09 October 2008

Danie's Economic Policy - Since Everyone Else Has One

Washington needs to back away from Wall Street.
The best thing our congressional representatives can do for the economy is nothing at all. Yes, we're in a bad place economically. Yes, I think the worst is yet to come. Yes, I have a 401k that's losing value every day. Yes, I am scared. But the deeds (and mortgages) are done. No amount of promises made with make-believe-billions can save us. Our economy is a fire along a natural gas pipeline. Even with the valves shut off -- it has to burn itself out before anyone can get close. That's a callous metaphor. Lives and lifestyles are at stake. But if $700 billion can't keep you positive, it really is time to give up.
I know, the Dow seemed confused -- losing 700+ when the bailout bill didn't pass the House, losing 700+ when it did. But investors are smarter than politicians. They don't use Monopoly Money and just print more when they want it. And they're less apt to be reassured by those who do.
The idea is, while banks are not lending, you and I should go out and spend. We should pay these higher prices for everything if for no other reason than to keep the wheels spinning. No thank you. There are no guarantees those who worked today will be employed tomorrow. There are no promises those laid off tomorrow will find another job in a month or two. America will move again when her people are ready. It's not for politicians to push me to a department store to cover up what they chose not to prevent.
Mortgage lenders were running unchecked, luring buyers willing to pounce on supposedly good deals without doing their homework. Now it's fodder for presidential debates and The Situation Room, but no one had issues with cronies or lobbyists three years ago, when there was that "slow leak" in the Las Vegas housing bubble. Back then -- before people were kicked out of their homes with their credit ruined, and before builders stopped building -- Washington did not care. Meddling now is only making things worse.
I propose lawmakers do nothing. They should let the markets tank and the fledgling businesses fail. A lot of people will go down with them and that will be awful. I'm not sure Jesse and I would escape unscathed, but I think it's what's best for the country and I'm willing to put myself out there for the greater good.