Today the US Congress rejected the Financial Bailout Plan as put forward by the Bush Administration. While they are vowing to restructure the bill and get another vote going when they return from recess later in the week, I believe the idea has summarily died. The concept of bailing out the financial wizards who claimed that effectively turning debt into a form of currency via securities was risk-free is a disheartening concept to most. This is understandable. However others seem to believe that regardless of who directly benefits, this bailout was required in order to save our economy.
In my opinion, there is no true way to save this debt-based economy. We could only hope to postpone the inevitable crash that has to follow years of downplaying a foundation of debt as if it was a healthy financial situation. We could only hope to ignore the consequences of allowing our fellow citizens, along with the government we voted into office, to literally run themselves into the ground. Of course the issue goes beyond us, as the rest of the world has effectively been strapped in for the ride.
Bottom Line: This bailout failing will likely result in an extended period of hard times for everybody in the US along with the majority of citizens in the EU. Beyond that who can say for certainty. However this needed to happen. If not now, then a bit later. Frankly from my personal perspective, it happening now gives me a chance to pick up the pieces over the next 40 years and try and salvage something meaningful for Annette and myself. For the older generation, this represents the broken promise of retirement that is only becoming all too clear to those that have already retired or are planning to soon. For those younger than myself, it means that there is at least a snowball’s chance in hell they will be forced to adapt and take on the fiscal values that brought our great-grandparents through the Great Depression of the 1930s. This is not a bad thing. Overvalued markets eventually have to correct themselves. So many things in this country and around the world are so hideously overvalued that the adjustment will seem like a nightmare for most. Eventually it will subside and lead the way to a more stable and secure existence for those us able to adapt and survive.
Anyway, props to Congress for doing the right thing and abiding by the will of the people which has been overwhelmingly against the bailout. While I believe it’s true most people have no idea just what they have signed on for, I do believe that each and every citizen, corporation and government official in this country bears their fair share of the responsibility for what is to come. Eventually even a would-be democracy such as ours must yield to the will of the people regardless of how short sighted those power consider it to be. Failing to do that, the risk of losing what purportedly makes this country great far outweighs the risk of a depression.
It’s going to be a rough ride people. Hold on tight. But for god sakes, keep your eyes open. Take it all in and for once take the time to understand that yes, there are consequences to be borne for all of our actions. Regardless of how far off they seem to be, they will always be there lurking behind the veil. Forgetting this is the ultimate unforgivable sin that has put us in the position. Remembering it is the best lesson to be learned from it.