The Adventures of Charlie Champion

The financial errors that have compounded over the past 30 years, can’t be fixed by subsidizing them.

When you have a bad investment, you can’t make it good by throwing money at it.

Failing industries, and inefficient businesses within that industry, can’t be magically fixed by giving them money,

Too much debt in our financial system can’t be cured by borrowing vast amounts of money.

Instead of fixing our 30 year bubble economy, we are force feeding obscene amounts of cash , to keep failing firms afloat, and mismanaged, criminally negligent banks in business.

Businesses must adapt to the new and changing economy. The problem we face is that the more money we shove into the system, the slower the  dinosaurs will react to the new reality.Thus keeping “business as usual”, as the expected business model for the banks and the unwitting public.

Why is  TARP and Stimulus funding destined to fail?

Banks and failing institutions are getting massive amounts of public money to keep doing what they have been doing for years. Even thought the credit markets have continud to shring, the vast amounts of money have continued to pour into the Citi Banks and Goldman Sacks of the World.

Since they are not lending the money that they have been given and the additional funds which they are now authorized to borrow from the Treasury at virtually to interest, they are taking the idle cash and using it to purchase hard assets, i e oil futures.

The Wall Street Banks were investment entities long before they were converted to Banks, and their natural trading propensity appears to be taking precedent. 

Further confounding our recovery is the the source of this “bail out” spending.

Much of the money is borrowed, This takes potential investment cash out of the economy that should be available for funding new ventures in the private sector.

Taking savings and venture capital out of the economy and using it to fund stimulus projects that do not create new wealth or permanent jobs, is a long term hindrance to any potential recovery.

Dead end jobs, that build one time structures or roads, will  remain DEAD END JOBS.

We are dooming the economy to remain stagnant for the foreseeable future.

Part 2 later

This entry was posted on Wednesday, May 20th, 2009 at 6:33 pm and is filed under Current Events, Financial News, New Articles, Quality of Life. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.