As a business owner of a financial services company I believe in capitalism. However I am a considerate capitalist with a conscious.Many people are talking around their company break rooms about what to do with their 401k accounts and should they take their money out of the banks? The theory still stands true, “buy low and sell high”, don’t panic and abandon your investments.
Stay focused. What people should also do is fight for what is theirs. Take back the economy that would not otherwise exist if it were not for your $50 per paycheck contribution to your 401k plan, or your shopping spree at Macy’s, or your commitment to your $15 per hour job at the manufacturing plant.
How did we allow big business, banks and corporate CEOs to have so much power? Is it because they have access to more money than the average working class and middle class American?
Wake up people the money that they have came from you. This is all about plain ole common sense. The money on Wall Street comes from you directly and or indirectly through 401k institutional accounts, individual brokerage accounts, corporate investment accounts funded by revenue earned as a result of your purchasing their goods and or services, homes purchased by you, credit cards in your wallet; should I continue.
We the working class and middle class Americans allowed this greed feast by corporate giants and CEOs to take place by allowing them to manipulate, control and tell us what we could buy and what we could not buy based on what price and rate would make them the most profit. This is “Capitalism Gone Wild”!
And then rather than adequately save to purchase the house which (so you think) solidifies your American dream, you are convinced by the “one” who will profit that it doesn’t matter that your credit score is 450 and you have no savings, we can provide you with a sub prime mortgage loan but the rate is 4% higher than the FHA rate. And yes if you were really a good credit risk, you could get an adjustable rate mortgage loan pay 3% less the first few years and then watch your rate increase every two years by 2% – 3% a year until you can’t afford to pay the mortgage. This is “Capitalism Gone Wild”!
The federal government is now focused on investing $700 billion to bailout the financial markets; and they should in order to stabilize the economy and encourage growth. The federal government could have been proactive and invested millions of dollars to provide financial education to each American household to better equip its’ citizens to make wiser sound financial decisions that could have avoided many of the bad mortgage loans that are causing this financial crisis which is costing the American taxpayers $700 billion dollars.
What makes the credit card companies believe that if an accountholder makes a late payment that the sure way to guarantee that they pay on time is to double their interest rate and slap them with a $40.00 late fee?
So now your monthly payment has doubled because your interest payment is higher. Isn’t that a great incentive? After enough harassing phone calls, late fees, and over the limit fees created by the late fees, people become frustrated, irritated and say, “to hell with this, get your money if you can.” I am not condoning this behavior but it is reality.
This represents greed by the consumer and greed by the creditor. They both represent “Capitalism Gone Wild”.
Why are Corporate CEOs measured by a different standard than their employees? I don’t know of any company regardless of it’s’ size that would reward an employee for failure. In most situations if an employee is performing poorly and has caused the company to lose millions and possibly billions of dollars that employee would be fired immediately with no chance at their bonus.
Let’s keep it real, if you made $25 million dollars a year and were guaranteed a bonus even if you performed poorly what incentive would you have to perform at your best? The current compensation and benefits system in place for corporate executives is corrupt and another example of “Capitalism Gone Wild”.
Capitalism is a healthy way to achieve financial freedom as long as we always consider the people that we are capitalizing off of and do it with a clear conscious. It is time for working and middle class Americans who drive the economy to demand accountability and representation in the decision making process.
Without the money flowing throughout the economy from Main Street, there could not be capitalism on Wall Street. Working and middle class Americans Get Wild!
And this is the financial truth!