September 28, 2008
PJB: Day of Reckoning
By Patrick J. Buchanan
How did the United States of America, the richest nation on earth, whose economy represents 30 percent of the Global Economy, arrive at the precipice of a financial panic and collapse?
The answer lies in the abject failure of both America’s financial elite and the political elite of both parties — the same elites now working together to determine how much of our wealth will be needed to bail the nation out of the crisis of their own creation.
Big Government is riding to the rescue — saddlebags full of our tax dollars — to save us from the consequences of the stupidity and folly of Big Government. New York and Washington, the twin cities responsible for the crisis, are now being hailed by the media as the 7th Cavalry, coming to rescue a beleaguered nation.
Had there not been a steady and constant infusion of easy money and credit into the U.S. economy by the Fed, for years on end, a housing bubble of the magnitude of the one that has just exploded could never have been created.
Had the politicians of both parties not coerced and pressured banks, S&Ls, Fannie Mae and Freddie Mac to make all those sub-prime mortgages, then to tie this rotten paper to good paper, convert it into securities and sell to banks all over the world, there would have been no global financial crisis.
Had they seen this coming and acted sooner, the Federal Reserve and U.S. Treasury would not today, like Henny Penny, be crying, “The sky is falling!” and the end times are at hand, unless we give them 5 percent of our gross domestic product to buy up suspect securities backed by sub-prime mortgages.
Consider what the “Paulson Plan” of Treasury Secretary Hank Paulson, against which Sen. Richard Shelby and the House Republicans rebelled, entails.
Since Americans save nothing and have to borrow from abroad to finance our trade and budget deficits, wars and foreign aid, what the secretary proposes is this: that Congress authorize the Treasury to spend $700 billion to buy up the toxic paper on the books not only of U.S. banks, but of foreign banks operating in the United States. According to The Washington Times, the Treasury would also be authorized to buy up securities backed by rotten auto loans, student loans and credit card debts.
Thus America would be borrowing from China, Japan and the Middle East to tidy up the balance sheets of the banks of China, Japan and the Middle East. And all the rotten paper will be offloaded onto U.S. taxpayers, who hopefully will be able to recoup some of their losses, because some of the paper will be good.
Why should we do this? Because otherwise there will be a financial panic, followed by a market collapse, wiping out pensions, 401Ks, portfolios and defined benefit plans of Middle America, forcing millions into bankruptcy and millions more to put off retirement and continue working until they drop.
In a democracy, it is said, you get the kind of government you deserve. But what did the American people do to deserve this? What did they do to deserve the quality of financial, corporate and political leadership that marched them into this mess — and that today postures as their rescuers?
Consider what this mess has already cost taxpayers: $29 billion to buy the rotten paper of Bear Stearns so J.P. Morgan would buy the investment bank; $85 billion for 80 percent of AIG to nationalize it; $150 billion in a stimulus package to flood the nation with cash; perhaps $300 billion to bail out Fannie Mae and Freddie Mac; and now $700 billion to begin taking the toxic paper off the hands of America’s big banks.
And even if this is passed, say Paulson and Fed Chairman Ben Bernanke, there is no guarantee this will resolve the crisis. If the $700 billion is not provided and the toxic paper is not pulled off the books of the world’s banks by U.S. taxpayers, however, we face an almost certain collapse, surging bankruptcies, rising unemployment, a shrinkage of GDP and a recession, if not worse.
Yet, the fellows who tell us we face a financial mushroom cloud over every American city if we do not act at once to provide the $700 billion did not see this coming and can make no guarantee that this will succeed and end the crisis.
Nevertheless, it must be done, and done now, as collapse is imminent.
Looking at all the money being ladled out by the U.S. government to prevent a collapse, and the diminished revenue coming in, it is hard to see how America avoids future deficits that reach $1 trillion a year. These will imperil both the dollar itself and the ability of the United States, which saves nothing, to borrow from the rest of the world.
The downsizing of America is at hand.
Yes, indeed, we have arrived at the Day of Reckoning for Uncle Sam.
