"I'm Herb Kay and the most important thing to know about me is that I'm not going to lie to you or pull your chain. Ever. In my S.O.S. Guides, I give you, well, guidance, in a straight-talking and step-by-step way. The website offers the "advice side" of my system. Here, in my blog, I'm going to dig a little deeper and get a little grittier. That's the opinion side of my system. Will I say something that might shock you? Maybe. Will I ruffle some feathers? Perhaps. Will you close the page with some food for thought? Absolutely."
The Herb Kay Way is the straight forward, never-mince-words way. Check out Herb's latest blog on your money, your career, your debt, the economy and the world we live in.
I was watching Treasury Secretary Geithner on "Meet the Press" this past Sunday talking about the economy and new regulation of Wall Street.He gave an optimistic outlook saying that the numbers were coming in better than expected and therefore we should all be relieved and thankful for the president's programs.Okay, though I entirely disagree with every one of these sentiments, I fully understand that being a cheerleader for the administration is part of his job so he gets a pass on that.And I hope he is right by the way for all of our sakes!
However then he got on the subject of the new regulations moving through Congress and how they would mean the end of "Too Big to Fail", which pisses off just about every taxpayer in America. When pressed on how the new regulations would do that, he answered that in the future, if a major institution failed the shareholders would be wiped out and the officers fired when the government stepped in.That answer went unchallenged by the interviewer, so please allow me to ask the obvious; how does the government stepping in at all end "Too Big to Fail"?Further, why does wiping out the shareholders and officers in this bill differ from the exact same result in bankruptcy?I mean, if the bankruptcy law already exists to either liquidate or reorganize a failing company, why exactly do we need new regulation at all?
Here is the answer; we don't.This is just another naked and stupid attempt by politicians to fix what isn't broken, in order to both cover up their past incompetence while expanding the role of government in our lives and give them a reason to exist.The free market already knows perfectly well how to deal with a failing company; it destroys it.Then, another, more improved company rises in its place to serve all of us better.By stepping in to save any company of any kind, the government is screwing up the free market and creating imbalance that will show up down the road as sure as God made little green apples in ways that are to all of our detriment like more debt we cannot pay, weaker currency we cannot hold, and sluggish to non-existent business growth to maintain high unemployment.
