This is personal. This disaster on Wall Street and in the halls of Washington. Most of us have no idea what our Government leaders are talking about. Most of us don’t understand why every man woman and child in America has to put up something like $2,500 to bailout a rich Wall Street Banker. But it is personal. This is an issue that gets in each of our pockets. We have to Keep it Simple, as they say.
We come from a big family. One brother works for the local Gas Company, another works in a Cryovac factory – vacuum packing products to be shipped around the country. Our daughter works at a small animal veterinary clinic and her husband drives some sort of concrete truck. What happens to these everyday people if the banking system collapses? They will all eventually lose their jobs.
Picture the banking system as the engine of an automobile. If the engine quits the car stops. Banking is engine that drives the American economy. How so? The banks provide the money. Money for homes and business. If the banking system freezes, locks up, then we will see no money for a new McDonald’s franchise,. or a new Starbuck’s franchise. There will be no money for small business loans – we will not see Mom and Pop hamburger stands or Mom and Pop Coffee Shops.
New home building will dive even further. With no new homes, no new McDonald’s, no new small business – The concrete truck driver will be out of a job. The gas company will have no new connections – gas company employees will be terminated. Cryovac will have no one to ship to – more jobs lost. When people are not working their small animals will not receive regular health care. Small Animal Veterinary Clinics will close or cut back – more lost jobs.
Local banks will have to lay off loan officers – there is no money to loan. Bank tellers will be sent home. Property taxes will dive – municipal employees will be terminated. School districts will lose their tax base, their buildings will fall into disarray, extracurricular activities will be the first to go – no football, no drama department, no photography.
We, the American people, are not responsible for this mess – except to the extent that we participated in borrowing money we could not pay back – but all of us have a stake in the end result. John Wayne said it in Big Jake: “Your fault, my fault, nobody’s fault, if you don’t do something your head will be blown off.”
We at The Fireside Post are not advocating any particular action – we are only stating that this is an extremely serious financial crisis. We are not well informed enough, and probably not educated enough in Economics, to make or endorse specific proposals.