Tags: Bailouts, Federal Reserve
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I disagree only with the necessity of this bailout. A recession is looming whether we pass this or not. The question remains whether we destroy the dollar in the run up to recession. If the bailout passes, the dollar index will surely fall causing bigger panic by foreign banks; they will begin dumping their dollars into our economy. The recession will spiral into depression and Americans will be all the poorer. No amount of government intervention will save us. And believe me, the government will continue to print money to try to save the economy which will further devalue the dollar. No. We must let the market fix what government has wrecked. The recession will be difficult, but its duration will not be too long.
All this can only weaken the standing of the Dollar and how long before the Euro becomes the world’s base currency. The most disturbing aspect of the bail-out fraud is the way in which the political elite are completely at the call of the money-lending community.
There is an element of free-trade ideology in their actions too with politicians talking openly about how they must act to save the global economy. The very same global economy that empowers China and diminishes the west.
If the US rejected the bail-out fraud and went into a corrective recession, it would have to re-build by developing an internal market, goods created by American’s for American consumers, however, in contrast, the bail-out fraud will only further extend the destructive free-trade system.
$700 billion from the taxpayer will float Wall Street for a month or two. Then it will need another $700 billion. The democrats will rule the White House and both houses of congress. This will lead to runaway inflation, more wasteful spending, higher taxes, a worthless dollar, national bankrupcy and depression. The $1 trillion spent in the middle east will be wasted following precipitous withdrawal, and terrorism will rule the middle east and the world. We will not only remain dependent on middle east oil but we will become even more dependent on it.
If Wall Street and the market pays, some banks will fail that ought to fail. Wall street and the market will correct itself. The republicans will win the White House and take back a majority in one or both houses of congress. This will lead to sound fiscal policy, reduced spending, lower taxes and growth. A mild recession may result. Inflation may also rise marginally, for a while, but the dollar will increase. The republican controlled government will vote for off-shore drilling well within 50 miles, with incentives given the states; nuclear power plants and refineries will be built, shale and coal developed. Within 2 or 3 years (not 15 or 20) the $700 billion we send to the middle east annually for its oil will begin to circulate in the U.S. The border will be secured.
The core problem here is that Americans have become enamoured of “the game”. Whether it was the Nasdaq bubble of 2000 or the recent housing bubble. The idea of hard day’s work deserves a fair reward is seen as being naive. This is true not only of Wall Street. The construction industry lobbied Congress to keep lax immigration, why because it can pay a carpenter from Mexico $10 an hour, we as a nation are still fascinated by people who make money for doing next to nothing but suceed well in “playing the game”, whether its Brad Pitt, Alex Rodriguez or Donald Trump.
The old Dire Straits song hit it on the head “Money for nothing and chicks for free”
Maybe its time Thorstein Veblen “Theory of The Leisure Class” was required reading for all Americans before the Chinese take over and we are all sent to re-education camps to overcome our bourgeoise roadster tendencies
“I, MR. PRESIDENT, MR. & Mme CONGRESSMAN, MR. & Mme SENATOR, do solemnly swear that I will support and defend the Constitution of the United States against all enemies, foreign and domestic; that I will bear true faith and allegiance to the same; and that I will obey…” stop, stop…stop!
It has become clear, that none of you meant it when you took that solemn oath. It has also become clear that for years you have dedicated your work, not to the constituency which elected you, but to the powerful few who rule over you. You, Mr. President, you Mr. and Mme. Congressman, you Mr. and Mme. Senator have let us down, and it’s a damn shame.
Bush has already assured that I will work till I drop with his subversion of our border and criminal illegal aliens. This man has done more to destroy the U.S. economy than any President in U.S. history and on his way out he is attempting to enginner the biggest theft of taxpayer money to the wealthy in the history of the world. Is there any doubt left about this man’s credibility?
NO MORE POKER CHIPS, PAULSON!!!!!
The bailout proposed by Paulson and Bernanke should not even be considered in any form. As a matter of fact, Congress should arrest Paulson and Bernanke, and a grand jury be convened to prosecute them for fraud. The market must be left to fall where the chips may. This is an excellent chance for Congress to eliminate the FED by passing HR 2755 (Ron Paul’s bill to repeal the Federal Reserve Act). Better to have tough times for a year or so than to pass on this disgusting monetary policy to our children’s children. It would be nice if we could get honest representation in this so called democratic republic. If not, then we can kiss the USA goodbye.
