This is in response to Ellimem’s blog posted a couple of hours ago.
To start off, I’m not speaking for all Liberals, but I am speaking for my liberal self when I say that I’m utterly opposed to this bailout, but unfortunately, you are correct that the alternative would be much worse. Handing a $700 billion dollar check over to Wall Street is not a Liberal concept, it is socialism. Liberals are for more government regulation, i.e. limiting what big businesses and their CEOs can and can not get away with. I am NOT for handing over thousands of my tax dollars to keep a failed business afloat, but in this case it seems to be the only option. Therefore, I am reluctantly for this bailout. There is a difference between these two concepts, but in your blog you treat them as if they are the same.
Now, we all know how we got to this point. Mortgage companies were handing out mortgages like candy at Halloween. This road to hell was most definitely paved with the best of intentions; Namely, making it possible for lower income families to achieve the American Dream by owning their own homes, while at the same time giving the investment bankers an opportunity to get even richer in the process. Sounds like a win/win situation, is it too good to be true? In a word… YES! Sleaze bag mortgage companies like DiTech.com (do you remember the commercials a few years ago, with the fat annoying banker in a suit and tie jumping up and down in his office yelling “Lost another loan to DiTech!!!”) were handing out “too good to be true” loans that required no money down and high interest rates to low income families that should have never been considered for these loans in the first place. Much like Marxism, it sounds great in theory, but when put into practice it fails miserably. The mortgage giants were excited about the potential returns on these new loans, but in their excitement they failed to realize one thing; The people they were giving these loans to would never be able to pay them back with interest. And like all economics issues, nothing exists in a vacumn. Due to a combination of irresponsibility on both the lenders and the borrowers, rising costs in energy, fuel, and all other living expenses, and other unforeseen dilemmas, many of the average Joes out there were unable to pay back their no money down, high interest loans that they never should have received. It doesn’t take many bad mortgages to ruin a bank. Compare the size of a single loan to the margin of profit gained from interest on said loan and you can see why Freddie and Fannie found themselves up shit creek without a paddle.
These companies were able to gamble in the casino that is Wall Street using the American Joe as bargaining chips all because of the removal of regulations that were pushed through congress. One need to look no further than the Graham-Leach-Bliley Act of 1999. http://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Act You may recognize the first name, as Phil Graham was McCain’s economic advisor until he put his foot in his mouth a few months ago. Phil Graham, however, is not solely responsible for the train wreck on Wall Street, but he certainly greased the rails. And the Dems hands are not completely clean either, as brother Bill Clinton had to sign this into law, but never the less, the concept of free market, no government regulation economics is a Republican philosophy and has been since Regan, and like I said above, it works in theory, but not in total absoluteness in practice. Some regulation is needed to make sure these companies do not get out of control.
Now, speaking as one of the millions of Americans who will be paying for this mess, I want Congress to assure me and you that we are not handing over $700 billion of our money without any strings attached. Three pages, is not enough strings for me. Wall Street went to the casino with their own money and went broke, now they’re asking to use OUR money, wouldn’t you like some conditions set so that this doesn’t happen again, and cause further damage? I believe economic competition is healthy, and free (to an extent) markets promote a healthy economy. But when you give these businesses absolute free reign, they stretch their bottom lines and over extend themselves so much in an attempt to gain even larger profits that they will inevitably implode on themselves. I want our government to set boundaries, like they should have in the first place, so that this does not happen again with our $700 billion (that’s roughly $2,000 from every man, woman, child, and tranny in the U.S.). And when did this all happen? It all happened under Bush’s watch. This didn’t happen overnight, and this has been in the making for years. Who was driving the bus over the last 8 years? Republican philosophy, Republican president. The guy we hired to keep an eye on our economy was for the same deregulation that led us to this point. So yes, I want to save the Economy, but I’m going to bash Bush at the same time because this happened on his watch.
I am JohnnyBax, and I want Richard S. Fuld to take a vacation with my money when this is all over, because he deserves it.
Left Leaning Lesbian’s Halloween Analogy:
p.s. I know in my last blog I said I was leaving eBaum’s for a while, but it seems Eshel has toned it down a bit in the past few days, and I came to the realization that I shouldn’t leave because he’s an annoying asshole. If that were the case I should have quit coming to the blog section a long time ago.