Sperry8

Don’t Blame Wall Street - At Least Not Completely

Puhlease!!! We had a higher standard of living than the 3rd world well BEFORE secondary markets were created to trade in asset backed securities. Home-ownership and ownership of cars will continue. So will jobs at Wal-Mart and Disney. What will not continue is high risk companies who got burned. This does not mean ALL banks... some wonderful one's will continue. Wells Fargo. Bank of America. Citi. Wells originates home loans. But smartly. They took risk, just not bad risk. And so they survive and possibly grow. Citi originates loans. Not as smartly as Wells. But they diversified better so they could absorb this risk. They survive and even get too buy assets at distressed prices. The stronger companies survive and will generate increased earnings for it. This is how we are paid via stocks - and it will eventually show up in the prices of the market. Short-term... let the bad companies go under. I don't want to save bad companies. Take the $700 billion and do some good with it. Provide affordable housing maybe. But certainly don't use it to prop up companies that do not know how to manage risk. This only undermines the ultimate success of those that do. And that will lead to a healthy economy and stock market.