I agree with ohmygodnotagain, the solution has to be rewarding hard work and simple savings, not financial magic tricks and nation-wide real estate pyramid schemes.
The bailout won’t help regular people, Congress won’t help anyone, even Republicans. No matter what shape the bailout looks like, the economy will probably collapse in a month or two because nothing fundamental will chase. One bid band aid isn’t going to cure this cancer. What an odd feeling to see America so close to utter ruin and destruction…
I would like to add to the other reader comments that the social construct of Modern Liberalism, http://paleoconservatist.blogspot.com/2008/03/outcome-of-modern-liberalism.html , certainly played it’s part laying the groundwork that led to the economic decline of our country.
I strongly believe in risk and reward and the free market.
Four things are going to come out of this plan:
1) A new government vested interest in keeping housing prices artificially high.
2) Inflation and devaluation of our currency in amounts more than the cost
3) A culture of private profit but socialized risk that both parites have been handing to corporate America ever since corporate welfare became the single dominant drivng force in Washington
4) some of this bailout will free money for further lobbying of Congress and PR to keep doing this over and over. Intelligent people on the right and left will be drowned out.
All members of Congress should be limited to ONE - 7 year term in Congress — whether Senate or House.
They will have a 7 year period to make their mark on this government and its citizens. That’s it, no spending time and money to get re-elected — ONE 7 year term only.
You can bet that the pols will be selling into any rally this bailout provides unless the currency markets kill the $ before the kleptocrats sell their stocks.
“Buying opportunities on pullbacks/ buy and hold for the long term” are social conditioning constructs proffered so that suckers eat losses on top of greater losses.
“Tax favored accounts” presuppose lower tax rates at retirement with gains. Both are wrong, apparently.
Big Money will profit all the way down on the downside, as the short selling rules have not been changed to affect them. Fannie Freddie stock prices from $80s to the cents; US Steel clipped from $193 to mid 90s in three or so months just lately. This is the writing on the wall for all stocks.
Take your profits or watch them vanish, if you have any profits, or cut your losses now.
History students will recall from Gibbons that disasterous wars result in a devaluation of the currency then confiscations.
“Each day that I sit in this hotel room I grow weaker. While each day that Charlie squats in the jungle he grows stronger.”
My advice? Go long hens
Pat,
First let me say that I enjoy your commentary. You are one of the most interesting people in political life today. In my opinion the root cause for this mess started with the “voodo economics” of the Reagan administration. Reagan ran in 1980 on a motto of cutting taxes, raising defense spending and balancing the budget. It resulted in massive deficits that became accepted republican policy. Well the time has come to pay the piper. Reagan was a good guy and I understand why he is revered but his economic policy of not paying for spending has been a ticking time bomb that will ruin this country.
Pat asks, “What did the American people do to deserve this?”
The answer is that the majority of American people voted for the politicians down through the years who were more concerned about multiculturalism and redistribution of the wealth schemes than with sticking to the Constitution. Now it’s time to suffer the consequences for this stupidity. But the addicts will vote for more of the same policies in trying to hold off the day of reckoning. We are getting what we deserve because of our envy, greed, and our stupidity.
Let the chips fall where they may.
It is just laughable that Americans are so outraged by the bail out when literally trillions have just “disappeared” in Iraq with no accountability or oversight, and Afghanistan has been turned into the heroine poppy growing capital of the world with the aid of the American military -and Americas promotion of “Democracy” has resulted in the sovereignty of Kosovo, where, America with the help of NATO and the UN genocided the Christians with impunity to give rise to a criminal capital of child pornography and female human trafficking!! And Americans flip the bill, and those morally opposed have no choice but to pay. Really, I am struggling to understand the outrage here? Criminal extortion of taxpayers monies through war profiteering and drugs that kill people and destroy lives is just peachy when compared to a bail out of their own making? What have Americans done to deserve this? This “bubble” backed by nothing should have been apparent to anyone with half a brain and a bit of common sense, and the cheap, low interest loans given out to illegal immigrants and blacks who were unemployed, combined massive asset inflation (housing) and a rise in property taxes with no wage increase in sight and worse,- thousands of jobs given to communist China, should have been relentlessly protested! But Americans chose to wave their flags made in communist China to “support the troops” to go off and foment war and killing an uncounted amount of civilians in Iraq to loot the American taxpayer through the “privatization” of war! How is this worse then that? It does not even begin to make sense. Americans have been living in a blind drunken stooper, apparently, if they have not already concluded that freedom when preached by politicians is not freedom, and the relentless propagandized democracy is no democracy but a cabal of totalitarian banker overlords who wish to loot people with debt abstractions who desire nothing more then the looting of global resources for their own gain and those killed or destroyed financially in the in the pursuit are merely “collateral damage” just like the children of their carpet bombings! Oh well. Like Condi said, its just “birth pangs!.”
