Wednesday, October 1, 2008

9 Reasons to vote against this bailout deal

This was forwarded to me in an email. The author's name appears to be "Force John McCain to drop out". The reasons seem reasonable.
1. It repeats the same mistakes made in the early 1930's by bailing out bad investments at the taxpayers expense and increasing regulations which strangle the economy and cause job losses.

2. It prevents the market from correcting itself.  The easy credit issued by the Fed in the 1990's and early 2000's caused a massive amount of "malinvestment", which means people and businesses borrowed money to take risks they otherwise wouldn't have taken.  All this bad debt needs to liquidate itself one way or another.  The more money that is thrown at the problem, the more band-aids that are used, the longer the artificial credit phase will last and the harder it will crash down.  A somewhat severe recession is inevitable (the bad debt has to go away and prices, even houses, have to fall).  The only option is this: do we want a 12-18 month recession (which will still be painful), or do we want a 10-20 year depression (which will be devastating).  The choice is ours.

3. Hyperinflation IS a real possibility here in America  We all remember the famous pictures of the Germans using wheelbarrows full of Marks to buy a loaf of bread or even to burn it to heat the homes.  We are toeing a dangerous line, and the Fed is quickly losing control of the situation.  Just this week, the Fed injected over $600 billion of newly created money into the markets (this is in addition to the bailouts or takeovers of Bear Stearns, Fannie & Freddie, AIG, Wachovia, Washington Mutual, etc.  It is also has nothing to do with the $700B bill in congress).

4. Here are the list of supporters: George W. Bush, the Federal Reserve, CEO's of the biggest companies in the world, the political establishment,. the mass media, and foreign central banks.

5. Here are a list of non-supporters: 60-99% of the American people, Democrats, Republicans, Libertarians, non-voters, etc.

6. Look at Obama's and McCain's top donor list. Some common names should sound familiar: Goldman Sachs, JP Morgan, Citigroup, Lehman's Brothers, Morgan Stanley, UBS.  Where to their loyalties lie?

7. The bailout gives unprecedented new powers to the executive branch of our federal government.  All versions of the bill that I've seen have contained some variation on the following text: "Decisions by the Secretary [of Treasury] pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency." If that is not pure dictatorship, I don't know what is.

8. The very people who say we need this bill NOW, as recently as a few weeks ago, were telling us the economy was strong and everthing would be fine.  At what point do the people who cause the problem, then lie to us, lose all credibility?

9. The Patriot Act was implemented under similar circumstances.

I insist that you vote "NO!" on this bailout deal.
I suppose one thing I will also note is this:  We were lead to believe that this "EMERGENCY" legislation HAD to be passed a week ago... Obviously it has been delayed a week and as far as I know, things haven't changed too much in the past week - no worse, no better. Sure the market has been unstable, it's not supposed to be stable.... I just don't understand why the need to rush some legislation through rather than have some smart people try to figure out the best long term solution.

As a second FWIW - as I was writing my mortgage payment check last night, I remembered that it was the bank (Bank of New York, then Everhome(?), then Chase) who INSISTED that I could afford a much more expensive home by taking advantage of their GREAT products. The banks suck for lack of a better word, but I was smart enough to see through their BS and make a sound financial decision. For the people who made bad decisions and bought into the garbage that the banks were pushing, sucks for you and sorry, but well, it's not *MY* fault you can't pay a loan which you never were able to afford in the first place and *I* don't want, nor is it in *MY* budget, to bail you or your sucky bank out, sorry.

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