Thursday, October 2, 2008

Overseeing the Bailout...


(Warren Buffett interview points out the need for government intervention and focusing on sound alternatives)

It now looks like the Senate has passed a "better" bailout package for our economic crisis...and sounds like the House is getting ready to fall in behind for the parade. It's sad to observe a Congress that has worked more and produced more ideas in 2 weeks than it has the whole 4 years preceding. I say it's time to vote them ALL to the unemployment lines this November. Where are the fresh, young, realistic LEADERS?

I think their first problem in resolving this crisis is calling this process a "bail out". Most of us who are critical of this mess are primarily putoff by the total mismanagement and lack of oversight by both Wall Street, the SEC, and the federal government overall who are supposed to regulate and legislate over these things. If they called this a "buy out" instead, some of us might be more positive in our perception of what is or needs to be done. "Bail out" sounds like we are keeping these criminals out of prison for some reason...and keeping them in the game when they don't deserve to be. That is what I think "Main Street" is upset about.

Obviously, something major needs to be done to protect and correct our markets and the masses of American's and later the whole world who are and will be affected. The problem most of us have is, this process is being driven by the very people who have benefited from the golden parachutes (including Treasurer Paulsen) and all the "cronies" of Wall Street in the Capitol. And they still arent giving us the details on the plan before passing it. Everyone is in a rush now, after spending a decade asleep at the wheel. I get very skittish when someone tries to put together and spend such immense cash in such a short time. I believe it is likely we will throw a lot of good money of the taxpayers after bad.

As usual, columnist Tom Friedman had a spot-on column called "Rescue the Rescue". In it he calls for strong oversight of whatever funds are committed to this bailout. The last two paragraphs are my favorite quote...

Message to Congress: Don’t get cute. Don’t give us something we don’t need. Don’t give us something designed to solve your political problems. Yes, Hank Paulson and Ben Bernanke need to accept strict oversights and the taxpayer must be guaranteed a share in the upside profits from all rescued banks. But other than that, give them the capital and the flexibility to put out this fire.

I always said to myself: Our government is so broken that it can only work in response to a huge crisis. But now we’ve had a huge crisis, and the system still doesn’t seem to work. Our leaders, Republicans and Democrats, have gotten so out of practice of working together that even in the face of this system-threatening meltdown they could not agree on a rescue package, as if they lived on Mars and were just visiting us for the week, with no stake in the outcome.


I also hope they will have public accounting of every dollar this bill provides. I have my doubts we the public will have access...for "national security" reasons or some other excuse. But, if we can watch this, I requote here a comment from my last blog on this issue since it too applies to today's theme...

http://www.rushprnews.com/2008/10/02/the-united-states-public-debt-tops-ten-trillion-dollars-for-the-first-time/ points out the fact that "As of April 2008, Japan, Mainland China and the United Kingdom were the three largest holders of US Treasury Securities. Japan and China own a combined one trillion dollars plus of US debt, with Japan holding $592 billion and China holding $502 billion.

The ten trillion dollar figure works out to $32,895 for every man, woman and child in the United States."

I'm quite convinced that a significant portion of this emergency bailout will go to these foreign holders of our treasury notes. After all, SEc of Treasury Paulsen will have almost carte blanc on using most of these funds with very little oversight. Scary scary...


For all the above reasons, we Americans should demand exacting accountibility for whatever plan these culprits are splicing together...

3 comments:

Timothy S. said...

Dear Friends:

I will start by saying that this is all my opinion. I feel that many people will not be able to understand this as it may not be their time… but the time is now.

Whether you have felt it or not- you will. Your leaders have failed you and in my opinion many Americans are asleep at the wheel. The rich have taken their money and gone… and now there is a bail out for 700 billion that is only going to pay money into the pockets of those who have robbed you. We are in a global war with Terror… to what end?

America is an unlimited ATM machine for the Elites with an overdraft protection that will be paid back by the middle class for life times… by our children and our children’s children. The world economies are also paying the price… there are more starving children around the world while the rich get richer…

I am not a Republican or Democrat… I see it as one party with two heads… Where is the government, “For the People by the People?” Where have all the leaders gone…? I also do not see this as one person coming to save the day… That is a nice fantasy and the change is not for one person to make…

I am talking about a global shift in thinking…

Many American’s are over weight, consumed by media, living in debt, and unhealthy in thoughts and actions.

I submit that the leader’s we are looking for are in all of you… and in me. There is no time to point fingers at who failed for the wolf is outside the door…

Now more than ever, we as people have to come together and operate from truth, integrity, accountability, selflessness, compassion, and love with a fierce passion for our lives and the lives of others.

We are all connected and what we do every day effects everything on this planet… the change is within us… the simple acts of random kindness… the belief in living for something greater than our self. To “Be the change you wish to see in the world” Mahatma Gandhi

The answers you are looking for are not outside of you… not in the people you date, money you have, the way you look, or the things you have… Everything you are looking for is within you.

Now is the time to breath… to find your passion in which you want to contribute to the lives of others and in so doing contribute to your self greatly.

We are all beautiful people and it is time for us to create a loving world by loving ourselves and others… The tiniest sparks can start a raging fire…

Thank you for reading my thoughts… I am a warrior for the children… for the people of this earth and I will always live for truth, love, and compassion.

There will only be one of you for all time… Fiercely be yourself- Unknown author.

With great respect,

Tim Ney

Hank Robinson said...

Tim

I don't know if you saw but Ed said better to not call this a "bail out" and I agree. I agree it is better to look at it as a "buy out" or how about an "investment plan"

You say your leaders have failed you. Maybe people should look in the mirror. For example: if a woman goes to a store and buys more shoes than she can afford or someone buys a nicer car than they can afford. Then is that the fault of the person who sold you the car? We spend more than we can afford and buy on credit.

I don't know if you know this but the new plan is actually in part providing debt relief to americans.

I'm actually fairly liberal in my views. I believe in helping others that are in need. However, I don't believe in bailing out some knucklehead that gets more in debt than he can afford. See the big picture is it goes both ways. You may not like it, but since the founding fathers of this country, failure to understand the law is no excuse.

The money is gone but still being chased and prosecuted against people that were behind some unscrupulous deals. Ok

At the same time the money that was also gone affected many people involved including their investments and retirement funds. Plus many lost their jobs.

The government is here for you. They are working on a plan. In fact, Warren Buffet has said that he would hire the guy that worked out the AIG bailout.

Face it. The U.S. is based on a capitalist market. People look at their neighbors spending money and we want to have that too. It's greed. It happens.

So...is it the fault of the guy that gave you a loan to satisfy your greed?

These are some of the basis of this economy and Country. That is what happens.

I do believe in caring. Give some time or money to charity. This you know you won't get back right away. But people might be surprised at what they will give back. There is what some people call a "law of giving" that gives great rewards.

So I agree on caring for others. But I don't believe the doom and gloom or pointing fingers that seems to be the norm.

I also think that most Americans are not involved in big finance so they don't understand the big picture when there is no more credit. That is how things work now.

This country now pays $2 billion a day to finance debt from foreign investors to continue on with our activities.

It's my thought that these are coming due.

So it's up to the Secretary to negotiate a deal. It might be a good deal if done right.

However, don't look at it as a short term fix all. It's a long term investment.

What's next? Inflation

Hank Robinson

Jeffery Hansen Bomareto said...
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