It would seem that panic has set in with the current administration. Not long ago they were telling us all was well with the economy. But as the election draws nearer, it seems that with the possibility of loosing power, the current administration has decided, after two giant bailouts, to do one last titanic grab for cash to feather the nests of their true constituents. The call to an "urgent" "clean" administration dictated bailout is obscene. The current group of "conservatives" have brought more debt, and misery to the American population than any previous administration.
It is my view that NOT ONE PENNY of taxpayer money should be made available to reward despicable behavior, without first putting laws, regulation, and enforcement in place to insure that this cannot happen again. If we go ahead with a quick clean reward for their behavior, there is nothing to stop them from doing it again! And indeed, instead of disincentive there is a positive incentive to hurry to do it again while Santa Claus is still in charge.
The current congress, and administration should be held accountable for their actions. They should not be allowed to simply create a colossal mess and dump it on the next administration/congress.
9/23/08
Our congress is now being asked to fund the most fantastic bail out ever requested by any administration. You are asked to hurry and approve a virtual blank check with no oversight, regulation, or any guarantee that this will even correct our current banking problems. We are asked to take on faith the word of the people that helped create this mess in the first place. Then we are to trust the banking community whose extreme greed exacerbated the current problems. Why don't we just kill the dog and put the wolf in charge of the hen house. I am sure the wolf will protect our nest eggs!
The more I read on this subject, the more it stinks. This is not a viable solution to the defects in our economic system, this is simply more welfare for the wealthy. I do not think the Mr. Bush can be any part of the solution, only part of the problem. It would appear to me that we should be talking to Allen Greenspan, a gentleman, though retired, who has some real knowledge on this situation.
Do not spend $700 Billion (plus?) on a half baked program thought up over one weekend. This problem did not happen over night, and a knee jerk blank check is not likely to be the best solution.
It would seem that most arguments in favor of our proposed $700 billion bail out of the banking interests primarily consist of the argument that it would become increasingly
difficult to obtain loans. They further indicate, that without ready credit, our clearly overpriced economy would contract in value.
Has anyone considered that this may be a good thing? The current house of cards is built on constantly increasing the debt load of the nation. In my perception during the last 35 years of my experience, our currency had devalued by a factor
of approximately 500%, that is, to understand current pricing I have to divide by 5 to see if it makes sense. In my view, more debt is exactly NOT what our economy needs.
In the immediate past we have run up an incredible set of deficits, which have in turn led to a all time record high national debt. This was done during the watch of our
current administration. The same administration that appointed the current people that are proposing a speedy bailout.
I believe that we should not dash in to any knee jerk decision that would limit the options of the next administration. I think the current administration has caused enough trouble already.
At this juncture, it has become readily apparent that the current administration is applying the usual scare tactics to stampede congress in to a quite likely mistaken path. We are warned of horrible consequences, unspecified, such as a recession. Can anybody say with a straight face the we are not already in a recession? As a result of this, we are supposed to fork over $700 billion dollars to the current administration with no controls, consideration, or oversight. I think that this would be disastrous. It would reward the very people that caused the problem in the first place.
I for one, do not want this settled in the back room on Sunday night. I think the the house Republicans suggestion of a form of insurance with premiums payed by wall street sounds like a much better idea.
Whatever program comes out of a serious debate must change the rules for bankers. Items like 22% interest credit cards, while banks pay 2% (or less) interest on savings. Interest only mortgages(?), adjustable rate mortgages (lend the maximum amount of money to the mortgagee, and then later raise the rates 35-100%), are financial traps that have ensnared the unwary. The people that participated in making these loans are simply predators. The people that bought into these things should have their property repossessed.
It would seem that we are rushing to the rescue of the predators, and the unwary people that bought into the idea that homes should be available irregardless of the ability to pay. Now the current administration is once again trying to do this in such a way as to punish those of us who have not been a part of this mess. I believe that rewarding bad behavior with great influxes of free money to make quite possibly worthless paper valuable is fool hardy.
Take the time, and think this through, I know that the election is close upon us, but do not let an obviously failed lame duck administration trash the treasury to bail out wall street with tax money that has not even been created yet, less collected.
The rejection of the current bail out plan is a step forward. I believe it would be a grave mistake to once again fall for the "scare the poop out of them, and then run with the money" ploy that seems to be playing out. Propping up questionable and reckless financial institutions by purchasing worthless paper assets with public debt seems just wrong. The more we bail them out, the more they will come back to the trough. The only question seems to be whether the wealthy can take everything we either have or will ever have before they leave the country. Do not contribute to passing this scam.
The rejection of Monday's bail out plan is a step forward. Now I read that the congress is adding insult to injury by piling pork and tax cuts for the wealthy on this defective plan in an effort to buy votes. As far as I can determine, all this plan is going to do is compound are already dreadful national debt, so that a wealthy group of banks have guaranteed profits. All that we get out of this is a pile of over priced worthless paper. There are people that believe this whole crisis has been manufactured on paper. The amount of money involved in this is incredible, there may be a need for action, but, any action should be very carefully considered. Do not contribute to passing this scam.
Once again it would appear that congress is going to manage to display the intestinal fortitude required to step up to the plate and deliver free money for everyone. It is amazing that they would have the courage to do this during an election year.
I am reminded of a quote that I saw once, I do not have it word for word, nor do I remember who said it, but it went something like "Once an electorate starts to believe that they can vote themselves free money, the democracy is finished." This BAIL OUT BILL, appears to me to be a spending spree based on a stolen credit card, the cost of this measure will come home sooner, not later. I do not want to see this travesty passed.
As we all know by now, the bailout package passed and was signed into law. It ended up in excess of 800 billion dollars. They have already spent most of the initial 350 billion, and are currently scheming to grab the remainder before the current administration leaves office. According to what I have seen, there is very little oversite for this, and it would appear that afer the about face on toxic assets, we have simply been investing in what we are told are failing banks. This smells bad. With all that is going wrong with our country at this time, I hope we can survive the last days of the current administration.
12/08/08