Using the limitless credit card of the US Treasury, we are now bailing out numerous banks and insurance companies (there will be more I am sure). I am just curious, how is this trillion dollar bailout constitutional?
I am just wondering who you think should go to jail – there are plenty of deserving candidates. The people who took out loans they knew they couldn’t afford? (and are losing or leaving their homes)? The local banks that gave them those loans without legitimate applications (and are going under now)? The mega-banks/investment banks/insurance comapnies that bought all the loans? How about all the executives running all these clown-houses (and who are pulling in multi-million dollar salaries and bonuses as they walk out the door of the crumbling house they built)? How about the members of the Democratic party that pushed for banks to lend to people of questionable ability to pay those loans back,all in the name of “equality and evening the playing field”?
Don’t get me wrong. I am a staunch capitalist. I am all about everyone making as much as they can. But I don’t live in la-la land either.
This mess goes deeper than just saying “well, let them all go bankrupt, they dug their hole.” The problem with that is when these banks/investment banks/insurance companies go under, so does everyone’s money. Money in the checking and savings accounts, money invested in the stocks of those companies, money invested in mutual funds that owns these stocks, money, money, money. Don’t forget about your credit cards/credit lines that are owned by all of these institutions. We are going to have some upset people when their retirement funds are gone, their credit cards get turned off, and there is no money in the bank to withdraw.
I guess it doesn’t really matter when the Federal Reserve Bank (there is nothing FEDERAL about that bank, by the way – more on that later) can just print up some new money, make some electronic entries in some electronic accounts, and loan out some more money to the US Treasury. Since the government doesn’t actually earn money, guess who gets to pay back those loans? Thank you again, Mr. Taxpayer.
But don’t worry, Mr. Obama and Mr. McCain are both promising to lower your taxes. I am sure everything will just fine. But, in the mean-time, who is going to jail?