Good point, and as economies become more fragile, it will be even more important to keep our eye on religious fanaticism, as mentioned by Pat, that is sweeping Europe, so that it doesn’t hit home. It will become even more important to prioritize the early constitutional doctrines of our forefathers to preserve what is right about this country.
Pat,
You ask what the American people have done to deserve this. I will tell you!
As a group we have become everything that our greatest generation was not. We are lazy and no longer value education. We are more concerned with the time it takes for pizza to be delivered that politics of any sort. The folks in the “Me” generation have mortgaged our future and left their offspring nothing but debt. They have also left them mentally unequipped to defend against onslaught of evil we are about to face. Certainly it is obvious that we have turned our back on everything that made America great. We are mentally and morally bankrupt!
My question to you is always the same. What do those of us do, who still have enough wits about us to see the tidal wave approaching? Mobilizing the American public is not going to happen. The lemmings deserve their march to the sea. Are there even enough people with sense left to band together and search for higher ground? I fear there are not!
The Bush administration and Congressional leaders moved closer to agreement on a historic $700 billion bailout for financial firms on Monday, including tight oversight of the program and new efforts to help homeowners at risk of foreclosure.
This financial bailout is to ensure a strong depression, but do not feel bad, the democrats are preparing a recovery effort with a long recession and homes for everyone furnished via ACRON.
Palin will not oppose the $700 billion to help the
elite. She is quiet on the border. She hasn’t said
one word on lowering taxes. We are oppressed by
our own government which takes our money and
uses it to enrich itself and it’s elitist friends, or
‘donors’. Our founding fathers didn’t put up with this.
Oh, and did I mention your taxes are going up?
Until people will organize and rebel against this
sham democracy all you will be left doing is analyzing it to death. All of you deserve this because you don’t have the guts to rebel. So keep
talking, it’s all you can do. What about action?
Sorry Pat,
Have to disagree here. We let the market fall, keep the govt out, and it will correct itself. This is nothing more than a stopgap measure to get these goons past election time.
Oh my! we’re in for a good ride. If the lackies inside the beltway don’t bail out the banks the economy will surely collapse or at least thats what we’re told. Without banks lending money the consumers can’t consume, businesses will fail and people will be out of work, etc. etc. Not a pretty picture if it turns out that way and fairly likely to do so when you have an economy based 80% on consumer spending. On the other hand, as stated by other posters this generosity by our beloved elected officials will absolutely force horrendous inflation on the US. The only hope here is that things are so rotten it may cool the spending enough to keep anarchy at bay. Wow not a good situation either case. My friends the fundamentals are strong, oh yeah maybe if your a Saudi Sheik or your wife is worth $100M.
