Over the weekend, Wall Street got a huge bailout from you and I to the tune of 30 billion dollars. We are now proud owners of risky investments from Bear Stearns' mortgage and "other complicated" assets divisions. Once again, responsible hard working citizens are paying for the lavish lifestyles and reckless financial abandon of the upper class.
The middle class and poor get crumbs from measly "bailouts" such as the lackluster sub-prime mortgage assistance program (which despite everyone's protests when it was announced, really only marginally helps a select few) and a check for $600; while the rich get more tangible bailouts to the tune of billions.
The Feds also lowered interest rates for banks this week, but banks don't pass these rate cuts on to consumers. Plus, banks lower their CD and savings rates which hurt responsible people with savings and retirees. So bank margins double, while Americans continue paying high margin bank rates for car loans, mortgages and credit cards. Rate cuts also increase inflation so average Americans are getting doubly hit: no relief on consumer debt, plus paying higher prices for food, oil and other daily expenses.
It's a billionaire bonanza with the middle-class paying to fuel oil companies' record profits (the price of oil right now is not tied to economic fundamentals of supply and demand) and supporting the financial sector's unbounded greed. But, it's time for the oil companies, corporations and banks to take responsibility and clean up their own messes. We need to end the the welfare era for the rich via tax cuts, Halliburton / war "no bid" handouts, oil company gouging and corporate bailouts. Instead the American government needs to lift the middle class with investments in education, job training, health care and economic programs such as small business assistance and tangible mortgage assistance.
These massive tax payer sponsored bailouts are being justified by economists because everyone would hurt if the economy / financial system collapsed. The Bush administration and Fed argue that these bailouts for the financial sectors and corporations (via rate cuts) will trickle down to you and I. But, the economy has already collapsed for many in the middle class and is just getting worse: lack of health care, contracting wages, increasing unemployment and menial "McJobs," social security pending disaster, record debt, foreclosures, etc.
Maybe it's time for America to go through the shorter term economic "fire" and clean out the corruption and greed. America could emerge truly changed with a new responsible corporate structure, honest and humanistic leadership and a cooperative world outlook. Maybe we would even change how money and greed corrupt our political, business, environmental and person domains.
A policeman was standing there before I drove up but was doing nothing.
I ask the Policeman, after I got the bleeding controlled, why he had not helped the man?
The Policeman said he was not allowed to by law.
Well here we are and the Federal Reserve is trying to stop the economy from bleeding out.
THERE IS NO LAW ALLOWING THE FEDERAL RESERVE TO BAIL THEM OUT!!!!!!!!!
The Federal Reserve feels it is important to protect the wealth of gamblers.
Realestate investment is a gamble.
So the taxpayers are being ORDERED to not only refund the looses of the gamblers.
The Tax Payers are also being ORDERED to assume the debt caused by the MULTI- MILLION DOLLARS BONUSES TAKEN IN STOCK OPTIONS by the Bear Stearns Executives.
Will the Taxpayers be ORDERED to refund looses at the Roulete Wheel too????????
THE COP WANTED TO GIVE ME A TICKET FOR PARKING ON THE SIDE WALK TO HELP A FELLOW AMERICAN WHO WAS BLEEDING BADLY!!!!!!!!
WHO IS HELPING YOU WHILE THEY BLEED YOU COUNTRY DRY???????????
Had Bear Sterns cashed and burned, the damage would have flowed through the entire financial system, even down to trashing your 401(K) perhaps. Checked yours lately?
Personally, every time I see a BFF relationship between the Morgan brand and the Fed, I am suspicious. It goes back to 1916 and given what details we know thus far, it doesn't quite pass the smell test.
But banking needs to be local and Investment banking and commercial banking need to be separated.
Little George is an MBA from Harvard. He should be required to state to the public precisely went awry with the business conduct during his administration. I think he would have no idea. And he is our leader!
And everyone in this country deserves to have these people steal from them because when anyone comes around who might actually DO SOMETHING about it such as Edwards or Spitzer we either don't vote for them or we make them resign so we can have politicians who don't scare us by actually trying to change anything.
Or, as you state would an economic meltdown be the catharsis our system needs to cleanse itself of the conservative cancer that is rotting our politics, economy, and society?
I don't know the answer myself. But I do know it will take a real economic disaster to finally wake up a big enough majority to give the "supply-side, I've got mine, you're on your own" crowd the heave ho for a long, long while.
Gamblers crying, "help save our billions we bet on losers."