Stop The Bail Out Now
Sep 23, 2008 Political
I have written that I understand the reason for the bailout but that I am not happy with it. The government should not be in the business of giving taxpayer money to businesses that are failing because they were mismanaged. It makes no difference if the market turned, it was greed, or they did not know what they were doing. The fact is, taxpayers do not share the wealth when these companies make money and we should not pay for the problems when they don’t.
The government is moving toward socialism where it will own, subsidize or underwrite everything. This is not the America I grew up in and it is not the America I want to leave to my grandchildren.
The reality is that the federal government is unable to do things effectively and they are irresponsible with our money. That’s right our money. In addition to the fiasco and huge expense that Treasury Secretary Paulson is working on to bailout his buddies in the financial world, the government is adding many items to the bailout showing once again that they cannot wait to spend our money. The Washington Times reports:
In the dark of night over the weekend when most people were snoozing, the Treasury dramatically expanded its bailout plan to include buying student loans, car loans, credit card debt and any other “troubled” assets held by banks.
The changes, which were included in draft language that also opened the bailout program to foreign banks with extensive loan operations in the United States, potentially added tens of billions of dollars to the cost of the program.
Although it was a major addition to what was already the nation’s largest-ever bailout, it did not become part of the debate between Democrats and the Treasury over details of the program. A Monday counterproposal by Senate Banking Committee Chairman Christopher J. Dodd included such consumer loans as well as mortgages, just as the Treasury’s draft did Saturday night.
When exactly are people going to be held accountable for their own risks in life? The financial geniuses who make millions of dollars in salaries are still rich while the country pays for their sins. Now, the government is adding people who made bad decisions with their credit and students who finance their schooling to the program.
Let me be clear; IT IS NOT THE RESPONSIBILITY OF THE TAXPAYER TO PAY FOR ANY OF THIS.
People who are in credit card debt or have car loans that they cannot afford have no one to blame but themselves. Students who take out loans for an education are making an investment in their future. I wonder how these students would act if their future earnings were given to taxpayers. It is, after all, only fair. If we pay for your car, house or credit cards then we deserve to have the things you bought. This idea that the world will end if people or businesses fail is ridiculous.
We need to end this whole bailout now. ALL OF IT. If AIG and other companies, including foreign banks, are going to fail than let them fail. This is a buyer’s opportunity to pick up cheap investments. Lehman Brothers is being purchased, Constellation Energy is being purchased (by a Warren Buffet company) and there are many (like Buffet) looking for bargains. If a company fails there are people who will buy them on the cheap and have a go at making them successful. If no one buys them then they can go out of business.
It is a shame that people lose their jobs as a result of mismanagement and the ineptitude of the corrupt government but that is not the fault of the taxpayer.
John McCain needs to oppose this bailout. He needs to provide real leadership and show that he truly is against government waste because surely, this bailout is just that. The money is designed to let Paulson help his buddies and it is designed to allow politicians claim they were there to help during a time of crisis. This is particularly important to them because it is an election year and they are the ones who helped cause it.
Look at the items added. Christopher Dodd added consumer loans. He is the criminal most responsible. He has his Countrywide VIP loan that saved him $75,000 and he failed, to act early on when President Bush, on 17 occasions, warned of trouble and tried to get something done. The last things we need are the people who caused this mess to be the ones overseeing its cleanup. Yes, greed on Wall Street is partly responsible but to be fair, many mortgage companies were following the inane law that allows people with no hope of affording a house to buy one. Did they [financial companies] abuse the process? You bet and they should be held accountable.
Everyone involved should be held accountable. We can do this by:
- Getting rid of the CEOs and ensuring they do not receive a severance.
- Take back some of the untold millions these people made through greed and shady practices
- Stop the bailout and let unsound companies fail (or be bought up)
- Vote for the non incumbent challenger in all 435 House seats (thereby replacing the entire House)
- Vote for the non incumbent challenger in all contested Senate seats (thereby replacing 1/3 of the Senate)
- Hold people accountable for their own loans. If they fail they will learn a valuable lesson. If we bail them out, they will not
It is time for a shake up in DC. We need to replace all of these criminals so that they are held accountable for their misdeeds.
It is also time we held our fellow citizens accountable for their actions. Ron Paul has an excellent piece on this. He states exactly what I believe:
Additionally, the government’s actions encourage moral hazard of the worst sort. Now that the precedent has been set, the likelihood of financial institutions to engage in riskier investment schemes is increased, because they now know that an investment position so overextended as to threaten the stability of the financial system will result in a government bailout and purchase of worthless, illiquid assets.
I would add that this extends to any individual who takes risky decisions and is bailed out by the government.
Big Dog Salute to Raven who, as usual, is on top of things.
Others:
Texas Pundit
Tags: bailout, corruption, dodd, mortgage companies, paulson, sham, taxpayer fraud