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Who’s Going To Bail The Taxpayer Out?
Who’s going to buy his assets. When the government runs out of money after helping every greedy company in America, then who is going to bail the taxpayer out?
This plea for a bailout of the financial markets, by the fed is not unfounded. They are in trouble, but how did they get there, no one wants to talk about that. We are in crisis mode, we don’t have time to talk about that. They may or may not be right about the financial meltdown that they predict, we would never know unless the markets are left to their own devices. What ever is done, or not done one thing is known for sure, it will affect the average taxpayer. You know, the ones that had nothing to do with this financial mess. And most people believe that those responsible for the mess will walk off into the sunset with their pockets full, as usual.
This is the problem with this bailout plan or rescue plan whatever you want to call it. It is like having a brother who has a gambling problem, is the breadwinner of his family and who’s life is being threatened by the mob for unpaid debts. Now if you help him out and pay off the mob, it puts a huge hole in your pocket. If you don’t do anything your brother is dead and now you have his destitute family to deal with, which will put a huge hole in your pocket also. You think to yourself, I guess I have to help him out, if I don’t he dies. So you start thinking of how you can bail him out and make him realize the error of his ways, but he resists. You want him to go to GA (Gamblers Anonymous), and pay interest on your loan. He wants you to give him the money to pay off the mob and a little extra to keep gambling.
People have had enough, and they are being vocal about it. Senators and Representatives have gotten thousands of phone calls and e-mails from enraged taxpayers/voters fiercely opposing the plan, and thus the House turned down the plan and the stock market plummeted. 133 Republicans and 95 Democrats voted “no” while 65 Republicans joined 140 Democrats in voting “yes.” Congress is shaking in their boots. They don’t know which way to go. They are dammed if they do and dammed if they don’t. But they will go on vacation anyway. HELLO!!! I THOUGHT WE WERE IN A CRISIS!!! Maybe this episode will make people think more about term limits. As far as I am concerned, all involved are to blame and should eventually pay with our votes.
Where the blame goes is obvious, the bankers for their greediness, the borrowers for their ignorance, the current administration for being asleep at the wheel, that includes the FED current and previous, Bernake, Paulson. Former Fed Chairman Greenspan, who has a book out called ” The Age of Turbulence: Adventures in a New World”, I wonder if he explains why he didn’t see this coming. Not to be left out, our catatonic regulators and our dear Congress, both sides of the isle, for looking the other way.
After all the Congressional posturing and the prancing around, no matter how we turn it around we will have to bail the financial markets out, it’s a Catch 22. This does not mean that those we bail out should not be made responsible, even criminally for what they have done. Those responsible for the companies that want to be bailed out should not be allowed to make a penny out of this situation, it’s not like they haven’t made millions already. CEO compensation shouldn’t even need to be mentioned. In fact they should give their bonuses back to the company to be spread out between employees and shareholders.
Here is a sample of some of the CEO pay for some of the troubled financial companies, some of which have gone out of business already.
“Washington Mutual’s CEO, Kerry Killinger $22 million
Merrill Lynch CEO: Stanley O’Neal: $161.5 million
Citigroup CEO: Charles Prince $68 million
Bear Stearns CEO: Jimmy Cayne: $61.3 million
Countrywide Financial CEO: Angelo Mozilo $121.5 million
Lehman Brothers Holdings CEO: Richard: $22 million”
If the the employees and the shareholders of these companies are walking out empty handed then so should those who caused the mess. Those terms should be layed out in front of the bailout money, not later when things will be forgotten and not as pressing as they are now. So if it takes a couple more days or a couple more weeks then the FED or the markets would like it to, then so be it. Those that need bailing out should not be given “incentives” to opt-in to this bail out plan, as some Congressmen would like us to believe. Those that need bailing out should consider themselves lucky that they are not being criminally charged. If the terms of opting-in are too harsh for them, then let them fail. In the family structure it’s called tough love. And if they don’t like that, tough S_ _T!
The rush to get this done smacks of the rush to invade Iraq. Does anyone remember? Better to take a step back and act with a cooler head, then to rush into a fire and get burned… again.
on October 3rd, 2008 at 12:15 am
I was with you until your connection to Iraq. I’m not saying I disagree, but an assertion like that needs a little more support. I’m sure it would be an interesting read.
on October 3rd, 2008 at 11:55 am
Hey Cecil,
Simply what I meant was that the panic to rush into signing this bill smacks of the same panicked rush that lead into invading Iraq because of the alleged weapons of mass destruction that never materialized. Mind you I also got sucked into believing that invasion was the only alternative. And now when this mess came along I felt the same panicked feelings rising in me, but then those gave way to a more dominant feelings of distrust. You know once bitten twice shy.
Thanks for stopping by, I checked out your new blog at Stillwheel and will be stopping by again. Very interesting article on Univeral Healthcare.
Bibi
on October 17th, 2008 at 9:13 am
Clearly the underlying problem for Lehman Brothers and Washington Mutual was that they weren’t paying their CEOs enough…
on October 17th, 2008 at 5:45 pm
Clearly…