Well I’m no genius but I saw this coming more than 2 years ago and knew that the “Day of Reckoning” was eminant. I happen to live in the outskirts of Looney Town (Boca Raton) a city only out done by LA as home to insane excesses. A place where in a single day you can count more Rolls Royces, Bentleys, Jaguars and BMWs in a Publix parking lot than in, well probably the state of Alaska but surely Okloosa County Florida. Anyway you couldn’t go into a Starbucks without hearing conversation about house values going up and “flipping” and fortunes being made by developers building oversized McMansions that cost over a million. The place was rampant with insanity and everyone wanted to be wealthy or at least look like it. The auto dealers couldn’t lease the high end cars fast enough. Diamond encrusted Rolex watches were flying off the shelves, $10k purses were in style. The local High School parking lot was filled with Bimmers and Porsches and trust me they didn’t belong to the poor underpaid teachers. Contractors and sub-contractors we’re buying fishing boats that cost in the hundreds of thousands of dollars. And lets not forget $3.00 coffee (give me a break). I mean it was really insane, anyone connnected to this “bubble” was getting obscenely rich and spending like there was no tomorrow. Was all of this caused by the banks loaning money to the poor? I think not, if that had been the only problem the banks and mortgage companies could have handled it. No the problem was much more pervasive and rampant throughout middle America. Spend some time watching “My Sweet Sixteen” on VH1 or “Celebrity Cribs” on MTV and you will see shows that build expectations for our youth. Watch the home remodeling and flipping shows on HGTV and you will see shows that build expectations for homeowners. The Ad agencies know you market to kids and women and TV is maketing a lifestyle of consumerism and excess to them. It didn’t help that to get to the trough the banks and mortgage companies stepped all over each other writing NINJA loans with crazy terms and how could could one bank not do it and miss out on the party when others were making money hand over fist. Home equity loans to buy that collector car, or the $80k remodel of the kitchen (only to throw a frozen dinner in the micro wave), or not let little Tiffany or Jason show up at school in a 5 year old used domestic were a big part of the problem. I had people that worked for me that did 3 and 4 refi’s to hit the housing ATM and the Banks and Mortgage companies were all too eager to help.
Well if the average American gets a spanking (and it’s damn likely) on this one they only have to look in the mirror and ask themselves how much they themselves brought this on. Too bad the rest that acted responsibly are getting pulled into the pit.
This proposed “bailout” is not about the downturn in the housing market or subprime mortgage lending. While I agree that the latter plays a role in the U.S.’s current financial crisis, there’s a lot more going on behind the scenes that’s not being reported. And the apparent ineptitude of our government’s response isn’t really ineptitude; it’s thievery, plain and simple.
It’s curious that in all of the media coverage regarding the FDIC’s virtual theft of Washington Mutual (WM) and its gift of the latter to JP Morgan (JPM), there has been no substantive, much less incisive comment regarding the millions of individual WM shareholders / taxpayers whose investments simply were wiped out in this most recent Fed-JPM deal. Yes, WM had some bad loans in its portfolio — as do all of the major U.S. banks. But WM also had $300B+ in assets, ~$250B in deposits, ~2,600 banking locations — a total asset base to support a stock valuation at $7-$10 per share — and, according to WM’s own CEO and Board (if one can believe them), sufficient cash reserves and credit lines to continue operations for almost two years with no outside help.
In contrast, JPM has been teetering on the edge of financial disaster for several years, now … but in a more complex way. They have the single largest derivatives exposure of any U.S. bank — http://bigpicture.typepad.com/comments/files/bankcds_capital.pdf. In fact, at $90T+ (yes, that’s trillion), JPM has more derivatives exposure than all other U.S. banks combined (note: WM isn’t even in the top 10). A 10% loss in its current and long-standing derivatives exposure would completely wipe out JPM’s ENTIRE ASSET BASE!
Given the above, it’s understandable that JPM would have been highly motivated to “rescue” Bear Stearns (BSC). JPM had written a lot of the BSC credit default swap contracts. Had BSC failed, JPM itself would have incurred tens of billions in losses. The Fed’s “backstop lending” of $30B to JPM to assume BSC’s assets and liabilities certainly was not about rescuing BSC at all; it was about JPM’s self-preservation.
It’s also easily understood why JPM has been interested in further expansion into the commercial banking business — a more stable business than their heavily leveraged investment banking house of cards — for a long time. Enter the FDIC, it’s seizure of WM, and it’s subsequent “sale” of the latter to the supposedly highest bidder. Where are the details regarding the other bids? All of this was concluded within a matter of days, with no formal notice to WM shareholders and no apparent regard to much of the guidance articulated clearly in the Office of the Comptroller of the Currency’s (OCC) own letter of 25-Sep-08 (http://www.occ.gov/ftp/release/2008-114a.pdf) approving the “deal.”
The media once again has bought into the sham story of JPM CEO Jamie Dimon’s chivalrous “rescue” of yet another ailing financial institution. *NEWSFLASH*: JPM has no choice but to keep “saving” its failing competitors — even if it has to continue “borrowing” more money from taxpayers to do it. If its competitors /co-conspirators tank, the biggest loser among them could well be … JPM.
But who’s the real biggest loser in all of this? Individual taxpayers and WM shareholders — who not only stand to lose their investments or even their life savings, but also wind up paying for the “bailouts” of the greedy bastards who caused all of these problems in the first place.
