Home > Economics, Money, Organisations, Opinion, USA, World > Sub-Prime – Solution an Observation

Sub-Prime – Solution an Observation

September 17, 2008 Leave a comment Go to comments

The thought has occurred to me, that perhaps this is the end of free enterprise as we know it.

The reason is if you think about it, all the money that has been poured into the free enterprise companies by the US Treasury and the US federal Reserve, taking them in effect into public ownership, when the Enterprise of Capitalism has always resisted this.  One obvious point here is the dramatic increase in Public debt that our great grandchildren will be paying for.

At sometime in the future these companies now owned by the US Government will be re-listed for transfer back to Private ownership – however I think that we may be past this – the private enterprise as we know it is dead – the wild west in now officially dead – companies need to have much stricter report rules both to the Government, the SCC and the Federal Reserve  – Banks (and all financial companies – that deal with public or private monies ) need to have much tighter financial controls – and higher funds that have to be lodged with the Federal Reserve.

With the absolute destruction (where stocks have fallen sometimes over 50–60%) of the stock exchanges set up by the newly emerging capitalist economies such as China and the former Soviet Union. These countries are in the transition from full public ownership to private enterprise – lets it be under the watchful eye of big brother… but at least there is some oversight…. in the USA and Business self-regulation – now those two words are such a Oxymoron (almost)  – two words that should never be allowed to co-exist in the same sentence, next too each other.

America, the epitome of Capitalism – is going the other way.  In these cases it is all they can do – they cannot afford to have the companies of this importance go belly up.

I only hope that the US Administration and the two Presidential hopefuls – read history books and take the lessons on board – I hope that there is no temptation to follow the bad lessons of the depression, when America became isolationist and increased taxes – you cannot do this – America has to trade her way out of this – and to give the citizens a chance to have a life – a tax reduction with added tax benefits to save and reduce personal and private company debt is the way to go.

Now Detroit is standing in line for another loan – perhaps – but how long will it be before we see a dramatic correction here, with the failure of one of them, or perhaps the consolidation of the US car companies into one major company that can grow and remain strong.

Good news about Merryl Lynch, much better than the recent reporting by Goldman Sacs.

I think however we are still going into the storm, rather than coming out.

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