The Bush administration asked Congress on Saturday for the power to buy $700 billion in toxic assets clogging the financial system and threatening the economy as negotiations began on the largest bailout since the Great Depression.The rescue plan would give Washington broad authority to purchase bad mortgage-related assets from U.S. financial institutions for the next two years. It does not specify which institutions qualify or what, if anything, the government would get in return for the unprecedented infusion.
The proposal would raise the statutory limit on the national debt from $10.6 trillion to $11.3 trillion to make room for the massive rescue.
The current proposal performs more of the following: Socialize the losses, privatize the profits. Hell No! Why should the taxpayers spend hundreds of billions of dollars more to bail out irresponsible corporations on Wall Street?
I know some of the proponents believe that do nothing is worse then the bailout as it could lead to a depression. But bailing out these reckless risk takers just encourages this type of risky behaviour in the future.
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The bailout is ridiculous, and not needed, and only taxes future generations. (And both candidates want to increase govt spending?) NESARA as drafted by Dr. Barnard is the only way out of our fiscal and monetary mess. Force balanced budget, abolish income and capital taxes in favor of 14% sales tax on everything else except rents, groceries, insurance, and medical services; new monetary tools to ensure 0% inflation; abolish compound interest on secured loans in favor of simple monetization fee, and require principals be paid before before banks are allowed to collect on the monetization fee. No payment no matter how small will always reduce a debt to zero, banks more willing to prevent foreclosures and will turn around funds for more loans sooner. No more of this pay for 2.5 houses just to own 1. Pay for just 1.5 and be done with it in 17 years. National debt paid off in 30 years while standard of living doubled within a generation. NESARA (not the hoax, but Dr. Barnard's original version). A 21st century engineered solution for a 21st century economy. Google the NESARA Institute.
ReplyDeleteI can guarantee that if this goes through Wall St, there will be a mad rush to dump all kinds of stinky overvalued assets into the thing. The sorts of things that will *never* recover their value, no matter how long we wait.
ReplyDeleteIn the meantime, the jokers on Wall St will continue to take home their oversized paychecks..
Any sort of bailout ought to include terms that are so onerous to the financial industry that they fight it kicking and screaming.
"I know some of the proponents believe that do nothing is worse then the bailout as it could lead to a depression. But bailing out these reckless risk takers just encourages this type of risky behaviour in the future. "
ReplyDeleteAgreed, but its too late the cost of inaction is simply too high. As I see it, if we do nothing, there is an 80% chance everything will be fine - moderate recession, recovery in a few years, no big whoop.
However there is a 20% chance we face financial doom - 25% unemployment, civil strife, perhaps (and I stress perhaps) the downfall of the republic.
Again, 80% chance no big deal. But a 20% chance of doom is simlply too high to do nothing.
Put it another way, would you rather face (I) certainty your arm would be broken (the bailout), or (II) play russian roulette with a 5 chamber revolver (no bailout). I dont know about you, but I'd take the broken arm every time.
I can guarantee that if this goes through Wall St, there will be a mad rush to dump all kinds of stinky overvalued assets into the thing. The sorts of things that will *never* recover their value, no matter how long we wait.
ReplyDeleteIn the meantime, the jokers on Wall St will continue to take home their oversized paychecks..
Any sort of bailout ought to include terms that are so onerous to the financial industry that they fight it kicking and screaming.
The bailout is ridiculous, and not needed, and only taxes future generations. (And both candidates want to increase govt spending?) NESARA as drafted by Dr. Barnard is the only way out of our fiscal and monetary mess. Force balanced budget, abolish income and capital taxes in favor of 14% sales tax on everything else except rents, groceries, insurance, and medical services; new monetary tools to ensure 0% inflation; abolish compound interest on secured loans in favor of simple monetization fee, and require principals be paid before before banks are allowed to collect on the monetization fee. No payment no matter how small will always reduce a debt to zero, banks more willing to prevent foreclosures and will turn around funds for more loans sooner. No more of this pay for 2.5 houses just to own 1. Pay for just 1.5 and be done with it in 17 years. National debt paid off in 30 years while standard of living doubled within a generation. NESARA (not the hoax, but Dr. Barnard's original version). A 21st century engineered solution for a 21st century economy. Google the NESARA Institute.
ReplyDelete