The Sky Is Falling, The Sky Is Falling
It’s finally over. Finally President Bush has made good on his promise to pay back all those that contributed so much money to his campaigns. It’s amazing how he did it. The money will not come out of his pocket but yours. Yes your pocket will be used to pay back his debts.Here’s how it works. Using the current financial crises as a cover, the President created an urgency, a feeling of it has to be done now. Sort of like when the fly-by-night contractor comes to your door and says 60% off your roof replacement but it has to be done now or you lose the deal. Furthermore, the President used the old party line of instilling fear in the general population. He said if we don’t act immediately, the United States will fall into a financial chaos. The retirement savings of all the people will be lost and thousands will be homeless.The great theft by deception was approved. So now let’s see how it works. Suppose you are about to loose your home in foreclosure. The bank takes your home and you are now homeless. The bank has a non-performing loan on its books. Under the new bail out plan the bank sells the non-performing loan to a resolution trust. This means that the rich banker (that contributed to the Bush campaigns) does not suffer any loses.The resolution trust, owned by us (taxpayers) takes the home and auctions it off to another rich investor who by the way contributed to the Bush campaigns. The rich investor then resells or leases the home out to someone else that has lost their home.So now let’s see how we did. Rich banker and/or financial company owners = Making money. Rich investors = Making money. Middle class citizen = suffers lose twice, once when he loses his home and then as a taxpayer.Now let me ask each and every citizen of the United States, how many times has the United States government stepped in when you are about to declare bankruptcy and said “Here let me help you. How much do you need”?Now let ask each and every small business owner the same question. Yeah right. The federal government could care less if you go under or not. What would have happened if the government had failed to act? According to Adam Smith, the father of modern economics, the market would have corrected its self. Those bank and institutions that had invested wisely would have survived anyway. The credit market would have opened up after a short market correction. Here is how. Assuming the government continues its roll of enforcing contracts and protecting the general population and investing in infrastructure, all other assets (private investments) tend to self correct. Those companies that created the crises would have no choice but to liquidate perhaps at a loss. This would amount to their punishment for not doing business prudently. Those that followed the rules and carefully conducted business would survive.Adam Smith called this the “invisible hand”. That is to say financial resources will be invisibly directed to where the greatest return can be obtained. For example, the banks started to withhold credit for fear of not getting repaid. However, after a while the banks have to make loans because that is what banks do. Not to make loans would mean that banks would be giving up a huge source of income and someone else (investors) would have stepped in to assume that function. So by doing nothing the “financial crises” would have corrected its self anyway.The only difference is that without the “bailout” the President’s elite friends would have had to share in the loses. So once again we, commonly known as middle class, are footing the bill for the excesses of the ruling elite. The time for change has arrived. The corruption, the lies, the fleecing of middle America can no longer be tolerated. I pledge to you, my fellow countrymen, my noble fellow citizens, from this day forward I will not vote for any sitting politician. Join me in this revolution. Does not matter, Republican or Democrat, if they are currently in office, vote them out!