Friday, October 03, 2008

Why I am opposed to the $700 billion dollar bailout

A friend of mine Curtis sent me these four reasons why no bailout should happen now. Breaking news: the bailout just passed the house and Bush said he would sign the giveaway to his have's and have more base.

1. Based on all indications and expert opinion, it will not stop the economic downturn.

2. Bush started his presidency with an economic surplus and now has plunged the country into an estimated $10 trillion debt. A below average high school student could have done a better job. Bush is the last person in America and the last person on the planet who should be trusted to give economic advice. We should consider doing the exact opposite of whatever he recommends. In addition, everyone knows that Bush is for the rich, and this bailout smells like one last gesture to stuff our money into the pockets of his rich friends.

3. Something of this magnitude should be in the form of a referendum which the American people should vote on, not a handful of politicians under pressure from big financial institutions. Most Americans have not read the latest proposal and only hear bits and pieces from the news media. The public does not know all of the loopholes that are contained in it.

4. This issue should be dealt with by the next administration, not in the final stages of a presidential election.

5. Other options should be considered. For example, one idea I heard of was to simply cut all home mortgages in half, or require that they be renegotiated to a level that homeowners could afford. The reason for the crisis is because a lot of home loans were made to people with weak credit, so that they could be overcharged. If these mortgages were made affordable by drastically reducing them down to where homeowners can afford the payments, then they would pay their debts and the crisis should be over or greatly eased. They would also have more disposable income to spend which would be good for the economy. The point is, other options are not even being considered. Average Americans are essentially being told to pay up or else. The argument could be made that this whole sudden collapse could have been orchestrated for the purpose of getting this $700 Billion paycheck.

6. Any proposal supported by Bush, the Federal Reserve and the Treasury Secretary has to be viewed with the most extreme skepticism. These guys are not for the average working American. They are the ones who created this mess. Now they want $700 Billion! The fact that the presidential candidates support the bailout is meaningless, because in an election year, neither one of them can afford to take on the financial sector who wants this bailout.

7. Economic downturns are necessary to cool off the market. Housing prices could not just keep going up indefinitely. Prices in general had to start coming down. Managing this process should be the job of the next administration.

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