Monday, September 29, 2008

Bailout Bonanza

Woodcutter's Daughter_Charles Sprague Pierce

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!

Emily Dickinson


TrekMedic251 said...

Association of Community Organizations for Reform

Community Organizers, hmmm? Where have I heard of those people before,...?

Can anyone help me?

J_G said...

Nah, there's no help for you Trek. Heh heh

Yeah CRA, the 1995 Reparation act

Gayle said...

The Democrats were responsible too in pushing the banks to do all those Ninja loans, Jennifer. There seems to be plenty of blame to go around.

I'm glad the original bill has now failed. It was a disaster! Now maybe congress will approve of a bill the American people can approve of as well. It wasn't only Pelosi's partisan speech that screwed the first bill up - it was all the phone calls made by Americans who don't see any reason to be bailing out the people responsible for this utter stupidity.

Mike's America said...

They should just take that $700 Billion and divide it up among every adult who makes less than $100,000 per year.

That way, everyone could pay off their mortgages.

Either that or have one hell of a party in Las Vegas.

Marie's Two Cents said...

I just cant believe all this has happened since the Democrats have been running Congress.

Not only do they have a 9% approval rating! NINE PERCENT!

But they have run our economy almost straight into the damn ground!

ALL the Democrat's MUST be voted out before we go completely bankrupt!

We cannot afford the Democrat Congress and God help us we cannot afford Obama and his Lunatic Leftist Ideals as President!!!


J_G said...

All you need to know about how all this happened and why is check out all the committee chairs in the house. Not trying to sound like Barack Obama but I really did warn that so many bad things were going to happen when the democrats took control of congress because of who was in line for committee chairmanship.

Rangel at Ways and Means
Conyers at Judiciary
Barney at Financial Services
David Obey at Appropriations
Waxman at Oversight
John Dingell at Energy & Commerce

These people are hard core leftists and have no interest in free enterprise or capitalism. Their mission is to take over as much of the US financial and business institutions as they are able and bring them under their control.

J_G said...

no anonymous commenting on my blog