We keep hearing about the big government bailouts of banks, insurance companies, mortgage companies, and all supposedly to help save the country and the taxpayers.
But there are some circles saying it’s nothing more than the politicians rewarding their rich banker friends who donated to their campaigns all on the backs of U. S. taxpayers! Adding there is no need for bailouts. Let the free markets stay free. If rich bankers make bad investments, let them go out of business just like any other business. We don’t see the federal government bailing out the local businesses, or you or I when we get in financial trouble. Instead they want to save those who the FBI is now investigating for all sorts of possible illegal financial shell games, lies, manipulation, and out and out deceptive practices that got exposed with the mortgage meltdown.
Wall Street is in trouble because of misplaced bets on derivatives and other financial instruments. It is not the purpose of tax dollars to limit the damage to multi-millionaires for trading mistakes they have made say some.
This plan has been dubbed the “son of RTC”, referencing the independent Resolution Trust Corporation, which bought the assets of failed savings and loans in the 1980’s, but it will be very different from the RTC.
The RTC took the assets of defunct savings and loans. Shareholders in these savings institutions were wiped out. However, the Paulson process is protecting Wall Street. The US Treasury Department will seek to buy as much as $700 billion in toxic assets from institutions that are still solvent. This will protect those same current corporate titans who ran many of these firms into the ground with excess leverage and wayward trading.
As one analyst pointed out, because this is being done by the government directly, the balance sheet of the US Government is at risk for further deterioration of the assets. Treasury, by some accounts, plans to buy the assets through “reverse auctions”. But the danger of naïve government functionaries buying assets they don’t understand is scary for the taxpayer. Banks could sell the US Treasury assets much shakier than currently anticipated. Since these bureaucrat buyers have no skin in the game like private buyers would have, the possibility of additional shell games mushrooms.
Also the plan includes the insuring of money-market funds with over $3.4 trillion in assets. This amounts to the nationalization by the US Treasury of the commercial-paper market. Money-market funds are generally low-risk commercial paper, but with a government guarantee, the risks will climb and the due diligence of the buyers will fly out the window. Before long, Wall Street will be selling bad assets here. When risks are divorced from investments, you naturally have an increased opportunity for fraud.
MEANTIME DAVID LETTERMAN WAS FURIOUS OVER JOHN McCAIN CANCELLING!
SARAH PALIN DID FIND TIME IN HER SCHEDULE TO TALK WITH KATIE COURIC!
AND BARACK OBAMA THINKS FRIDAY’S DEBATE SHOULD NOT BE CANCELLED!
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SPINACH HAS OMEGA 3’S AND FOLATE AND REDUCES HEART DISEASE. SHOOT FOR 1 CUP EVERY DAY.
YOGURT- 1 CUP A DAY FOR BONES AND HEALTHY BACTERIA BOOSTING YOUR IMMUNE SYSTEM.
TOMATOES- LYCOPENE REDUCES RISK OF ARTERY DISEASE AND CANCER 8 CHERRIES TOMATOES OR 1 GLASS OF TOMATO JUICE WILL DO IT.
CARROTS- REDUCES RISK OF CANCER BETTER EYESIGHT ½ CUP A DAY
BLUEBERRIES- MOST ANTI-OXIDANTS OF ALL FOODS PREVENTS CANCER DIABETES MEMORY ISSUES AND RICH IN FIBER. ½ CUP A DAY.
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WALNUTS- UNLESS YOU ARE ALLERGIC OF COURSE RICH IN HEART HEALTHY OMEGA 3’S..PACKS AS MUCH PROTEIN AS CHICKEN- 1O OUNCES OR 7 NUTS IS ALL YOU NEED!
OATS- PACKED WITH FIBER PROTEIN LOWERS HEART DISEASE RISK!
