Bush Pushing for Bank Bail Out

I can still remember a very true garfield comic, in which garfield said, “If I am telling a lie, may lightning strike. . . the dog next door.” (thunder and yipping). This is what the savings and loan industry wants now. They know that if they show themselves as irresponsible enough, they can get the government to bail them out once again, taking money from the taxpayer and funneling it into hands of bank owners and people who couldn’t afford a house.  This is very similar to the bailout that they did of those who lost substantial sums in Vegas.

The government is now doing its patriotic duty in making sure that profits remain high in the banking industry. Banks made fortunes in the last five years off of the rush to pull cash out of houses. Now, when there poor risk management is about to kick them in the teeth, Bush is prepared to guarantee the loans. Now we will end up on the hook for failed loans. We had a savings and loan crisis in the eightees and we bailed out the banks. We are about to do the same things again. In addition, injecting this new money will serve to inflate the currency and steal value from the savers in this country at an ever increasing rate.

We all know who pays. The taxpayer ends up putting up the cash. But we don’t have any money, so we will finance the banks with our deficit. The government continually acts like it has the ability and the kindness to provide money all around. They steal the money from our children, putting an increasing burden on those of the future.

Everyone knows those annoying people at the store or restaraunt who’s kids are obnoxious. The parents threaten and cajole, but the misbehavior continues as there are no real consequences. There kids later turn into juvenile delinquents, and from there they become more dysfunctional than your usual adult. We have been doing this with industry and communities (see New Orleans and Hurricane Katrina). There need to be some consequences for the irresponsible, and starting all over with renting, and slowly saving up another down payment (if there was one at all) is fair. They have paid the price for their lack of vision. (But at least they won’t be killed by the emperor)

I will put it bluntly. People should lose their houses if they can’t afford them. Banks should suffer massive losses if they made bad loans for a large scale. Don’t punish the honest taxpayer and their children because banks and homeowners are irresponsible.

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