Almost as funny as those who think the Bail out of fanny and freddy is the end of the world..... You know, housing Crisis aren't new(we had one in the 30's, the 40's, the 70's, the 90's... and surprise! one in 2006-2009.) . Nor is a Bail out of the Financial system.... And yes "Moral Hazard".
If you want the Cliff's notes version of all of this, The reason a Candy bar is Twice as expensive every decade, is because we Bail out the financial system every 10 years. It's also why, if anyone can ever "Retire" again, You best keep that in mind. If you have a million to retire on and your old bones last 30 years, it will end up having 1/3 it's value.
but it's either this or suffer a 1930's style Depression...
It's always tough to provide decent financial advice. There is a whole financial system out there that assures that you will eternally be broke, Defending your assets, and accumulating Real Wealth, is just about a full time job. And there are Millions of Marginal Dickheads out there, doing everything they can to nickle and dime you to death.
One of my favorite stories are the some of the financial institutions, and hedge funds,(Lehman brothers(who it's rumored will implode in the next 5 days)). What they do, is get a loan from a bank at say 5%, then they buy bonds at 6%, this pluss their investment Capital, The company makes 1%, the investors make 5%... and they Fuck off to the golf course for a decade, and smoke Weed. Good work if you can get it.
If it's the Government giving out some of the most "rose colored Glasses" Version of economic statistics, from payroll numbers to inflation. It's absolute Asshatery.
or the Fed and Treasury, trying to Bail out every half assed CEO, who happens to have driven a company so far into the ground that it Explodes... But because of "systemic Risk"... we have no choice but to Bail them out.... because... Well they didn't understand that there is a business cycle.... But what CEO does...
Umn.... It's all unfair, unreasonable, unmanagable..... Etc.
But how productive is it to shake my fist in the air.
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"Man is the only creature that consumes without producing.... Yet he is lord of all the animals. He sets them to work, he gives back to them the bare minimum that will prevent them from starving, and the rest he keeps himself."
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