Not so fast on that $700 billion bailout

The economic problems are not George W. as much as it is the whole republican economic agenda since 1980. Ye ol' Reaganomics, trickle-down theatrics (not a theory) that has come to full fruition. Cut taxes and rich people (who don't need the risk) will start or invest in new companies and the money will just trickle (drool or dribble) down like manna from heaven; more jobs, higher salaries, lower prices, better standard of living for all. A very rosy picture indeed. Major Problem: an economic theory that is childish, unrealistic, and self-serving. Of course, there is the additional idea of getting government off people's backs by reducing the size of the government and reduce government spending, which is, bottom line, in total a well-conceived flat out lie. Republican administrations ran up massive amounts of national debt in irresponsible spending sprees while boastfully cutting the very source of government revenue. There is an equilibrium tax structure in an economy where taxes provide social services, i.e. public schools, which lifts the financial burden off the backs of averages salary earners allowing them support economic growth through purchasing. We have yet to achieve it. When Reagan came to power, it was too high. Now it is too low. A complicated structure such as the one we have had in the United States only allows for cheats and loop holes, that is, legal cheats. It does nothing to help the economy. Republicans are the worst at arresting government spending or reducing its size but the best at creating tax cuts and loop holes for (as George W. called them) their base – the selfish one percent at the top. And none of you reading this are part of that one percent, so stop deceiving yourself. The shift was from social services (like education, Medicare, mental institutions for the mentally ill, etc.) to giving the money to their political friends and donors (see Katina gifts to corporations who never spent a dime in New Orleans or those private contractors in Iraq -- big or small). So the rich get richer by taking tax payer money and gifting it to, for recent examples, Halliburton or Blackwater USA et al. Corporate welfare replaced support for the needy, who got dump into our streets and neighborhoods were they sleep, eat out of garbage cans, and get beatings by middleclass brats, and the elderly who suffer in poverty under the unfair and unnecessary burden of medical costs while access to less expense medicine is block by uncaring politicians who are bought by pharmaceutical lobbyists. Getting the government off our backs means reducing regulations that protect our communities from pollution, exploitation and destruction so corporations can more easily make profits with worrying about the consequences of their actions. Polluted rivers (the Mississippi is destroyed with the highest cancer rates in the US for communities on its banks), oceans polluted (California coast is so polluted shell fish can no longer be eaten from Oregon and Mexico), landscapes everywhere totally ruined by mining interests (hello, Sen. Byrd, good bye West Virginia mountains, the Rocky Mountains, etc.). Any laws designed to protect and preserve what God created is shot down by so-called Christian’s more interested in the pocket books than God holy creation. The American political system is considered holy but what he created is not in some twisted interpretation of scripture that serves the interest of truly godless self-seekers. And speak of good bye: globalization sold to the American people so our companies could stay competitive against those evil Japanese (1980s devils) who were going to take over the world. So good bye jobs, but globalization will keep prices lower on our goods (if you have money to buy them) even though they won't be made here. The recent inflation (manipulate and dishonest since reprogrammed in 1980s and 1990s so it always seems low despite price gains of more that 10% per year since 1987 and is therefore, in truth, totally inaccurate and misleading -- price adjusted pay raises or social security checks, well, we won't have any of that) is not due to supply and demand. It is the result of these massive pools of capital that were created by an inadequate tax structure that rewards the rich for nothing more than being rich and that continuously seek investment returns and, in the process, jack up prices through the roof. For the middle-class family real wages haven’t increased since 1975! Now the killer we are experiencing today: massive pools of capital created by tax rates that are too low for high income earners, that is, people who make over a million per year. These massive pools of capital constantly look for places to invest, and since they are so masssive, they running markets too high in speculative frenzies that leave the small invester holding the bag or that require government bailouts. Hence, the S&L crisis in the 1980s, the 1990s stock market was over valued from 1994 to 2000 when it collapsed; currency markets manipulated and finally collapsed 1997; now the real estate market pushed to unrealistic levels by the massive pools of speculative cash seeking out new investments creates too many houses and the offering them to anyone regardless of financial means to keep the game alive; energy prices have been pushed by the same game (Enron's traders recall, recent oil as well as other commodity prices). And to help all this out, let's allow Wall St. (eliminate regulations in place since the 1930s) to create all sorts of hybrid products such as 'credit default swaps' or ye ol junk bond financing that even the professionals don't understand and mergers of institutions that eventually participate the collapse of (at best jeopardize) the whole financial system world-wide. The answer offered for today's problems: more deregulation, e.g., Goldman Sachs and Morgan Stanley now have access to the Fed window as bank holding companies! You got to be kidding me. This parciptated the crash of 1929. Its deja vu all over again. Here is a quick fix for today. Urge all people who forclosed to return to their homes with the guarantee that monthly payments will not be more that $700. Then, make all banks take the loans they made back on their own books since they are no longer in default. Break up the banking industry into smaller units by open government run banks focusing only on deposits and basic loans so the fall of one ( or several) will not pull down the whole ecomony. Can you imagine Bank of America going under? One institution could being down the whole US economy. Monpoly laws were set up to prevent this and encourage competition. What happen, Mr Reagan? What were you thinking? (Sorry, I really know you did little thinking, but, like George W., you had others doing it for you.) It's insane. Hi, Ronnie and thanks; the stench of your self-serving individualism with its heart in "country be damned; greed is good; show me the money" has come to full bloom. PeeYou. The whole program is out of whack. We need to rethink the whole structure. (1) set at flat tax rate of 20% on total individual income under $1,000,000 and 50% on every income dollar about the first $1,000,000 except for corporations which keep the 20% flat rate. This will clean up the whole mess we are in now and provide money for a national health program and quality public education through four years of college in a state type system. Private schools can run on their own with no federal money allowed if they want to be private. (2) eliminate all deductions. Everyone pays as outlined above for the benefit of the whole country. (3) eliminate lobbyist ability to buy politicians. No gifts, no contributions, No exceptions. Talk is fine, but no trips, no planes, no drinks. Period. If caught even taking a cocktail, you will be immediately removed from office. Money does not equal free speech, Judge Rehnquist. So go screw yourself you old dead fart. Any private or public company that hires a politian coming out of a government position, will not be able to bid on government contracts for 10 years. (4) corporations cannot make any kind of contribution to politician for any reason. They don't have voting rights and are not individuals with any constitutional rights. (5) amend the constitution so that the legislature at the federal and state levels must include a broader representation of the population: one quarter professionals like lawyers and doctors; one quarter business owners, small to large; one quarter academics from elementary schools to universities; one quarter working people from factory to farms. Maximum length of service is two terms…no more eternal premadonna’s sitting in political positions long past the effectiveness: entrenched party bureaucrats who regard themselves as the sole source of all good and truth for the country, not! (6) stop Wall St.’s control over the economy; the tail is wagging the dog and it must stop. No more hybrid products just straight stocks and bonds and mortgages. Banks, etc., make loans and they stay on their own books; they are not stripped, packaged and resold to others. No more Federal Reserve Chairmen allowed to serve if they come from Wall St. The must be appointed from university positions and have Phd.s in economics or finance. No more Wall Street insiders with self-serving approaches to running the SEC or Federal Reserve.

