The last time I checked, America was not a Socialist nation. But, if we are not Socialist, then why is the federal government moving forward with a plan to bail out the financial market. Such a move amounts to nothing more then corporate socialism.
I am not here to blame President Bush for this nor am I here to make excuses for the presentt administration. I think that this problem is coming from years and years of bad financial policy and criminal behavior by the banks and corporations that are now in trouble. So the problem does not lie just with him. It lies with the American government as a whole and people who insist on taking loans out to buy things that they can't afford and do not need.
The action that is being planned by the government goes completley against what America was founded on and will do nothing but reinforce continued bad behavior by the parties involved. I do not have a solution except for to live within my means and try to work my way out of the school debt and life debt that I am in right now.
I just hope that this does not spell the start of another actual depression for us all.
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Part of this probably started when during the Clinton administration the judicial department under Janet Reno coerced banks and lending institutions to start underwriting bad risk loans at the threat of justice department sanctions and lawsuits against them. Rather than argue the banks capitulated and loaned money that never should have been loaned. My biggest issue with the bailout is that not only is it a carte blanch check for the Treasury Secretary to do with what he so chooses, he says he will use it to bail out/buy out bad loans from foreign banks as well as American ones. This is more than just corporate socialism, it's worldwide socialism. I don't think my tax dollars should be spent to help the Bank of England because they wrote some bad loans, bad enough I'm bailing out my own countries fools I do not want to help the worlds fools.
Actually, there are mechanisms within the plan that only allow US institutions to draw from the bad debt fund. That being said, the financial sector is notorious for being creative- there will probably be some foreign debts relieved by this.
However, as much as the find the corporate welfare system disgusting, I am much relieved to see that at least something is being done. Because if it's not, these guys would still live more comfortably than any of us and it would be a long, long time before they started doing business with "Main St" again.
"...Most pressing is the $700 billion Treasury proposal that is being negotiated with the Chairman of the House Financial Services Committee. The Paulson proposal is an attempt to do what we so often do in Washington – throw money at a problem.
We cannot make bad mortgages go away. We cannot make the losses that our financial institutions are facing go away. Someone must take those losses. We can either let the people who made bad decisions bear the consequences of their actions, or we can spread that pain to others. And that is exactly what the Secretary proposes to do – take Wall Street’s pain and spread it to the taxpayers. The plan has not even passed, and already Americans are paying for it because of the fall in the dollar as a result of all the new debt we will be taking on.
I know there are problems in the financial markets, and I share a lot of the same concerns that our witnesses do. However, the Paulson plan will not fix those problems. The Paulson plan will not help struggling homeowners pay their mortgages. The Paulson plan will not bring a stop to the slide in home prices. But the Paulson plan will spend 700 billion taxpayer dollars to prop up and clean up the balance sheets of Wall Street. This massive bailout is not the solution, it is financial socialism, and it is un-American..." - Jim Bunning
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