So, the press is full of “Economic Crisis” and “The Collapse of the American Economy” scare-stories.
Guess what?!
There is no crisis. There will be no collapse. This “bailout bill” that the House WISELY killed and the Senate IGNORANTLY modified and passed is NOTHING.
Follow along here:
What was the reason these financial institutions failed?
They extended too much of their capital and investments into the over-inflated, over-priced housing market. Lenders were giving away money to people who wanted mortgages without doing their due diligence of qualify those individuals. The mortgage lenders were getting the quick buck by issuing the mortgage and turning around and selling it. The mega-financial institutions invested heavily into the mortgage lending market (also looking for a quick buck) and IGNORED any sort of risk assessment.
Risk assessment?
These banks which have closed or failed due to the “financial crisis” didn’t stay diversified enough. they invested too heavily in the mortgage/housing side and not enough in other secured investing areas. They ignored the fact that, anyone with common sense could see, that homes were becoming overvalued, people we constantly cashing out their equity to by more stuff they otherwise couldn’t afford, and everyone (including the banks) were living on credit.
History of why The People of the United States of America should oppose ANY “bailout bill”:
1) The United States Government, at the influence of the financial institutions, took away our ability as individuals to file for bankruptcy yet protect our homes in the event we should find ourselves in a personal financial crisis. YET, the people who wanted that and are SUPPOSED to know better, are now looking to US, the Individual Taxpayers, to bail them out! F— Them! (With a loud voice, the US Taxpayers did sway the House, but the Senate continued to ignore the will of the people.)
2) We are a free-market economy. With any form of these “bailout bills”, we will give yet MORE power to the government and yet fewer select individuals in controlling where any money goes. This whole deal should be axed! When the House killed the bill, there was a huge sell-off in the stick market. that was just a bunch of folks selling off their stuff so they had cash to reinvest in other locations. The day after the bill was killed, the stock market had record gains. The market took care of itself. (Proof? The markets were stable, The Senate decided they would take a stab at the bill and the markets took another nose-dive. Then, The Senate passed the bill and the market again took a dive. SO, the Wall Street majority doesn’t even believe in the bailout.)
3) Its not REAL MONEY at stake. Its just credit. The bailout is all about credit. The car companies are saying “woe is me, I cant sell any cars”. They can’t because no one has any credit left to borrow on to buy the cars. For too long, too many of us have been in a “cash only” situation: If you don’t have the cash, don’t buy it! It’s about time that the banks and corporations who pushed us to this point have to follow that rule. One of the best examples was a representative on the floor of the House talking about a business in his district who contact him begging him to pass the bill. The representative said something to the effect that if the bill didn’t get passed, this company’s bank would not extend their credit, and this company would not be able to make payroll the following week. WHAT?! Last time I checked, your business should be profitable. If you’re borrowig to make payroll month-to-month, guess what? You SHOULD go out of business.
It is unbelievable that these banks and corporations are looking to the Taxpayers they have worked so hard to screw over push into a corner for more money to continue their counter-intuitive business practices.
If we allow the market to take care of itself, we may have some mildly difficult times for 2009, probably recovering in mid-2010. People will hoard their cash until they can afford things. They’ll pay down or pay off their credit and have the cash again to buy things.
If a “bailout bill” is passed, NOTHING for any individual is going to significantly change. BUT within 5-10 years, we’ll be back to a “financial crisis” again as the “pretend money” these economic “leaders” will be asking for another bailout since they will piss awaywaste this round’s bailout dollars. They pissed threw it all away when it was their own money. Who’s to say they won’t continue to do so? To prevent that we either let the market take care of itself or we switch to a French Socialist model and kiss America GOODBYE. If we want our economy to not turn into some French Socialist model, we HAVE TO say NO to ANY bailout bill.
If we do not say NO now, we’ll have more than our pocket books at stake in the future.
