Sunday, March 01, 2009
Day 1: Why This Blog
I am starting my blog today. Life cannot go on as before because this global financial and economic crisis is affecting me and the lives of many others. But that's not the real reason I want to start sharing my thoughts, nay, my anger about what has happened and what continues to happen in Washington and on Wall Street.
Yes I know mismanagement by public officials is global. Same with greed and corruption at high places, public or private. However, what is going on in the US is on a scale far bigger than anywhere else at this point.
Anger is a two edged sword. It can cause irrationalilty but it can also move otherwise lethargic people, like myself, into doing "something", something constructive.
I am not consumed by anger. I do wish to point out some of the salient aspects of what is being done by Obama's economics team that may or may not be working to resolve the crisis.
My interest is not soley of a technical nature such as "Is a convertible preference share swap into common stock into Citigroup the most efficient way to unblock the freeze in the credit market." There are many others far better qualified than I to analyse such issues.
Rather, I would take one or two steps more and look at the "fairness" of the deal. In the arcane language of economic theory, this approach was known as "welfare economics."
I will try to avoid jargons. They ofuscate more often than illuminate.
There is much confusion and unhappiness all around regarding what is being done to bailout overpaid financial "geniuses" who got us into where we are.
Perhaps some straightforward thinking is in order devoid of patronizing and obfuscating technical terms preferred by those who run our system.
This blog hopes to contribute to that effort so that we, those who pay taxes and mortgages on time, may know what to do to make the system a little better in the future.
Towards this end all of us need to be a little more vigilant of possible misdeeds committed by those we usually consider as our leaders or pillars of society: bank presidents, Treasury Secretaries, Central Bankers and elected officials.
Perhaps our vigilance will result in advance warnings before the next perfect storm could ever gather sufficient force to engulf us all as this one is doing right now.