"If you don't have a banking system you don't have an economy." "And if you don't have order (an economy) you've got chaos."
dddddddddddddddddddddddddddddddd-Paul Kanjorski and Me
Like I've written previously TARP wasn't enacted to benefit Wall Street it was enacted to benefit you and I. We just see the benefits in our continued, albeit severely stunted, economic existence as opposed to cash like the banks. Paul Kanjorski, congressman from Pennsylvania, says what I and the economically literate have known for sometime about those few days in September. It was serious. It was TARP or run on the banks 2.0 style.
At the time I remember having a sobering conversation around the matter with my father, who asked me should he get out of paper and into gold. I told him if he ever had to buy gold as a barterer, as opposed to a speculator then God help us all. I advised that it was better to stay positioned in paper and take the short term hit than to contribute to a massive run on the banks that would collapse our economy. He did and we quickly rebalanced after the emotion had subsided.
What's interesting is that most American's have hopped on the populist bandwagon in an effort to deride the very govt efforts that certainly blunted the run on the banks. Their ignorance reminds me of my niece. When she was a little tyke I was tasked with baby sitting her which involved me following her around the house from room to room while she used her mouth to discover beds, shoes, closets and other common household items. After a literal turn of my head for a second I found her in an Usain Bolt-like charge towards a 15 flight staircase. In a moment I was able to grab her avoding the unthinkable tumble. When I pulled her up into my arms all she could do was giggle while my heart pounded through my chest. For her dangling on the precipice of grave injury was fun! Who knew. I realized it was only fun because she had NO IDEA how close she came to catastrophe (and how derelict I was in my duties). I think 99% of Americans fall into the same category. They have no idea.
Kanjorski tells us.
Credits:
Ballon Juice
SG White
