The financial bailout finally has taken form and is expected to be voted on Monday, September 29. After its initial draft was thankfully rejected by House Republicans, this fiscal blow-up doll is on its way to becoming law.
It is hard to say what its final effect will be; nobody really knows. Both Obama and McCain have given their tentative blessing, and the package is expected to offer grease to the creaking wheels of credit. We shall see. The same basic idea was used in the savings-and-loan bailout of the 1980s. The Resolution Trust Corporation did a decent job in that instance.
The $700 billion will be broken into chunks, which is a good idea. Why give the government its whole allowance when you don’t know how the money is going to spent in the first place?
Otherwise, McCain and the Republicans helped to craft sound provisions that would protect the taxpayer by
*insuring some loans rather than buying them; *requiring that financial firms repay the government for losses; and *giving the government stock warrants in the aided firms in return for bailout help so that taxpayers can reap any rewards.
These are common-sense provisions that hold private business responsible for its actions.
Republicans also removed two of the most shameful parts of the bailout slipped in by Democrats. One involved a ‘mortgage cramdown’ provision which would have allowed courts to make decisions about mortgage payments, politicizing financial transactions and giving a sop to the Democrat trial lawyers. Meanwhile liberal judges could have used the provision to weaken private banks.
The most reprehensible provision removed was a Democrat attempt to funnel 20% of any profit from the bailout to the derelict and corrupt far-left urban voter registration group ACORN, which has been convicted on several occasions for fraudulent practices and is suspected in many other cases across the nation.
Who once acted as legal counsel and a trainer for ACORN?
The Democrats are portraying the bailout as a life saver for “conservative” and “Republican” Wall Street. But Wall Street today is very liberal, and two of the most corrupt organizations involved in this mortgage meltdown are Fannie Mae and Freddie Mac, agencies set up by Democrats for Democrat social goals, and manned exclusively by Democrats. So don’t let the “Wall Street” rhetoric fool you.
This bill is going to add to our public debt, and it is important to remember that all public debt is socialist in nature. While “the poor” could be much better cared for by state and local governments and by private and religious charities at much lower costs, the only real responsibility of the federal government is to defend the nation, which means that the federal budget should be roughly the size of the defense budget. But today, the federal budget (more than $3 trillion) is six times bigger than the defense budget and we now live in a handout state controlled in large part by Democrat politicians, college professors, the media, urban political machines, utopian social activists and the like.
This entire mortgage meltdown comes out of this same entitlement culture that has given us our huge national debt. When banks are pressured under socialism into making loans to people with no credit history, the trouble begins. And it spreads.
Then it moves into the middle class, just as handout programs started with the poor and then have moved into the middle class. Soon, the middle class comes to believe that the government is their savior, when the handouts in fact are nothing but a transfer of wealth from one person to another under the supervision of the Democrat party, which always takes a big percentage for itself as a ‘commission’.
This type of wealth transfer has created our $50 trillion Social Security debt and our $10 trillion national debt both of which the Founding Fathers warned against. They knew well the power of taxation to control the people, the idea that our Revolution was fought to defend against.
George Washington spoke about debt as an enemy of freedom: “No pecuniary consideration is more urgent than the regular redemption and discharge of the public debt; on none can delay be more injurious.”
Said Thomas Jefferson: “If we can prevent the government from wasting the labors of the people, under the pretense of taking care of them, they must become happy.”
The Founders of our nation were not materialistic wastrels. They were humble men who eschewed lives of relative ease because they believed in their noble cause and in the power of the people to create their own economic well-being without being consumed by it. They rejected the urbanized, decadent, socialistic and materialistic societies that thrived in Europe to the detriment of the common man. In fact, money-loving New York City was a hotbed of pro-British, anti-Revolutionary sentiment.
But after centuries of social engineering, and the substitution of atheist materialism for dignified and liberating free-market prosperity, the Founders would never recognize our nation today.
Where does our materialism come from?
It is an urban, anti-Christian and un-virtuous trait based in instant gratification. In other words, the love of money and of material things comes out of the heart of the Democrat party power base. No one could rightly say that the love of money is conservative and rural, or middle class and religious in the way that it represents New York or San Francisco thinking.
Liberals love money more than any other people, and their love of money and material objects (think Hollywood) has corrupted our society. Over the last 50 years, normally level-headed Americans have joined in that love, urged on by the urban media that also advocates selfishness, adultery and moral relativism. Most recently millions of middle-class people took out loans in order to “get in on” the housing boom. They were swept up in a tidal wave of greed and were extended easy credit by the entitlement mentality that originated in a big government and has infiltrated our banking system. Slogans like “a penny saved is a penny earned” by Benjamin Franklin would be laughed off of Fifth Avenue in New York City today.
We must be sure never to make the same mistakes again. When asked in the recent debate what effect the credit crisis might have on his administration’s spending plans, McCain suggested a spending freeze while Obama balked and fell back on the Democrat talking point to “invest in education” which is code for throwing more money at the failed public education bureaucracy. Obama literally could not bring himself to talk about thrift. Democrats never can.
We must learn from this fiasco and start today to cut back government spending across the board, stop making everyone feel that they are entitled to anything, stop substituting “needs” for “rights”, become thankful for our freedoms, and appreciate the simple but powerful concepts on which our nation was founded. If we do not learn, we will careen farther into state socialism, and lose our liberty, all for a few pieces of silver.
Please visit my website at www.nikitas3.com for more common sense.