Wednesday, July 8, 2009
This is one of the best examples I have seen regarding the banking crisis with the Mid South Bank President and CEO R.J. “Rusty” Clouthier. I would ask you take 5 minutes of your day and listen to what he says. He says that he saw this coming back in 1999 with the Gramm-Leach-Bliley Act. I believe we cannot solve the problems of today without looking back at what got us here in the first place.
Clouthier says that unless we break up the big banks that pose systemic risk and get back to sound banking, we’re just going to re-live this over and over again.
The host says an amazing thing "If you cannot fail, the whole system breaks down—then you take to many risk and taxpayer eats it". Clouthier follows up by saying that "Free enterprise has to have the right to fail". Every American should know this no matter their situation. It should be a very solid and understandable principle.
I haven't spend a lot of time studying the subject, but it seems to me that we need to get back to sound banking. The policy that gave us all this trouble isn't going to be the policy that helps us recover. You hear most people say it was the lack of regulation that got us here. We had banking, SEC, FDIC and many more regulations which have failed! WE DONT NEED ANYMORE REGULATION! Listen to Ron Paul below:
Ron Paul is one smart man, why can't we not have him or someone like him running our country that understands economics and understands policy that is hurting our country. I think one investment idea that I have is to donate to Ron Paul if he runs for president next time.
If we do not wake up soon the only people that will have wealth will be wall street, banks and the government. Once that happens or if it hasn't already we are in a world of hurt.
This blog is about my financial journey and it has turned half political because the two are connected. Every cent that the government spends comes out of taxpayers pockets. This ultimately hurts us, the people that care about personal finances. Ronald Reagan said "We are a nation that has a government" and as my father pointed out, it seems like we are a government that has a nation.
Am I in left field? I know we need a government, but a limited one. Should I stop blogging about political subjects? or stick to PF? leave me a comment!