Saturday, February 21, 2009


The government is not capable of handling the stimulus package with the necessary controls in place to assure that the American taxpayer’s money is directed to the proper place and utilized properly. There is too much of an opportunity for massive fraud by government employees and vendors with billions or trillions of dollars at risk. Bailing out ignorance in business management and in personal decisions should not be done at the expense of taxpayers who have managed their affairs properly. There is also no real guarantee that the stimulus will actually work or that is was really necessary. The recovery would have eventually taken care of itself over time. Weak business models always fail at some point and the weak ones will fail during this process. Individuals will always make bad financial decisions and should not be bailed out at the expense of others.
Fraud and greed seem to be synonymous with American business and American government. This is evident as we move further into the economic situation or crisis currently facing the country. Greed is always involved in these type situations to some extent and played a large roll this time. Fraud has also raised its ugly head as individuals take advantage of the trusting public. We were informed to a certain extent about the specifics related to the financial meltdown on Wall Street, but you have to do your own research to obtain a better understanding of what actually occurred. Banks have stock prices not seen in many years, unemployment has reached levels not seen in years, and individuals along with businesses have difficulty obtaining loans. In my opinion, the loan problem may not be such a bad deal because people and businesses have been creating too much debt. A large percentage of individuals and businesses have been attempting to live beyond their means. The recovery will be slow. There is also a psychological factor involved that will have to be conquered by the public and business. We have witnessed the rollover effect throughout the financial services industry and into all segments of American society and throughout the world. Securities/investments, banking, real estate, auto manufacturing, dealerships, and all associated industries have been touched in this crisis. There is one area that I feel is waiting in the wings and will at some point make the news. That is the medical/healthcare/drug industry. I will not be surprised if massive fraud and corruption in this industry makes the front page of the news. There is still a great deal that will have to be accomplished by government to assure the public that their money is being spent wisely and not wasted. Future generations will certainly judge the wisdom of decisions being made by the so-called leaders in Washington.