Who Are They?

Who are the folks we see on TV at the close of the daily stock market sessions that are clapping and smiling while they ceremoniously ring the bell that ends the day? I can understand the clapping and smiling when the markets have shown an increase. But when the Dow has tanked 450 points during the day, I'm not sure I understand the exuberance. I would, I think, when my portfolio has shrunk 6% in one day, prefer a somber ceremony that shows some respect for my loss.

I guess one could interpret the exuberance on a down day as ignorance of what has happened or just plain rudeness. Or maybe those people are hedge fund investors who have gambled that the market will decline and have just made a ton of money on other peoples' losses and their exuberance is a kind of "in your face" thing. Or, maybe, they're just stupid. Whatever they are, it just doesn't seem appropriate to be clapping and smiling when the markets have declined.

The Issues, No. 60 - Bailout the Automobile Industry?

If the automobile industry is truly important to the economic well being of the country then maybe the government should provide some sort of financial assistance to help it recover. The problem is that it's hard, as it has been hard in accepting that the government needed to bailout the financial industry, to agree that an industry that has know it was having difficulties for some years now and didn't have a clue about how to compete with the foreign auto makers now needs our government to step in and save it. For those that believe in a free market economy, I think the emotional solution is that the industry should be allowed to fail because it did not create the demand for its products that it needed in order to survive.

The problem with not having our own automobile industry, however, could be quite costly, not only to our economy, but to our national defense as well. Aside from the fact that a failed auto industry would mean a tremendous loss of jobs, if we don't produce our own automobiles, we could be held hostage economically by the countries that sell them to us. And very simply, if we don't produce our own military vehicles and the spare parts required to keep them operating, we may not be as prepared as we should be to protect ourselves. Therefore, the government, from a purely practical standpoint, needs to do something to help keep the industry alive.

Maybe we don't need three big companies producing a thousand different models of vehicles and maybe the industry should be pared back to something that is reasonable. But we do need to have an automobile industry in order to ensure support for our economy and for our national defense. We just can't become totally dependent upon other countries for our motor vehicle transportation needs.

The Issues, No. 59 - Unregulated Capitalism Doesn't Work

It should be very obvious to all of us that our capitalist economy, unregulated and/or deregulated, didn't work. I'm all for capitalism. I think capitalism the very best motivator for individual and corporate progress and wealth. But it obviously falls apart when left unattended due primarily to greed which encourages corporations and the men and women who run them to gamble recklessly and ruin it for the entire country.

We all know by now that the credit practices of the mortgage lenders and our banks and credit card companies are what has caused our economy to collapse. Also, we all should know by now that the only way to prevent similar incidents from happening in the future is for our government to proactively provide oversight into business and financial practices and,where there are signs of possible trouble, stop whatever it is that's going on before it gets out of hand. The bottom line is that our economy needs government oversight. Too bad if that is socialistic. It simply needs oversight regardless of what it's called.

One area that needs a whole lot of new regulation is the stock market. It is just appalling to me that individuals and institutions are allowed to do short selling. It is also appalling that hedge funds are legal. Then there is after market trading which is another practice that should be illegal. It is one thing for individuals to buy shares in companies they believe are going to be successful which should be the basic activity of the stock market. When it turns into a high finance gambling casino, very much slanted in favor of the institutional investors and the wealthy, it then becomes what should be considered criminal. So government needs to clean up the stock market while it's overhauling the financial industry.

We've simply got to have our government deeply involved in watching and regulating what's going on in our economy. If we don't, we'll continue to have problems like we are currently experiencing. I don't care whether you are a conservative Republican or a liberal Democrat and I don't care either whether government oversight and regulation are socialist or capitalist. What I care about is a sound and prosperous America and I think, from our recent experience, that our government needs to step up and take control.