Here’s a stupid question for you…
Kasia November 12th, 2008
OK. So at least one or two of the Big Three have expressed interest in getting some of the money from that big government bailout/stimulus package that passed back in what, September? Now, I’m not going to debate whether the package should have passed – even at the time I recognized that it was beyond my meager economic competence to evaluate, and now it’s moot anyway because it’s long since passed. My question is a little more basic.
According to the news report I heard this morning, the Big Three and our governor, Jennifer Granholm, are earnestly pressing for this. However, (the news reported), some people object because the funds shouldn’t be used to prop up companies that have grossly mismanaged their resources. I paraphrase, but that’s the gist.
So here’s my question: As I recall, the package was precipitated by the apparently impending failure of Fannie Mae and Freddie Mac, plus a few other financial institutions that had apparently either been instrumental in originating most of the mortgages that have since been deemed overly risky (you know, when they went into default – hindsight being 20/20 and all that) or had purchased them as investments (because we know risky investments NEVER fail and ALWAYS bring high returns)…doesn’t it seem like…well, you know…the package was designed for companies that have grossly mismanaged their resources? Or is it just me?
And now I hear the City of Detroit is trying to get in on the action. Well, they definitely qualify as having grossly mismanaged their resources…
Let us not forget AIG, they used to be the company I had my life insurance in. Not anymore! I am actively looking for a new life insurance company. That manages their (my) money wisely. Got any ideas?
Hmm. Will this work for private citizens, too? If I admit to making some unwise purchases, can I get some free money to help with my debt?? (Looks at Best Buy’s ad for new LCD HD TV…..)
Joie – not offhand, but if I were looking for life insurance above and beyond what I have from work, I would probably start local and work my way out. For example, I belong to a credit union (and credit unions are notorious for being careful, probably in part as a result of the S&L disaster). I would probably start by inquiring at the CU about whether they offer insurance, and since they probably don’t, my next step would be to ask whether they recommend anyone in particular. If not, I would ask a trusted financial advisor…and maybe ask Captain Capitalism how the average Joe Schmoe can evaluate and assess insurance companies and banks…
Jaibee – Oooh…new furnace and air conditioner…mmm, unwise financial decisions…