Thursday, September 18, 2008

Now For the Response

As promised yesterday, I would answer my own question after you all did. So here it is...

My feelings on the Fed's bailout of a number of institutions are a mixed result. Let's look at some of the finer aspects of this deal.

Jimmy Carter and Bill Clinton encouraged legislation that would help more people get home loans. They saw it unfit to "discriminate" lower income households, and in turn encouraged financing to these families that couldn't quite afford to have a house. Fannie May and Freddie Mac saw a huge pay day in this field. While the housing market skyrocketed due to more demand, times were perceivably good. People were building huge houses on middle class wages. Anybody could get a loan. Fannie May and Freddie Mac were absolutely gouging the market, putting them in the Fortune 500. Now, fast forward to recently. Two years ago John McCain pushed legislation to turn back the clock on these loan programs. He saw how people were buying houses that couldn't afford them. Fannie and Freddie were now making huge economic gains while the economy grew more and more uneasy.

I like to relate this to a water balloon. When you're filling it up, you're trying as hard as you can to get as much water in as possible. You see it get bigger and bigger and get so bent on how much water it can hold that you're completely dismissing the fact that at any minute the balloon that's holding the precious water will bust from all of that pressure.

Fannie and Freddie, along with greedy country leaders, didn't know when to stop filling up the balloon.

Back to present time. As I said, John McCain pushed legislature to make it harder for Americans to take out loans on houses. What was Barack Obama doing about this that last two years? Look at the numbers. Barack Obama took the second most amount of money from Fannie and Freddi for his campaign then anybody else. He then appointed the representative of these huge companies to find his VP choice, which turned out to be Joe Biden. Remember Joe Biden's ties to MBNA? Not such a coincidence now, is it? So, basically, while John McCain had foreseen this problem, and aimed to fix it where it started - Barack Obama was busy lining his pockets with the huge abundance of revenue created by Fannie May and Freddie Mac.

Now back to the question. Do I think that the American taxpayers should be put on the hook for these huge government bailouts?

Hell no.

Do I think the American taxpayers need to help the government bailout some of these companies?

Sadly, yes.

When it comes to Fannie May and Freddie Mac, if we let them go under, the market will face enormous repercussions. This is also true with AIG. So, as I undoubtably feel like you do, Aunt Carrie, I don't see another possible solution. We're essentially paying for what the government chose to overlook because it was in the best interest of their wallets and their lobbyists. We need to make not only the government accountable for their actions, but Wall Street. There can't be any more loss of public trust in the market, or I'm afraid that it will crash. We need to hold leaders accountable. There is only one candidate promising to bring transparency to the budget, to Wall Street, and to Legislation. There is only one candidate that saw this housing crisis coming, and tried to do something about it. Also, there is only one candidate that put his self interests first, rather than his country when he ignored the crisis so he could line his pockets for his Presidential run.

It's time to put "Country First".

2 comments:

Jock said...

Are you or McCain running for president?

From what I understand Obama took over $500,000 in political money from Fannie and Freddie and McCain took $150,000. McCain isn't squeaky clean in this mess either.

Peej said...

At least he introduced the legislation to reverse the cause of the problem.