Uncle Sam Nears a Massive Banking, Housing Bailout

Fed Mortgage Bailout (Cop-out)

Just great. The concept of entitlement has become so entrenched in the national psyche that we're now faced with bailing out homeowners who made poor decisions and rewarding lenders who made stratospheric profits. It's insane. Where does it end?

I took none of the risks, got none of the rewards and now I and every other hard-working, and in many cases, struggling taxpayer, am expected to pay for it all? It's b.s. and a system that isn't sustainable. It is truly crazy.

Let the chips fall where they may. We need to get back to higher savings rates, spending within our means and taking the long view toward sustainable growth. No country in history has ever 'spent' its way into prosperity. And we won't either.

John in Florida of FL @ Mar 18, 2008 14:11:10 PM

The federal Reserve Should Be Abolished

In Article I, Section 8 of the U.S. Constitution, the people of the United States granted Congress the power "to coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures.” The people never gave congress the constitutional power to delegate this money-creating and regulating responsibility to any private group. Yet this is exactly what the Federal Reserve Act of 1913 did. The bill was publicly promoted as a plan to reform the nation's monetary system and stabilize the currency by taking control of it out of the hands of big bankers. In reality, of course, the Federal Reserve Act was written by the big bankers for the purpose of solidifying their control over our currency.

Many Americans today wrongfully believe that the Federal Reserve is somehow part of the federal government, possibly even the Treasury Department. Many do not know that the Federal Reserve is actually a cartel of private banks that was given the power to be the sole issuer of U.S. money, with full control over its quantity and thus its value. Since this group of private bankers (the Fed) provides credit to the U.S. government when we spend money we don’t have, the Fed also is able to profit handsomely from the ever-increasing national debt. Because the Fed makes more money when the country goes deeper into debt, there is no incentive for the Fed to support any reductions in federal deficit spending. The more credit we need, the more money this cartel of private banks will make.

The actions the Fed takes can drastically affect the economy simply by making decisions about the money supply and interest rates. The president, congress, big business, investors, home buyers and anyone else with an interest in our economy waits with baited breath every time the Federal Reserve Board meets. If they decide to raise interest rates, politicians and industries could fall, homes might not be purchased and jobs could be lost. If the Fed decides to lower the interest rates, politicians, industries, investors and consumers may prosper. There is too much power vested in a handful of people whose names would not be recognized by most Americans.

Why do we allow such a small group of people on the Federal Reserve Board to wield so much power over our country’s economic well-being? As average Americans strive to earn a living, cope with rising costs of food, fuel and hopefully save or invest for the future, Congress and the Federal Reserve Bank are working insidiously against them. On a daily basis, every dollar they have is being devalued.

Even though most Americans seem unaware of the current plight of the US dollar, especially in relation to the Euro, there is definitely a dollar crisis in the world economy because of the immense size of the international debt of America. America has now become the largest debtor in history, owing somewhere between $70 and $100 Trillion. The reckless deficit spending by our government, coupled with Federal Reserve currency devaluation, has become one of the greatest threats facing America today. Because Congress is routinely spending more than it can tax or borrow and the Fed is routinely printing “Fiat Money” (Dollars backed by nothing) out of thin air to make up the difference, this classic “one-two punch” threatens to further destroy the value of our dollars.

The actions of both major political parties would seem to indicate that they want the Fed to print more “Fiat Money” to support their extravagant and unchecked spending habits. Most politicians want the printing presses to run faster and faster, create more credit, issue rebate checks, etc., so that the economy will somehow be magically healed by this dangerous financial potion, or so they believe. The President and members of Congress may love a system that generates more and more money for their special interest projects and earmarks, but the rest of us have good reason to be concerned about our monetary system and the future value of our American dollars.

