That is what a young Republican said to me one day last summer when I was questioning the value of big banks.
The comment stumped me at that time and I fell silent. The conversation turned to something less volatile than politics and a good time was had by all.
It was later that I thought to myself “what the hell is liquidity, is it something we can eat?”
Yes, that’s what I should have said, rather than going silent.
Well now in the cold of winter, I think I may understand what he meant. And I still don’t like it.
Recalling the nervousness experienced when for the first time in my life I applied for a loan to purchase a home. I remember filing the application and being interviewed by bank personal. I remember having to bring pay stubs and other supporting documents. I remember being told the committee would look at my application and I should hear from them within a week.
Fast forward 50 years and a young man of my acquaintance that is working a seasonal job grooming the greens on a golf course excitedly tells me the mortgage broker told him he is pre-qualified for a $250,000 home loan. My less than heartfelt congratulations are accepted with an idealistic smile and a thank you.
Ah so, that’s what the young Republican was talking about when he said liquidity.
Shortly thereafter the crash came, the big banks had gambled themselves into a hole so deep it took the taxpayers of the United States to bail their asses out.
Many young people, like my friend, found themselves upside down in their houses. Some in such dire straits that they lost their homes and eventually found themselves in bankruptcy court. With no government bailout available they did not fare as well as the big banks.
Our government reacted to this situation by passing the Dodd-Frank law. A law designed to eliminate government bailouts of big banks gambling losses.
Last week the Republicans in congress, have passed a government funding bill with a rider in it designed to again finance big bank gambling. Note…. This was done with the help of some scoundrels that call themselves Democrats. And will most likely be signed into law by Democratic (?) President Obama.
It is time we all join hands and unite our voices in our objection to this Wall Street controlled government.