Wednesday, October 15, 2008

What if we didn’t bail out the Banks?

Now that it is all done and on the books, what would happen if Wall Street wasn't bailed out? I heard that as a suggestion from lawmakers disgusted with government's involvement in this "free-market" society. I myself have been mulling over and over in my own mind exactly what the fall out would have been. As is usually the case, a person only has to look in the history books.
Japan's economy collapsed under the weight of questionable loaning practices in the 1990s. Remember that? We were all afraid of Japan taking over the US economy then BAM! The government sat back and let the financial community heal on its own. The following 10 years were ones of no growth as credit was unavailable and businesses couldn't expand.
Well, if we look out over the Fruited Plains of America we currently are experiencing an economy that's growing, be it slowly, but it is growing. I don't think we really want to slow down any more than we have already. History indicates that the bailout may be the right course of action.

After all, what's another $700 billion to the bottomless hole that is government spending?

Larson note: The biggest thing that I can fault in the bail out is not the bailing out of the companies but the bailing out of the idiots who did this to us. The Golden Parachute Boys (and girls) who need to be held accountable. If I ran or made those kinds of decisions for my company do you think even my congress woman would care? I really doubt it, I don’t make any donations to her campaign so why should she. We need to have access to credit that much is true but we need to keep it in check and need to keep our income and out put balances and not take too many chances to maximize failure. Yet, I am for growth, heck I want double digit grown not the little 3%-5% the Feds think we should be happy with. They seem to think a company growing is a bad thing? We at Larson’s love to grow and love to work with clients who want to grow! We are sill on target to grow this year at over 16% and my chief consultant financial officer does not want to see it any other way.

Growth is good, so let’s have more of it and pass it around.

Howard Larson
Larson & Associates
Telesales & Target Marketing Professionals for new account acquisition
Making good businesses great and great businesses even better

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