America never honored 40 Acres & a mule, screwed over Black Farmers in a major way, denied Blacks mortgages for decades through redlining and other practices. Now the White Power structure wants society to pay for their high risk poor choices and preserve their nice homes, vacation homes, and lifestyles. Who's next, the auto workers? I'd rather bail out the college grad with $75K in loan debt than the Wall Street Broker earning $350,000/year. Anyone working 2 jobs and 60+ hours / week deserves a bail out of their credit card debt too, why not? America, killed of Native Americans and assumed all their land for their own. Then built the country of the backs of Black slaves. Now regular citizens will pay to preserve the power structure. Note the common theme? When the benefactor is White Empowered Wealthy Class, this country does what it wants, ethics be damned. I feel no guilt about cheating on my taxes, always have, always will, I am not going to be one of the suckers fleeced to preserve the White Power Structure.

Basementfrog I am sure you remember the remark that Bush 1 made when he ran against Reagan for the nomination back in 1980 that his economic plan would be best titled "voodoo economics". If you look at Henry Paulson's resume you will see he is the ex-chairman of Goldman-Sachs. I find it hard to believe his intentions are to help the small average american. He is doing all he can to help save what is left of the fortunes of himself and his cronies. He of all people should be sent packing and in a hurry. On the way out the door they should drop his check and kick right in his ass when he bends over to pick it up. If the U.S. wanted to punish the bankers and help the struggling homeowner they would tell the bankers that there is now an affordable FIXED interest rate these people are going to pay and the banks ARE going to accept it. Case closed. Discussion over. The needs of the many outway the pocketbooks of the few.

Anon, according to Purl Gurl those indians were terrorists who fought against Mr. White Man and got what they asked for. Call her up and ask her.

Finally someone has a clue in DC, there is no good reason to bail out all these millionaire crooks, albeit a small clue, who will take the money and run and the tax payers get stuck with the tab like they did to get in this hot mess which they will let happen again. If, they do get the handout, it should have strings, no massive, ridiculous year end bonuses in the hundreds of thousands as in the past, and, no huge salaries for the employees, as has been the case in the past.

Rev. Wright got a lot of flack for saying this words: America, you reap what you soe and the Chickens are coming home to Roots. What was so bad about these words?

Screw these loansharks! Why in the world are they deserving of welfare? They are rich beyond comprehension!! Even if their businesses fail, they will STILL be rich. I'm glad that some in congress and even some Republicans are standing up to this shakedown of the taxpayers. They expect the US government to just fork over 700 billion dollars with no strings attached!! Do they really think we are that stupid?! Not this time.

