We are seeing the perfect storm brewing wherein stagnation, inflation and deflation are converging. Now, in response to collapsing markets, we have taken the opportunity to make an all out assault on Capitalism by giving the government a blank check and complete discretion to buy $700 Billion dollars in bad debt. I don’t care what side of the political fence you sit on.
This is really, really bad.from a commenter on Businessweek:
The “bail-out” is a disguise for the largest transfer of wealth in the history of the USA and attempts by the Bush administration to consolidate more power over the citizens of the country.
Through this program, the the US will be using public money, tax money, to purchase the mortgage assets at below-market rates and hold onto them until the market recovers. Ideally, the loans could then be sold at a gain.
Those companies whose greed put the market in such peril by hard-selling these mortgage instruments would have their balance sheets put in order and the US government turns a tidy profit — all at the expense of the US taxpayer.
With no Gold standard, do you think the world is going to trust us to pay back our debts?
An unchecked quasi-governmental agency is being created with your tax dollars that will have the authority “to purchase mortgage-related assets under this Act shall be limited to $700 Billion dollars outstanding at any one time”. This essentially is the ultimate American Express card and I doubt Paulson will ever leave home without it! How can we sit by and allow one man to have this much discretionary spending power.
It’s not the $700 Billion..no that’s just the line of credit. You see under this bailout plan they can buy and sell their way to trillions and trillions of purchases and sales. Here’s a real kicker…the plan allows for the “Designating of financial institutions as financial agents of the Government, and they shall perform all such reasonable duties related to this Act as financial agents of the Government as may be required of them”
“Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency”
Are you scared yet? Don’t believe what you’re reading, then you can download the proposed text of the bailout plan and read it for yourself. It is amazing. I don’t think we need or should go this far. This is dangerous water we are entering here. Michelle Malkin details better than I can as to why Paulson should be contained and held in check.
People with good credit and reasonable down payments will still be able to obtain mortgages. They are actually the people who should have been getting them anyway!
As a Realtor, I am concerned that this bailout plan is an affront to Capitalism and an introduction into Socialism. We see banks lining up, the auto industry is next in line and the food industry may be behind them. Can we afford this? Shouldn’t we let a free enterprise economy correct itself? These are the questions I am asking myself and these are the questions you should be asking yourself.
This bailout plan needs to be looked at from all angles otherwise we may be in real big trouble as a nation.
“What we are witnessing may be the greatest destruction of financial wealth that the world has ever seen — paper losses measured in the trillions of dollars.” – Steven Pearlstein, Washington Post
This is far bigger than the real estate industry. Something more sinister is in play here. Watch out and get informed.
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