Just a few hours from now, George W. Bush will make a speech to the American taxpayer and the world markets. President Bush will tell us how we will now pay 700 billion dollars to bail out financial institutions that have been financially irresponsible to their stock holders, to there customers and to their country. Some will say they were forced by the government to make risky loans for mortgages to people that had no business getting mortgages. A part of that is true. The US Government said they would back loans through Freddie Mac and Fannie Mae as long as the loans were going to the low income communities. The Community Reinvestment Act punished banks for not lending to low income communities.
The practice by banks of keeping lending out of low income, high risk neighborhoods used to called "Redlining". The group called ACORN ( Association of Community Organizations for Reform ) that Obama was part of in his community organizer days, is largely responsible for forcing Congress to pass this poorly thought out and irresponsible legislation.
I don't have a problem with banks making loans to low income people. I do have a problem with the government telling banks to make loans to people that they knew could never pay back the money they borrowed and guaranteeing those mortgage loans. The banks could have found ways to make reasonable protections for their share holders and customers but they chose to go all out thinking they would be protected by government regulators. It's a pretty complicated mess but it all boils down to the government was irresponsible. The banks were irresponsible and now just 20 years after the last bank debacle with the great Savings and Loan swindle of the late eighties, we the taxpayers are going to foot the bill again.
Years and years have gone by since this problem started. Many economic experts and some in the current administration have been sounding the alarm but to no avail. Here we are again having to pay for the stupidity, greed and outright thievery by both the US Congress and the major financial institutions on Wall Street. The most galling and bitter pill is that the very same people that are responsible for this mess with be in charge of the 700 billion dollars that is supposed to fund this clean up. There will be more fraud and abuses and if by some chance Obama becomes president matters will only become worse. His plans are for more spending and who will pay for it all. The very people that always pay, the middle class working people.
When I hear Obama with his "Main street" campaign all I can think of is "yeah, main street alright, that's where he plans to get the money to pay for this debacle".
I never lost as much but twice
I never lost as much but twice,
And that was in the sod.
Twice have I stood a beggar
Before the door of God!
Angels -- twice descending
Reimbursed my store --
Burglar! Banker -- Father!
I am poor once more!