On the Credit Crisis and Rescue Plans
This so-called “bailout plan” for the credit crisis was something I was initially skeptical about. It felt like more regulation and more taxes just waiting to jump out at us.
But events over the past two weeks have shown that the credit situation is more far-reaching than many of us initially realized. It’s become an issue overshadowing the world economy, not just the U.S.
Rather than ignoring it, I think we need to talk about the current credit crisis and what should be done about it.
Over at the OPEN Forum I just posted my views about a Rescue Plan. Head over, check it out, and weigh in. Leave a comment and tell us what you think (no partisan political comments, though — keep it focused on solutions, questions you have, and what you want to see done). Agree, disagree — just add your voice.
Read: None of Us is an Island: Why Small Business Owners Like Me Want a Credit Rescue Plan.
UPDATE: They’ve started a special section over at the OPEN Forum compiling all discussions on The Economy.
Aflac
Founder of Small Business Finance Forum
Dubbed the Bill Cosby of Entrepreneurship
I think people need to be more creative in business today. Things were so easy for so long it almost made it possible for anyone to succeed just because the way thing were financed and money was lent. Today, that is not the case, whether or not you agree with what is going on in the market, it really doesn’t matter becasue it is the neccessary “Darwinian” down turn. It is what made us who we are today. Many great men have said ” Winning teaches you nothing, its when you loose that your true character comes out!” The business’ and companinies that survive this year and next will come out of this with more experience there parents learned in a lifetime and will be stronger, wiser and much better off in the long run. And thats the way it is… For good Reason…
Anita,
I will touch on this issue in my forthcoming piece on Open Forum. I will talk about Americans sad mood and why they are not happy campers at the moment. I will show the national debt and give a historical background. I will try to come up with some solutions and end on a happy note.
If you are interested in learning more about the financial crisis and a cure to the current situation, I recommend you to check out The Ayn Rand Center for Individual Rights and its new site. http://osheit.notlong.com
Good point Marco. I can only hope that we can look back on this in a few years and sigh in relief that we survived successfully.
As an ex private Banker (20 years, Swiss Banks mainly) I can tell that mess is far from over.
Banks are responsible for the “credit mess” ; but no one talks about “leverage” yet …
Meaning ? Banks incite Hedge Funds and forex traders to use high leverage …..
How about all those guaranteed funds sold by mst banks with Lehman as the issuer ?
This mess is far from over …..
The fed needs to rate financial products sold to clients …..
Hi Moise, yep, we are going to be dealing with the fallout for a long time to come. I just hope it doesn’t get worse.
Hedge Funds have been a house of cards ….
Anita
Anita: Talking about house of cards, check out this illustration by John Cox: http://www.johncoxart.com/2008/09/the_intellectual_activist_cove.html
This crisis affects all the world not only USA, it increments oil prices and living costs.
I hope as Anita that it doesn’t get worse.
Regards,
Hardy
As Nike says “just do it” because the alternative is a collapse affecting the world and this should be above politics. Even in Australia where our banks are strong and the economy is still okay our retirement funds, exports and share market are being affected.
Hi Anita,
This crisis in US not just alarmed you as citizens of this powerful country but the whole world in on eye to this. I agree with Susan or shall I say to Nike – “Just do it”!
Anita,
I am replying to this post after the newly revised and approved bailout – basically the corrupt politicians skinned the American public again adding an additional $140 B to the earlier bloated number for unrelated “pork”.
This cash infusion will only delay the inevitable meltdown and will only further accelerate a complete dilutiuon of the $ to it’s true value – toilet paper with ink.
I would recommend to most folks to trade in their soon to be worthless paper for real assets – sovereign home, gold and silver and even food. Just take a look at the history books to understand the path our corporatocracy has us on…
david
My last post didn’t register? Anyway, this post is in response to the recent bailout that was voted – our corrupt congress added an extra $140B in earmarks – pure pork – to the already insanely inflated bailout number. This may have an illusionary impact of relief for a short period, but in affect our currency is going to head into the toilet because the private entity – The Fed – is printing money out of thin air effectively diluting our $ down to its true value – toilet paper. I would highly recommend that your readers transfer their cash into real tangible items while they still can – gold silver, sovereign homes & property, even food and wine!!!
Pick up an ex wall streeter’s book Barton Biggs latest book Wealth War and Wisom to get the same advice. Also consider Robert Kawasaki’s – Rich Dad Poor Dad author -following videos on investing in precious metals and the value of cash.
http://www.youtube.com/watch?v=oBDaznTov8g
http://www.youtube.com/watch?v=0xXZLIzG5Mo
http://www.youtube.com/watch?v=DBHTMaOTXiw&feature=related
David Fairley,
I agree with your statement and your advice to invest in hard assets like gold and silver. I like wine, but I prefer to drink it as an antioxidant cure and tasty beverage together with food!
I will check out the videos. I have read R.K.’s book. I have to put Barton Biggs book on my Amazon wish list. I recommend you to read James Turk’s & John Rubino’s book, The Collapse of the Dollar and How to Profit from it. I have a quote from the book on my blog post on the Federal home crisis. Click on “Martin Lindeskog” Says.
Hi Anita,
I checked out your write up in blogs open forum about None of Us is an island and it’s really true. Each one of us will serve a purpose for each other thus this is why “social” is in the vocabulary. We human beings are social and it is inevitable.