Even as the biggest banks repay their government debt in what is being heralded as a successful rescue program, four troubled giants of the financial world remain on government life support.
These companies, the American International Group, Fannie Mae, Freddie Mac and GMAC, are not only unable to repay the government, they are in need of continuing infusions that make them look increasingly like long-term wards of the state.
Things will not be getting better anytime soon.
From The Nation:
Under Paulson’s draft plan, Congress and the courts would have been barred from reviewing or challenging his moves to stabilize financial markets — effectively making him the nation’s economic czar. That’s not just a dangerous power grab for economic and politic reasons. It’s unconstitutional.
So basically, this man is looking for $700 Billion in taxpayer money, to do whatever he thinks is right, without anyone having the ability to review or question his plan and whatever else he does with the money. ARE YOU FREAKIN” NUTS?!? This is just as bad as giving the President the blank check for the Iraq War! They’re looking for another blank check. I hope and pray this proposal does not go through and sensible minds prevail in Congress. Don’t get pushed and bullied into approving this plan.
And yet the folks that caused this mess, the CEOs and managers and those that made the loans, all go away scott free with their golden parachutes. Anybody who knowingly made loans to people who they knew wouldn’t be able to afford them, should be going to jail. Period.
Why were all these people able to do what the did? The answer is Deregulation. If you have some time, here’s a good writeup on the history of this mess.
Welcome to the Free Market system, where whatever happens, happens, until it’s the very wealthy that’s affected. I’m tired of these taxpaper bailouts for businesses who knowingly made foolish bets. The fact of the matter is, loans were given to unqualified borrowers. Those loan contracts were then sold off in the form of securities to investors, who may or may not have known about the riskiness of the loans. When people couldn’t pay their mortgages, they defaulted on the loans. Factor in a bad economy, made worse by the job market going down, gas prices going up, and you got worthless securities. Instead of bailing these lenders out, we should be filing more criminal charges and putting people in jail. This is basically socialism for the wealthy. Even economists and conservatives think taxpayers are getting a “raw deal”. If I forget to pay my credit card bill, do I get a bailout? No, I just get charged more, and my interest rate goes up. Why should people who live within their means be forced to bail out gamblers and cheaters?
Stop the housing bailout!!