October 2, 2008

Bail Out?


I'm not going to go on and on about whether or not I believe in this bail out -- and I don't think "the democrats" created the mess or that "the republicans" are responsible..... there's more than enough blame to go around -- but I would love to hear the answers to these questions

http://www.LauraIngraham.com
October 1, 2008

Eight Bailout Questions

How many times over the last few days have we heard politicians, talking heads and other self-proclaimed "experts" tell us the reason the $700 billion bailout is so wildly unpopular is that we just don't understand it. The economy is complicated. Just trust Congress, President Bush and his royal highness, Hank Paulson. They'll fix it. Don't worry about that $700 billion number. It only sounds high.

Well. If that's the case - if we're really too dumb to understand what's happening - perhaps Congress can show us how much they know. To start, here are some questions I'd like answered.

1) Since the White House introduced the bailout last week, a number of alternative ideas have been proposed. For one, Michigan Republican Thaddeus McCotter wrote a 10-point plan that carries no cost to taxpayers. Others, like George Soros', are significantly less expensive and, in his estimation, likelier to be effective. Can you explain why this bill is the best option, despite being the most expensive?

2) We're told the bailout could actually turn a profit for taxpayers. Assuming that's true, how can we be sure the money actually ends up back in taxpayers' hands? For years the Social Security system took in more money than it paid out, yet instead of putting the surplus revenue toward future benefits, Congress snatched that extra cash for general expenditures. Likewise, Fannie and Freddie's "profits," were used for congressional pet projects. With this track record, how can we trust that this program will be any different?

3) The McCain campaign yesterday pointed out that the most recent housing bill gave the government nearly $1 trillion to purchase mortgages. If this is true, why exactly does Congress need to pass this monstrous legislation?

4) Does the latest version of this bill still "allow the government to purchase troubled assets from pension plans, local governments, and small banks that serve low- and middle-income families"? Americans are having a hard enough time swallowing the idea of a bailout for irresponsible home, car, and student lending. The notion that we'll be on the hook for insolvent pension plans administered by awful, union-controlled lawmakers in cities like Detroit and New York is simply insane.

5) Does the bill's preamble still proclaim that the law "provides authority to the treasury secretary to ... ensure the economic well-being of Americans?" Does anyone know if there are limitations to this seemingly unbridled authority? Otherwise, what prevents the Treasury secretary from becoming a de-facto dictator? This strikes me as especially worth discussion.

6) Are there still no meaningful curtailments of Fannie Mae and Freddie Mac? Does the bill contain anything even hinting at accountability?

7) What concrete assurances do taxpayers have that the turmoil's provenance - Carter and Clinton-era social-engineering dictums that upended safe-lending practices in favor of higher minority home ownership - will forever be outlawed? How do we know taxpayers won't be asked to finance another $700 billion bailout in 10 years? What has Congress learned from its past mistakes?

8) After Enron's collapse, former CEO Jeffrey Skilling, then-CEO Ken Lay, and then-CFO Andrew Fastow, were called to testify before Congress. According to the Business and Media Institute, Fannie's and Freddie's overstated earnings were 19 times larger than Enron's fake numbers. So when can we expect Congress to call Jim Johnson, Franklin Raines, Barney Frank, Chris Dodd, and the rest of Fannie's and Freddie's enablers to testify before Congress?

At the end of the day, we're not being asked to bailout Wall St. so much as we are the Democratic Party. For $700 billion, answers to the questions above are the least Congress can do in return.


3 comments:

Kara said...

See, if that had been written by a member of the left wing, it would have contained just as much vitriol, no less true, pointed at the other side. Everybody has blood on their hands with this one: Wall Street, Dems, and Republicans. And your columnist seemed to realize that until she srarted to play dirty there at the end of her little list.

I can't honestly pretend to say that I truly understand what caused the mess or how to fix it. This latest mess is just the worst in a series.

I do know plenty of people who will be affected by this;both investment banker-types and... what's the name for these guys again?...oh, yeah Joe Six Packs *wink!*

One way or another, we ALL pay, whenther you watch your portfolio shrink or lose your home.

I recently read a commentary by a columnist who seemed to echo a lot of my feelings recently (and yes, he's a conservative- I can allow people who don't share all of my views to change and inform my opinions). I quote: " Political parties that put their own success over that of the country's will be the death of America.

If you don't believe [Washington, warning of partisanship as the death of America] yet, just wait a few more years...you're about to see firsthand how right he was. After all, if power corrupts, then the kind of absolute power gained by political parties (and feared by Washington) corrupts absolutely.

The best advice I can give you is to stop thinking in terms of left and right and start thinking in terms of right and wrong. Demand the best leaders possible, and then demand the best out of them.

Believe me, when you see what's coming your way, you'll realize how little the donkey and the elephant really ever mattered.


Go ahead and fact check the recentdebates: www.factcheck.org
Neither party has reason to be proud- or smug- right now.

Sorry to hijack your comments, but you hit a nerve. We can be friends and disagree.

Kara said...

and THAT my friends, is why you should just walk away to cool off before commenting. I can really be a bitch when I'm pissed off... sorry.

(i'd blame it on the wine, but I only really just started drinking in earnest within the last hour)

Anonymous said...

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Recently an insurance company nearly wind up....
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A bank is nearly bankrupt......filing chapter 11 protection.
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How it affect you? Did you buy insurance? Did you buy mini note or bonds?
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Who fault?
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They bailout trouble finance company, but they will not bail out your credit card bills……And the bill out of company is still not enough yet…….Should they have use the bail out $$ to pump into all different industries……You got no choice, and no point pointing finger but you can prevent similar things from happen again……
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The top management of the Public listed company ( belong to "public" ) salary should be tied a portion of it to the shares price ( IPO or ave 5 years ).... so when the shares price drop, it don't just penalise the investors, but those who don't take care of the company.....If this rule is pass on, without any need of further regulation, all industries ( as long as it is public listed ) will be self regulated......because the top management will be concern about their own pay check…… And they are still spend big money on hotel stay and luxury function……..
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Meanwhile if company was being acquired, there will be a great movement in terms of staff……eventually staff suffer also.
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So Bail out already happen, So the next question is, what regulation are they going to implement, so as to prevent similar things to happen………
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Are you a partisan?
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Whenever anywhere, anytime, there is election campaign.....We can use this to question your candidate there….. if you agree on my point, please share with many people as possible.... Finance and Media are the two only industries can shaken politics ( Maybe Hackers can ), please help to highlight also...
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http://remindmyselfinstock.blogspot.com/
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