On Bad Behavior And Bailouts

I admit right here and now to knowing next to nothing about economics and how free markets work most efficiently.

The only thing I really know much about at all, in fact, is raising children to become responsible adults. And a bit about the process by which behaviors are either encouraged or discontinued. The truth is, if one of my kids landed in jail because he’d committed a crime, I would hesitate (and probably decline) to bail him out.

Of course, if he’d been thrown in the slammer due to some terrible misunderstanding on the part of law enforcement officials, that would be a different matter, one that obviously doesn’t apply to the situation at hand.

Is there ANYTHING that would make us believe that the practices Congress is seeking to throw money at weren’t completely intentional and, in fact, ENCOURAGED by the very lawmakers who now want to rob Peter (YOU!) to pay Paul (THEM!). I think not.

So I’ll stick my neck out here and say that on general principle, I am completely against bail-outs. I’m talking governmental, corporate, and personal. I’m a big fan of letting markets (and families) sort out their own difficulties and—as much as possible—change their own behaviors in order to achieve different outcomes from the ones they’ve gotten so far.

I realize there’s a chance that if we had no bail-out package whatsoever, the suffering we’d all endure as we adopted new (more fiscally responsible) behaviors would be stressful and difficult, and possibly last longer than if Congress does pass the deal.

However, that’s no reason to pass legislation that bolsters the confidence of those who’ve done wrong and essentially puts them in the position of being enabled to continue the abhorrent borrowing and lending practices that led to this mess to begin with.

As for credit drying up, my mailbox JUST YESTERDAY contained credit card offers at 0% from five separate companies. We are debt-free except for our mortgage, but we’ve got credit lines out the wazoo. I expect the offers will continue ad infinitum, because we have a strong history of paying back what we owe.

I’m not bragging. What I’m saying is that credit will always be available to those who have the ability to pay back what they borrow. And that’s as it should be. Believe me, for the early years of our marriage, we would NOT allow ourselves to get a credit card at all because we KNEW our meager income could not support a payment to a lending institution. I know whereof I speak.

If parents, companies, financial institutions, and governments began to operate (for the first time in decades) on the principle of rewarding good behavior (such as obedience, saving, investing, and building businesses without unqualified borrowing) and discouraging bad behavior (by putting the kabosh on bailouts), we’d all be a lot better off in the long run.

The long run may take a long time, but the payoff is so worth the wait.

Here are two articles I couldn’t agree with more. Since they are both written by libertarians, perhaps that makes me one? Hey, whatever it takes.

A Harvard Economist Speaks Out

Karl Marx Makes A Comeback

Posted by Katy on 09/30/08 at 06:25 PM

Fallible Comments...

I thoroughly agree with you that this whole bailout idea is not a good one. More government interference in the situation that was caused by governement interference surely will not solve the problem. Our whole culture has become afrais of failure and discipline, but that is exactly what we need to get back to sanity in the financial world. Will all those CEO's who got millions be required to pay their more than fair share of the bailout price - you bet not!! They are the ones who should be coming up with the money, or they should go to jail. That is where Congress should be finding a special prosecuter for. Will they. No because somehow in all of this they will make money that has been taken from those of us who catually work for a living. And I thought I was going to be able to retire.
Posted by Sandi Thompson on 09/30/08 at 07:37 PM
Ditto, Katy!

I used to work on Wall Street.

Let them bail themselves out!!!!
Posted by suzan on 09/30/08 at 07:47 PM
Okay, this is all wonderful but I think you should go back to blogging about your underway. It's so much more entertaining...
Posted by Cathy West on 09/30/08 at 11:20 PM
That should be underwear...
Posted by Cathy West on 09/30/08 at 11:23 PM
I love your blog and your page it is so great.Keep up the good work!
Posted by kayla on 10/05/08 at 11:52 PM

