$700 Billion To The Rescue

Caught your President's speech last night? Is it only me who feels that this is the doom and gloom speech all over again circa 2002 which led us to the Iraq war. You know, the one to get you scared out of your mind and just approve anything Washington is selling.

Here's what I believe: I do think the Financial markets need some government intervention right about now. This is what is called the Keynesian Theory in my profession. That is why I think it was a big mistake (huge) to deregulate the financial markets to little or no government intervention in the first place. And I'm saying that as the logical business-trained professional.

Now emotionally, as an American citizen, I think the decision of $700 billion sucks. According to estimators, that decision will cost each American $7,000 in tax cost especially at a time when two-thirds of Americans are struggling.

Also, where were all these folks when people were screaming recession, which technically means an economic downtown for two consecutive quarters. Hmm, do you feel we have been in this high inflation, high unemployment and low wages for over six months? If you said yes, you're right! That means you know what a recession means. Too bad your government kept calling it an "adjustment," "a rough patch," "a small downtown in the economy," everything but the R-word.

Now they are quick to call out the D-word, Depression just in case the $700 billion doesn't go through. Anyway, here's the deal I will propose with my years of business school and the school of hard knocks: You could give the $700 billion but it won't be a blank check. That means you need to put some oversight and stipulations on that bill. For example, why not contract them $700 billion but paid out in pro-rated sums based on "performance-related" benchmarks?

Also, all these struggling firms with access to this money should put some grace period to home owners who are struggling or re-write their contracts from balloon rates to today's interest rates. Just a thought!

Tags: Economy, $700 Billion Bailout