October 2, 2008 8:54 AM
The Big Bailout - how it hurts you and your children
From my Inbox:
The Big Bailout
By Dennis M. Howard © Copyright, 2008The Big Bailout reminds me of being invited out to lunch by a bunch of moochers you never met before, who order the most expensive items on the menu, and then stick you with the bill.
Only these moochers are big time. They want to charge $700,000,000,000 on the taxpayer's credit card to benefit the casino operators in the major banks and on Wall Street. We used to be a nation of makers, builders, and innovators. We have become a nation of traders and speculators.
Seven hundred billion amounts to $6,600 for every household in America . . . or $2300 for every man, woman and child . . . including any kid born yesterday.
It's a "gift" from that super-elite group from Congress, the Senate, The White House, Wall Street, and the Federal Reserve, most of whom got there via Harvard, Yale or Chicago Business School. Guys like Senators Chris Dodd and Barack Obama (#1 and #2 in campaign donations from Fannie Mae and Freddie Mac), plus Democrats Barney Frank, Nancy Pelosi, Joe Biden, Al Schumer and a handful of Republicans who never met a bank lobbyist they didn't like.
And don't leave out Obama pals Franklin Raines and Jim Johnson who got a cool $111 million in bonuses from Fannie Mae (plus stock options) - not to mention favorable personal home loans from the failed Countrywide Financial Corp.-- before becoming Obama advisers. It may seem like a naïve question, but how come they are still on board the Obama bus?
Cheer-leading them all is Hank Paulson, a Democrat who joined the Bush cabinet from Goldman Sachs - the same outfit that gave us New Jersey's Jon Corzine - and Fed Chairman Ben Bernanke who arrived via a professorship at Chicago University School of Business.
A better-educated bunch of thieves you never met - all on the march with a plan to put the people in a multi-trillion dollar hock for at least a generation, and perhaps forever. When they're done, they will hang three golden balls on the front of the White House as a symbol of their success.
The bad news is that they are not done. There may well be another $300 billion hit on taxpayers after election day. Yet the initial package does nothing to defend us from our mountain of consumer debt, the $700 billion we send the oil sheiks every year, or the $500 billion plus we owe the Chinese and everybody else with whom we have a negative balance of payments.
Calling it a bailout is far too kind. It's more like a ransom note from a new breed of financial terrorists who have managed to kidnap Grandma, along with everything else you hold dear.
And then there is poor, pathetic George Bush - looking like he was just served foreclosure papers on the White House - as he pleaded with the world, the Democrats, and whatever stray Republicans he could find - to rescue him from his unexpected encounter with financial doggie-doo.
Too bad there is no such thing as "too dumb to fail." Even his daddy can't help him now, so he threw himself on the mercy of the Democrats. What a sad closing chapter to a once promising Presidency!
Unfortunately, the candidates who will have to weather the fallout from all of this - and the scorn from the left wing media that goes with it - are John McCain and Sarah Palin.
McCain is already being dissed by the Democrats for showing up to help put a bipartisan face on this solution, and then being accused of delaying its resolution.
Without his presence, the deal would almost certainly have had few saving touches - like protection for taxpayers, some staging in the payout, more independent and Congressional oversight, scrubbing the Acorn boondoggle, the possible rollback of Sarbanes Oxley, and trying to help the taxpayer make a little money in the end. Despite all that, it still didn't pass.
Meanwhile, Palin is being derided on Saturday Night Live as a naïf who can barely tie her own shoelaces. Yet, her down-to-earth understanding of what makes the real economy work - if implemented - might just save us all from the "Masters of the Universe" on Wall Street. It is their crapshoot with mortgage-backed securities and derivates that caused the Casino-style crash.
The exact same thing happened in the late 1990's with the collapse of the Long Term Capital Management Corp., whose founders won a Nobel Prize for figuring out how to repeal the law of gravity when it came to derivatives. That collapse should have taught everyone the lesson that Wall Street needs to learn all over again. A crapshoot is a crapshoot.
What Palin and McCain need to do is to get out on the hustings and deliver a simple message to the people of Virginia, North Carolina, Pennsylvania, Ohio, Michigan, Wisconsin, Colorado and Indiana - or wherever else they are vulnerable.
The real economy is not on Wall Street, but Main Street.
Families are the basic economic unit of society because they are the fundamental source of all supply and demand. Corporations don't raise the next generation of workers and consumers. Families like the McCains and Palins and the Obamas do. The real economy crashes when people - not Wall Street -- stop working, buying, consuming, and innovating. Money just greases the wheels.
Where the economy has failed over the last 45 years is that, when the Baby Bust began, we stopped saving and investing for the future and that includes our children and grandchildren. The Baby Boom drove our economy at full bore for years, and the Baby Bust is what slowed it down. In real terms, personal incomes have been flat ever since the Baby Bust began.
The main reason we have a housing crisis today - besides the folly that went on in Washington and Wall Street - is that we eliminated 50.5 million kids through abortion on demand -- a policy that Obama and the Democrats still insist on defending to their last dying breath (and ours as well).
Alan Greenspan said that the reason for the housing crisis is the excess inventory of 700,000 homes for which there is no demand. Well, if those 50 million kids were still around, those homes would be sold in an afternoon. And we would have a shortage of 11 million homes, not an excess of 700,000.
Those 50.5 million abortions have already cost us some $30 TRILLION dollars in lost GDP. That's 43 times the cost of the current bailout. And there is no way we will ever get it back.
Unless we manage to stop abortion now, that number will climb to at least $450 trillion by 2050. And that doesn't count the next generation of children they would have had if they had survived. The cost of abortion goes on forever. It is a hole in our future that we can never fill.
The Big Bailout is just the first big warning across the bow of a ship headed for economic suicide. And the only candidates with enough common sense to try to stop it are John McCain and Sarah Palin. If they lose, we all lose.
Dennis Howard can be contacted at: mbaforlife@gmail.com
To learn more about Meetup for Life, go to: http://prolife.meetup.com/138
Posted in Continuing chaos, Current Affairs | Permalink
Comments
Bravo!
Well said!
Posted by: LadyLovas | October 2, 2008 4:42 PM
