It's $700 Billion dollars folks!
Most likely it will end up being much much more!
They are rushing into this bailout bill!
Socializing Risk - Since when should taxpayers be on the hook for gross negligence by business owners? When you lose money on your 401K and other investments does the federal government give you the lost money? Heck no. These guys on Wall Street who want you to bail them out are crying poverty - poverty created intentionally by their own hand - and yet they will be walking away with huge pensions, their mansions intact, their luxury cars and offshore homes, etc. while you and I must struggle to make the car payment, buy groceries and pay for the doctor visit after our pockets are picked paying state and federal taxes; taxes that will be used in this bailout! taxes that will likely have to go higher to pay for this and more bailouts. It just isn't right, but more than that, it is unconstitutional.
What we are seeing with this bailout is the further destruction and disregard for the US Constitution. Paulson and Bernanke are trying to scare us all into accepting this move to Socialism. They say we are doomed if we don't do this. They ignore the fact that our government has no Constitutional authority whatsoever to embark on this bailout!
Robert Schulz, Chairman of We The People Foundation for Constitutional Education, Inc, filed a federal lawsuit in United States District Court in Albany seeking to halt the execution of the emergency bailout of American International Group, Inc. (AIG) by the United States Government and the Federal Reserve.
He claims, and rightly so, that the U.S. Lacks Constitutional Authority to make this Loan.
The lawsuit asserts that the commitment of public funds and credit for the direct benefit of privately owned AIG is an ultra vires action by the United States Government and Federal Reserve, i.e., beyond the limited legal authority granted by the Constitution. The lawsuit asks for a "show cause" hearing demanding that the Government produce evidence of its legal authority to commit public funds for such a purpose, as well as emergency and permanent injunctions halting the bailout transaction.We are all being told by Bernanke and Paulson, "Sweetheart Mortgage Deal" Chris Dodd and Barney Frank and the rest, the unbelievable and massive implications of not bailing out these companies - and yet they would rather march this country into Socialism and nationalizing industries rather than give the free market a chance to sort this out.
Beyond the Constitutional deficiencies, the bailout establishes a dangerous precedent enabling the Fed and/or Government to nationalize virtually any business or property within the United States without legal authority or congressional approval.
The defendants include the Federal Reserve System, Fed Chairman Ben Bernanke, the U.S. Treasury, Treasury Secretary Hank Paulson Jr. and the United States Government.
Robert Schulz says this:
"Beyond the moral hazard and dangerous precedent established by this action, it is of vital importance that the American people recognize that the present financial crisis is a direct and predictable result of decades of constitutional violations by the Federal Government. Through a long-standing policy of disinformation and collusion with the Federal Reserve and Wall Street financial elite, the United States Federal Government has denied public access to information about the secretive operations of the privately owned and operated Federal Reserve and its monopoly control of America’s money system.The American people must not allow this bailout to happen.
"This monopoly control of our currency by a private banking cartel has resulted in increasing distortion, volatility and cyclical (boom and bust) economic conditions in the U.S. and abroad. America’s fiat currency (produced from thin air) is manipulated by the Federal Reserve for the benefit of its owners, major Wall Street financial institutions and the Federal Government and is not unaccountable to the taxpayers. These abuses of the Constitution have taken our financial system to edge of the abyss. The chickens have come home to roost."
Either way it will cost us dearly. If we do not bail them out, our economy (and foreign economies as well) will indeed suffer a grave shock which will have far reaching troubling implications. If we do bail them out we are further trampling and disregarding the US Constitution and it's precepts which we currently have men and women fighting for and dying for in foreign lands! Without adhering to the rules in our Constitution who are we? what are we? There ARE methods to change the Constitution, and if that is indeed what Congress and the Federal Reserve (a private company) desire then let them go ahead and try to do that, but until that time we must follow the rules.
If no bailout happens - these companies who have swindled consumers and other companies with this bad debt will fold or be gobbled up by other entities. The bad debt could be restructured and liquidated. Other opportunities would arise in the market place...but now the US government is trying a very expensive quick fix to make the American taxpayer absorb bad debt and assume the risk. Hasn't the US Government done enough to help create this mess to begin with by encouraging businesses like Countrywide and AIG to give out loans to people who could not afford them in the first place?
If we allow this bailout to happen as planned it will become the beginning of many more government bailouts to come. Other industries will be lining up to pick your pocket with help from Congress and the Federal Reserve.
Perhaps all of those elected federal officials, like "Mortgage Sweetheart Deal" Chris Dodd, who put their hand on the Bible and took an oath to protect and defend the US Constitution ought to either read the Constitution or explain to US Citizens how they lacks integrity to make a false oath to begin with.
With Congressmen in collusion with the Federal Reserve and wealthy corrupt CEO's, who needs Osama Bin Laden?
Call your Congressman today and protest the bailout.
Jim Vicevich has a wonderful post about how this crisis came about.