Monday, April 7, 2008

Economic Band-aid

I have a strong respect for billionaire investor Warren Buffett and I agree with one of his quotes when he told his shareholders a few years ago: "If they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy only when others are fearful." Investors, who at heart want to make money and make it as soon as they can, are the ones that can hurt the economy. The purpose of the corporation was and still is to generate profits for its investors (shareholders) which is not a problem for me because I am one of those "investors". Economic's chief purpose is to discover and refine just and means of creating, distributing, and consuming wealth to overcome poverty and to increase the material prosperity of people. In the United States, work ethic in form of stewardship and that economics are called for efficiency and productiveness of common sense and a strong sense of disiring to be a good steward of taking care of the country's citizens. America's attitudes towards money should be in their conviction that money is a social good, not a private possession and that the economic main purpose is the welfare of everyone in society, not the personal pleasure of the person who happens to have control over it.

At the same time, those who got greedy which lead them to trouble in the housing markets as well as subprime loans. I agree with John McCain's policy with his quote: "it is not the duty of government to bail out and reward those who act irresponsibly, whether they are big banks or small borrowers."

In my own opinion, why should we reward bad investers and borrowers by bailing them out when the wiser investors and borrowers who gets no rewards other than being non-greedy and wiser? I will not count those who lost their jobs or their health caused them to spend more on their health care because they are not at fault. I am talking about those who invest and borrow unwisely. Also, we need to punish "predatory" lenders who lure people into borrowing out of their reach.

We live in a country that is "you're-on-your-own" situation as today's commentary by George F. Will: McCain's bailout minimalism is a maximum advantage. I will always remember Benjamin Franklin's quote “The Constitution only gives people the right to pursue happiness. You have to catch it yourself.” Throughout the Old Testament, there were lists of people who were wealthy and in fact the Book of Proverbs wrote who we use our wealth. Economic system is stewardship. In this country, people have equal opportunity to be successful but not everyone would be successful.

Whenever we face financial problems in this world, we need to understand that there is not one "economic system" that will solve anything. Even as much as they try, not one "Government system" will be able solve anything. My final thoughts on the political economic system: I have said before and I will say again, economic system is NOT the problem, its PEOPLE and their attitudes.

Last week, I have made some changes in my investments as well as my spending. I am taking the responsibility for my part of helping the United States economic situation.

I just can't do this alone.


Diane J Standiford said...

Jim, I am a liberal and an investor, but on this bail out of home buyers--I agree, they were stupid and irresponsible enough to dive in why do I have to bail them out? I could have bought a $500,000.00 home, preapproved! I'm on soc sec! I said, "I can't afford it." (They treated me like *I* was the fool!) Now my CD's will get only 3%...I am hot under my blue collar about this.

whimsical brainpan said...

I think any bail out is ludicrous. And kudos to you for taking resposibility for your situation. Far too many don't.