Nationalization and our Private Industry…Bernanke and Jim Cramer of CNBC See Beyond Tomorrow.
As Nationalization fears fade we can all finally get back to life and rest a little easier. Nationalization would have been a complete catastrophe for our economy. I question the competency of leaders such as Senator Dodd of Connecticut as he recklessly made such suggestions. He is clearly a misguided individual. Let’s get down to the substances of nationalization.
Do our leaders not understand that our economic platform runs on confidence? Did Dodd not learn from witnessing what happened to our people and our financial system after Lehman was allowed to fail? Senator Dodd, let me help you see how the world suffered. When Lehman, as a major broker dealer, was allowed to fail all of the equity and bonds were wiped out. This caused individuals and institutions worldwide to lose money. The domino effect was a crushing blow to confidence. Everyone pulled in their horns in the investing community. Then we had several large money market funds break the constant value of one dollar. From there our financial markets literally went to the edge of the “Abyss” and looked over. Since then our government has been spending billions and propping up our markets with a broad assortment of programs just wishing we could get back to the day before we let Lehman fail. Senator Dodd, you are an example of complete ignorance and questionable competency.
Nationalization would have destroyed our economy by driving away the sources of potential private capital. Our country has thrived on free markets that are properly regulated to maintain order. Ruining them with nationalization versus the alternative of fixing them and re-regulating them are two very different things.
Ski Daddy Cramer of CNBC posed the perfect question this week on Nationalization. Isn’t anybody thinking about what would have happened to all the preferred equity and bonds of these financial companies if they were to be nationalized? Then he went on to say that this is where all of the annuity companies invest your money. The negative domino effect on our economy and financial system would be completely catastrophic if nationalization were allowed to occur with our major financial institutions.
As of yesterday the world is a better place. The brains of our country have prevailed by looking past tomorrow. With trillions in personal wealth evisorated in such a short time after Lehman it is time to believe in American once again. We screwed up big time allowing Lehman to fail and everyone at the Fed and Treasury knows it. Cooler heads are now prevailing and the administration sees the huge franchise value of institutions like BAC and C. Bernanke commented on the very point of franchise value on Tuesday. Our country cannot afford to lose this franchise value. We will need these engines to recover and continue to be the backbone of the world financial system. Please Senator Dodd, shut the hell up. Nobody on Main Street, that has seen their retirement and personal wealth crushed, wants to hear you abusing your platform with flagrant comments over nationalization. I leave the Senator to be judged by his peers.
On a positive note, this is a time to try to “Be Good to Your Bad Self”. We have to pick ourselves up even as many of us are demoralized from the loss of jobs, wealth and many of us facing the loss of our homes. We have to have faith in our country and our free market system. Things got out of hand and everybody as far as the eye can see shares the blame. Obama in his speech made the comment that in order for us to lead in the new century we must invest in education. If you are willing to quit high school you are now not just quitting on yourself but you are quitting on your country. I thought this was a profound statement. Education is the key and we all need to be part of the solution.
Now having said that, you know I have to use this last profound statement as a segway to a Real Estate Short Sale. I won’t bore you so I will just say, if you are in trouble on your home or an investment property please take the time to educate yourself on the potential solutions available to you today. If you just walk away from the property in this time of crisis you are not only quitting on yourself but in my opinion you are also quitting on your country. Don’t do it. Provide your lender a solution and help them while you help yourself. This is the responsible thing to do. We will show you how to do it the right way at www.thenegotiatedsolution.com
Blogging from the front line of the housing crisis.
GHunter
March 19th, 2009 at 2:21 am
The question of Cramer about what will happen if these financial companies be nationalized should be given a deep analysis especially to our government officials like Dodd who seemed not thinking what will be the greatest effect of nationalization to our economy. Cramer has a sense when he asked that question for it will at least enlighten those people who might implement such things without giving enough consideration to all aspects involved. Despite the influence of the words of Cramer, there are still people such Stewart who can humiliate him like what happened in Stewart’s show. Cramer who is a former hedge fund manager and a financial analyst on CNBC’s Mad Money show was ridiculed by Stewart as ignorant or at worst complicit with the various Wall Street mischief. Stewart even pointed out about certain firms had taken on too much debt because their practices were making short term profits – at least, until the collapse. An unflinching desire to take people to task is part of what makes Jon Stewart an American icon.
March 15th, 2010 at 9:05 am
My question is on taxes. I have heard if you take the annuity not all of it is taxed as you have invested your pension dollars to fund part of it. Is this true and if so how do they figure how much of the annuity you will be taxed on.