Issuing “Fiat Money” has allowed our government to live well beyond its means, but that practice cannot continue much longer as it is slowly destroying the value of our dollars. History shows us that when the destruction of monetary value becomes rampant, as the actions of our congress and the Fed would indicate, nearly everyone suffers and both the economic and political structure becomes unstable. The Federal Reserve System has been the tool used by the major bankers to allow them to gain control over the smaller regional and local banks. The Fed has also acted as the financing agency for Congress' unprecedented deficit spending on an ever growing, more intrusive federal bureaucracy and the expansion of the welfare state. Some people believe that the private bankers in the Federal Reserve wield so much power that they can intentionally manipulate the economy in order to influence the results of our presidential elections.

Our government and the American people do not need the help of any private banking cartel to manage our monetary system. We need to repeal the Federal Reserve Act and return control of our currency to Congress where it belongs, as was the intent of our Founders. We also need to have a serious national discussion about how real currency reform can be achieved. As long as the private bankers in the Federal Reserve have control over our nation's money, Congress' control of the purse-strings will not have the benefits the country’s Founders intended.

I support legislation introduced by Congressman Ron Paul, of Texas, entitled “Federal Reserve Board Abolition Act (H.R. 2755) that will restore financial stability to America's economy by abolishing the Federal Reserve.

REF: H.R. 2755: Federal Reserve Board Abolition Act

http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.2755:

By:

JOHN W. WALLACE

Candidate for Congress

New York’s 20th Congressional District

www.FreedomCandidate.com

John Wallace of NY @ Mar 16, 2008 20:58:24 PM

when has this ever worked?

This can't be good any way you look at it. If a bailout does eventually come and prices stabilize, the government will be so deep in our pockets that home prices will stagnate for years to come. Either they will let prices fall and the market will rebound or they will price fix and we are doomed. Can you imagine a government that we pay our mortgage to? In another time we would be throwing tea in the harbor to protect our freedom, now we just roll over and ask for more.

Eric of CA @ Mar 16, 2008 13:53:44 PM

lose-lose

There is one thing that stands out like the proverbial dogs ba@@s: the market failed and the regulators failed. The losers are not merely those who lose their houses or the retirement incomes; they include all other home-owners who are seeing the value and marketability of their houses evaporate; and all kinds of borrowers - from individuals to large cities - who have to pay more to get loans, regardless of their credit history.

The authorities deserve an enormous kick for failing to stop this long ago.

blindoptimist of WA @ Mar 16, 2008 09:31:11 AM

BOHICA

For the past decade and more the financial press has regaled readers with the tremendous bonuses paid to Wall Streeters and fund managers, yet it always seems that those bonuses are really back-stopped by the full-faith-and-credit of the American tax payer who is about to get screwed - once again - in order to keep the financial markets from collapsing. Isn't this getting a little old? I think its high time for a little welfare reform for the hedge funds and investment banks: let them drown in their own red ink.

Mark W Scott of NJ @ Mar 15, 2008 14:31:29 PM

Government Stupidity

Bailing out the stupid, the venal, and the ignorant will only encourage more stupidity, venality and ignorance. Our tax dollars at work. I guess the wall street types only believe in free markets when their pockets are full. No Government bailouts! Let them bleed. Our economy will be better off in the long run.

foutsc of CO @ Mar 15, 2008 13:59:01 PM

We can stop this!!!!

It seems to me that most of the American people are AGAINST a bailout. Its the politicians pushing this (and the bankers).

We need a movement to stop the bailouts. I know that there will be two new websites soon with more information on this:

stopthehousingbailout.com and stopthemortgagebailout.com.

Also, there are these two petitions.

http://www.petitiononline.com/bailout/petition.html

http://www.petitiononline.com/Bailout/petition.html (pledge not to contribute to politicians supporting a bailout)

Don't just complain; do something!!!!!!!

Stop The Housing Bailout of CA @ Mar 15, 2008 13:54:12 PM

More Bail outs

Wouldn't it be great to call your bank and tell them that I can't afford my car loan, so I'll send you something I can afford instead. The same for my student loan and my cable bill.

Mike of NY @ Mar 15, 2008 13:00:17 PM