I remember vividly when I lost most of my money in dot-com bubble burst. Since then I am very careful with my spending. I am still renting because I couldn’t afford the 30 years fixed mortgage. My investment is in diversified fund. Had government bailed me out, would I be same like now? Same way people who saw depression live frugally and invest money wisely.
So what government is teaching us lesson now by bailing out Freddie Mac, Fannie Mae and AIG?
- To Corporation : You lend money to any Tom, Dick and Harry and get big bonuses and when you fail government will bail you out.
- To Individual: Buy the home you can’t afford with no income proof and when you won’t able to pay government will bail you out.
This is capitalism?
Anyway I haven’t lost faith in our system yet but our system need a bitter pill. In mean while I moving my money from money market to index funds.