'nuff said!
Posted on 09/24/2008 6:48:06 PM PDT by Kaslin
Members of Congress are being exhorted to stampede, like lemmings in reverse, away from a postulated cliff.
But some of the economic geographers who say they know that the cliff is there, and that the economy will plunge over it if Congress stops to think before empowering the secretary of the Treasury to control the flow of capital through the veins of American capitalism, are some of those experts who said in March that prophylactic federal intervention in the matter of Bear Stearns was necessary to contain the crisis.
Everything that has been done for the last six months has been done to cope with what previous actions were supposed to prevent. A perhaps pertinent axiom: There is no education in the second kick of a mule.
The essence of this crisis is lack of knowledge, including the inability to know who owes what to whom, and where risk resides. In such a moment, government's speed should not vary inversely with its information.
With government's prestige, measured by approval ratings of the president and Congress, at a historic low, government is taking on unprecedented responsibilities. Henry Paulson, aka The Fourth Branch of Government, is intelligent and indefatigable and has as much pertinent experience as could be hoped for. But no one has ever had much experience that is pertinent to the tasks that would be assigned to him by the three-page legislation that would give him almost complete discretion over at least $700 billion.
(Excerpt) Read more at ibdeditorials.com ...
Whoever’s posting these IBD editorials...keep them coming.
One thing that must be done:
No more gov’t backed home loans for poor people who clearly cannot afford them.
In the end, taxpayers get stuck with the bill.
Obama needs to be asked if he still supports the system of giving home loans to people that cannot afford them.
What’s the big deal? The Treasury owns the mints and printing presses, right? They have an unending supply of money.
If Obama wins and his tax increase passes, I will refuse to pay taxes. The government can play hide and go screw.
Where is the capital going to come from? Without capital, business grinds to a screeching halt and the economy completely tanks.
Where will it come from?
where we have been sending it. China. They in turn use it to finance Bush’s deficit. Bush talked trash about China his first year, has been quiet since.
He will get a big fat check for his first speech in China in 2009. Job well done, well paid.
but now they won’t demand paper, but American property.
At best, we're looking at a depression. At worst, possibly at America ceasing to exist and this republic becoming a larger, more famished and Stalinist North Korea.
I have no doubt Barack would make a bad situation infinitely worse, but this issue is going to totally consume the presidency of whichever candidate wins in November. Sadly, a weakened America will also be seen as a more vulnerable America to our enemies.
For the religious among us, it is time to start praying in earnest.
Does anyone thing 1 Trillion Will make a difference.
I don't.
FWIW, In getting ready for this winter (in Alaska - that is a job & 1/2)
I did notice that long term food storage (Dehydrated foods in bulk) now have a 12 to 15 week delivery lead time. Freeze dried food in bulk is now almost impossible to order for quick delivery. Does someone know something we don't?
When everybody else is selling pencils and apples on street corners, government “workers” as well as the politicians and their extended families, will still be collecting their salaries, per diems, pensions, overtime, “sick days”, vacation pay, government-issued SUVs (plus gas) and full health and dental care benefits. And the parasites will still be getting their welfare, food stamps, SSI “crazy checks”, and Section 8 subsidies.
Make no mistake about it.
Oh for cripes sake!
We know who owes what to whom. It's on the 10K's , balance sheets and what have you.
The problem is that it will bring down the house if it is not stopped.
It's not a matter of easing the punishment someone or some company for making a bad choice. It's a matter of trying to keep the rot from getting to main street.
These companies, if they decide to sell off securities to the fed, are very likely to fail or near fail.
The bad paper which in time will not be all that bad, is bringing down the system now. That what they are trying like hell to address before it goes critical mass, which it may well do anyway because this has been delayed too long.
I'm almost certain there will be a nuclear attack, possibly several, on our own soil before I either die or turn 40 (which ever comes first). At this point it probably won't matter who wins in November...
For the religious among us, it is time to start praying in earnest.
For the non-religious such as myself, well it's probably going to be too late. Hopefully the famines and starvation will hit us last.
Washington wants to use this crisis to exert greater control over the private sector. The Community Reinvestment Act that mandates loans to poor borrowers will have us bailing out the economy again. Even if this new control system works to stem the tide of financial ruin, American free enterprise will cease to be free. The old Soviets appear to have won in the end.
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