My political views have changed so much in the last two year.
I wasn't vehemently anti-socialist, but I believed in the free market, the invisible hand, that with an economy of this scale, it will all shake out as it should. In many ways, in many sectors, this is still true: Breakfast Cereal is fairly priced through successful competition.
But in the largest parts of our free market, this has failed us. The power of the Individual to make his own world is a myth - we are truly connected in ways I didn't foresee when I supported de-regulation of capital markets. Of course, I was in my twenties, just starting to invest when much of the laws which set our disaster in motion were passed. But it made sense - these banks were run by smart guys, smarter than the failed insurance salesman representing them in congress.
Predatory Lending was just the Lion on the planes of Africa - there to pick off the sick, the weak, the stupid. It's part of the natural order, and frankly if there are fewer stupid gazelles, then there is more grass for smart gazelles to eat and prosper. So go ahead and sign up for every credit card invitation they send you. I'll wave to you when I drive past the bankruptcy court on my way to work. My wife has no credit cards, I have one from Target, only to bolster my credit rating for when I was ready to buy a house. And when people were signing up for Adjustable Rates, I chuckled and got a decent fixed rate. Smart Gazelle navigating around the Lions. I never saw a car as more than a necessary expense, and have always been modest with status symbols, instead putting extra funds into the 401(k), the investment account (buy-and-hold for me, good luck with your day-trading...).
I didn't believe that I would go down with all of them. I thought, I believed - like people believe in Jesus, I believed that doing smart conservative financial steps would protect me in the Ant and Grasshopper sense. The more I watch and read the autopsy of this disaster, the more stupid I feel.
Frontline's "The Card Game" is a great example. All these people all around me, with revolving credit maxed out, 2nd mortgages, an entire society driving with the pedal to the floor until the system broke. Predatory lending put the balance of the entire country's fortunes into the hands of people stupid enough to believe a story too good to be true - and in my heart, I have always known that there are more stupid people than smart people.
I never made a mis-step in my financial life. My bad investments fall into two categories: A) I knew it was a long shot and I used gambling money (GM), or B) I based my decision on lies (Enron), but in all cases, it was discretionary dollars. Most of the money is in broad index funds. Conservative. I went down to the bottom, right along with every fool, every spender, every frivolous lout who mortgaged his home to buy an Escalade and paid electricity bills on credit cards with 31% interest.
The Free Market failed us all. Banking, lending, and securities trading needs to be watched closely, and consumer protections must be put into place as they are with food and vehicles. Most people are on board with this - a few holdouts, mostly the ones with the most to lose, who are also those responsible for the wreck we are in. Furthermore, our future growth will be slow compared to the short time I've been an adult and seen two major bubbles inflate and then explode taking me with it. They threaten to tighten credit, and there are few things we need more than tighter credit, though to hear the other side, you'd think restricting credit was killing us. We need to lose weight, but it's hard to cut out soda and fat kids whine when they can't have candy. I'm stating the obvious, but it's spilling over into other parts of my life.
Leaving many behind weakened us all. It's true for consumer credit, and it's true for healthcare. If you are smart, strong, capable, you must bear some burden of the weak and stupid. It sucks, and I wish it weren't true. I wish I could just be responsible for myself - as I always believed. I am healthy and I take care of myself, my wife is in good health (not this week, but in general, she is very strong and will live a long time). I believe my son will inherit a long lineage of sturdy constitution. We can take care of ourselves and only ourselves - but it is clear to me now that this is to our peril.
If we allow the weak to linger, we drag down our country. We literally lose our strength, and hand over control to those countries who recognize that there are limits to the free market, and that the care and protection of the populace is the responsibility of government - that we are and always will be our brother's keeper. Our lazy, stupid brother.
I can't crash again. I don't know how many people are waking up from this crazy dream - I know more are getting it than ever before, but with so much inflammatory rhetoric about healthcare, I have to wonder. Are we going to fix the financial system only to go back to the Every-Man-For-Himself world of Health Insurance - and just wait till that sinks our economy, yet again?
I hate being wrong. I hate that I was wrong for such a long time. I hate that I bought into an only slightly less ridiculous premise than the unlimited credit card ruse my stupid brother (metaphor, not the actual brother in prison, but this isn't far from) bought into. I'm just as dumb for believing a line that was too good to be true.
You are my brother, and we are in this together.
- T.