My gov't is buying banks.
WHAT!!!
I am disgusted with the bailout plan. There was a cabal of financial executives that developed a complex plan to create value when there was none and that plan collapsed. Now, rather than closing those companies and imprisoning those people that understood how bad this would be and still signed off on it, we are propping up their business with tax dollars. But, not even tax dollars. We are doing it by issuing treasury bonds which means that we are mortgaging the future of our children to bailout people that defrauded us because they ran organizations that were "too big to fail". McCain and Obama have coddled this bailout as a measure to stop the downslide of our economy. I have news for them. The economy will rid itself of non-value regardless of how much money we pump into fraudulent companies. It will just take longer and we will suffer for a longer amount of time. Someone needs to read some Machiavelli and realize that if you have to do distasteful things, get them all done at once and then work on rebuilding. People can forget a single disastrous blow but long drawn out suffering breeds contempt and resentment. Just ask Bush. There is a reason that he is the least favored president in US history.
Back to the bank thing. Paulson rounded up execs from the top banks and extorted them to sign the agreement to allow the treasury to purchase their stock. The CEO of Wells Fargo objected to the plan(probably because his bank managed to steer clear of the tempting ponzi scheme which was being peddled on Wall St.) and the response given was something like "if you don't sign now, the Gov't may not be so generous later". Why didn't Paulson just tell Rocco to take them out for a walk by the pier? Hopefully, I will be proven wrong, but I am not happy about the way this bailout plan is shaking out. It seems more like a shakedown to me.
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4 comments:
I agree totally. I work for a small business that, realistically, is looking at tax increases pretty much no matter who the next president is, and we are going to suffer from less business because of all the layoffs in the financial industry here in NYC. We have a hard time making ends meet as it is. Where is our bailout?
Even more frustrating is that a lot of the CEOs of these failing companies are walking with severance packages that would set anyone for life.
My thing is...what about the individuals who made wise financial decisions all along and who don't NEED to be bailed out? I bought a house that I could afford. I have made every payment on time...now this house is sitting on the market (since May) and only about 5 people have even come to look at it because people (even those who may be responsible) cannot qualify as first-time homebuyers anymore...so I cannot sell my house to purchase something better that would still be within my budget. It's the responsible people who actually lose.
I agree Carrie, you lose. I lose. And the people who made irresponsible decisions don't realize the impact of their decisions and are more likely to commit similar mistakes in the future.
Preach it brother!!!!
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