The psychology of looting is an interesting phenomenon. First you have an emergency like a flood or hurricane or earthquake or civil unrest and the anger and frustration just boil over at a time when law enforcement is overburdened with the actual emergency and doesn’t really have the capacity to deal with the looting. Normal law-abiding people suddenly turn into criminals and an attitude of “gotta get mine” or “I gotta get me some of that” takes over. Hey, if the other guy is taking stuff, I guess it must be okay for me to share in the goodies. After all, most of us have been cheated by society to a sufficient degree to feel entitled to getting some of what was either taken from us or not given to us so looting isn’t really stealing …is it?

Of course I am being ridiculous in this observation. Looting is a crime. Although, I am constantly amazed by the non-looters who often show some deeply absurd compassionate understanding and suggest that the looters really didn’t commit a crime. I have no compassion for any of it.

What does looting have to do with stocks and our economic situation enough for me to discuss it here? I see deep analogies to the bailouts in the financial industry and the psychology of looting that was exhibited by the automakers who I think finally said “I gotta get mine” with their request for $50 billion or so in government loans. We have an emergency, our regulators/politicians are overburdened trying to deal with the emergency and then the mob shows up to loot. And of course, there are the bystanders who show compassion for the auto industry who have apparently not been given enough help and suggest that it’s only natural that we should give them more during the emergency.  I have no compassion for looting.  GM, Ford and Chrysler are showing up to loot.  It’s as simple as that.