Before returning to our scheduled articles (Rezko and advice for Palin) we decided to comment again on the Wall Street bailout plan.
We commented on the Wall Street bailout plan last Friday with a loud “NO CONFIDENCE”.
We faulted both the Republicans for their deregulation madness and general philosophy regarding government and markets and we faulted the Dimocrats because they preached fairness economics but luxuriated in various schemes which amount to a culture of corruption.
We praised Hillary Clinton for once again proposing the right remedies and having our trust on economic issues.
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During the weekend we witnessed our Congress at work. There was a deal, there was no deal, there was a deal. Then on Monday there was a vote. There was no deal. The markets fainted and lost 777 points.
Monday night the financial analysts and the political prognosticators outdid themselves. These “geniuses” stated that Congress would be forced to act by the markets on Tuesday. These “geniuses” stated that the markets would react violently on Tuesday. Instead the markets rose about 500 points.
Having been totally wrong all along, the “geniuses” stated that the markets rose because the markets expected Congress to bail them out. These “geniuses” arrived at that conclusion not with any empirical data but with their now proven-to-be-faulty analytical minds.
Maybe the markets rose because there was profit to be made? After all, for years these same analysts advised “buy” when the market went down because that is where opportunity lurked. Of course, these same analysts advised “buy” when the markets went up because there was so much money to be made. “Up” or “down” the advice was always the same from these “geniuses” – “buy”. We knew their advice was self-interested and always took their advice with large quantities of salted doubt.
These self-interested “geniuses” were also the ones who advised homeowners to rethink the paradigm of their homes. “Think of your house as an investment” they said. No longer was a house a home, a shelter from the storm. No, these “geniuses” turned homes into investments and advised “equity loans” taken against the value of the house. “Reverse mortgages” and other financial instruments were devised. “Debt” was turned into an “asset” and sold as something of value.
During the dot com bubble Warren Buffet warned against buying stock in companies with no assets and no profits, no plans. Few listened to the sane fundamentals Warren Buffet espoused. When the dot coms went bust Buffet “the fuddy-duddy” who worried about fundamental principles was again proclaimed a visionary.
A good rule is “if something is too good to be true, then it probably is too good to be true.” Another good rule is to not let yourself be cowed by high pressure salesmen. This past week has been a prime example of what high pressure salesmen do. If you are told “Take it or leave it – NOW” leave it. The product is not as advertised. It’s the old Iraq razzle-dazzle.
Many Americans, aware that something has to be done, still in their bones knew something was wrong with the bailout of Wall Street. Most Americans might not know the esoteric language of the financial “geniuses” but most Americans know they are being bamboozled and sold a pig in a poke.
Clinton suggested negotiators on the government bailout package should “maybe cool off a little from the emotion and the pressure of the last two weeks and get back to Washington starting tomorrow and do what we have to do to try to stabilize not only our nation but the entire world.”
Voters furious over the proposal to have taxpayers foot the bill should understand that it’s not just a problem facing bankers, Clinton said.
“They have to recognize that we are facing a very serious economic slowdown, a recession that could be of long-lasting and deep impact,” she said.
Without a bailout, Clinton said, “I think it will be even more expensive and difficult to dig ourselves out of this deep hole that we’re in.”
No, it is not just a bankers problem, but thus far it is only a bankers bailout. And it is a bailout. However, now that the bailout has failed, it is being “rebranded” by the “geniuses”. Now it is called a “rescue” – different lipstick color, same pig. The old razzle-dazzle.
Craig Crawford smells out a pigsty too:
How did anyone think the public would get behind something sold as a bailout of Wall Street multi-millionaires? Make it a bailout of homeowners, and you would have something that could pass in Congress.
But to do that, the Bush administration needs to put something in the package that might actually help homeowners — like giving bankruptcy judges the power to order modifications of usurious loans. Or maybe some protections against exorbitant credit card interest.
If this bailout ends up as a better deal for average homeowners in crisis, Monday’s turmoil in Congress will have been a very good thing.
Dimocrats like John Edwards and his bankruptcy lawyer wife Elizabeth pushed through the bankruptcy bill which should have been called the Predatory Lenders Protection Act. These predatory lenders with their usurious interest rates knew many of the people taking out predatory loans could not afford to keep their houses. The predatory lenders figured they would bilk these fools out of mortgage payments for several months or years before the houses would be foreclosed. The problem now is that too many of these predatory lenders’ schemes worked as planned and now too many houses are being foreclosed driving down further the value of these “illiquid assets” formerly known as “homes”.
We now more than ever vote “NO CONFIDENCE”. Do it right. Don’t be high pressured. Don’t be distracted by the razzle-dazzle.
We trust Hillary Clinton on these issues.
McCain had the right instincts in calling for the firing of the SEC’s Chis Cox. Firings focus the mind. Accountability used to be a Democratic value. Republican McCain has not had a great history on regulatory issues. Now McCain appears to be calling for regulation and that is a good thing from someone who might, just might, maybe, possibly, be trusted.
We do not trust Barack Obama on economic issues or fairness issues. We believe in fundamentals. The fundamental fact is that when the choice was Antoin “Tony” Rezko or his freezing constituents – Obama cared only for Tony Rezko. That is a fundamental fact about Obama which we do not forget. For Obama Big Money talks, the poor should shut up.
Americans might be getting razzle dazzled by Big Media and Obama right now. But we believe in fundamentals. During the primaries demographics were destiny. Undecideds and late deciders went against Obama. After the glitz, the voters in the booth knew:
Obama simply cannot be trusted. Obama cannot be trusted on any issue. Obama cannot be trusted by his friends. Obama cannot be trusted by his enemies. Obama cannot be trusted.