My Thoughts on the Economic Crisis

OK, here are my twenty cents worth on the economic crisis. This is not an exhaustive list, but just a few thoughts. Frankly, it's been almost 2 weeks since my last post, and I'm starting to feel a little guilty. Perhaps this will assist me in getting back into the blogging habit.

You ask, "But Rus, why should we care what you think? What are your credentials for making your opinions on economic issues known to the whole world?"

Well, I'm glad you asked. I'm highly credentialed in this area. About 15 years ago, I finished my undergraduate work in Music and during that time, I did not take one economics class. Prior to that I didn't even take a home economics course. After receiving this degree I went on to get a masters in Systems Analysis. If you don't know what that is, think computers. And if you know computers, you also recognize that there is a dolar symbol on the keyboard, and I can find it very quickly. So I am definitely equipped to make my opinions known.

"But Rus, what does this really have to do with the economics?"

Good question. Anyone knows, that you rarely use the knowledge you get in college and real training happens in the real world. Just before I got married, my wife and I attended a class on finances at our church. Here's what we learned: Don't spend more than you have. It changed my life. Our household budget can always stand some refining and trimming, but for the most part it works pretty well. How much more justification do you need?

So with that, here are my thoughts. These companies are in trouble because they don't have any money. Apparently they didn't go to the same course that I went to at my church. If they did, they would not have overextended and made risky investments. That being said, I suspect most of us are compensated based on our performance in our given profession. That's why I was happy when the president took such a hard nosed line by saying the execs should not get a windfall when this bailout is complete. What? No bonus? The president didn't say enough. He should have said their salaries would be cut, starting first with their golden parachutes. After that, their annual salaries should be hacked as well! Performance-based pay should suggest that if your company fails, then your salary should decrease. Or perhaps, you should submit your resignation with a forfeited severence package.

Well, thank goodness the government is stepping in! I'm sure they all went to similar finance classes like the ones offered at my church and that with a little bit of taxpayers dollars, will set the course right. Oh, well, I mean they carry a little debt, but what's a few trillion dollars among countrymen? Their record of making economically sound decisions will set us straight. I'm sure of it.

Another thing the president mentioned twice was the taxpayer's inability to get car and student loans. I suppose this is a sad reality that we go into debt for transportation and education. Their is a good argument for the latter considering that an education is something of appreciative value, but a car depreciates as soon as you drive it off the lot. However putting it in a speech only encourages it.

One last thing: The President boasted that democratic capitalism is the best system ever devised. I have to say that for the first time in my life I'm beginning to doubt it. And come to think of it, capitalism quickly becomes greed-driven, and I personally can't see how something good can consistently come out of selfish behavior. Perhaps I'm just naive.... or jealous of all those execs and politicians that have all that money and power. :-)

That's enough for now...I have to go balance my checkbook.