Lessons learned from bailouts

By Tom Hintgen (Contact) | The Daily Journal

Published Monday, October 13, 2008

Editorial page writers and economic analysts all across the nation are pointing out the lessons to be learned in the wake of the stunning financial bailouts in recent days.

“Let's be honest. Greed has really undermined the U.S. economy the past few years,” said Y.T. Abouhalkah, Kansas City Star editorial page columnist. “Looking ahead, the single best way to turn the U.S. economy around is for Americans to start living within their means.”

His advice includes: don't overspend for houses, don't listen to too-good-to-be-true pitches from financial institutions and save more.

“Sure, much of that prescription is not the American way,” he said. “But it better become the American way if this nation's economic picture is to improve in the coming months and years.”

Abouhalkah notes five specific areas where greed took over from common sense.

• Greed by homeowners who made poor decisions to spend too much money on houses

• Greed by small and large financial institutions that offered absurd mortgage packages to attract home loans

• Greed by consumers who maxed out credit cards to pay for big vehicles, electronic goods, clothes, appliances and other things they couldn't afford

• Greed by many American investors who thought automatically putting money in the stock market, without doing research, would turn a big profit

• Greed by all Americans who refused to save for a rainy day.

For me personally, I can’t help but think that the 1950s simpler way of life, exemplified by World War II and Korean War veterans and their families, might in some form return. Those veterans lived modestly in Otter Tail County and elsewhere, worked hard, saved for a rainy day and gave back to their communities.

The veterans and others from the post World War II era knew that oftentimes the best things in life were free. Those of us who lived through that era thought it was great to watch TV shows such as The Hit Parade and variety shows on black and white TV sets.

I agree with the editorial page writer from the Kansas City Star. Americans need to start living within their means, put at least a little money aside for savings and enjoy the simple things in life such as city parks and hiking trails.

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Once a Gopher always a Gopher

The 1967 Minnesota Gopher football team, the last U of M squad to win the Big Ten title, was a close-knit group. It wasn’t a surprise when condolences poured in to the family of Dick Enderle after the former Gopher offensive lineman died Sept. 4 in New York.

Tom Sakal, 1967 Gopher captain and defensive back, lives in Florida and communicated his condolences to Dick’s family members here in Fergus Falls. He recalled Enderle as a nice guy and the cornerstone of the offensive line.

Two former Gophers from 1967, Wally Pribyl of Webster, S.D., and Jim O' Brien of Rice Lake, Wis., attended the memorial service for Enderle at Bethel Lutheran Church, Fergus Falls.

“Both Wally and Jim were two years behind me. Jim was a lineman and Wally was a defensive back and a punter,” said Sakal. ”Dick, Wally and Jim were like brothers to me.”

Sakal, a retired insurance rep, later served with U.S. forces in Vietnam. Over the years the teammates went their separate ways. Enderle, after playing a few years in pro football, worked in construction as a carpenter in New York.

Tom Hintgen’s column runs on Mondays.