going over my head in debt. Which by the way, was my own fault, I am the one that charged items on my discover card and got over my head in all that debt not anyone else, not that American taxpayers, but me.
Another way that the United States Government is rewarding failure is by losing their ever-loving minds over bonuses that were contractually awarded to employees of a company. Now I understand the reasons why people are upset about the bonuses. The problem is, the people on the left, or the Democrats are looking at this from a rather idiotic point of view. If the Democrats in Congress are so mad about these bonuses, then why in the heck did they vote to prop up these banks in the first place? The bonuses were a drop in the bucket to what we spent to take ownership in these companies. Why nationalize a company and then gripe about a bonus? It makes zero sense to me.
Again, even bailing out these companies in the first place is rewarding companies for failure. Sorry, I do not buy the notion of a business being too big to fail, that is simply stupid political double talk for a nationalization argument.
Let me give you another personal example of why I think this propping up a business is just simply stupid and why it teaches that it is okay to have a bad business model. I used to run a small electronics out of my house here. I would never buy more than one or two items at the most. I would always tell my customers, you want something, you pay up front, and I will order the item. I would get the money and order the item, and whatever I had left over, I kept for profit. That is called responsible business practices. However, what if I went out, got a loan for say $500.000, and bought a bunch of inventory and then the market fell out in the electronics business or what if I just did not bother to advertise? I would be stuck with a bill for the loan and a bunch of inventory that I could not move. Now would it fair for me to want the United States Government to bail me out of that situation? I think not. Nevertheless, that is what the Government is doing; they are essentially saying that some businesses are just too big to fail.
Not only this, but we are bailing these banks out with money that we do not even have. We are using money that we are borrowing from china, money that is not even ours. What we do not borrow from China, we are printing ourselves, which will devalue the dollar. It is as the title of this column says a case of psychos that are running the nuthouse.