Fixing The Financials
September 15th, 2008 categories: Rants & Riffs
- Koolau Mountains behind Keahi’s home.
At last check the stock market was down about 500 points today. In the short-term the bankruptcy of Lehman Brothers and the sale of Merrill Lynch are examples of what we have to go through to stabilize our financial markets. I am very sorry for the hits that retirees are taking in their retirement accounts, but having the government bail them out could have prolonged the overall pain that is inflicted on the economy.
Having gone through the savings and loan melt down in the 80’s, decisive action led to companies on the edge being closed and liquidated. The Resolution Trust Corporation (RTC) took approximately 6 years to close, consolidate and liquidate institutions that had been taken over. I am convinced that the empowerment and decisiveness of the RTC allowed the US economy to rebound and helped create the abundance of the late 1980’s. Compare this with similar issues faced in Japanese financial markets and you will see that Japanese Government intervention created a recovery period that took near 15 years. Can we afford to prolong this situation? I say no!
The sooner we deal with the issues on our plate, the sooner we will be able to get our economy back on track! Remember, every economic environment offers opportunity, take your eyes off of the woe and look for the way you can benefit. Think about it!
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Great post!
Lehman’s drama and the others mentioned here ended up taking it down a little over 500 points at market close! OMG!
I remember the S&L woes and having to work with RTC around that same time to get releases of mortgages never filed by defunct lenders.
I guess we can get throught whatever comes our way. It just takes time and a little vigilance. Sigh.
Just in case you were wondering, the DOW is still down 500 points.
I will!
Susie