Bailouts and Simple Budgeting

Hey Followers,

A little uptight on this topic so I will try my best to stay on topic. The government is broke, “There is a news flash.” Who is going to bail out the government? Any takers, maybe ENRON, AIU, GM and let’s not forget Lehman Brothers. I am sure that they are all running to the Whitehouse to deliver checks.

What I am trying to get at is, why a few select executives get to run away with bonuses, their companies fall leaving the government and the people to pick up the pieces. Last time I checked my objectives and evaluations, I saw that if I perform terrible in my objectives I receive a bad evaluation and no bonus. I know what you are thinking; I need a better agent. This seems to me (little guy at the bottom of the totem pole) that simple budgeting measures could have been taken in order to prevent the problem.

I understand perfectly well how the economic system works and how jobs are created enabling cash flow through the economy. Why the debt? We create debt in order to create jobs hoping they buy our products and services enabling us to pay our debt. What?

If my assets and worth is only a million dollars then respectively my shares should be worth a million as well. This statement leads me to my next thought.

Instead of speculation; why can’t stocks be based off of price to earnings. Makes since right? If companies’ earnings are high then there is availability to create more shares or raise current shares based off earnings.  If this was common practice, when a companies’ shares fell out they would go bankrupt with no need for government bailout.

Let’s look at this from a personal finance issue because there is no difference to corporate finance except for the amounts that are involved. If my earnings are 40,000 a year with monthly checks of 2,800 and I have a mortgage of 1,000 and a car note of 400 with bills at another 400 would give me a total of 1,800.

I cannot go to the bank with a bunch of well written referral letters about how well my I am doing at my job and how likely promotion is in my near future (speculation) as form of equity to take out a 500,000 loan.