We’ve heard about financial giants, but how is the crisis affecting you?


M
ajor events unfolding this fall are directly affecting your life. You’ve made that clear through your responses to the questions we’ve been raising about political values.
    This week, we want to hear about how the financial crisis is affecting you in your everyday life. Daily headlines are reporting on the financial giants and our top economic decision makers.
    Just yesterday, U.S. Treasury Secretary Henry Paulson (shown below) urged Congress to move rapidly and approve the $700 billion bailout of the U.S. financial system. On ABC’s “This Week” Paulson said, “We need this to be clean and quick.”
    After dealing with the growing financial crisis on a case-by-case basis, rescuing some companies (such as Fannie Mae, Freddie Mac, and AIG) and letting others slip over the economic cliff (Lehman Brothers), the Bush Administration now proposes the biggest government intervention in the market since the Great Depression.
    If approved, the bailout would be a dazzling reversal of fortune for Wall Street and a renunciation of free market ideology. It would be all gain and no pain for bankers and investors who gorged on mortgage-backed securities and now would be shielded from suffering the losses from their poor decisions. And, the colossal bailout would be made by an administration known for its free-market fanaticism and active deregulation of the market.

Henry_paulson
    “What
we’re doing is first stabilizing the market,” Paulson said. “Once
we stabilize the market, we need to ask ourselves: How did we get here
and how do we avoid getting here again?”
    Tomorrow
on OurValues.org we’ll hear an answer to Paulson’s question from
our guest Jerry Davis, an expert on the financial system. Jerry
is the author of the forthcoming book Portfolio Society: How Finance
Has Shaped America (
Oxford University Press) and he’s the Wilbur K. Pierpont
Collegiate Professor of Management at the University of Michigan Ross
School of Business.
    So
stay tuned! And let us know what you think of the current financial
crisis, its causes and cures.

HOW is this affecting you?

Click on the “Comment” link above, or if you prefer to drop us a quick Email,
you can do that as well. We’re also still inviting readers to sign up
for a couple of in-depth surveys Dr. Baker plans to conduct a little
later this fall. To take part in that effort, add your Email address to
the box in the upper left area of our Web site.

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