Bailout?
September 22nd 2008 21:50
The biggest news story now is the state of the economy and the possible bailout that is currently being discussed in Washington. I've heard that the bailout could wind up costing taxpayers anywhere from $700 billion to $1 trillion. I think the idea of such a bailout is ridiculous. Why should taxpayers have to pay for the sins of Wall Street and the bad decisions made by homeowners who bought houses they couldn't afford? We shouldn't.
The GOP is supposed to be the free market party. I generally agree with that policy (with some notable exceptions). However, with the bailouts that have already occurred and the huge bailout that is now being discussed, we are now a country that privatizes profits and socializes losses. When did our government get into the business of nationalizing companies/industries? Isn't that what we (rightly) criticize Hugo Chavez for? How are we acting more responsibly than him now? In my opinion, we're not.
Also, this bailout would give inexplicable amounts of power to Henry Paulson and the Fed. We would just be handing them a $700 billion check. How is that good? They are appointed, not elected, officials. Where is the accountability? And wasn't Paulson the former chairman of Goldman Sachs? They were one of the investment banks involved in this fiasco. Does the term "wolf guarding the henhouse" come to mind here?
Yes, I've heard the "chicken little" arguments in favor of the bailout. I've heard that the economy will implode and we'll be on bread and water rations if we don't act now. However, my understanding is that the real problem is a lack of liquidity in the markets. Banks aren't exchanging/lending money. When that happens, the economy is paralyzed. Well, isn't there another way to inject liquidity into the markets that doesn't involve a $700 billion blank check that falls squarely on the backs of the taxpayers? These are (allegedly) smart men. Surely they can come up with a way to prop up the banking industry such that the industry itself has to clean its own books and solve its own mess.
I do agree that something needs to be done. However, I don't agree with this bailout in its current form. It's grossly unfair to those who HAVEN'T caused this. There has to be another way. The finance guys should lock themselves in a room again and keep brainstorming. This "solution" is a disaster waiting to happen.
The GOP is supposed to be the free market party. I generally agree with that policy (with some notable exceptions). However, with the bailouts that have already occurred and the huge bailout that is now being discussed, we are now a country that privatizes profits and socializes losses. When did our government get into the business of nationalizing companies/industries? Isn't that what we (rightly) criticize Hugo Chavez for? How are we acting more responsibly than him now? In my opinion, we're not.
Also, this bailout would give inexplicable amounts of power to Henry Paulson and the Fed. We would just be handing them a $700 billion check. How is that good? They are appointed, not elected, officials. Where is the accountability? And wasn't Paulson the former chairman of Goldman Sachs? They were one of the investment banks involved in this fiasco. Does the term "wolf guarding the henhouse" come to mind here?
Yes, I've heard the "chicken little" arguments in favor of the bailout. I've heard that the economy will implode and we'll be on bread and water rations if we don't act now. However, my understanding is that the real problem is a lack of liquidity in the markets. Banks aren't exchanging/lending money. When that happens, the economy is paralyzed. Well, isn't there another way to inject liquidity into the markets that doesn't involve a $700 billion blank check that falls squarely on the backs of the taxpayers? These are (allegedly) smart men. Surely they can come up with a way to prop up the banking industry such that the industry itself has to clean its own books and solve its own mess.
I do agree that something needs to be done. However, I don't agree with this bailout in its current form. It's grossly unfair to those who HAVEN'T caused this. There has to be another way. The finance guys should lock themselves in a room again and keep brainstorming. This "solution" is a disaster waiting to happen.
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Comment by S.L.
The Political Brief
I think a lawsuit should be launched against ACORN, the lenders that allowed this to happen, and every single politician who benefitted from it. Let them pay off all the loans and maybe, just maybe they'd learn a lesson. Hopefully not one of them would have an ounce of political power left afterwards!!
Comment by PopulistConservative
Angry Electorate
There's lot of blame to go around on this one. Some homeowners KNEW they were getting houses they couldn't afford. Some mortgage lenders KNEW they were selling houses they couldn't afford. The investment firms on Wall Street repackaged and bought and sold these loans and now are all but gone. Our politicians (Dems and Republicans) pretty much abandoned oversight on the whole process. Now, the taxpayers are having to pay for the sins and idiocy of all of them. I'm furious about this.
Comment by Lester Caudill
Round Politics
We deserve the best plan, and not some whipped together mix that dems and republicans get to pork up. Why should people that made bad mistakes get bailed out and people that has done the right thing has to pay for it.
I agree lock them in a room and don't let them out until the problem is solved.
Comment by S.L.
The Political Brief
Comment by PopulistConservative
Angry Electorate
Also, there is the law of unintended consequences. The possibility of a bailout create downward pressure on the dollar and that help fuel the record increase in oil prices today. That, in turn, helped to significantly hurt the Dow.
Finally, I don't think for a second that it will be $700 billion or even $1 trillion. You know how government programs go. They always cost MUCH more than originally stated. There's no telling how much this thing could cost us in the long run.
Fortunately, I'm hearing that there's a lot of pushback on this thing from Republicans and Democrats. I suspect they're hearing the howling screams of their constituents. We'll just have to see what happens.
Comment by PopulistConservative
Angry Electorate
Comment by S.L.
The Political Brief
Comment by PopulistConservative
Angry Electorate