Bailout Mentality- Financial Codependency-No Need to Teach Responsibility by Jon Searles

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	Bailout Mentality- Financial Codependency-No Need to Teach Responsibility
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	Submitted Saturday, November 29, 2008
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We work hard to teach our children responsibility and how their actions can many times result in consequences that they must endure. Responsibility for decisions in life is what we are taught from the beginning and hopefully we learn from our mistakes. Our life lessons and those we observe in the lives of others help to teach us and hopefully strengthen our futures. That sounds all well and good. It is also good for the individual, but our government and certain businesses in our country have decided that "reaping what we sow" does not apply to them.

Banks and mortgage companies have looked for and received bailout money from the United States taxpayer for poor business practices and decisions they have made over the years. The individuals who artificially inflated their income, borrowed 120% of their home value, and signed a variable interest rate mortgage are looking for help and the new President elect has indicated he will work to NOT hold them responsible for their decision. The automobile industry leaders have traveled to Washington, D.C. on their corporate jets to put out their hands for money to keep their doors open and were told to come back with a better approach, which is not a "NO" but simply a political move to stall the inevitable.

A form of financial codependency seems to be prevalent in which the American taxpayer in the enabler and those who were involved in the bad behavior are given a chance to do it again. Maybe we need a twelve step program for those individuals who we are now trying to save from financial disaster.

Financial times are difficult right now and the economy is in the process of adjusting to the current problems that have been causing turmoil. Everyone is standing in line with their hands extended asking for the financial help for the poor decisions they made. Communism according to Webster's New World dictionary is "any economic theory or system based on ownership of all property by the community as a whole." Socialism falls between Capitalism and Communism and also allows private ownership to be substituted with a more communal approach to ownership. So if our government buys stock in banks, stock in car companies, and helps to finance individual homeowners, what form of government defines the bailout mentality we are currently advocating?

Taking full responsibility for the poor business decisions, less than ethical practices, and over indulgences of lifestyles is a better lesson than allowing our government to bailout those people that made serious errors in judgment.

Ford or General Motors may close their doors forever and it would be a lesson learned. Twenty years ago you could talk to any bright college student what American car companies could do to be more competitive in the future and they would tell you that fuel economy was a major topic to help fight the onslaught of foreign cars from Asian upstarts Nissan and Toyota. How many of us get a 20 years head start on solving our problems?

Twenty five years ago when my wife and I had to justify our complete and factual financial stability for a 10% interest home loan, we were not looking for a government handout. It is not a RIGHT to own a home but a privilege of accomplishment. We were asked to contemplate worse case scenarios and have two to three months worth of mortgage payments in the bank.

Here are a few options that would not cost the taxpayer:

1. Let's ask the over 200,000 employee's of Ford to tighten their belts and buy part of the company by giving of some of their wages. In return they receive stock and more ownership in their company. They could still "crash and burn" but at least they have an opportunity to solve the problem. Maybe even the unions would think enough of these companies to invest some of their funds. General Motors could possibly do the same thing.

2. Let's encourage consolidation of banking and financial institutions to strengthen those that are weak. They are buying each other anyway and this would allow those that have managed business properly to regain strength. Once the dust settles, we would see which companies made it on good business practices and integrity.

3. People who are losing their homes could be given renegotiated loans that do not release them from financial responsibility but would require them to pay the same over the long term based on the payment they could afford. This method is starting to gain some momentum, but with the government guaranteeing the loans. We should not release the banking institutions from their responsibility.

People have and will lose money, companies will close, and new companies will rise. Names associated with the United States auto industry may disappear, but change can be good and at times we may even learn from our mistakes. To bailout these companies is a disservice to the American taxpayer and to the companies that are looking to the bailout to keep themselves afloat in the economy in which they had already began to falter. If the government leadership is using my tax money to buy company stock and strengthen the finances of floundering balance sheets, I would like copies of the stock certificates I own sent to me after I send my yearly information to the IRS.

My vote however would be to let them go and see which companies can survive to be stronger.

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» left by Avis Ward ^(11,492)
Avis Ward (342 days 23 hours ago.)

Welcome back, Jon. I like your suggestions. It would be good to actually see what we teach kids about accountability, put into play with this financial mess instead of a total bailout, I agree. Hope you and yours are doing well. Blessings! -Avis

» left by Jon Searles ^(2,108)
Jon Searles (342 days 9 hours ago.)

Thanks Avis. It is great to have a little time to write. Take care.

» left by Mr. Rick ⁽²⁷⁾ (342 days 13 hours ago.)

Good article Jon,

In these tough economic times, people like you and I who have been and are teaching finiancial responsibility to the next generation, will survive and even flourish.

I will be reading more from you.

Rick

» left by Jon Searles ^(2,108)
Jon Searles (342 days 9 hours ago.)

Financial responsibility is a difficult concept, especially with credit as easy as we make it. The only problem is folks realize that the money must be repaid. Thanks for reading!

» left by Robert Melaccio, Sr. ^(5,176)
Robert Melaccio, Sr. (342 days 10 hours ago.)

Jon a great job but and that but my friend is not reality. Why do I say that, well consolidation of banking and financial institutions. I know you may have trouble with this but when I was an officer on Wall Street in the late 1970's that was the goal. IN fact Tampa was to be a hub for South America TRade. It still will be, that is why I moved here. The deal was untracked during the Regan years but put into full swing with GW Senior and his Thousand Points of light. As for home renegotiate. right on the had but never for average or families. If we look at legalized usury and other factors such as the dismantling of America piece by piece we start to understand there is more to this then meets the eye.

» left by Jon Searles ^(2,108)
Jon Searles (342 days 9 hours ago.)

Thank you for reading Robert. I know that at times I write fiction and fantasy, but sometimes it is just too easy not to write it down. Everything is much more complex than the simplicity of my thoughts, but wouldn't it be great if it were that easy and our world had not become such a labyrinth of difficulty. Have a great Holiday Season and yes I still say Merry Christmas!

» left by Anonymous (342 days 4 hours ago.)

Jon I never find your intelligent articles simple. They are well spoken and thought out. As for myself, perhaps a lifetime of being called in to fix problems someone else has created says to me there is always a way or solution if one first identifies the problem, second what is realistic to resolve it and third takes decisive action. You thoughts are, an I do mean it, excellent, Complexity, well Jon, usury is not so complex, stopping it can immediately change the course of many lives and really it is not so complex. What man has created man can change or undue. Why don't they? Well that is and should be a real concern for us all. Good job.

» left by robert melaccio sr. (342 days 2 hours ago.)

Jon this comment was mine. I forgot to add my name ,

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