Sep 30 2008
Bailout Spin:
The bailout spin is in full force. Republicans point the finger at Nancy Pelosi, Barney Frank, one of the main players in setting up this meltdown, offered a snide remark and both presidential candidates are standing as if deer in headlights. In the meantime, the media is in full meltdown mode, despite the fact the DOW Futures are pointing towards an upward start and the rest of the world’s markets barely took notice.
Although it is scary and every single American is concerned, the fact remains the bailout plan was a bad plan. It would have socialized the mortgage sector, but more importantly it would have put in motion a serious of events that would have concluded with the shutting off of the financial market.
The government’s plan was to take control of these mortgages and eventually sell them off, creating a windfall profit for the taxpayers. First, there would have been no benefit for the taxpayer. The money would have been transferred to more government spending. Second, even more devastating would have been the closing off of the market. The largest banks that survive and those closest to the political leaders would have struck the best deals, crushed all competition and shut off the market, by buying up trillions of dollars of mortgages for pennies Just like the energy sector where only a few companies remain, the banking system would been dominated by a select few, decided by which bank donated how much to the what person; some system.
One Response to “Bailout Spin:”
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You fail to mention that Japan’s market dropped 5%, only 2% less than ours, and Australia’s dropped 4.5% immediately after their opening bell. That’s huge for both markets. Two banks in England failed yesterday, and both were bought by London Central Bank.
In your opening paragraph, you only mention two democrats, and the presidential candidates, failing to discuss the fact that Pelosi’s speech occurred very early on in the day, and every Republican that blamed her personally for screwing the pooch spoke after she did. Her biggest critic, Eric Cantor, refused to speak at all, rather, he spent his time gathering more House R’s into his fold of those who are more concerned about losing their seats than doing what is necessary for their country.
Roy Blunt blamed the Jews, after he blamed Pelosi. Boehner had all the time in the world to hold up his end of the deal, and failed. Miserably. All of this after John McCain and surrogates spent the entire morning taking credit for getting the bill passed.