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Bailing Out a Sinking Ship:
Throw the Passengers Overboard
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Bailing Out a Sinking Ship: Throw the Passengers Overboard
NATION - 9/26/2008
By Pete Hurrey - Commentary
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Consider the following facts: orders for big-ticket manufactured goods plunged in August by the largest amount in seven months, new applications for unemployment benefits are at their highest level in seven years, new home sales tumbled in August to the slowest pace in 17 years, the average home sales price fell by the largest amount on record, the federal government recently purchased most of Fannie Mae and Freddie Mac. Now consider the fact that after Treasury purchased the two largest holders of home mortgages and President Bush announced the U.S. would not bail out Wall Street firms, Bear Sterns, Lehman Brothers and others foundered. Finally consider that President Bush is now seeking additional $700 billion – a debt burden of $2,000 for every resident of the United States – to purchase troubled assets from financial institutions in an effort to salvage what is left of the U.S. economy. One might conclude that the effort to bail out the U.S. economy may be too little, too late to do any meaningful good for the Americans who need the most help – average taxpaying citizens, the vast majority of whom had nothing to do with the current financial melt down but will bear the brunt of the costs required to salvage any hope. In short, the poor are rescuing the rich few who have spent their efforts to line their own pockets on the backs of middle-Americans. In this economy, there is no industrial revolution that is creating new jobs and opening new opportunities for Americans willing to work, pay taxes, buy homes and cars, raise the country’s youth and preserve the environment. There is the beginning of a notion that the economy may be saved by converting to “green” construction, alternative and renewable power and reducing the carbon introduced into the environment. However, even green pundits admit the process will take decades to pay significant dividends without a substantial investment – regardless of how many new jobs are created in the process. On Tuesday, Sept. 22 on the floor of the Senate, Barbara Mikulski (D-Md.) said, “… This proposal gives sweeping authority to those who were asleep at the switch in the first place. Remember the Fed? Remember the maestro at the Fed who lowered interest rates? And now, we have helped create the housing bubble? Then there’s the treasury. There’s the secretary of the treasury. A couple of months ago he said ‘no problem.’ Then a couple months the saying was: ‘Oh, there is a problem,’ and we lumped (jumped) from one bailout to another. Bear Stearns, the insurance company, and now to Lehman and that failed. We’ve gone from no problem, to lumping (jumping) around, to now $700 billion and a blank check. We’ve seen those George Bush plans before.” To be certain the United States is poised on the brink of financial disaster and something must be done. There is no disagreement in Washington or on the campaign trail or on the Senate floor. However, the only people who will end up paying the ultimate bill and who will be forced to carry an additional debt burden, which will be passed on to children and future generations, are the only people not being consulted buy those elected to protect them. A final question might be: “Who will protect the people from their elected officials?” |
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