WHY THE GOVERNMENT WON'T SOLVE THE CREDIT CRISIS
Yesterday I posted how the Government could solve the credit crisis
http://www.talkingpointsmemo.com/talk/blogs/resistance/2008/11/the-government-could-end-the-c.php
Interesting article tells you why they won't.
An excerpt
DJ: Why isn't anyone listening to these ideas?
CC: The point is that they have made huge errors in the design of their assistance plan and they were forecastable errors.
For instance, Paulson doesn't want there to be a stigma [around capital injections.] Does he really believe that by getting J.P. Morgan to participate, he creates the perception that JPM and Citi are the same?
Does he really believe that injecting preferred stock into banks is socialism but buying assets at above market price isn't? Does he really believe that?
There actually is a stock of knowledge about this. The scandal is that when Congress has been considering this, not one independent economist has been allowed to testify. Do you know why they weren't? Paulson and Bernanke didn't want anyone causing problems.
DJ: Wait, that sounds like a conspiracy.
CC: Democrats didn't want anyone [economists] testifying because it was before an election and no one was willing to stand before that bulldozer known as Paulson. No one wanted to make tough political decision before the election. They didn't empower any experts to come in and testify. Why is that? They were playing politics, too. That's what we're dealing with-a complete leadership failure in Congress and the administration.
Don't underestimate the role of politics in the decision not to fix things.
Permalink | Trackback
URL: http://blogs.wsj.com/deals/2008/11/25/the-paulson-plan-truly-idiotic/trackback/
It's clear that they are so out of touch with reality they believe their job is to service the needs of the crooks who caused the crisis first. They don't understand nor do they feel obligated to address the needs of the citizens despite the fact that it would put an immediate stop to the forclosure crisis and inject trillions into the economy while guaranteeing all the money being loaned out will be repaid to Uncle Sam unlike the bailout money that is simply a loss for us all. They do not understand that the real problem is that the American people are being bled dry and are at the economic breaking point. But the little people have no voice and do not have the ear of either party in Washington which is a sad, sad statement indeed.
November 26, 2008 9:53 AM | Reply | Permalink
Hopefully President Obama delivers his promise of Change.
Before the election the Congress as a whole had some of the worst favorable ratings, that included the Democrats.
The Democrats gained because of Obama's coattails.
Hopefully Obama's grass roots organization can exert pressure on all members of Congress.
Obama's approval rating will definitely rise if he points out which Representatives were supporting the crooks at the expense of the People.
It's up to WE THE PEOPLE to keep the heat on, staying involved and not becoming complacent, until the next election cycle.
Those parties robbing the treasury now, should know, there’d be a price to pay, maybe not today but expect to pay.
While Bush and his cronies, are supporting their backers, at the expense of the middle class. We must not forget the harm caused.
It really peeves me when I hear people say" The Government is loaning the Banks the money and the Government will receive interest back from the bank, maybe even possibly the government will receive a profit. DOH!
Whoopee, the Government could have asked for 25% interest back. It's WE THE PEOPLE who'll be paying the banks higher rates across the board.
Why is there such a disconnect. The banks can only pay back the Government through collecting or making income themselves.
HOW DO BANKS MAKE INCOME?
November 26, 2008 12:36 PM | Reply | Permalink