Last Friday NPR did a story in their Planet Money section of their website entitled Taxpayers Beware: Bank Bailout Will Hurt. The report is based on a note from an economist at Deutsche Bank. He said: “Ultimately, the taxpayer will be on the hook…(for the bailout).” He then goes on to say that there is nothing we can do about it except accept it.
Simon Johnson, a professor at Massachusetts Institute for Technology’s Sloan School of Management said the note was a “robbery note”, but unfortunately probable true.
What upsets me the most about this is that this whole nuclear meltdown of our economy is the result of greed and dishonesty. Good, honest, hard working people, like my clients, are ultimately the ones that are suffering, and literally paying. Yet this bank’s economist has the nerve to say oops, we screwed up, you are going to pay, and this is going to hurt.
My question to him is what about those people that have not done proper planning? What about those that do not have an emergency fund saved up? What about those retired people that do not have 6 years worth of retirement income in short term bonds and money market funds? Do they have to pay more?
This isn’t about answers. This is about honesty. The only thing this economist has going for him is that he has finally said what many others (banks, congressmen, etc.) have been too afraid to say.
The whole situation reminds me of baseball and steroids. How hard is it to say, “I took steroids. I’m sorry.” It also reminds me of my parenting class I took two years ago. As Debbie told me, there is going to be a major change in your life. Remember the 3 As.
Only after acknowledgment and acceptance of the situation can we begin to heal and adapt.