Agreement on bailout
Guard your wallet, negotiators in Congress have reached an agreement:
Congressional leaders and the Bush administration agreed Sunday on the main elements of a $700 billion bailout for the financial industry, paving the way for swift enactment of the largest government intervention in markets since the Great Depression.You can read more about the proposal here.Negotiators sought to iron out the final shape of the legislation and it still had to be reviewed by House Republicans, whose fierce opposition to a federal rescue nearly torpedoed an emerging bipartisan pact late in the week. Officials in both parties said they hoped for a House vote Monday.
I don't buy the "sky is falling" attitude of congressional leaders. Intervention always makes things worse. The easy money policy of the Federal Reserve and the Community Reinvestment Act, which Rep. Ron Paul has partly blamed for the crisis. Even though I am very angry with Dr. Paul and his handlers, we can say what we want about the man, but he has always been right on about the financial crisis.
I've seen much made of the money paid to adviser of Sen. John McCain (R-AZ) from Freddie Mac and Fannie Mae, but almost nothing about the campaign donations by PACs and individuals supporting the interests of the housing behemoths to Sen. Barack Obama (D-IL) and Sen. Chris Dodd D-CT), one of the principal negotiators of this deal.
Rep. Barney Frank (D-MA), who has also received Fannie Mae and Freddie Mac money, told The New York Times in 2003:
'These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''Watt has also taken money from Freddie Mac and Fannie Mae.Representative Melvin L. Watt, Democrat of North Carolina, agreed.
''I don't see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,'' Mr. Watt said.
Taxpayers are now on the hook for $5 trillion in mortgages. No one knows how many of the mortgages are bad. Even the Bush Administration admits that they just made up the $700 billion figure. No one is making sure the interests of taxpayers are protected and it is almost guaranteed that we'll never see any of this money again.
Comments
We probably will never see a penny of that money again. It will continue down the slope to a bottomless pit of debt. Throwing money at this problem is not going to fix it. The mindset of the people who will be receiving this money will have to change. $700 billion is a drop in the bucket to the real debt problem. We are seeing our government play to the large corporations. They also throw out the idea if we don't help these big financial institutions then our workers may lose their jobs. What about the workers who have already lost their jobs. What about the companies that have already failed. What about the people who have lost their homes. I don't see the government lining up to help these people. Mankind has not learned the lesson of our fathers and grandfathers who lived through the hard times of the 1890's and the 1930's. Our leaders in the government have gone to the point of no return with giving money to fix a problem that will not go away. Helping the problem stay afloat is not going to help those on the street level who are having difficulties. How many people out here have gotten raises lately to cover the rising costs of everything we touch? If salaries kept up with these rises then it would not hurt as much. But if they raise the salaries then it would eat away at the profits made by the companies for their stock holders. Money based on paper that has no foundation will not hold up the system. I know people will argue with this idea but it is an idea that has merit with those living in the real world. The average citizens with children are struggling to feed them and keep a roof over them. Everyone out here are not ball players, top executives, or born with old money in the pocket. Most people struggle just to survive in this world based on the all mighty dollar. Maybe one day those in power will learn a valuable lesson and that is to listen to the people who put them in office to take care of their money. But it is doubtful because it seems man will never learn listens of the past that have come before and taken us down a path of despair. We can only hope and pray that we can hold on to what we have. And that is the true liberty to be what we want to be and that is free to choose what we want in life free of governmental bias. Remember we are "We the People." Not "We the financial broker." Listen in the days to come and see how things will unfold. It will be presented as the best thing in our interest. But is it?
The Doctor
Posted by: The Doctor | September 28, 2008 04:00 PM
I saw a protester on the news whose sign said it all for me....
No Bail.. Send them to Jail!
People like Dodd, Frank ... even Obama should resign their Senate seats in disgrace. They certainly should have had NO part in putting this deal together.
The bit about Timmons is getting massive play from left-wing moonbats across the internet. Just Google "William Timmons"+Rush to get the mantra.
Refusing to admit cuplability among your own ranks, and filling the media - all media - with accusations and innuendo is the stock and trade of the left-wing. That is what they do when they cannot win with the Heartland on the facts.
Posted by: Larry Stanley | September 28, 2008 08:37 PM