Tuesday, November 18, 2008

Paulson Needs To Be Stopped

Our fearless financial leaders are on Capitol Hill testifying before members of Congress about the bailout package. There appears to be some dispute as to what the goal of the bailout was for. Paulson and Bernake are intent on providing all the money to the banking system. They say it is the only way to stem the housing loses-access to cheaper rates. Are they for real?

Click here to see a writeup of their meeting.

I make no bones about ever being a fan of Barney Frank. To me, he is one of the most corrupt people in Washington. Anyone who was sleeping with the head of an organization that cost the taxpayers billions when it was his job to oversee that enterprise deserves to be locked up.

That being said, I will admit to siding with Frank on this one. The only way the housing crash will slow is to stop the absurd foreclosure rate that we are seeing. With more houses coming onto to an already oversupplied market, prices are going to continue to drop as people fire sale them off. Also, each foreclosure that is auctioned off brings down the value of every other house in that neighborhood. This common sense approach evidently bypassed Paulson.

A portion of that $700 billion needs to go to helping the homeowners remain in their homes. If the Feds will take $300-$400 billion of it to secure some of these loans, then a floor on housing will be established. Instead, they are intent on giving the money back to Wall Street which is still desiring their huge bonuses. This is another failed policy which is being followed.

Henry Paulson needs to be stopped. This right winger (I usually abuse the left but the right warrants it here) is going to further destroy this economy. This is no different than giving the automakers billions so that they can continue their same losing ways. It only delays the inevitable.

What is going to happen? I believe we will see a time when there are so many vacant houses that people start squatting in them. We already have millions of homes nationwide that are sitting empty. Without the government setting a floor for them, we are going to see this number rise drastically. In the end, those who are paying their mortgages are going to suffer anyway. The forces that are in play will not be stopped by cash infusions into losing policies. Yet, that is all we are getting.

The Revolution is getting closer. Each day brings news of more destruction to sound ideals. In the end, it is up to the people to put a stop to this madness. The time will come.

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