Free Market - Only applicable for the working man
US Treasury Secretary, Henry “Hank” Paulsen, today announced the administration’s plan to fix the massive foreclosures a direct result of speculation by financial institutions as they greedily chased an expanding market completely ignoring the bare basics of lending. Loose lending standards propagated by greedy institutions have created serious resource dislocations and allowed consumers to access credit for homes they cannot afford. This is a serious problem with most major US financial institutions hiding losses that would result in their bankruptcy.
In traditional Reaganomics fashion the Secretary of the Treasury announced a bailout for homeowners in foreclosure. The unusual thing about this plan is that it will not help homeowners. Paraphrasing:
“The US economy is strong… blah, blah, blah … This is not a bailout… blah, blah, blah … We want to help American homeowners… blah, blah, blah … Three part plan… blah, blah, blah … Freeze interest rates for a period of time… blah, blah, blah … Only homeowners with good credit… blah, blah, blah … Only homeowners who can make future payments… blah, blah, blah … No homeowners that can afford higher rates… blah, blah, blah … Congress will authorize new tax free bonds (No opportunity is too serious not to propose a tax cut for the rich)… Fannie Mae and Freddie Mac will be an important part of this program … Whoa Nelly!”
Hidden in 30 minutes of political mumbo jumbo the bailout for financial institutions. Freddie Mac and Fannie Mae will have their loan limits increased, their reserve requirements relaxed and be forced to take on all of the junk. It is obvious that the implied US governmental guarantee will become a real guarantee. The $1.5 trillion speculative hole will weigh on the US taxpayer.
This is just another example of our corrupt and decadent mentality. We spout words of personal responsibility and adaptation. We pass legislation that eliminates the possibility of a new start for the individual. Free Market is our cry yet as soon as the disastrous consequences of Reaganomics show their ugliness we call for the government to bail them out. Cowboy Capitalism is only valid to rape and pillage the working class. Reaganomics exists only to protect the corruption of family dynasties.
The housing crisis is serious. The solution is simple. All those who created and profited the leverage in the mortgage industry should have their ill gotten gains sequestered. The future of Citicorp, Bank of America and Goldman Sachs is not more important than the future of our nation. Tax revenues must not be used in any form to bailout the financial institutions no matter what the cost to their balance sheets. We cannot afford to care for our sick, we cannot feed our hungry, we cannot house our homeless. We surely cannot protect the McMansions of Wall Street.
In traditional Reaganomics fashion the Secretary of the Treasury announced a bailout for homeowners in foreclosure. The unusual thing about this plan is that it will not help homeowners. Paraphrasing:
“The US economy is strong… blah, blah, blah … This is not a bailout… blah, blah, blah … We want to help American homeowners… blah, blah, blah … Three part plan… blah, blah, blah … Freeze interest rates for a period of time… blah, blah, blah … Only homeowners with good credit… blah, blah, blah … Only homeowners who can make future payments… blah, blah, blah … No homeowners that can afford higher rates… blah, blah, blah … Congress will authorize new tax free bonds (No opportunity is too serious not to propose a tax cut for the rich)… Fannie Mae and Freddie Mac will be an important part of this program … Whoa Nelly!”
Hidden in 30 minutes of political mumbo jumbo the bailout for financial institutions. Freddie Mac and Fannie Mae will have their loan limits increased, their reserve requirements relaxed and be forced to take on all of the junk. It is obvious that the implied US governmental guarantee will become a real guarantee. The $1.5 trillion speculative hole will weigh on the US taxpayer.
This is just another example of our corrupt and decadent mentality. We spout words of personal responsibility and adaptation. We pass legislation that eliminates the possibility of a new start for the individual. Free Market is our cry yet as soon as the disastrous consequences of Reaganomics show their ugliness we call for the government to bail them out. Cowboy Capitalism is only valid to rape and pillage the working class. Reaganomics exists only to protect the corruption of family dynasties.
The housing crisis is serious. The solution is simple. All those who created and profited the leverage in the mortgage industry should have their ill gotten gains sequestered. The future of Citicorp, Bank of America and Goldman Sachs is not more important than the future of our nation. Tax revenues must not be used in any form to bailout the financial institutions no matter what the cost to their balance sheets. We cannot afford to care for our sick, we cannot feed our hungry, we cannot house our homeless. We surely cannot protect the McMansions of Wall Street.
Labels: Budget, Class Warfare, Corruption, Financial Institutions, Reaganomics, US Poverty
posted by Small Business USA at 5:29 PM
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