You are absolutely correct, Tony, no question about it.
What I am curious about is why is everyone so up in arms when it is Wall Street that makes a mistake? Scores of nurses and carpenters quit their jibs in the last few years to flip houses. Why do not anyone object when we bail them out? People simply walk out on the homes whose value falls below the mortgage. They are never to be blamed and must also be bailed out.
Has class warfare so permeated our culture that the suffering of anyone related to Wall Street causes joy? And its not even officers of the company that suffer here -- its the millions of retirees, widows and orphans, whose mutual funds own Bear's stock. They lost one half of the money today.
Scores of nurses and carpenters quit their jibs in the last few years to flip houses. Why do not anyone object when we bail them out? People simply walk out on the homes whose value falls below the mortgage. They are never to be blamed and must also be bailed out.
Well I don't think walking away from a mortgage is being bailed out. Among other side effects: your credit is shot, your ability to get another home loan is gone, as many top employers use credit reporting as a part of the interview process your ability to get a job may be impacted, and depending on the state you may still be liable for some or all of the difference between what you borrowed and what the distressed property can be auctioned for. I know some people who lost their houses and it was a very, very painful process. I didn't see anyone bailing them out (as in a Federal banking agency shows up and gives them a check for a big chunk of the mortgage they owe so that they can keep the house and have payments they can afford.) Until recently they even owed the IRS taxes on the forgiven loan.
The Masters of the Universe however don't really suffer any serious consequences. The CEO had a $50 million pay day last October. Even if he can never work again, so what?
Has class warfare so permeated our culture that the suffering of anyone related to Wall Street causes joy?
Maybe. I think most people view many on Wall Street as only slightly better than theives. There has been a round of well publicized scandals involving these banks, most of which involved screwing the little guy. Class warfare works two ways, doesn't it. Not to mention that millions of Americans have seen their companies bought out usually led by one of these big banks. I've been through two mergers. It would take me an hour to explain everything that is wrong with them. They have been bad for investors (shareholders), employees and customers. The only people really making out have been the investment bankers and the emerging supergiant conglomorates.
And its not even officers of the company that suffer here -- its the millions of retirees, widows and orphans, whose mutual funds own Bear's stock. They lost one half of the money today.
That's really funny. Did you post that somewhere else? Lots of stocks lose 1/2 their value every day, or over a few weeks. FedGov doesn't make up those loses. Smith and Wesson went from 20 to 5. I didn't get a check from the Federal Reserve Bank of San Francisco. I didn't even get sympathy. What makes Bear Stearns, and other super-connected Wall Street firms, alone, worthy of bailouts.
To bail out Chrysler, a company that employed hundreds of thousands, and produced cars driven by millions (that they would like parts for) took an act of Congress.
No such laws needed for this operation!
I can't believe you had to even ask this question.