Congress votes “No!” to massive bail out of Wall Street.

In a very historic vote today, Congress rejected the cobbled together $700B (or more) bail out of banks that are no longer loaning money in a free and unrestrained manner. Roughly 40% of the Democtrrats voted “No”, followed by roughly 60% of the Republicans. During the rush to cobble together a bill, all mannner of unrelated pork and party junk was thrown into the mix. Seemingly in hope on being passed during a “crisis” to further advance RNC and DNC poltical agendas, not to deal with the problem at hand.

Meanwhile, the controls and safe guards put into place by Congress following the Great Depression of 1929 had been removed over the years and to my knowledge, were not put back in place by the bill that was voted on today.

What are YOUR thoughts on this very important issue?


2 Responses to Congress votes “No!” to massive bail out of Wall Street.

  1. Don Tabor says:

    There is a far simpler solution to the “Credit Crunch” that pundits and politicians are advancing as the reason this bailout is needed, and instead of requiring sacrifice from taxpayers, it bring benefits. The Bailout proposes spending $250 Billion in the first year to close the gap between mortgage balances and the home values that secure them, to protect private sector credit availability, but there are better ways to protect credit availability than protecting derivative investors from their own foolishness.

    The largest borrower in the world is the U S Government, and it puts itself at the head of the line, borrowing $250 Billion a year. That money is then no longer available for private sector credit. So, simply reducing Federal spending by 10% ($300 billion)would eliminate the Federal deficit and take the Federal government out of its premier place in the credit market, freeing those funds for private sector borrowers and leaving a little extra for a corporate income tax reduction which would bring home hundreds of thousands of jobs and fire up the slow economy.

    Poof! No credit shortage.

  2. The rhetoric surrounding this issue amazes me. The mindless claim that the market doesn’t have enough oversight needs to be rebutted, and rebutted often. In the current regulated market environment, a business owner can be fined or imprisoned for short selling (offering a product or service for a price that is lower than the rest of the marketplace), price gouging (offering a product or service for a price that is higher than the rest of the marketplace), or price fixing (offering a product or service for exactly the same price as the rest of the marketplace). Government regulations on Executive pay created the golden parachute phenomenon, because businesses had to come up with an alternative way to offer competitive compensation packages. Government keeps trying to solve problems created by devaluing money by further devaluing money. The only rationale anyone is able to offer for this bailout scheme is “something must be done, this is something, therefore this must be done”. And the thieves in the federal government tried to sell this bailout by renaming it a “Rescue Bill”.

    Reading “1984” has become redundant.

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