What the heck?!
Free market is supposed to reward some and punish others...that is life. Those that risk the most stand to lose the most. That is logical.
This economy is NOT.
I bought my house 5 years ago. In the MIDDLE of the alternative mortgage blitz. I read all the literature, I read all the stuff here at the Fool. I bought my house with a plan...204k construction loan, turned into a 5yr ARM, and then into a 30yr fixed. That was the plan and I followed it.
Yet my taxes still go to bailing out EVERYONE who used all those risky mortgages, all those who IGNORED the risks and the real world information that was readily available.
THEIR RISK...not mine...yet I have to cover them?
I watched the economy tank. It showed up on my radar as more than a blip about March. May I started re-allocating...June was I out. All my capital has been moved to safer areas because I did not want to repeat the internet crash. I was paying attention to my risk and managing my ability to sleep at nights.
Yet now my taxes have to go to bailing out everyone that is over-reached in the stock market?!?! People have been shouting 'overpriced' for THREE YEARS now...and yet when I move to protect myself I still have to cover OTHER people's risk?
THEIR RISK...not mine.
That is what a free market is supposed to be. Bailing out a broken system will never fix it. I understand that Government has always meddled....I understand it is the political flavor of the day....I understand that a truly free market is kind of like wishing for a real Utopia.
However I do not see ANYONE complaining about big government or conservative fiscal policy like most of the nation was getting hoity toity about when times were good. When people were making money everyone was like..."leave my money alone!!" Now that people have gotten greedy and didn't manage their OWN risk everyone is like..."please do something, you are the Government, you have to!"
This is hypocritical and this is why the stock market makes NO LOGICAL sense. We sit here for years trying to study the market and find the rules it 'follows'. Then we throw out all the rules the minute something bad....THAT WE KNEW WOULD HAPPEN....happens. Now it is all about please save me...."please save the house I bought on interest only because it was definitely going to appreciate MORE and I'd sell and be rich."
If you want this market to work...it HAS TO WASH out the bad. It HAS TO ELIMINATE the non-functioning parts. Now the Government is just going to assume all bad debt and the stock 'gene' pool will not be cleansed of the bad elements. It will continue to be tainted...which will continue to require more and more 'intervention' to support the bad policies.
What the heck?!