Is Purchasing $700 billion of Toxic Assets the Best Way to Recapitalize the Financial System?
No! It is Rather a Disgrace and Rip-Off Benefitting only the Shareholders and Unsecured Creditors of Banks
Read More Here: Link: http://www.rgemonitor.com/ Nouriel Roubini | Sep 28, 2008
A recent IMF study of 42 systemic banking crises across the world provides evidence on how different crises were resolved.
http://www.imf.org/external/pubs/ft/wp/2008/wp08224.pdf
Government purchase of bad assets was the exception rather than the rule. It was used only in Mexico, Japan, Bolivia, Czech Republic, Jamaica, Malaysia, and Paraguay.
The Treasury plan is a disgrace: a bailout of reckless bankers, lenders and investors that provides little direct debt relief to borrowers and financially stressed households and that will come at a very high cost to the US taxpayer.
And the plan does nothing to resolve the severe stress in money markets and interbank markets that are now close to a systemic meltdown.
It is pathetic that Congress did not consult any of the many professional economists that have presented - many on the RGE Monitor Finance blog forum - alternative plans that were more fair and efficient and less costly ways to resolve this crisis. This is again a case of privatizing the gains and socializing the losses; a bailout and socialism for the rich, the well-connected and Wall Street. And it is a scandal that even Congressional Democrats have fallen for this Treasury scam that does little to resolve the debt burden of millions of distressed home owners.
For the most part, the comments on this board are of good quality; and because I agree with the pervasive sentiment, it seems I’m in good company.
Mr. Buchanan has been a part of my Friday nights for as long as I can remember. Each succeeding weekend started with a supper typically grilled out of doors, served on TV trays in front of an animated tube, and my father, brothers and me taking sides in another ballistic installment of ‘The McLaughlin Group’ (and that is the tradition still, though now with my own sons). Although my various ideological phases and their attendant allegiances did dictate whom I was allowed to confess an influence and who I was not, I am now mature enough to proudly submit that Patrick J. Buchanan was a formative influence on my political perspective and remains a prescient and profound resource – for better or worse.
It is a marvel that anyone so keenly prophetic and consistently correct retains his property and pulse for more than a few years. Populations do not long allow their sages to vex them with the Truth; and Pat has been prodding America for a good span with it. This latest development, our final descent into abject tyranny and a fascist dictatorial funk, is an all in call for me; it’s a watershed moment, and it must serve as a catalyst to change for a mighty people in retrograde or it will prove to be a final, ignominious obeisance to this criminal enterprise that has pirated our great nation. Mr. Buchanan predicted this collapse, and underscored that prediction over and over and over for years, but it was not a product of his economic acumen, rather, it is testament to his character.
Pat was able to foment a fret or two back in 92’; and then again after the tech troubles; and my brow would occasionally kink when he’d remind me of gaudy deficits, improvident war-spending and wanton tax breaks…occasionally he’d force me to think. This is different; this constitutional affront is so cavalier, so brazen, and so overtly criminal that I’m truly considering emigration. Not, however, without a fight. The Patrick J Buchanans of the world were chided as ‘chicken littles’, lectured endlessly about the supremacy and omniscience of ‘The Market’, maligned as ‘populists’ and fear-mongerers, and, in general, patronized and condescended. Now the gloat of the ‘great men’ of Washington and New York has lost a certain resonance, but, still, these arrogant asses, possessed of unmitigated and appalling temerity, try to effect an authoritative posture with us…as they beg! These vapid souls and intellectually vacant uber-men of Wall Street were the self-same maligners and name callers, the self-same articulators of these exotic financial instruments, the self-same captain Ahabs of our economic Apocalypse…yet we should trust them to pilot us to safety?
For as long as I have been politically aware, I’ve been a true two-party believer. Migrating from one party to another was revolution enough for me; as I understood this cyclical oscillation to be a self-correcting mechanism for each respective party. In other words: I, in league with millions of others, could assuage the excesses of either party by subtracting votes, thereby amplifying the cause for the atrophy. I saw this positive function in the Goldwater Repbulicans adding votes to the right, then back to Kennedy, ubiquitous sympathy honoring the second in command, then an extreme answer to Johnson’s extreme, Nixon (nuff said…the name alone says it all) and then a check with Carter, a reversal back to Regan adding an affirmation with Bush, a blowback with Clinton; and then, the answer to it all – Compassionate Conservatism. Ah yes, the reconciliation of two perceived extremes, an altruistic alloy of goldwater, buckley and billy graham; the political pendulum had finally found its equilibrium. I was such a naïve imbecile!