The fact is that approximately ninety-five percent of the outstanding mortgage debt is not presently delinquent despite that a substantial portion of it is being repaid at jacked-up interest rates which are far more out of proportion with inflation than ever before. A five percent loss on the principal of an income producing investment (and mind, this loss is at least partially secured by assets) is probably not sufficient to "break the bank". The real secret to this sudden rush on the bailout may lie in the attempt to foist a lot of non-mortgage related debt, bad loans and investments made against prevoiusly inflated corporate assets, on the taxpayer. Note how quickly Sen. Dodd (Hartford Connecticut-the Insurance Industry Valhalla) and the Treasurer from Goldman-Sachs slipped in the provision for relieving all forms of bad dept, not simply failing mortgages into the package. In fact, even Dodd's provisions seem to provide primarily for corporate relief with the terms for consumer mortgage debt servicing to be worked out later (out of whatever, if much, is left) Also I can't help but question the need to provide more liquidity to a consumer mortgage market which by all accounts is incapable of borrowing anymore. Besides, according to active lenders the problem isn't a shortage of funding for loans but rather qualified borrowers(20 percent down and credit scores of 692 or above). Finally, one can't help but chuckle on hearing the recent admissions by all of these conservatives that our economic expansion since the 2001-02 downturn is due primarily to expanded consumer demand fueled by borrowing against perceived homeowner equity as this would seem to belie previous claims that it was due to supply-side tax cuts.

Now is anyone really suprised that paulson would bail out his former cronies on Wall St? Afterall, he was the former CEO of one of those crooked,unregulated, greedy companies. And, lets not forget the greedy homeowners and real estate "investors" who also helped get us in this mess.

WALL STREET's RECKONING! (Yet, it Took 10 Years to Raise MinWage $1.00) http://www.youtube.com/watch?v=S27yitK32ds "Rule one: Rush the decision. Time the game to fall in the week before Congress is set to adjourn and just 6 weeks before an historic election so your opponents will be preoccupied, pressured, distracted, and in a hurry. Rule two: Disarm the public through fear. Warn that the entire global financial system will collapse and the world will fall into another Great Depression. Control the media enough to ensure that the public will not notice this. Bailout will indebt them for generations, taking from them trillions of dollars they earned and deserve to keep. Rule three: Control the playing field and set the rules. Hide from the public and most of the Congress just who is arranging this deal. Communicate with the public through leaks to media insiders. Limit any open congressional hearings. Communicate with Congress via private teleconferencing calls. Heighten political anxiety by contacting each political party separately. Treat Members of Congress condescendingly, telling them that the matter is so complex that they must rely on those few insiders who really do know what's going on!"

George Bush has probed us, bankrupted us, sent our children to die in a war that was not justified and benefits foreign oil companies. Sold our dignity and integrity to the oil companies and wall street big shots and now that he is leaving office he is trying to take what little we have left with this bailout. He wants to bail out foreign banks but not the American family yet we the American families are suppose to pay for it. They had a good thing going and this the final payoff to take what little is left before he leaves office and McCain wants to do it all over again until nothing is left and we are a broke and embarrassed nation. McCain wants to do it all over again.

This Henry Paulson sounds like another bush cronie who will say and do anything to make the administration look good in the eyes of the public. I hope that every greedy yuppie gets what they deserves.

Time for the working man/woman to stop lining the pockets of the top 5 percentile(blood sucking thieves). We will continue to support ourselves; like we always have...by utilizing our skills. Investors(as they call themselves) purposely set us up for this financial fall by milking the system for all it was worth, and now they're back for seconds...I pray that we won't lie down again and let them suck the rest of the air from our lungs! We don't need to go to other countries to fight a war; the enemies are among us!

How does it taste to have a $700 billion ball of crap crammed down your throat while being held down and your mouth pried open by Henry Paulson, George W. Bush and Ben Bernanke. Well it's leaving a really nasty taste in my mouth. George W. Bush and his criminal clowns crammed the Iraq war down out throats in 2002. We cannot let these political bandits cram this crap down our throats too. The American people must stand up and make their voices heard. We need to track down each and every criminal involved in this catastrophe, prosecute them to the fullest extent of the law, and lock these clowns away for life. I blogged about this on http://www.posterspost.com Check it out.

Hello, Stock market is a volatile market. Investors are afraid of entering Indian stock market due to such volatile conditions. FII are the one who are selling shares like anything. Now we can see some relief rally in the market but still recession can curb the movement of the stock market. In these sort of market investors and traders are confused like which stock they should select that is stock selection is the major issue now. Have any doubt lets discuss it and help everyone Happy Trading, ShareGyan

Hello, Stock market is a volatile market. Investors are afraid of entering Indian stock market due to such volatile conditions. FII are the one who are selling shares like anything. Now we can see some relief rally in the market but still recession can curb the movement of the stock market. In these sort of market investors and traders are confused like which stock they should select that is stock selection is the major issue now. Have any doubt lets discuss it and help everyone Happy Trading, ShareGyan