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Good Old Boys Network Prevents Accountability in Business.

By Mike Fak(18,246) Mike Fak

Posted Friday, March 21, 2008
View All Blog Posts submitted by Mike Fak

Good Old Boys Network Prevents Accountability in Business.

A week ago, President Bush told America that it was important not to “overcorrect" the economy. That’s brought to you by a man who certainly knows how to under correct one.

The President’s analogy was of a car that starts to lose control. He stated it is important not to over steer and make things worse. The problem is the nation’s economy isn’t losing control; it has crashed right into a foreclosed house right next to a gas station. As news continues to show how deep we are into a recession, the only thing he and his list of bumbling advisors can do is try to put out a firestorm of economic woes with a hose filed with promises of relief coming soon. Coming soon might work in movie theaters but it doesn’t work in real America.

Just 16 days ago, top financial analysts gave banking giant, Bear Stearns a clean bill of health. This past weekend the Feds, including Treasury Secretary Paulsen had to work to keep the bank from crumbling into insolvency. One hell of a group of analysts aren’t they. To make the situation all the more ridiculous the Feds are backing the banks over inflated mortgage portfolio by guaranteeing billions of dollars that they don’t have either.

So we end up with millionaires who aren’t very bright running a mega bank that loses 99 cents of every investor’s dollar and no one in Washington is asking for heads to roll. I assume it is because those who are supposed to be our watch dogs for responsible business practices know they should be pushed out the door with the bankers.

To show how entrenched the good old boy network has become, J.P. Morgan who bought Bear Stearns for pennies, says they want to keep most of Bear’s top 400 executives but that almost all of the 14,000 other employees will lose their jobs. So upper management fails miserably and they keep their jobs while the rank and file are put out in the street. It makes one shake their head.

The question of why there has been no intervention to stem the tide of Americans facing foreclosure while the banks who gave them the loans are bailed out begs for an answer. To be sure, individuals who purchased more than they could afford were not using sound judgment. But the banks such as Bear Sterns that invested heavily into tens of thousands of these mortgages used even less. Yet, they are rewarded with government help while American homeowners find a false dream blown away into the reality of too much home with too little income to keep it.

Of course the President commended Treasury Secretary Paulsen on Monday for working all weekend to put the bank bailout together. Gee, maybe now at least Paulsen knows what it’s like working weekends like so much of Middle America. A Middle America that has to work extra jobs or awful hours just to make ends meet.

The talk of maybe we are headed for a recession needs to end. We are already heavily entrenched in one that won’t be cured by dribbling down the prime rate or bailing out businesses that invested in unregulated hedge fund financing that was always smoke and mirrors.

Someone needs to get tough and face reality. The economy is in lousy shape. It can’t be fixed till everyone admits it. The car has crashed. Pretending the accident didn’t happen won’t solve anything. Protecting those responsible for the crash has to end.

This Blog Post has been read 217 times.
Posted to ProBlogs.com on Friday, March 21, 2008
View other posts by Mike Fak

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