Wednesday, October 1, 2008
Congress Will Now Put Lipstick On A $700 Billion Dollar Pig
The big sell job has begun on this bailout plan that is now being re-dubbed and re-introduced to the American people with the kinder gentler euphemism "Rescue Plan". Don't buy it.
President Bush and others are all also talking down to the American people to let us know that this plan is "too complicated" and "too big" for all us dumb American too understand, so we'd better just stop getting in their way so that they can continue to arm twist and coerce Representatives and Senators into voting this PIG through Congress, especially once they make "some changes" to it. The bill that was defeated gave sweeping powers to the Treasury Secretary and the Federal Reserve Chairman. It also bailed out foreign banks. Let's hope the PIG they present us with next has that nonsense eliminated. So far it doesn't.
Never mind that the market can rebound on it's own...they will continue to threaten us with scare tactics like you won't get a paycheck because your company won't be able to make the payroll without a loan - or that we won't be able to get college and car loans - or that our Life Savings will be wiped out, or that we'll have a major depression and have to all eat peas porridge cold and stand in bread lines.
Don't buy into it.
Continue calling Congress and let them know that using taxpayer money to bail out Wall Street by buying up their bad loans is NOT what we want and not what the Constitution authorizes them to do. We cannot allow Mr. Paulson and Mr. Bernanke to have total power over this situation, and our money, without any oversight or any consequence for bad decisions.
The promise that this bad debt that they will be buying with out money is somehow going to end up profitable to the taxpayer is an out and out lie. This deal has got to be the biggest scam going. Scam artists always try to take your money by promising you something wonderful, and remember if a deal sounds too good to be true then it usually is.
Just remember this regarding the Stock market - For every person now frantically desperately dumping their stocks, there is someone buying them. Things WILL stabilize. They are already. It may take some time. You have to give the market a chance to adjust to market conditions. That's the point of a free market.
Another thing; If there is less credit available in this country that might be a good thing. We already have too much debt in our households. We should be switching to being producers instead of consumers. We have too long relied upon being an economy driven by consumerism. Who is the beneficiary of our consumerism now? Mostly China.
Instead of a Wall Street bailout, Congressman Paul says we should:
- Return to sound money.
- Balance our budget.
- Change our foreign policy so we aren't sending billions to other countries.
- We could take care of our people at home.
- We could lower taxes.
- End government meddling in the market. Government intervention leads to distortions in the market, and government reacts to each distortion by enacting new laws and regulations, which create their own distortions, and so on ad infinitum
There has got to be an alternative to the current plan of giving taxpayer money to fix this Wall Street mess. We cannot give extensive powers to Treasury Secretary Paulson. Under the current administration's bailout plan, the Treasury Secretary would have broad discretion to buy as much as $700 billion worth of troubled mortgage-backed assets and other securities that Wall Street firms have been struggling to sell. Leading economists and financial analysts contend there are a host of alternatives that would reduce taxpayers' liabilities and perhaps more effectively address the urgent crisis in financial markets.
You can read them here.
"And you can't solve the problem of inflation, which is the creation of money and credit out of thin air, by more money and credit out of thin air, and not changing policy. We have to change basic policy." - Ron Paul
Link to this chart is here.