No Bailout = Good News?!

Perhaps I’m in the minority, but I have felt that Paulson and others following his lead were using fear to try to instigate an immediate release of taxpayer money to a system that is broken.  As business people, does that makes sense to any of you?

If you had a manager overseeing a department that it was just uncovered that their unscrupulous tactics now have your company in a hole, threaten the existence of your company, and now this CFO tells you he needs $700 billion to fix it?  What would you do?  Yeah…that’s what I thought.

I truly believe in the resilience of the American Capitalistic system.  I believe we will rebound, and learn and grow from this tragic experience…only if someone “feels” it.  No Pain/No Gain we’ve always heard around the gym.  For too long few have felt the “pain” of bad decisions, and frankly I’d like that pain to reside with those that created it.  If you have lived within your means, have not amassed huge credit debt, invested for the long-term, you’ll weather this storm, just as I will. For those that got greedy, they will now have to pay the piper, learn from their mistakes, and move on.

I do not believe that the absence of a bailout will ruin our economy.  The press has tried as I’ve indicated here for over a year, to talk us into a recession, without results. Our economy is 70% consumption based.  If we do not lock all of our money away in a vault, we will be OK.  Yes, we’re in for hard times. But perhaps that’s what America needs…a little growing and learning pains.  I’ve seen our work ethic decline over the years, and now it’s going to be those that really buckle down and improve their efficiency that will prevail.

I’m thankful for those leaders that took the courage to vote against this bill, and for Nancy Pelosi, who spoke out so passionately to defeat it.  I might ad that I am a conservative economic model believer.  I also believe in someone watching the hen house.  And that has not been done for too long.  We need to find a balance between free markets and oversight, because if there’s one thing we hopefully realize that both are needed.

Tags: bailout, bailout plan, defeated bailout plan, good news, Positive Economic News, positive news