When taken in composite, this administration represents the greatest peril our nation has ever confronted; and the horrors that have oozed from the Oval Office for the last seven and a half years defy the comprehension. The current executive’s insatiable lust for every flavor of graft and its ceaselessly accumulating insults to good-governance and democratic dignity have proven to be its best defense; for the press and public interest do not have time enough to flesh a story out before another, more alarming iteration of its evil has percolated up from their cesspool of deceit. Almost more nefarious than the deeds themselves is the marketing and spin in which they cocoon their sin; employing every tenant of the far and center right’s philosophy as a frail yet plausible cover for what is now known to be a conspicuous and comprehensive corporate coup. It’s simply rank and foul fascism with an ironic twist: instead of being anti-semitic, they are rabidly Zionist – exceeding the wildest wet-dream of the scheming Theodore Hertzel and his contemptuous cabal. So, as a side-effect of our neo-con-infestation, we arouse the ire of those controlling the world’s largest share of the world’s most important commodity, and we get to forfeit tens of billions of financial and military aid to the antagonizing fiat-formed nation.
Okay, I’ll get to the point and quit prefacing: If this ‘bailout’ passes; if congress green lights this unconstitutional, immoral, anti-democratic, Republic ruining, barbarous betrayal, outright theft and utterly reckless ‘rescue’ plan, no matter how dire the warnings from those who stand to benefit most become; if this excrement passes through the colon that is our Congress, we will be dealing with an irrevocably altered political landscape. The faxes, phone calls, letters and emails seem to be of little avail, I don’t think they get it; I don’t think they understand how enraging this is to flyover country. If they tread on us in this manner and so disregard our collective condemnation of this putrid filth, there will be a severe and astounding reckoning on the other side.
I was actually prepared to vote for Obama. Not any more. I will never even consider voting for any name that attaches itself favorably to this legislation. I am writing in Ron Paul or checking off Ralph Nader. Hell, I’d vote for LaRouch over these two villains.
This ‘bailout’ is anathema to me and every single American I know. This ‘bailout’ is that single molecule that morphs saturation to a solid; and the resistance and awakening is accumulating at a mighty solid clip. Washington and Wall Street are our greatest foe; they are set against us more rigidly than any terrorist, or communist, or nationalist or all three combine. I now understand this, and I understand it well.
We are not even allowed to read this bill. Congress did not receive or solicit the counsel of any esteemed economists (save for those at the other end of the cash-trough). The two hundred plus economists from every major, independent institution and university are dismissed or ignored. The same haste, fear, and demagoguery is here rammed in as with The Iraq War, The Patriot Act and FISA.
As with the economic troubles so it is with this propaganda: there is indeed a lot of blame to spread around with the economy, likewise, there is a lot of blame for the fear and hype we see pimped by every automaton and mouthpiece stealing oxygen from truly sentient beings. Even NPR jumped on the brain-dead bandwagon, giving Hank the hunk a more flattering homage this morning than any poet or hero could have hoped for – ‘he never quits…he’s like some kind of superman…I greatly respect and admire him….’ I was growing physically ill. Yes, NPR, we know how much your CEO benefited from the takeover of Fannie Mae and Freddie MAC; I wonder how much you’ll get from this little bonus dollop of gravy. And so, you whore what little dignity you have and shill your honor for this…this arrogant, vain, pompous, soulless, balding jack-ass? But no, you wouldn’t want to interview any of the University of Chicago Economists, or Colombia University Deans, or MIT PHDs, no, just chew the cud of this corrupt administration…just do your part like everyone else.
I’m starting to investigate every accusation lodged against this administration; for nothing, now, is outside of possibility. I’m starting to see a fully-orbed image emerge of George Walker Bush, and it is a most menacing mosaic.
