Posted by PrestoPundit on 09/22/2008

with $700 billion bailout for Wall Street.  Think of it as a thousand Katrinas for the American taxpayer, and a great big wet kiss for the most pathological sector in the American economy, a sector which has already sucked hundreds of billions of dollars from the rest of the American economy, via a criminal regulatory scheme designed by corrupt and socialist politicians, and Federal Reserve which destroyed the value of the dollar by filling the hands of Wall Street and the super rich with cheap loans and fiat money. 

So where do I stand on the “bailout” — the big giveaway?  I oppose it in the strongest terms possible.  I oppose it as I would any plan which would plunder the treasure and livelihoods of my children and grandchildren in order to put yet more trillions of dollars into the corrupt hands of the super rich feasting in the sludge of the financial sector, a sector which still to this day is pathologically misregulated by a criminal U.S. political class. 

Think what Americans of the founding would be doing if confronted by a crime against them of this magnitude.  These Americans wouldn’t be sending yet more trillions to the corrupt parasites catered to by the criminal Washington elite, they would be yanking Senators and Congressmen out of their offices and dunking them in burning tar and stinking chicken feather.   And personally, I can’t think of more appropriate treatment for the Secretary of the Treasury and the past and current members of the Federal Reserve Board. 

It’s a simple fact that people have been writing for years about the regulatory crime which is Fannie Mae and Freddie Mack and the disaster in the making which is the redlining / subprime legislation given to us by Jimmy Carter and Bill Clinton.  They’ve been explaining year after year how the Fed has massively mismanaged the money supply, generating an artificial boom which would bring an inevitable financial bust.

And in all those years Congress, the Treasury, the Fed, and the President couldn’t manage to accomplish anything to bring a halt to this massive thievery machine and this catastrophic misallocation of wealth.  Until now.  And how are they going to fix things?  Are they going to reform and reinvent the institutions which created the catastrophe — are they going to fix the Fed, fix Congressional oversight, rip apart the legislation involving redlining and subprime mortgages, are they going to go to the foundations of the pathology from which we suffer?  No.  What they’re going to take our money in order to make sure the super rich get to hold on to as much as possible of what they have already plundered through the current corrupt and pathological system.

So I’ll be calling the President and my repressentives tomorrow to give them a little piece of my mind on bailout. 

And if you need be inspired to make your own calls, think about this.  Quotable:

Even if Hank Paulson were the all knowing god of economics, would it
make sense to give this kind of power to the treasury secretary for the
next two years just forty days before an election? Shall we go through
our mental list of who an Obama administration (or a McCain
administration for that matter) is likely to put in that post?

Need another one?  Check out this one from Arnold Kling.  Yet more reactions to the bailout scheme here.

And here’s Felix Salmon:

The Paulson bailout plan basically comprises the Treasury secretary
saying “trust me, I’ve determined that this is, sadly, necessary”. But
the fact that Paulson signed off on the short-selling ban is prima facie evidence that he’s not worthy of that trust.

It’s conceivable that both schemes are necessary ideas. But the US
government has done an atrociously bad job at even trying to explain why they’re necessary. As Paul Kedrosky said on our finance-blogging panel
at Blog World yesterday, the government is treating us all like
children, and if they really want to ask us for another $700 billion,
it’s high time they started treating us like grown-ups instead. This is
supposed to be a democracy: we’re meant to be in charge here!

UPDATE:  They’ve had two years to comprehend what is happening and to fix things, so how good has the Bernanke and Paulson record been?  We’ll, not good at all.

UPDATE II:  A must read from Mish.  And the sharks circle.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: