On Sun, 07 Dec 2008 14:47:53 -0600, Richard
wrote:


Am I missing something (again) or ---

It is beginning to look like we are going to "bail out" any business
that makes money by loaning money, but not any business that makes
money by making products.

WTF?
=======
Indeed, and IMNSHO this is the root of not only the current
economic problems but also many of our social/cultural problems.

While there is *SOME* net value added in most financial
transactions, it is nowhere near the value added in manufacturing
such as the conversion of sand to computer chips or iron ore to
steel and then into cars.

While some financial transactions are vital in any modern economy
[e.g. foreign exchange], we have allowed the financial tail to
not only wag the dog, but shake the entire house until it is
about to fall down. In the period 2006-2007 about *ONE_HALF* of
all reported corporate profits in the US were generated by or
through financial transactions. In GM's case, the only division
making money in this period was GMAC, while their manufacturing
operations were all losses.

Rationally, all available capital and management attention was
poured into the financial operations as these were seeming
generating much higher returns during the "bubble years." A
major problem is that while "financial engineering" appeared to
be generating major "profits," on closer examination [i.e. when
the ship hit the sand] these proved to be "fools gold."

A final thought -- even with no guarantee your Republic windows
are keeping the wind and rain out, and represent a far better
value for the money that Enron, World-Com, [and as is increasing
likely GM] stocks and/or un collateralized bonds.


Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?

Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).