A month and a half ago, on October 3rd, our Congress opened the gate and led our country down the path in it’s first steps toward socialism. The Great Bailout of 2008 was touted as the “rescue plan” that would save our country from certain economic demise, while giving our government control it should not have. The measure passed handily with a majority of Senators (including both Presidential candidates) and Representatives attempting to assure the American people that this path was the only way out.
Leading up to its passage, Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke lobbied heavily for the plan. They both said we had no other choice. They both said if we did not act quickly, we were doomed. It turns out, they were wrong. Apparently we didn’t need to venture down this path.
To date, $290 billion has been committed by the Treasury Department. $125 billion has gone to the nation’s nine largest banks and investment banks. Another $125 billion has gone into regional banks, and $40 billion was added to the original AIG bailout. Under the terms of the Great Bailout, the Treasury Dept. can spend up to $350 billion before asking for an additional $350 billion more from Congress. That leaves $60 billion to spend, and today we learned that the original bailout plan isn’t going to work.
They told us this plan was the only way to solve the problem. They told us if this plan did not pass, we were going to lose more than our shirts. Does this mean we have lost our initial $290 billion? What do they mean it’s not going to work? Does this mean we are heading for hell in a hand-basket?
Word has it that Henry Paulson is officially abandoning the original plan because banks and financial institutions are still unwilling to lend money to consumers. In other words, the plan did not work and the credit markets are still locked up because banks aren’t sharing their piece of the federal financial pie.
Since the day the Great Bailout was passed, the markets have been in turmoil. Five percent fluctuations mean nothing anymore, and nothing else has changed. Small businesses still cannot get money, people are still getting laid off, and most of the people in our government still have their heads up their butts refusing to acknowledge that the real problem is trying to bailout these companies and banks in the first place. How can a capitalist system work if the government keeps trying to monkey it all up?
The focus of the bailout is now going to be on companies that issue credit cards, student loans, and vehicle financing. My question is why? The last thing anyone needs right now is more credit. Isn’t that what started this whole mess? People got themselves into trouble with home loans they could not afford, and now the government wants to add to that? It just doesn’t make any sense. I can see a reason to make sure student loans are still available because the people obtaining them are doing so to invest in their education and guarantee a better place for them in the future. But credit cards? The last thing anyone needs during this economic downturn is more credit cards.
To make things worse, the automobile industry wants a bailout now too. The Treasury Secretary has already said he does not plan on using any of the bailout money for the auto industry. Apparently, in our new socialist banking system we can back companies that issue credit cards and car loans but we have no plans to help the automakers themselves. Call it selective socialism, if you will. But then again, why allocate funds from the original $700 billion when the automakers can grovel at the feet of Nancy Pelosi and get money of their own?
That’s right. Speaker of the House, Nancy Pelosi, a founding member of Team RePO, met with representatives from the auto industry and has called for emergency and limited financial assistance. Word has it they are asking for $25 billion, and she says the aid is needed to prevent the failure of one or more of the major American automobile manufacturers. She says their failure would have a devastating affect on our economy, especially for the men and women who work in that industry.
Isn’t it odd that she intends to call a special session of Congress to address this matter to save one or two companies, but when the entire nation was paying over $4 per gallon for gasoline and we faced economic uncertainty nationwide, yet she refused to return to Washington and discuss ways to solve the problem? Saving the little people is never part of the socialist plan. Little people don’t matter, only the collective matters, right?
The fact is, in a capitalist system, the market will always correct itself. We saw that with gas prices. Two months ago we were paying over $4 per gallon and today prices in my town are under $1.90. No one bailed out the oil companies, no one helped prop up the refineries, and sure as heck no one bailed out the drivers buying the gasoline either.
When Henry Paulson admitted the original bailout plan was not working, he proved that we did not need the first bailout, and we certainly don’t need another one. It is pointless to keep pouring money into these companies, money we don’t have, when it’s clear that doing so is having no effect on the economy and serves no purpose except assuring the government’s role in our new selective socialist society.