A Twitter twit that I follow posted this article earlier today on his feed:
. . . Despite the doomsayers, America will shake this event off like a bad case of fleas. The people shouting “Doom!” the loudest are the very ones who stand to benefit the most.
Hank Paulson is trying to bail out his former firm and his friends. Congress sees a blank check it can amend to death once passed, and pile on more pork to their friends. The presidential candidates use it as a talking point. . . .
You know, there’s a very good chance the economy is going to be just fine–and it seems most Americans also think so or at least are willing to accept whatever fallout from letting some (insured) banks fail or get bought out. Despite the slim majority of the House that voted against the bill, estimates put the number of constituents who have written or called their legislator at 50 to 1 100 to 1 against the bail out.
We could be wrong; we could be headed to a disaster that leaves us all tanning hide for warmth on crumbling asphalt streets. But the funny thing is, an overwhelming number of economists, economics professors, thinktanks, agree that a bank bail out will be the worst thing to happen to the economy.
Here’s some interesting points to ponder:
We already know Hank Paulsen was the former CEO of one of the largest banks he wants to bail out. Old news.
But yesterday’s (Monday’s) market crash–did you know that was caused not by a sell out, but just the opposite: no one was selling on Wall Street. If the economy was about to tank, if people were legitimately afraid of an economic disaster, people would have been selling fast and cheap and cause a crash–but by no one selling what happened was basically Wall Street was holding the economy hostage while they demanded their bail out.
Interesting that this morning before the market opened the president addressed the nation with gloom and doom messages–some economists say in order to destabilize the inherent trust that runs a healthy stock market in hopes on a real crash which would justify the bail out that would help his friends….
Instead, the market rallied with its 3rd highest point gain, evah! Much to Bush’s, Paulsen’s, and Bernake’s chagrin, I’m sure.
The bail out plan this weekend, even the one with all the “protections” Obama wanted, would have succeeded in only one thing and have failed on the most important thing: It would have given Wall Street and speculation bank executives Christmas morning, but would have done not a single thing to help average citizens (in fact the $1T credit debt the nation would have incurred would have devastated the middle and lower classes and forced a gutting of social programs), while also have done nothing to fix the problem in the first place. It did nothing to address the epidemic of foreclosures and property value plummet which is the underlying cause of the crisis. Nothing.
“The people shouting ‘Doom!’ the loudest are the very ones who stand to benefit the most” That sure isn’t me, my family, my friends, my neighborhood, and probably not you or anyone you know.
Related posts:
