Ron Paul posted a letter refuting Bush's reasons for a bailout. Check it out here.
There are sensible ideas, but nobody is listening. Instead we are hell-bent on a course to bury Constitutional government and to make the well-being of the richest 1% of Americans the only goal of the US government.
This bailout is being handled exactly like the run-up to the Iraq War and the putsch to get the "Patriot" Act through Congress without giving anyone time to read it.
We are being threatened again, but this time the "smoking gun in the shape of a mushroom cloud" is not a visual image. He threatened us with the following:
"More banks could fail, including some in your community. The stock market would drop even more, which would reduce the value of your retirement account. The value of your home could plummet. Foreclosures would rise dramatically.
And if you own a business or a farm, you would find it harder and more expensive to get credit. More businesses would close their doors, and millions of Americans could lose their jobs.
Even if you have good credit history, it would be more difficult for you to get the loans you need to buy a car or send your children to college. And, ultimately, our country could experience a long and painful recession."
Then Bush lied by implying that the Treasury would buy the toxic Collateralized Mortgage Obligations at the current low price. Here is what he said:
"The government is the one institution with the patience and resources to buy these assets at their current low prices and hold them until markets return to normal.
And when that happens, money will flow back to the Treasury as these assets are sold, and we expect that much, if not all, of the tax dollars we invest will be paid back."
But Paulson and Bernanke said that we need to buy the CMOs at their "hold-to-maturity" price. So we will be buying this toxic paper at face value, the taxpayer will be out billions and the criminals on Wall Street will be ready to rip off the public again.
There is a saying in Chile: "fabricante de comunistas", or maker of communists. The saying is used for those corporate shysters and inhuman bosses who take advantage of their employees to live high on the hog. Sooner or later enough of the small people get pissed off enough to tear the whole governmental structure down. It happened in Chile and caused twenty years of suffering. It is now possibly going to happen here in the USA. When the top one tenth of one percent of Americans earns more than the bottom 50% of Americans and the bottom 50% is expected to pay to bail out the top one tenth of a percent, you are building a factory to produce socialists.