Financial Crisis 101

Time for a $700 billion (and that's just the STARTING figure) bailout, we're told.

What a lot of people miss in all this is:

1) the "banking system" referred to isn't the issue in this crisis--commercial banks are already well-regulated.
2) this "crisis" didn't spring up overnight (see the previous post).
3) this plan ENDS independent investment banking by NATIONALIZING the remaining investment banks (the others are now under commercial banking regulation)
4) this plan STRIPS the power of controlling the purse strings from Congress and hands it, WITHOUT OVERSIGHT, to the Secretary of the Treasury (appointed by the President and needing no Senate confirmation)
5) this bailout expands the government's actions to the INSURANCE industry (AIG).
6) this is the latest "we're in a crisis and must act immediately to take extraordinary measures" tactic Bush used to sell his invasion of Iraq (which had nothing to do with 9/11 or WMD) and the subversion of the Constitution under the Patriot Act.

Of course, he passed those when a Republican Congress rubber stamped his idiocy. I hope the Democrats have the balls to reign him in this time. Yes, the financial mess is real, and yes, something, unfortunately, must be done--but it DOESN'T have to be rammed through immediately with this false sense of urgency. The credit markets will be fine as long as something is in the works. Let's take the time to get one right, for once, and yes, the people fleeced under the usury-like mortgage practices deserve at least a chance to make good on their debt and keep their homes---THAT will be better for the country, its people, its lenders--and its economy.

How much longer will the sheep voluntarily line up to be slaughtered?

Writer

An Answer to a Conservative Republican

Comment from a discussion board:

"As a conservative Republican I want our [next?] President to have a desire to make the United States a freedom-loving world-leading capitalistic democracy not a shackled world-following socialistic communist nation."

Then you shouldn't have elected a president who has trashed U.S. freedoms, corrupted the judicial system, slowed economic growth and ballooned the national debt--the latter extending the 25% of the country Reagan sold to foreign interests by ignoring reality and turning the largest creditor nation into the largest debtor nation in just one president's time in office. Today, under "we'll just borrow the money" Bush, that's been so radically expanded that China and Saudi Arabia, in particular, own so much of U.S. debt that we CAN'T choose to just go our own way--they literally own us. Further, President Cowboy's policies have virtually ensured that we're stuck in Iraq and Afghanistan for years to the tune of billions (not to mention straining the U.S. military to the point where even the commanders say we can't sustain it past the spring--face it--this "Conservative Republican" president has weakened our nation for years to come). U.S. citizens' negative savings rate doesn't help—EVERYBODY seemingly just charges what they can't afford--then are surprised when they lose their homes, all while driving new trucks with 12 mpg and 8 year car loans, as many of my neighbors do, owing more on the truck than it's worth.

I'm sorry to say it, because I fervently love this country, but America is falling--and we've no one to blame but ourselves.

Ideological denial will only worsen an already tenuous situation.

Writer