posted on Sep, 24 2008 @ 05:25 PM
Allen H. Meltzer, economic adviser to President Reagan stated: "This is scare tactics to try to do something that's in the private but not the
public interest." 9-23-08 New York Times, p. A-21.
At the urging of the banks, Congress legislated the "No Document Loan" had no reliable basis to support it. The notion was one of credit scores
being sufficient to allow loans. The banks, securities firms and real estate industry profited. Congress probably really did not understand the
implications of what they were signing. They did receive huge campaign contributions from Political Action Committees (PAC's) of course.
Thereafter, the sub-prime market collapsed when the real estate bubble burst. Now dire warnings are being made of a world wide market collapse. The
news is that President Bush wants a 700 billion-dollar blank check. This may be a fraction of the actual cost, which will probably run into the
trillions. Although 63% of the American public disapproves, the PAC's are lobbying for it.
Prior to the 2005 Bankruptcy Reform, the credit industry was raising Cain about the American taxpayer paying the bill for poor American's getting
bankruptcy relief. Their argument was that the public shouldn't be paying the cost in increased taxes for those write-offs. Now banks want taxpayers
to bail them out, and are arguing that Americans should pay the bill for their bad investments. Credit card companies alone contributed $200 plus
million to PAC's and got 'Bankruptcy Reform" passed.
It has recently been reported that the PAC's oppose strip down to value provisions (lien stripping down to value for residential mortgage loans) for
Bankruptcy Judges, which would tangibly benefit the consumer. The banks don't like that. American citizens don't have the power to effectively lobby
against the PAC's on this issue, so any such beneficial consumer notion goes out the _ Clearly, lien stripping should be part of any package,
were this to make any sense for the American consumer at any level.
Domestic and foreign PAC’s finances Congress. Them PAC's is a good investment.
One of many problems that would arise from a bailout is that the root cause is not addressed. The bubble scenario is capable of repetition.
As old fashioned as it may seem, it may be timely to call your Congressman or Congresswoman or write a letter requesting a thorough analysis before
they spend 700 billion to put a band-aide on a severed artery.
If the public does not speak up (and if media won't take the PAC's on) the blank check will be written. As far as writing a blank check to staunch
the bleeding, stupid is as stupid does.
The requested relief also encompasses the American public paying for worthless securities held by foreign banks, which is ludicrous.
When all is said and done, PAC's are the cancer that may cost us our Country.
President Bush said we are not in a recession, but we are tapping the "Depression Era Fund." Actions speak louder than words.
It appears that the current administration wants to rush this through before public opposition is mobilized. Congress ought to carefully consider
elimination of root causes prior to taking any action at all. Congress should not take any action that's in the private but not the public interest.
If enough Americans email, write and call Congress, it may eventually result in a viable solution to our current economic woes. Rome was not built in
a day, but Nero fiddled while Rome burned in a day.
Ultimately, until PAC's are made illegal, our interests are debased in the political equation.