Credit to the House Republicans who refused to vote for a bad stimulus bill. It saves the Republican base the trouble of burning them at the stake when they get home to their districts. (This is something that Democrats should remember. Conservatives have a deeply seated philosophical objection to “stimulus” bills and a refusal to support them is not meant as disrespect to the Chief Executive). It’s a pity they didn’t torpedo the bailout bill when they had the chance. It was spineless and a betrayal of principle.
I have heard this week that President Obama is a little hot under the collar over the billion dollar bank bonuses – as he rightly should be. However, had the government done the right thing last year and let the banks go under and auctioned off their assets to the highest bidder (i.e. responsible banks) not only would there be loans going out, the taxpayers wouldn’t be on the hook for the money, and these bozos wouldn’t be giving bonuses out comprised of taxpayer money.
They say that they have to give the big bonuses to keep their best people. I want to know, are these the same geniuses that suggested buying up securities comprised of loans that were made to people who statistically don’t pay them back?
The bottom line is that the money from the first bailout was squandered. It didn’t do what it was proclaimed to do. The naysayers were right. Obviously, we can’t recover the first $350 billion dollars, it’s gone, and the Treasury department has no idea where it is, the Fed has no idea where it is, and the answer is surely not forthcoming from the banks. What we can do, and what we must do, is refuse to give any more taxpayer dollars to these boondoggles. The banks who took the taxpayer money should be audited, and anything amiss should be prosecuted. Any banks that are put out of business should be liquidated and purchased by banks with responsible management. With new assets at bargain basement prices, these banks will be able to make loans. With the market corrected for the grievous gaming that was done in the late ’90’s through the mid 2000s we can move forward.
If, on the other hand, we continue to move foward with the President’s stimulus plan, we will inflate our way out of debt, yes, but we will also have a currency that is worthless. And while the implications of this are disastrous for us here, the Dollar is held by so many countries and used as a standard in international trade that a collapse of the dollar will throw many countries into a depression and bring the world markets to chaos.
The United States of America must get it’s house in order. It’s time to balance the budget, and it’s time to address the trade deficit we run with China to mask the costs of environmentalism and all the other isms that the government enforces. We’ve been living on borrowed time and borrowed money for years. It’s time to suck it up and act like Americans.