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Personal blog of christian writer & fallible mom Katy McKenna Raymond in Kansas City, Missouri Katy is represented by Greg Johnson at WordServe Literary Read more Katy at LateBoomer.net Follow Katy on Twitter Follow Katy on Facebook 123 Recent Posts Try Becoming Brenda Starr Off Beat Scattered That’s It So I’ve Finally Signed With An Agent. Now What? The Spoon Sciatica Sweetheart A Woman’s Train of Thought Has No Caboose However much we own, we are all still living on borrowed time After all, when restaurants shrink portions, they don’t shrink prices. As with everything in life, balance is key. Slow down, you move too fast… Yeah, I know. I have issues. Search Advanced Search Syndicate Login E me at katy @ ngenius.com	On Bad Behavior And Bailouts I admit right here and now to knowing next to nothing about economics and how free markets work most efficiently. The only thing I really know much about at all, in fact, is raising children to become responsible adults. And a bit about the process by which behaviors are either encouraged or discontinued. The truth is, if one of my kids landed in jail because he’d committed a crime, I would hesitate (and probably decline) to bail him out. Of course, if he’d been thrown in the slammer due to some terrible misunderstanding on the part of law enforcement officials, that would be a different matter, one that obviously doesn’t apply to the situation at hand. Is there ANYTHING that would make us believe that the practices Congress is seeking to throw money at weren’t completely intentional and, in fact, ENCOURAGED by the very lawmakers who now want to rob Peter (YOU!) to pay Paul (THEM!). I think not. So I’ll stick my neck out here and say that on general principle, I am completely against bail-outs. I’m talking governmental, corporate, and personal. I’m a big fan of letting markets (and families) sort out their own difficulties and—as much as possible—change their own behaviors in order to achieve different outcomes from the ones they’ve gotten so far. I realize there’s a chance that if we had no bail-out package whatsoever, the suffering we’d all endure as we adopted new (more fiscally responsible) behaviors would be stressful and difficult, and possibly last longer than if Congress does pass the deal. However, that’s no reason to pass legislation that bolsters the confidence of those who’ve done wrong and essentially puts them in the position of being enabled to continue the abhorrent borrowing and lending practices that led to this mess to begin with. As for credit drying up, my mailbox JUST YESTERDAY contained credit card offers at 0% from five separate companies. We are debt-free except for our mortgage, but we’ve got credit lines out the wazoo. I expect the offers will continue ad infinitum, because we have a strong history of paying back what we owe. I’m not bragging. What I’m saying is that credit will always be available to those who have the ability to pay back what they borrow. And that’s as it should be. Believe me, for the early years of our marriage, we would NOT allow ourselves to get a credit card at all because we KNEW our meager income could not support a payment to a lending institution. I know whereof I speak. If parents, companies, financial institutions, and governments began to operate (for the first time in decades) on the principle of rewarding good behavior (such as obedience, saving, investing, and building businesses without unqualified borrowing) and discouraging bad behavior (by putting the kabosh on bailouts), we’d all be a lot better off in the long run. The long run may take a long time, but the payoff is so worth the wait. Here are two articles I couldn’t agree with more. Since they are both written by libertarians, perhaps that makes me one? Hey, whatever it takes. A Harvard Economist Speaks Out Karl Marx Makes A Comeback Posted by Katy on 09/30/08 at 06:25 PM Fallible Comments... I thoroughly agree with you that this whole bailout idea is not a good one. More government interference in the situation that was caused by governement interference surely will not solve the problem. Our whole culture has become afrais of failure and discipline, but that is exactly what we need to get back to sanity in the financial world. Will all those CEO's who got millions be required to pay their more than fair share of the bailout price - you bet not!! They are the ones who should be coming up with the money, or they should go to jail. That is where Congress should be finding a special prosecuter for. Will they. No because somehow in all of this they will make money that has been taken from those of us who catually work for a living. And I thought I was going to be able to retire. Posted by Sandi Thompson on 09/30/08 at 07:37 PM Ditto, Katy! I used to work on Wall Street. Let them bail themselves out!!!! Posted by suzan on 09/30/08 at 07:47 PM Okay, this is all wonderful but I think you should go back to blogging about your underway. It's so much more entertaining... Posted by Cathy West on 09/30/08 at 11:20 PM That should be underwear... Posted by Cathy West on 09/30/08 at 11:23 PM I love your blog and your page it is so great.Keep up the good work! Posted by kayla on 10/05/08 at 11:52 PM Page 1 of 1 pages Commenting is not available in this weblog entry. Next entry: Buy And Bail, Before It's Too Late! Previous entry: Fair And Fallible Disclosure << Back to main


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On Bad Behavior And Bailouts

Personal blog of christian
writer & fallible mom
Katy McKenna Raymond
in Kansas City, Missouri