500 points up. Why are investors in banks so happy today? Shouldn’t this wonderful plan put an end to these senseless Tea Party’s? The Democrats and Moderate Republicans were right all along. Socialism is the answer. Bigger Government will bail out America.
Or were they?
Why are investors so thrilled with putting money into banks? Because Uncle Sam just rolled out a plan basically letting all of the people who responsible for this mess off the hook, that’s why. In reading about this plan it calls on private investors to buy up “toxic assets” and the government would take a large share of the risk. The government is going to subsidize the risk. That does not sound like a free market solution. Call me crazy but this does seem like a good deal to everyone except….. drum roll please… the tax payer! Initially they are talking about using 100 billion taxpayer dollars but do not be fooled they are hoping to invest 500-700 billion into this project. The only reason they are not asking for the money now is because they know that John and Jane taxpayer have had enough. Maybe we were a bit premature in calling off the Tea Party’s. Maybe the everyday working man and woman are getting screwed yet again.
Lets explore this just a little bit further in defining what these “toxic assets” really are. Hold onto your seats but if you boil all the murky water away and clear away the smoke you basically have a group of people who borrowed money they could not afford to pay and banks that should not have made the loans. Remember when everyone was so upset when Obama rolled out his plan to help people who were about to default on their mortgages? Remember how everyone was so angry about it? This new plan that was rolled out today is basically the same thing except on steroids and without actually helping anyone stay in their home. The good ole boys on the Hill are teaming with the good ole boys on Wall street. They forgot to invite us to the party.
I don’t mean to harp but here is what you need to be telling your Representative and Senators:
Get out of the private sector. Stop telling me that America is too fragile to handle AIG being put into receivership. Stop spending money you do not have to bail out irresponsible people. Balance the budget. Right size government *hint* you guys are going the wrong way.
I will be writing a letter on this and will post it. Feel free to copy and paste and use my link on the left to get in touch with your politicians who represent you.