Chain of Fools

Sometimes I hate it when I’m right. Or at least mostly right. Citigroup got partially nationalized over night.

American taxpayers now own more pieces of more banks than ever in history, and that trend disturbs me. Greatly. The federal government should not be in the business of owning major shares in banks. Or any other business, for that matter.

We now collectively own pieces part of multiple banks and the largest insurance company in the world. And we likely will end up with a good share of failing auto companies, too.

When this whole mess started, I had more faith that bailouts might work. But so far, companies have taken the money and changed little to nothing about the operating policies that had them looking a pauper’s funeral a month or so ago. And the pauper’s grave isn’t out of the question for most of them, still.

Like mine, the government’s pocketbook is only so deep. When it gets tapped out, there won’t be any more bailouts for anybody.

The Chinese will quit buying US debt at some point when they perceive that we have no possible way as a country to service that debt. And since they’re our primary source of funding debt, the results could be catastrophic.

And the primary reason for bailouts has been un-freezing credit markets. But they’re still as icy as ever. When banks won’t lend to banks, I don’t think it’s worth my time pursue credit on any level.

My mood is shifting from holding-on-to-hope optimism to how-in-the-hell-do-we-get-through-one-more-crisis pessimism.

Like many people, I have bailout fatigue.

How long can it go on, and how may times can it happen? When will enough be finally enough? When will it all end?

I have to only remember the greed, irresponsibility and lack of oversight and regulation that put us where we are today to need a Prilosec for intense heartburn.

Shannon and I lead a fairly complete and rich life while paying our bills on time (or at least close to on-time. With any number of bills, close is good enough). We don’t accumulate debt that we cannot service.

We do those things because they are the smart, practical things to do. In the long run, it’s easier and cheaper to live within one’s means than to not.

If only the people begging for bailouts now only knew that.