Bailout Plan
The Wall Street's Biggest Bailout Scam Ever 
In today's political financial environment, it starts to become a little hazy whether we've avoided an economical crisis by not passing the biggest bailout plan in history, or whether we're still headed for an even worse market crash. Press reports have praised the work of Treasury Secretary Henry Paulson and Congress for diverting the economy from what they would have us believe is a new version of the Great Depression. "I believe that banking institutions are more dangerous than standing armies....
If the American People ever allow private banks to control the issue of currency...the banks and corporations that will grow up around them will deprive the people of their property until their children wake up homeless on the continent their fathers conquered"
The Nations Biggest Bailout Plan in History Anyone who knows something about politics understands that trying to get a bill passed is like playing a grown up version of telephone, you may not get out what you put in. Here is what we know so far. While the bailout plan has been dubbed the "son of RTC", referencing the independent Resolution Trust Corporation that bought the assets of failed savings and loans in the 1980s, it will be very different from the RTC.
While the RTC took the assets of defunct savings and loans, wiping out shareholders, The Paulson plan is looking to protect Wall Street. The U.S. Treasury Secretary Paulson wants Congress to hand him $700 billion dollars to hand out to whom he chooses, with no oversite or accountability to no one. He will then supposedly buy as much in toxic assets from institutions (that are still solvent) as he can. Shareholders in the bailout plan firms will have their equity cut, but not destroyed, but they'll make up the minor losses with obscene million dollar benefits packages. Unfortunately, this will protect the same corporate dynasties that ran many of these firms into the ground with excess leverage, greed,corruption and out right fraud and theft. It also moves these depreciating assets onto the balance sheet of the U.S. government. By holding "reverse auctions," the Treasury plans to buy these loan portfolios from multiple banks. But the greatest danger is government officers buying assets that no one understands. How much they are really worth? Banks could offload non-performing assets with larger risks than currently
disclosed. In my opinion, the wholesale nationalization of much of the banking and mortgage market sets a bad precedent. And the plan's insuring of money-market funds guarantees managers taking more risks will climb and the due diligence of the buyers will fly out the window. Before long, all of Wall Street and big businesses will be selling bad assets here. America has over 200 years of bankruptcy law that should be governing these transactions. If managers who accumulated too much risk by not adequately qualifying lenders are allowed to continue in their jobs, we are doing a disfavor to the intelligent managers who accepted lower returns for more prudent lending practices. I believe the shareholders and executives at these mismanaged firms should be wiped out. These investments have clearly failed, and management, the CEO's, Paulson, and Congress is to blame. We the American people however are not without blame in this matter either. By we the American people sit idly by and doing nothing to stop the incompetent, negligent, indeed outright corrupt politicians in Washington, we the American people are complicent in the distruction of our economy. Bailout Plan By allowing these banks to be wiped out, it allows new managers and companies to fill the void. This type of creative destruction,however painful,(especially to the wealthy elite) always strengthens the economy in the long run. Basically what Congress is trying to do is spend billions, even trillions of dollars to fix the roof of a collapsing house. For example: You own a house, you've ignored it for years. Now you can't ignore it any more... it's starting to collapse,you have to fix it. Your house has two major problems:
1) A crumbling foundation. 2) A weak and sagging roof. Which do you fix first? Obviously, you fix the foundation first, because without a solid foundation, no matter how much money you put into the roof, the house is going to collapse anyway! And that is what Congress, Bush, Paulson, Bernanke and Nancy "I'll promise everything and do nothing" Pelosi are trying to do. They want to invest billions of taxpayer dollars into fixing the roof (wall street's elite) and ignor the foundation, (the housing market). By doing this, the house (the economy), is going to collapse. No matter how much money they put into the roof, (wall street), the economy won't be able to hold the weight and will collapse! The only real way to fix this problem is to fix the foundation, (the housing market). By fixing the crumbling housing market, and bailingout victims of the criminally corrupt banking and mortgage industry, we will save billions and the market will be able to start to stablize, and maybe even start to grow again. Congressman Louis McFadden wrote: "A world Banking System was being set up here...A superstate controlled by international bankers...acting together to enslave the world for their own pleasure. The Fed has usurped the government."
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