The Name of the Game is “Bailout”
Instead of Monopoly, U.S. Treasury Secretary Henry Paulson and Federal Reserve Chairman, Ben Bernanke should patent a new board game called “Bailout.”
American’s should be concerned about the game of “bailout” being played by the Fed, the U.S. Treasury, and the Lords of High Finance (aka. Wall Street). It is quite evident that big money was pocketed by the Wall Street alchemists who created and perpetuated this artificial bubble in our housing and credit markets. Of course, the Federal Reserve enabled the racket with its massive monetary expansion campaign since the turn of the century.
Now the U.S Treasury, in partnership with the Federal Reserve, has overstepped its boundaries by planning to tap the American taxpayer for the cost of rescuing financial institutions that acted irresponsibly, immorally, and, in many cases, illegally. As a side note, I wonder if the $200 million executive golden parachute packages are included in the $700 billion invoice?
In my opinion, enterprising, hard working Americans have much to lose and little to gain from salvaging greedy financial institutions. The plan may re-capitalize some banks, but it will not bring any lasting relief to American homeowners, consumers, and tax payers. On the contrary, it will shift more wealth from Main Street to Wall Street by privatizing the gains and socializing the losses of the mortgage market. Worse yet, if the plan is approved by the legislature, it will send a message that poor business conduct bears no consequence, and it will encourage more of the same behavior. If our leaders approve this plan, what’s left of our capitalist system could be in serious jeopardy.
Our leaders assume we will approve their profligate spending as long as tax rates don’t escalate. Spending $700 billion without raising taxes would be a grand illusion, but don’t be deceived. The Federal Government doesn’t have to levy higher taxes to extract its pound of flesh. The hidden tax called “inflation” has been our government’s extraction instrument of choice for many years. Our leaders will simply print money for their programs at the expense of your future purchasing power. For politicians, it’s a better solution than raising our taxes. Congressional leaders can continue their unfettered spending without immediate backlash from constituents.
Let’s watch the legislative branch to see if our representatives will be complicit in this scheme by authorizing limitless powers and a blank check to the Federal Reserve and the U.S. Treasury. It will be interesting to find out whether our congressmen and senators will represent us or simply hang us out to dry.
Voice your concerns to your Senators and Congressmen ASAP. For north Texans, Sen. Kaye Bailey Hutchison, Sen. John Cornyn, Rep. Pete Sessions. You can write them online.
