Stuff those mattresses

Flipping through the channels and came across House of Rep members grilling the bank executives on what did they do with the TARP money. I found this most comical in nature. After all if you give your grandkid a $5 bill to spend, and then after he/she has spent the money you ask him/her what they spent it on. They respond with candy, pop, etc. You say I expected you to spend it on shoes, school supplies, etc. Do you really think you are in the position to ask for the money back when you gave no instructions from the start? You have a committee of folks claiming to represent the American people headed by a NUT in Barney Frank. Most members of the committee were showing off new found knowledge about the banking business.

In utter stupidity most members of the committee showed how unknowledgable they are about basic business matters. Most failed to comprehend that banks are not loaning money now for they will be loaning money that may not be paid back. Banks don't loan money to individuals, businesses, projects, etc. that have a negative risk element. What these fools don't understand is that banks are in business to loan money and make a profit. They make profit when they loan money on projects that have a positive risk element. Banks are not happy right now for they can find few positive risk elements in which to entrust their money in order to turn a profit.

Which came first? Chicken or egg. Who knows, but one thing is for sure you can't have one without the other. The same goes for banks loaning funds. You can't loan money to unemployed people, people who are a credit risk, etc. No bank no jobs and no jobs no banks! Hold on there partner we have a $836 billion government stimulus package on the way to take the place of those banks. Barney Frank and his company of NUTS want to play the role of banker.

We find ourselves in a tidy little mess, and NUTS like Barney Frank think they have the answers. At this point I am not sure anyone has the answers. One thing is for sure, former President Bill Clinton should have fired Alan Greenspan by not renewing his appointment as Fed chief. If Greenspan's appointment had not been renewed I don't think we would be involved in an economic financial meltdown. Now we have the no income tax paying Geithner heading up the Treasury, and he went on TV to lay out a plan to get us out of this banking mess. He delivered nothing but more questions about his ability to comprehend his need to pay his income taxes.

Spending is what got us in this mess. Let me clarify, spending what one did not have is what got us in this mess. Saving is the normal answer in cases like this, but this time we are deeper than we should be for saving to help at this point. Thus the tidy little mess! Just think three years ago we were worried about all those baby boomers spending their retirement savings and creating inflation. Today the baby boomers don't have anything to spend to help us out of this mess. Their retirement savings got the royal flush. It got the royal flush because we let everyone and their dog, cat, pig, goat, cow, mule, horse, rabbit, and goldfish spend money they did not have to start. Everyone is upset now including the dog, cat, pig, goat, cow, mule, horse, rabbit, and goldfish since they can't pay their bills for things they have already consumed, used up, eaten, digested, and deposited in the local junk yard, sewer treatment plant, etc. Wonder if this is what Mufasa had in mine by 'the circle of life'. Most likely not, but it still applies.

Partner, I'm afraid we are in for a world of hurt. Hope you are stuffing those mattresses! I don't think they will be satisfied until they wipe out all those 401Ks.