Federal Bailouts are in Vogue

September/09/2008 1:12AM
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First it was the airlines, then Bear Sterns, then Fannie and Freddie, next comes the car companies. No one will confess how much the Fannie and Freddie bailouts will cost we taxpayers. Lowest number I’ve heard is $20 billion and the highest is $2 trillion.

All of these problems were brought about by our Federal Government. Either by poor actions or in actions. On the finance side, it was bad actions. Our House and Senate Banking Committees wanted everyone in America to own a house whether they could afford one or not. They let the financial markets run wild with the investment vehicles the bad mortgages were put into. They even allowed it all to go off book so no alarms went off before the house burned. This took care of Fannie and Freddie and the next groups in line for bailouts the FDIC and hundreds of banks. On the inaction side, the lack of an energy strategy dooms the airlines and car companies.

If our prior elected officials had done the bailout thing, would we still have a big telegraph company?  A network of passenger railroads? Studebaker’s? Nash Ramblers? Pan Am? Eastern Airlines? Midway Airlines?

What is wrong with letting all of these die? We will still have home mortgages. We will still have places to buy cars. There will be airlines. Survivor banks will be around.

How much can our tax dollars bail? Since the Feds will be running Fannie and Freddie, why should we believe they won’t screw it up worse?

Can’t we vote on whether we want to do bail outs? Let’s put it on the November ballot and see how “we the people” feel about. We vote on a school tax, why not a bailout tax. 

You are going to be tax broke in the next few years. In addition to the tax cost for all these bailouts, both candidates for president want cap and trade. If Obama is elected, he will raise taxes.

But, you haven’t seen what your local and state boys have in mind for you. My city is planning to raise sales tax 1%. In Chicago the MTA and RTA, the rail and bus lines are in a deficit. The state is in trouble. Combine all this and you might be working until August to pay your tax bills. 

We want to give money to every country in the world. Yet, some have said out deficit might be a high as a trillion dollars next year if the cost of all these bailouts is added up. 

Gee, I wonder what that will do to the value of the dollar. If the dollar goes back down, will the oil price go back up? If the oil price goes back up, will there be more bailouts. Where does it all end? Will China bail us out if we are broke?

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Comment (1)

  1. Ken Dozier says:

    I think our situation may be like Cum on a Gold Tooth.

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