Posts Tagged ‘Bail Out’

Once again if you just ready the headline like most of the public you have no idea what actually happened.

I have been very busy with returning to work and building Nana’s Room so I have not had much time to comment on Obama’s Stimulus package.  I do not think I could say it any better than Rush Limbaugh

“This Obama plan is the biggest economic blunder in American history. If all of this government spending, printing, and borrowing money for bailouts works, why isn’t the recession over? Well, it isn’t over because government doesn’t fix recessions or ‘stimulate the economy.’ Recessions are cyclical, and the American people are the ones who stimulate the economy.”

During the election all we heard from Obama was he has a plan for this and a plan for that.  Yet since his election every press conference is still full of no meaningful content or details just a lot of words where he does not say anything.

“We must spend our way out of a recession”

What does that mean?  The American economy is not driven by Government; don’t we all remember how well this worked for the USSR?  This guy does not have a clue and is in so far over his head we are all going to be paying for this election for many years to come.

In light of the misery that lies in store for us I have few suggestions for Mr. Obama.

• Cut capital gains and corporate income tax.
• Eliminate the “Mark to Market” rules for banks.
• Reduce CAFE standards for the auto sector
• Make a national right to work law to reduce the power of worthless unions that hamper innovation and cripple companies.

When you think about 3 major industries that are always in dire economic straights and are continually and habitually in trouble what comes to mind?  Would it be the airlines, educations, & the auto companies?  Would you like to take a guess of what are the 3 most heavily unionized industries in the country?  I rest my case.

I promise to take my rants to another venue as soon as I determine what that will be.  But this continues to be cheaper than therapy.

Today the US government announced its intention to invest $250 billion dollars of capital in the form of stock purchases into major US banks?. This money is to come from the recently passed socialist Economic Stabilization Act of 2008.  This is another example of the government tampering with the free market.  The money injected into these banks will HAVE to loan it out under the provisions of the injection.  Uncle Sam is buying preferred stock so as not to dilute the common stock that is already outstanding.  This irritates me on several levels and also generates some questions.

• Since the banks HAVE to loan out the capital it receives from the government will the bank be able to make sound lending decisions?  Or  will they be forced to make more bad lending decisions similar to the Freddie and Fannie loans that got us into this mess?  Remember most of the “toxic debt” that is dragging the economy down right down was lent to borrowers  under the enforcement of the congress.
• Once again why are my tax dollars being used to prop up the private companies?  In the Free Market if you are strong enough to survive you will.
• What is going to happen to the guaranteed dividends that the government is going to receive from this venture?  Will I get a dividend check as a tax payer and now stock holder?
• If some of the banks receiving the injections are “too big to fail” why was this allowed to happen by the regulators?  I work with several community banks and they will all tell you that there is no lack of oversight in the regulatory arena.
• Finally why are my tax dollars being invested in private firms but the money from the Social Security trust fund cannot?  (Social Security is broken system that can not and will not support itself into he future with its current structure.  If you are in your 30′s and expect to receive Social Security you are living in a dream world.  Social Security needs to be privatized and the money returned back to the people who earned it.)

Do not get me wrong I do not mind paying taxes we must provide for infrastructure, the common defense, and REASONABLE government administration.  However we should not have to pay taxes so that a Senator can take 2 years to Campaign for President and still receive his Senate pay (That goes for any public office for any party). We should not have to pay taxes so that millions of dollars can go to corrupt “community organizations”.  We should not have to pay taxes so that they can be redistributed to private companies suffering from financial trouble because congress legislated them make bad lending decisions.

This gets me every time I see my pay check especially a commission check.  After diligently working on a sale and handling the project from start to finish Uncle Sam swoops in and takes 40%.  You know Uncle Sam does not drive 3500 miles a month, he does not work 50 to 70 hour weeks, he does not ache when he gets out of the car after 12 hours on the road and full evening of computer work yet to go.

