My husband and I listened to President Bush's speech last night on the Bail Out Plan. His speech detailed the sad plight of many homeowners who are in danger of losing homes because of bad decisions made by the bank, an overabundance of adjustable rate mortgages that suddenly experienced an interest increase, hopeful speculation, and the endless packaging and repackaging of these loans by financial institutions.
President Bush sounded very sympathetic and like he understood the situation quite well. He even explained how normally, he doesn't believe in government interference in business but because this is such a huge crises, he wants to make an exception. But if you are one of the few people who have actually been following this financial crises, you would have noticed several untruths in his speech as well as faulty logic of his main premise. The capitalist system works because bad businesses fail, ane good businesses thrive over time. If we spend $700,000,000,000.00 to prop up bad businesses, how will that rescue our capitalist economy?
First of all, these repackaged loans were NOT guaranteed by the government and the taxpayers do not owe the financial institutions who purchased them a DIME.
Second, most people who are in foreclosure are NOT going to be able to repay their mortgages, so the federal government will NEVER be receiving those monies from the bail out back. The bankers and financiers have long recognized that these securities are absolutely worthless or nearly worthless, that's why nobody in the world is willing to buy them at any price.
Third, How will getting this country in MORE debt ever help us to get out of it when it is DEBT that got us into this mess? It is not a viable solution to borrow money from Peter to pay Paul. (But if your buddy is Paul, perhaps Peter won't mind too much.)
Fourth, the President did not mention the negative effects of this $700,000,000,000.00 increase to our national debt. He did not mention the threat of a dramatic increase of inflation. He did not mention that the government would certainly not be able to afford to increase funding to support a soon to be bankrupt social security and medicaire systems. He did not mention that we would have a more difficult time funding our already underfunded military services. He did not mention that this increase in spending will inevitably lead to a increased taxes.
Fifth, the President neglected to mention that Paulson and Bernanke have admitted that even this massive bailout may not even work!
Not sure what the big Bru-ha-ha is all about? Watch this video:
http://tw.youtube.com/watch?v=mbD62gNi9WE
What can you do?
Contact your representative and senator today and let them know that it is time to end the Federal Reserve's stranglehold
on our economic future! Tell them to reject the Paulson and Bernanke plan to prop up reckless banks at your expense.
Our reps are getting barraged with phone calls and e-mails asking them to vote "NO" but may STILL approve this plan in spite of the overwhelming response against it. In time, we can turn our economy around and secure our children and grandchildren's economic futures. But we must take action NOW! Don't sit back and let the bankers steal everything you have worked for.
Capitol Hill switchboard - (202) 224-3121, ask for your representative or senator's office.
Visit www.house.gov and www.senate.gov to find the websites of your representative and senator.
P.S. Make sure you send this email to everyone you know, and encourage them to take action now before our tax dollars are given away.
