Financial Crisis – Do Something – Anything vs. Do Nothing

Here’s just a short YouTube Video of Daniel Hannan a Member of the European Parliament taken PM Gordon Brown to takes over his handling of the financial crisis in Britain.

It calls in the great debate of DO SOMETHING – ANYTHING or DO NOTHING and make business (banks in this case) responsible for their problems and take the lead in fixing them.

It is great to see that with so much common sense telling us we have to spend our way out of this crisis, there is someone with uncommon sense telling us it is stupid. Take a look at a 3 minute video of his speech.

Now read Daniel’s article and view another 1 minute video of him talking to the European Parliament.

Note there are virtually NO members sitting during Daniel’s speech. I’m assuming it was lunch time and all the members had ducked out to buy a sandwich at the local kiosk to help keep the European economy ticking over.

In his article he talks about the New Zealand Government stopping subsidies to farmers and then having the banks ask for a bailout. The government refused the bailout and the banks had to work through the problems themselves. They did so successfully without using the taxpayers money.

The NZ Government DID NOTHING to bailout the banks and it worked!

This is what should have happened with this financial crisis. The US Investment Banks should have been told it was their problem. I’m not talking about now though, I’m talking about in 1970 when bailouts became the norm.

We now have a whole bunch of bankers brought up to believe the government will always bail them out. If the US government had said no back then we would not be in this mess now. That’s another reason to get rid of this batch of bankers. They only know how to take risks and rely on the government to bail them out when they go too far.

Did you see any banker take the lead in this crisis? No, they all sat back out of sight counting their bonus money and trying to cash in their stock options as their stocks dived and left it to the government to DO SOMETHING.

What would have happened in any of these bailouts if the government did nothing and the industry itself got together and found a solution?. It is likely in this financial crisis, bankers would have NOT taken on so much risk or even be allowed to by the other bankers.

Personal reputations don’t mean much anymore if you make millions of dollars at the expense of your shareholders or your company. Many of these bankers have pocketed millions of dollars through bonuses and stock options which have weakened the very companies they are charged with managing and protecting.

Shareholders have been disenfranchised through government legislation and managed funds assuming their proxy without their permission too.

Just a few days appearing before a Congressional Committee being chastised like naughty boys seems payment enough it seems. In fact I’m sure when the congressman and the bankers dine together again they will have a good laugh about it – all at the taxpayers expense.

Doing nothing in the US would have left trillions of dollars unborrowed or unprinted (if there are such words). It would have allowed the government to help out those who through no fault of their own lose their private industry job in a recession.

But even then with respect, people should learn to protect themselves against losing their job and not having enough money put aside to keep themselves for some time. ( I accept some people will not be able to do this and may need some help)

If Governments stopped interfering and allowed people to learn to take care of themselves it would become the general order of business. It would also build people’s confidence rather than have them do what the bankers have done. Sit on their hands and wait for a handout.

In closing did you see the Dow behaviour today? It was up 200 points and down 100 points throughout the day. Then in the last 10 minutes from being down 45 points it got even. In the last 2-3 minutes it went up by 100 points closing at 88. That’s a 145 point move in about 7 minutes. I do believe the government is DOING SOMETHING – ANYTHING to ensure the DOW closes on a high. Maybe there really is a Plunge Protection Team!

2 Responses to “Financial Crisis – Do Something – Anything vs. Do Nothing”

  1. markdownmom says:

    Mainstream media ignored this slam of socialism, but Jay Leno slams Obama in this video with the c-word (communism):

  2. admin says:

    Great video piece. I missed the Obama visit to Jay Leno. Jay Leno is helping to get the message out that buying private businesses is a bad thing for governments to be doing.

    Thank you for adding it with your comment.

    David Bates

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