Monday, September 29, 2008

Welfare for Wall Street Denied!

Victory may be temporary, but the House finally did something right by rejecting the awful bailout proposal backed by President Bush. Hooray for common sense!

The government counts on the average citizen not understanding the particulars of these stupid deals, but it's not that complicated. The article really clarifies what this is all about:

The legislation would have given Treasury Secretary Henry Paulson broad authority to buy troubled assets from financial companies to help ease a lending crunch triggered by the decline of the housing market.

The assets are "troubled" because they're worthless! Why should taxpayer money be used to buy up worthless debt? The government should not be in the business of propping up and subsidizing failure - that's a surefire way to guarantee more of it. Any why ease a "lending crunch?" Lending is the same thing as credit, which of course is someone else's debt. Since when is debt considered a good thing? This nation needs to learn how to save money and live within its means.

Here's another consideration. This $700 BILLION proposed for Wall Street's bailout: where do you think this money comes from? The government doesn't produce anything, so it has to raise the cash somehow. Well, the thieves have three options: steal it from taxpayers, borrow it from foreign banks, or - the option they nearly always choose - print up new currency via the Federal Reserve. It doesn't take an economist to see these options are really, really shitty. This financial mess was spurred, in fact, by printing money and flooding the markets with cheap credit. But this is what creates the bubble, that illusion of prosperity. Congress should repudiate the "bailout" once and for all, which will just postpone the inevitable day of reckoning. They can try to pass a bailout package but they cannot repeal the laws of economics.

For a solid understanding of these issues - which are not so esoteric as the establishment would have you believe - the LRC Recession Reader is indispensable reading. Check it out, and let's savor the bailout's defeat!