More Bailout News!

Just as with everything government does the bailout situation is getting out of hand. It's hard to even keep up with how much money our government is spending. The government already voted for a $700-$850 billion dollar bailout. It looks like in the end they will pump a $25 billion dollar loan into the auto industry, and we may be in for another $800 billion dollar bailout with Obama wanting another $500 billion dollar bailout in stimulus for taxpayers. Ok guys, if you do the addition that's $2.1 trillion dollars. When Bush took office, the debt was about $5 trillion, it was going to be around $9-10 trillion after Bush's failed "war on terror" but by the middle of 2009 it looks like the national debt will be around the $12-13 trillion mark. I included a link from CNN below so you can see the confusing breakdown of money spent so far.

The economy is going to struggle in Obama's first term because he is proposing many of the same failed idea's that FDR proposed in his New Deal. Obama and the media refuse to understand that the governments revenues goes up when Capital Gains tax is lowered, and if a cut in government spending is coupled with lowered taxes the economy will reap great benefits. Obama also refuses to believe that redistribution of wealth is a Socialist prinicple. And this guy is supposed to be the savior of America? Forgive my lack of faith.

http://money.cnn.com/2008/11/25/news/economy/where_bailout_stands/index.htm?cnn=yes

Yours in Liberty,
Nate

Who Will Bailout the Government?

I have been musing over the fighting, and whoopla now seen in the media over the Auto bailout. It was easy for Washington to decide to throw $700 billion {actually more like $850 billion} to the wind, but now we're fighting over a measly $25 billion. Something to consider is that Washington {politicians} want to see a "business plan" for success from the automakers. There are two things here that are funny or just downright stupid. First, why should we believe the Politicians will know what a "successful" business plan is. Remember these guys can't even run our government, and why should I trust them to know what a "successful" business plan is? Second, they didn't ask the banks for a business plan to ensure that the banks are set to be "successful" in the future. So why are they descriminating against the auto makers? My theory is that we all know the banking cartel in this country, headed by the Federal Reserve, is broken. The Fed knows this and they continually lie to Washington. The only plan to get the banking industry back on track is to abolish the Federal Reserve and return to the gold standard. So of course, Washington didn't want to open that can of worms. It's just comical to see the stupidity of the media and Washington. It's the blind leading the blind!

Yours in Liberty,
Nathan

Bailout or Socialism?

Fannie Mae and Freddie Mac are bankrupt. Lehman Brothers filed Chapter 11, AIG borrowed $85 Billion from the Federal Reserve, Merrill Lynch lost $8.4 Billion and was sold to Bank of America, and IndyMac the US's largest mortgage lender collapsed July 11, 2008. The Dow Jones fell 778 points or 6.9% in one day. The Media and Politicians quickly called this "one of the greatest economic crisis" in our nations history. I think the entire debate the entire media coverage has been nothing but a blame game and doomsday rant, respectively.

Washington's first response to this crisis was to play their favorite hand, the blame game. Democrats blamed George Bush and the Republicans for neglecting the signs of the oncoming doom. Democrats were quick to point out Republicans had failed to create more Federal Oversight to monitor the Subprime Mortgage's. Republican Presidential Candidate John McCain claimed he foresaw the problem. Apparently he never introduced any legislation to try and solve the problem. Republicans were also quick to point to the Democrats as being the party at fault. Democrats now control both houses and did nothing, even as the crisis loomed on the horizon. Democratic Presidential Candidate Barack Obama also claimed he foresaw this crisis years ago, but just as McCain, did nothing to prevent it. The National Media was quick to jump on board and claim the economy was hinging on depression. Their answer was to jump whole hearted behind the Bernanke/Paulson/Bush $700 Billion dollar economic bailout plan. The Media showed no mercy in attacking the House for showing a lack of leadership for not immediatly passing the Bailout. Washington showed a complete lack of leadership and the national media once again proved their socialist and progressive leanings by misrepresenting this situation and attack capitalism.

I want to quickly explore the reason there is a financial crisis. The Subprime Mortgage crisis is most simply put the direct result of stupid business practice. If a person can only afford a $200,000 house and the banks give them low interest rates and loan them $500,000 this isn't a government problem this is a illogical business practice. Freddie and Fannie were knowingly lending to people who couldn't afford a housing loan. They were encourage by liberal/progressive/socialist lobbying groups. This kind of unsound business practice will never be successful.

Nancy Pelosi, Democratic Speaker of the House, gave a speech before the House voted on the Bailout bill in which she unashamedly attacked Capitalism and the Free Market. She made claims that a Free Market without regulation is a dangerous thing. It was an attack on Laissez-faire Capitalism. How can she honestly argue that government dabbling in business brings any positive results? Fannie and Freddie are in fact government sponsored enterprises. They Failed because when government gets involved with business and the markets the result will always be corruption.

Finally the progressive/socialist/ are pointing to this crisis as the end all proof that Free Markets and Capitalism do not work. Pelosi made a comment in her speech to the effect that in our system the rich get richer while the poor get poorer. Am I the only one who finds this comment absurd? Absurd because she's the one trying to pass a $700 Billion dollar bailout to keep the companies afloat! Not to help the American taxpayer but the business. Mrs. Pelosi, in Capitalism when a company fails government doesn't inject it with money to keep it from filing for bankruptcy. When a bank fails because of bad lending decisions such as the aforementioned companies have, then they must be allowed to fail.

Yours in Liberty,

Nate