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Wall Street bailout - socializing risk, privatizing wealth
Posted September 19th, 2008 by warmmidwest
in
Why is that every time bad investments made by private institutions go belly up, the U.S. taxpayers are called upon to socialize the financial risk? WHY?
Why is it that suddenly, government isn't the problem, it's the solution?
Democrats and Republican lawmakers are to blame for the current mortgage and investment banking crisis. From a legislative perspective, they saw this coming years ago and did nothing to stop it. This has happened before. Remember when taxpayers were called upon to bailout the Resolution Trust Corporation and the S&L crisis in the 1990s?
When will we hold politicians and powerbrokers in this country
responsible for believing risk should be socialized, but wealth must be
privatized?
Now the Bush Administration is asking Congress to create a new commission that will be solely responsible in determining which Wall Street fat cats get bailed out, and which don't. They want to take away Congressional oversight of how taxpayer money is spent - or at least $880 billion of it - and use this new authority to keep investment banks that made shaky mortgage loans from going completely under, saying the action is critical to the health of U.S. consumer financial health - retirement savings and investments, etc.
I'm not convinced, especially when a bailout comes with no explanation of how we're going to avoid this again in the future. It's like continually giving loans to a gambling family member who never pays the money back, or fixes her problems, but just keeps going to the casino.
Where is the money going to come from given everything that's being pumped into two wars, a decreased taxbase because our jobs have been shipped overseas, and tax cuts for the wealthy?! Ahhh, let me guess ... the Social Security Trust Fund, perhaps? What they couldn't accomplish through Congress a few years ago - privatizing Social Security - will now come to pass.
Currently, our debt is being financed by the Chinese. How will this debt be repaid? Say good-bye to U.S. natural resources, and expect Obama, if elected, to serve one term. Why? Because the Democrats are going to have to raise taxes to such an astounding degree, and they'll do a crummy job of explaining how the Bush years go us into this mess. And no matter ... you'll turn on the TV to watch the new season of American Idol and forget all about it.
Get UPPITY! Let your Wisconsin Senators know what you think about this.
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I agree 100%. You were right
I agree 100%. You were right on putting the blame on both corporate parties. Frankly, this is an issue the Dems could lead on, but they are in too deep.
Here is a great article on why the Democrats are politically incapable of getting any traction on this issue.
http://prorev.com/2008/09/why-democrats-havent-been-more-helpful_18.html
I am amazed at this
I am amazed at this atrocious decision to bail out wall street ! socialise the losses and privatize the profits ! Why should tax payers foot the bill of wall street bankers ! .
Look at the ridiculous decision to ban short selling in banking stocks ! all this just to shore up the stock prices of failing banks and help them survive.
Is the treasury going to bail out all the businesses ? How about the airline industry and the automobile industry ?
Its a high time we let the bankers face the music! How about getting the bonuses back to fund the bail out !!!!!
Wall Street Bailout
We am boiling mad that all but a very few legislators are bending over backwards to jump on board with the Bush administration's HUGE bailout of Wall Street. Let us all calmly look at it and then STOP it DEAD in its tracks.
It is NOT our or the majority of American's fault.
The government is taking our hard earned money and giving it to their wealthy Wall Street friends. The companies that failed must be left to fail. The government would force me and you to take responsibility for our actions. Now it is time for big business to feel our PAIN.
We are Americans. We are Strong and Brave. We are not Afraid. We will live through an AIG failure.
Do NOT let the administration that has lied to us about so many things give our money away.
This plan will not only reward failure and keep the leaders that failed in power, but it will also make certain that there will be NO funds available for healthcare, education, and infrastructure rebuilding for the rest of us. Remember, there are people in Houston and Galveston still hurting from Hurricane Ike.
Dundee Maples
Joan Hiraki
How we got into this mess
Here is a GREAT explanation of how we got into this mess, and in particular, the very UN-MAVERICK role John McCain played in helping orchestrate it.
http://www.dailykos.com/storyonly/2008/9/21/9322/74248/245/602838
Forget bioterrorism, we got the same economic thang!
Dear American:
I need to ask you to support an urgent secret business relationship with a transfer of funds of great magnitude.
I am Ministry of the Treasury of the Republic of America . My country has had crisis that has caused the need for large transfer of funds of 800 billion dollars US. If you would assist me in this transfer, it would be most profitable to you.
I am working with Mr. Phil Gram, lobbyist for UBS, who will be my replacement as Ministry of the Treasury in January. As a Senator, you may know him as the leader of the American banking deregulation movement in the 1990s. This transaction is 100% safe.
This is a matter of great urgency. We need a blank check. We need the funds as quickly as possible. We cannot directly transfer these funds in the names of our close friends because we are constantly under surveillance. My family lawyer advised me that I should look for a reliable and trustworthy person who will act as a next of kin so the funds can be transferred.
Please reply with all of your bank account, IRA and college fund account numbers and those of your children and grandchildren to wallstreetbailout [at] treasury [dot] gov so that we may transfer your commission for this transaction. After I receive that information, I will respond with detailed information about safeguards that will be used to protect the funds.
Yours Faithfully Minister of Treasury Paulson
So how's that bailout workin for you now?
Like Dundee said, it will reward failure. Anyone disagree?
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