I wonder what all Jeff Gannon (aka Jim Guckert) would tell us if he were ‘sequestered’ at one of our black-op ‘rendition’ sites, you know, one of the places where we DO NOT TORTURE. Yes, there will be a lot of discovery regarding ole W for many years to come.
Keep on keeping on, Mr. Buchanan. God bless. Keep up the good work.
Invictus!
Ronald Reagan envisioned a free market economy where it worked something like this:
Innovation -> Investment -> Job Creation -> Investment Appreciation -> Gains -> Innovation -> Investment -> Job Growth -> Investment Appreciation -> Gains - Innovation -> Investment etc.
Instead, we have the bulk of the world’s wealth, concentrated amongst the few, with the new model of economics:
Innovation -> Investment -> Initial Job Creation -> Investment Appreciation -> Offshore jobs for more investment appreciation -> Cook books for more investment appreciation -> Take gains realized and buy a personal 747 -> Make it to the Forbes Richest in the Universe List -> Manage estate so that it passes down the family
There are serious problems in our economy, and the number one problem is that enough simply isn’t enough. There is no REINVESTMENT going on in our economy. The middle class, who took part in the initial Reagan Revolution, (primarily powered by over pent-up investment demand from the severe investment penalties of the Carter and Nixon years) got screwed over in the name of “maximizing shareholder value” because money has gone into a black hole rather than being reinvested.
And now, we are told, what we need is a bailout and more regulation.
Perhaps, what would happen if:
Mutual fund companies were encouraged to proxy the corporate shareholder votes to the fund shareholders on a pro-rata basis? I argue what is needed here is more corporate governance and involvement by the private sector and stockholders, and not more regulation.
Please support the bailout! I need the bailout so that I could get money to open one more Swiss bank account.
This is the email I got from Barbie Boxer after I went to her website and left a message pleading to reject bailout. Pls pay attention to “some things I did not like in the bill I voted for” and to “we were told by Treasury secretary” crap.
Thank you for contacting me regarding the financial rescue legislation (H.R.1424). I appreciate hearing from you on this critical issue.
The fundamentals of our economy have been shaken, and Americans are deeply concerned. When Secretary Paulson and Chairman Bernanke placed an urgent phone call a few weeks ago to Congress to say we needed emergency action to prevent a major financial meltdown, I expected they would come forward with a plan that was targeted and reasonable, with appropriate oversight and taxpayer protections.
Unfortunately, what they brought us was a $700 billion blank check, which they asked us to sign with no questions asked. This plan contained no oversight, no taxpayer equity, and no control over CEO pay. I strongly opposed this proposal - and thanks to your phone calls, e-mails, and letters, Congress stopped it in its tracks.
The Senate made major improvements designed to strengthen our economy and protect our taxpayers. Instead of a blank check, the Senate plan included significant Congressional oversight, equity for taxpayers, curbs on executive compensation, an increase in FDIC insurance protection for bank depositors, middle-class tax relief, and job-creating tax incentives for renewable energy. The bill passed the Senate by an overwhelmingly bipartisan vote of 74-25 and the House by a vote of 263-171.
These were very important changes. But let me be honest: There were still aspects of this package that I didn’t like. I preferred the government acquiring more equity instead of toxic assets. I wanted the package to be put forward in smaller installments and to include more checks and balances to make sure it would work.
For me, the deciding factor in my Yes vote was information I received from the State of California . I was told by the Treasurer’s office that without access to credit, which is the goal of this legislation, California wouldn’t be able to sell voter-approved highway, school, and water bonds that are desperately needed for our economy and the creation of good-paying new jobs. In addition, I was told by the Governor’s office, that without action, our state might be forced to withhold funds for law enforcement, schools, and other needed services. This would bring our state to its knees and many middle-class families would be in deep trouble. Small businesses are beginning to tell me they cannot get lines of credit to meet payroll, as well.
Rest assured, I will continue to speak out forcefully about the failures that led us to this place and keep working with my colleagues to strengthen confidence in our markets, protect the American taxpayers, and enact regulatory reform to ensure that we don’t end up in this mess again.
Again, thank you for writing to me about this very important matter. Even though you may feel frustrated with the outcome of the legislation that passed, your voice absolutely resulted in the enactment of a better bill. Feel free to contact me again about any issue of importance to you.
Barbara Boxer
United States Senator