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What's PlayingFree Summer Concerts
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Live on the Lake
Burbank Park/Wed., 6 p.m.
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| July 8, Sirsy |
Concerts at the Lake
Windsor Lake/Sun., 7p.m. |
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Weather delay to July 5,
Pittsfield Eagles
Community Band
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Lawn Concerts
Clark Art/Tues., 6 p.m. |
| July 7, The Doerfels |
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Sales FliersDaily Digest
A local bruin looks forlornly at the birdfeeders far from her reach in Joyce Harsch's back yard. Have a photo to share? Submit as a member or e-mail to info@iberkshires.com. |
Public Hearings
Department of Public Utilities on National Grid's request for a 16 percent increase in distribution charges on Wednesday, July 15, at 7 p.m. at North Adams City Hall. What's this all about? |
Jobless Journey
Former Adams resident and radio host Sean Baker has been chronicling his adventures in unemployment on The Forecaster site in Maine. |
ObituariesSportsSoccer sign-ups
Hoosac Tunnel Youth Soccer League/NBYMCA fall soccer sign-ups for PreK-Grade 8 at Northern Berkshire YMCA until Aug. 1.; 413-663-6529 for more information. |
ColumnistsRelated Stories |
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Independent Investor: Pass the PlanBy Bill Schmick - September 25, 2008
iBerkshires Columnist
 | | Bill Schmick |
Both sides of the congressional aisle agreed on a framework for the multibillion-dollar financial market's rescue on Thursday afternoon. There will be further haggling on the details but it looks as if the deal will pass. It better.
That's not to say I'm happy about it. It ticks me off that we have to pay for the mistakes of a bunch of greedy bankers and brokers, but self-preservation dictates that we go along with the plan. As for the add-ons that Congress is proposing, the more the merrier.
After all, the plan will be costing each of us more than $2,000 so we might as well have some of that money go to bailing out middle-class Americans.
Frankly, I was a bit surprised at first by the number of Americans who are against this bail-out. In discussing the situation with my wife, who is one of the most intelligent, intuitive people I know, it quickly dawned on me why.
"So why should we bail out a bunch of blood-sucking banks?" she demanded.
"Because if we don't you won't be able to get a car loan, a mortgage or maybe even a job in six months," I said
She looked at me cynically. In order to justify my statement, I knew I would need to explain the arcane business of credit swaps, derivatives and CDS defaults. I began but stopped, tongue-tied. I realized it was just too much to explain or absorb without a deep background in business and an hour of discussion.
Instead I boiled it down to this: the lifeblood of business is lending — overnight, weekly, monthly or yearly loans; it is what provides everything we produce, consume and save. Without lending, everything stops.
Last week, the world stopped.
Lenders were afraid to lend. Borrowers, no matter how credit worthy, could not borrow. If this credit freeze continued it would have ushered in a huge recession if not an outright second depression.
There will be ramifications, however. I believe the entire free-market model of the last 50 years will be re-examined while the unquestioned economic leadership of the United States since the end of World War II may now be in doubt. An overhaul and updating of the regulations is certain.
What impact this will have on our financial institutions and the way we do business going forward will provide additional challenges and opportunities. One thing is for sure: it will be a brave new world for all of us.
Bill Schmick is a licensed investment adviser representative and portfolio strategist with Berkshire-based Dion Money Management, managing over $700 million for middle-class Americans from coast to coast. Direct your inquiries to Bill at 1-877-850-7942, Ext. 146 (toll free) or wschmick@dionmm.com. You can also visit www.afewdollarsmore.com for more of Bill’s insight. |
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