Wall Street Takes A Hit

And not a moment too soon. One of the things I find interesting and try to keep current on is the economic structure of our civilization. I was getting a little tired of the US Federal Government stepping in with their ability to create electronic money out of thin air (more debt) and using it to rescue companies who really should be allowed to go bankrupt due to the companys' poor business decisions. It's called the principle of moral hazard. If you insulate companies and individuals from the consequences of their actions, it's not a good thing.

So today I felt something I haven't felt for a while: a sense of respect for the Feds. They held their ground. They didn't bail out Lehman Brothers. I don't expect that practice to continue, but it felt good today.

And such fiscally responsible actions are the morally right thing to do for future generations. They will be the ones wondering what were we thinking when we saddled them with unpayable mountains of debt that has the potential to destroy our currency through hyperinflation, or crash the economy into deflation. It's happened throughout history with other countries that were fiscally irresponsible, and we are not immune.

So, vote for the most fiscally responsible candidates! (Good luck figuring out who they are).

Enough ranting. Enjoy this wonderful late summer weather.