Baby Boomers – We Need a Doomesday Book II

William the Conqueror got it right when he did an audit of England to find out who owned what. It became known as the Domesday Book and,

“WHEN it was compiled on the orders of William the Conqueror in 1086, the Domesday Book provided a record of who owned every pig, goat and sheep in England.”

It seems to me that we need a Domesday Book II. This one should contain the following;

  • A list of all the financial intuitions in the world and document every asset and liability they have, both on and off balance sheet.
  • A list of all the companies listed on the stock exchanges that seek the public trust to invest in their shares. This too should include all their assets and liabilities on and off balance sheet.
  • A list of all government entities that are in the public trust and are given taxes or make levies and charges to run their entities. Even here all assets and liabilities need to be clearly stated.

Once this is done the world will know the real extent of the problems facing us due to this financial crisis.

Many will say it can’t be done. Why not? All these institutions are computerised and have to submit yearly tax and business returns to various agencies. The only problem is many managed to fudge the figures or hide liabilities. Now they should be forced under threat of serious jail-time to include everything!

It seems to me it should have been done before any money was handed out to any bank of financial institutions that was in trouble. Bring us your balance sheet and we’ll give you some money.

Right now we still do not know the extend of the debts sustained by the banks.

This is why we should not trust any bank, stock or government at least for the next year. Let it all come out.

They’ll talk you into thinking it is over and you’ll invest in a “blue chip” stock only to find out they had some transaction somewhere they “forgot” to include and now they need several billion tax payer dollars to get them out of the hole.

So don’t invest any more money in any stock until the Doomesday Book II is out because you have no idea of the downside risk.

Obama may well be able to stem the flow of losses for a while but who is to say it is enough since we have no idea how big the problem really is. Witness more money being poured into Citi Group, Bank of America and the Royal Bank of Scotland. When is someone going to jail for all this mess?

Shouldn’t the Queen remove the Royal Charter from this bank that has behaved so irresponsibly? There should be consequences for such bad management.

Surely common sense should prevail here. We all know if we are in a financial mess at some point in our lives, we have to sit down and make a list of all our assets and liabilities and assess our financial position. Then once we have that we can seek financial help to get us out of our mess.

How come all these high powered economists and financial wizards don’t go back to kitchen table economics – it works. Maybe it is asking too much when the soon to be Treasury Secretary failed his own kitchen table economics. Geithner’s “careless mistake” when he failed to pay his taxes has been accepted it seems. With respect guys this clever don’t make “careless mistakes”.

This sort of thing goes to the heart of the mess we are in right now. The Wealth Managers were making “careless mistakes” with your money, so that’s okay too.

Until governments start acting rationally to get control of the problems we Baby Boomers should keep our money as close to us as possible. Cash in a deposit account guaranteed by the government is still the best bet as far as I am concerned.

But I have a bag in my car ready to go to the bank at the first sign our government decides they will guarantee the money but won’t let you take it out. That is the next step if things get really bad. Maybe then I’ll get some gold too.

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