For those of you who have not turned on a television or simply don't have TV (like at my house), the past few days have been an economic and financial hurricane season. I'll lay it out in bullet points:
- The collapse of Lehman Brothers filing for Chapter 11 bankruptcy
- The purchase of Merill Lynch by Bank of America
- And the now precarious red ink of AIG has led to some tumultuous markets across the globe.
- Did I forget to mention that Secretary Henry Paulson is taking a hardline on the Treasury's role?
Top it all off with recent events:
- Fannie Mae and Freddie Mac are absorbed by the Federal government via the Treasury
- The Federal Reserve basically entering the loan industry by saving Bear Stearns from collapsing on itself
- And the 6.1% unemployment rate as announced at the beginning of the month!
I am only a college kid reading the headlines from the comfort of his parent-paid computer and house. But how are all these acquisitions, mergers, and bankruptcies gonna affect me in 5 years, in 10 years, in 25 years?
When I walk into a bank and ask for a loan to start my own record label or music venue, am I gonna get turned away because the government has put a straight-jacket around lenders? Don't take a risk on the recent college grad because we don't wanna get bent over like the 2008 Credit Crunch! Ahhhhhhh!!!!
As far as I'm concerned, these huge investive firms had it coming to them. When you bundle together garbage and sell it to folks who trust it, that's a white-collar crime. These big tunas may have been downriver from the fools who were giving money away like oxygen to borrowers who couldn't afford it, but indifference is a guilty verdict in my book. It's like conspiracy to commit investment deception.
Let them eat dirt for a little while so they don't forget the taste.