You have a choice this election day vote for either capitalism or socialism it is your choice.

I would love for you to vote for conservatism but unfortunately there is not a conservative running for president this year.

Updated: 10-15-08 7:32 AM

Looks like I was ahead of the curve last night.  Distatesful Capital by the WSJ

As most of you are undoubtedly aware the socialist Economic Stabilization Act of 2008 was passed in the US house today and then quickly signed into law.  This after several adjustments were made.  $150,000,000 Billion in pork was added, yes that was billion with a B and raising the FDIC insurance form $100,000 to $250,000 (supposed to be temporary), just to mention a few.  I cannot begin to tell you how disappointmented this makes me.  The Free Market is being usurped and disrupted by the very people who infected it with the disease it is not being allowed to treat.

Lets one thing straight.  This is mostly a government created problem.  There were some crooked and stupid banks.  However there were also a lot of banks forced to make loans to people who could not afford them.  There was also blockage to the proper oversight of Freddie and Fannie Mae. I was not surprised that this bill passed.  This bill was unpopular and the good people of this country were once again told they were too stupid to understand the problem and we will vote how we like by their elected representatives.  As each day passes I feel more inclined to get my torch and pitch fork and head out to Washington DC.

The people of this country need to recall their elected representatives and break the Washington Establishment.  The people of this country need to return to the conservative principles it was founded upon.  The people of this country need to return to God and the Christian principles this country was founded upon.  The people of this country need to pay attention because their freedoms are being whittled away one by one.

The common man built and continues to build this country, the common man defends this country, if the common man does not act soon it will be the end of this country. The common man was able to do this because of the Free Market, Capitalism, and the Blessings of our Lord; and right now in this country all three are under attack.

Please consider who and what you are voting for this election day.  Where has your candidate been and where are they wanting to go?  Regardless of party affiliation does this candidate represent your values?

I will close this post with links to two Wall Street Journal Op-Eds that very accurately describe my feelings on the bail out package.

How Government Stoked the Mania

The Price of 12 Votes

“The most terrifying words in the English language are: I’m from the government and I’m here to help.”  Ronald Reagan

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I am sure by now that all of you have heard that the bail out package failed today in the US House.

My little raging capitalist free market heart could not be happier right now.

This bill gave the Secretary of the Treasury virtually socialist standing in the country to ensure “economic well being”.

Economic Stabilization Act of 2008, Section 2, Purposes:  Provides authority to the Treasury Secretary to restore liquidity and stability to the US financial system and to ensure the economic well-being of Americans.”

This power is not granted in the US Constitution.  This is socialism creeping its way in through legislation.  Further more we would be giving the people who caused the mess oversight power to clean it up.

Here are the 2 things that we should be doing right now.

• Suspend the Mark to Market rules.
• Lower or eliminate the capital gains taxes for a certain period of time to allow companies to re-direct liquidity.

Stop this craziness now.  Was the bailout of Freddie, Fannie, & AIG not enough?  As a taxpayer I am sick of my tax dollars being used to fund bail outs because of bad decisions in the private sector.  It’s bad enough my tax dollars go to fund the bad decisions of the elected officials that “represent” me.  I am not saying that the future will be pain free it won’t be not even if this bailout is passed.  But the free market should be allowed to stand and correct itself.

I am well aware that not everyone agrees with my politics and world views but I ask you to just consider 3 things.

• Please do not fall for the media generated crisis and urgency that is being portrayed in the media right now.  We are 35 days from an election and everything is political.
• If this bail out is so imperative to the country then the Democrat majority in the US House and Senate could pass it with very few defections, why didn’t they?
• No matter what comparisons are drawn to the Great Depression it is not that bad the fundamentals for the economy are there and are resilient.

This bill is not dead I have no doubt in my mind enough arm twisting will be done in Washington to get it passed in some version.  But passing it in any version would be a mistake.

Thank you for listening to my rant, my conservative, free market, raging capitalist heart appreciates it.