Monday, September 29, 2008

Just say no to Bail Out

Just say no is a slogan normally applied to pre-marital sex. We know it’s meaning and application.
The Republicans just need too say no to the suggested "Bail Out" of the financial community. The same thing if about to happen to the American Public which is anticipated by the "Just say No." In sexual matters.
The Democrats are already labeling the anticipated actions as the "Bush Bailout." You had better believe that they have no confidence in the success of any such bill which they pass. If they expected success, It would be labeled the "Democratic Bailout."
The Democratic Party controls the majority in both houses. They can pass anything with their majority. The Republicans need not sign on.
If Congress were responsible, they would Stop the government takeover to bail out of the most wealthy. The press should expose the coverup of guilty politicians.
Senator Dodd Chairman of the Senate Banking Committed is charge with using below prime loans provide by Country Wide to finance his business ventures. He claimed that he did not realize that the loans were below the market. This comes from the Chairman of the Senate Banking Committee.
The top recipients of political donations from the lobbing of Fannie Mae and Freddie Mac were Senator Christopher Dodd, $165,400 Senator Barack Obama, Barack $126,349 and Senator John Kerry $111,000. This was over a 10-year period Senator Obama was only in the Senate three of those years, yet ranked second.
Very few taxpayers would consider these contributions in any light other than "Bribes."
Before coming to Treasury, Paulson was Chairman and Chief Executive Officer of Goldman Sachs As such he was on a first name basis of those other "Greedy and Corrupt" CEO’s who were responsible with the financial quagmire which they set up. Is he to be trusted to handle $700,000,000,000 in an honest manner to settle the bad decisions of his friends and contemporaries?
A few years ago Enron and World Wide experienced problems of bad management. They were forced to close and legal action was taken against their CEO’s. Why aren’t these present CEO’s treated in a like manner?
Freddie Mac had its own accounting problems. In Dec. 2003,the company was forced to admit that it had inflated its earnings by nearly $5 billion. (Remember Enron?) Freddie was selling for $55.00 at that time. Last week they were offered at $.88. (Eighty-eight cents)
Fannie Mae, in December 2004restated profits by $9 billion. It high share value came from $70.00 to seventy-three cents.
Why Bail them out? Why not just buy them out? Why reward the share holders who allowed such slack management?
Some Congressmen want to limit the earnings of the CEO’s. They are drowned by shouts of "You can’t get good management if you limit their earnings." Apparently you can’t get good management if you allowed unbridled compensation as was allowed in the past.
What confidence can be placed in the rhetoric of Congress when they tell us that the problem is that Banks won’t lend each other money because of the suspect value of the collateral. If that is the reason and that is the problem if they have money to lend, why not lend it to their customers with good collateral.
For a listing of the funds donated to Congressmen by Freddie Mac and Fanny Mae goes or Goggle Political contributions of Fannie Mae and Freddie Mac and follow the cites.
I am convinced that Paulson’s proposal is neither workable nor comprehensive, regardless of its price tag. My thinking is it would be foolish to waste massive sums of taxpayer funds testing an idea that has been hastily crafted and has not even been read by a majority of Congress.
Senator Shelby from Alabama has a listing of a great many financial figures who say that this is a bad move.
I suggest to the Republicans. Just say No.
On down the road when it appears that the plan is inadequate to do what it is contemplated to do and another round is request, those who vote against this proposal with be heros.
Will the markets go to "Hell in a Handbasket" as the alarmist predicted if nothing is done problematical? The proponents of the move will not even go on record as sure of its long term effectiveness.
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