Letter to the Editor

I have been intensely following the discussions on the current financial crisis and understand the reasons espoused in support of the need for quick action. But when I boil it all down and step back to take a reasoned look at the issue, I can only come to one conclusion. The complaint coming from banks that are clamoring for help is very much like a child who holds his breath to get his way.
In essence, big banks are saying if you don’t help us we will stop lending. But, of course, in an efficient market other entities eventually will lend money. Lending money has historically been the absolute best way to make money long term in a capitalistic economy. For example, non-Wall Street lenders who did not get into buying and selling “mortgage-backed securities” and instead made logical loans are not in trouble.
This fear of a loss of availability of money to lend has fueled speculation that many businesses will fail in very rapid fashion. Actually, businesses that need to borrow all the time are not very well capitalized and should fail for being too inefficient. Perhaps they need more equity capital.
In the middle of all of this “credit will dry up” bad news, I have witnessed a paradox. Every night I see car ads that say you can borrow from them to buy a car today even if you have bad credit. I understand the need to have credit readily available in the market. But there will always be credit available (possibly after a small delay). The only issue is how much it will cost.
So I say, “Go ahead, Big Bank, hold your breath.” You will eventually either 1) take a breath or 2) die and be replaced. Short-term pain in the form of tight credit could just create a huge gain in business ethics and practices. The face of capitalism could change to an economy that takes care of people instead of one based on the survival of the ones with the most money. Such a change could just be the best result to come from all of this. This is an opportunity to redefine ourselves.
I realize that many people are not ready for such a holistic approach to business. But I believe that taking care of each other is more important than taking care of our own egos.
E. Bruce Bushong
Shawnee