If you went and borrowed money with essentially nothing down , which is what big wall street banks, were doing at 30-60 times leverage of their basic capital and then took that money to a casino hoping to make a killing then loosing all your money and then went to your congressman and senator's office and asked them for more capital so you could go back to the casino to win the money back you just lost you might think they would laugh you out of their office. Not if you are Goldman Sachs, money wizards of wall street!
Of course you could go to your local bank and ask for an interest free loan to save your business and chances are you could get a no money down mansion loan from them so you could take that back to your wall street casino. It is no wonder that banks are falling like domino's now having loaned out money that way.
So you have an IRA or a pension plan and you have to take a minimum distribution and the market is down. You have no flexibility and you have to sell or exchange shares in a down market with no flexibility because you happen to have the age where annual minimum distributions are due. The Gangs in congress would never consider giving pension plans, profit sharing plans and IRAs the flexibility to defer taxes to take money out nor the flexibility not to have to pay out minimum distributions in a tempest. Congress only appears to give a damn about oligarchs . The financial news media also favors the oligarchs. Why the fed loan window is not open to the public at the retail rate and by passing failed banks is a mystery. Why the power of the federal reserve is to be expanded to save investment bank screwed up on a monumental basis is leaving a lot of ordinary American Citizens confounded. It also seems strange that congressional gangs want to keep no money down borrowers in homes they never could afford to buy when they should have remained renters till they developed sufficient credit or savings to buy a home. Now we hear how home prices cannot go down without causing misery. So the gangs want to essentially give their special friends free houses instead of allowing prices to fall to the point where capitalism works and there is a viable market to sell the housing stock glutting the market. That is how homes traditionally became affordable in a capitalist system. Not any more. The Alice in wonderland economy is here and we had better get used to it.
Big boss Obama is heading one of the gangs in congress now that wants to re distribute the assets of America wholesale as he favors nationalizing the oil companies. McCain is almost as clueless to how the economy works as Richard Nixon but there was a ray of hope in that he did say initially that the government should not go out and save people from foreclosure situations they themselves got themselves into.
The economic relief for the common American is no where to be found in the bail out bill and Americans who can actually read knew it immediately and got mad as Hell and helped defeat it. The Oligarchs of American corporate welfare are also not very popular when Americans who owned Washington Mutual get to see
the CEO of Washington Mutual bail out just before the complete collapse where he gets a 17 million dollar severance package possibly not including a retirement package as well. A guy who turns a sound bank into a giant self consuming casino get a pass with funding and he is not even on a plane to Rio, Brazil. He did it legally! They loot the banks for their pay packages and bonuses, stock options and pensions and the gangs in congress say that that is somehow a free market or the opposite. Never looked like a free market to me. A free market would have a guy like the CEO having to own an awful lot of stock in his company and be like warren buffet growing a return on equity to get his bonuses instead of skimming money off the top of the enterprise as hired outsider.
700 billion is not as much money as it sound like it is when we have a congress spending more than 3 times that in one year! the federal budget is over 3 trillion dollars already this year. this package only raised it 23% –a lot of it is borrowed money. We all know the government gets 10 cents on the dollar in most thing they use the money so chances are the congress needs to vote for 7 trillion dollars or a bit more than two years future congressional spending to fix the casino mess they helped create!
Americans are right to have helped stop the so called bail out plan. The bail out should first go to people who saved their money and not to people who took their money and our money to an unsustainable casino for personal gain.. Foreclosures go to investors who can afford to buy them at a real market price. That does not cause a recession. Investors who are forced to sell in pensions plans should get a tax break not the failed casino banks. People who never could afford mcMansions on sub prime mortgages should go back to renting. Condo flippers who lost speculating should not get a bail out. Banks that have no money are not banks any longer. Americans see thought the media lies, Some want their dream world of socialism but the investors who can save wall street want the tax breaks and the benefits to go to them not to the failed institutions. Savers want to be rewarded for saving and not punished. Retirees do not want to take a loss just because they have minimum distributions coming due nor have to pay taxes on the losses unnecessarily taken.
Funny Business in Washington. Apparently , unbeknown to the fragile financial news media , the Democrats control the House and the Senate and could pass the bail out bill without any republican help! President Bush already said he is going to sign it immediately! So why when we turn on the TV do we see the democrats blaming the republicans when the bail out bill goes down in flames? Why when everyone in the banking and financial industry agrees doesn't the head of SEC , Cox, change the stupid marked to market rule? Barely a peep about these factors in the news media. All we hear is is has to be done no matter how bad the provisions are including giving activist groups money as part of the package. That is no emergency bill! Thats crap out of congress that never should be in an emergency package! Goons, Thugs, Oligarchs and Gangs control the Congress and Americans should be happy?
If we don't see either Obama or McCain step up and give us a bail out package that satisfies the American public Americans maybe should listen to Ron Paul and Vote Libertarian. Bob Barr for president.