If you really are not up on any of this stuff, and I know most if us are not (I have slowly become generally aware only over the last 18 months. It is still dense stuff and I only understand enough to get the gist and have a fairly clear sense of the implications), do yourself a favor and go to YouTube or any video site and/or google Peter Schiff, Karl Denninger, Nouriel Rubini, Dennis Kucinich and Ron Paul. See what they have to say. Of course, there are links to some of them below, but I am talking about really educating yourself. You should/can also visit The Automatic Earth and The Oil Drum, both linked to the right.
The following are two e-mails I sent out to family and friends regarding the Monday Sept. 30, 2008, vote in the House of Representatives on the King Henry Paulson Bailout, Socialism and Welfare for Bankers and Financiers Act.
Hello,The second e-mail:
Sorry to contact you like this, but this is vital. This morning, everything changes one way or another.
We must stop this bailout. Our "leaders" are acting in a way that Mussolini would be proud of. It was he who defined Fascism as the partnership of business and government. How amazing, in the most horrible sense, that the United States government is now exactly what Mussolini considered to be the ideal?
Worst of all, this "bail out" (better stated as welfare and socialism for the rich - didn't they just make it nearly impossible for us to declare bankruptcy?) is nothing but 1. a huge transfer of wealth to the richest and 2. the bankrupting of America. Were the scumbags who created this held to account, not one penny of taxpayer money would go this. And not one penny should.
1. The larger banks are and will be buying the smaller banks. More and more money in fewer and fewer hands. Then, they keep all the profits they've gotten up to now AND all future profits and give the debt... to you and I. Literally. Over and over. This will not stop at $500,000,000,000 or $700,000,000,000. It won't stop till it is many times that much. Because it can't. There is too much debt out there. The debt in these damned "vehicles" alone is hundreds of trillions. That's right HUNDREDS of TRILLIONS. And housing? Did you know there are additional resets coming in the next three years? We haven't even hit the peak. So, if this bailout is supposed to save us from the abyss, why doesn't it deal with those? Those resets means the banks are going to be right back with their hands out for another $700,000,000,000 over and over and over.
2. The US debt can never be repaid already, and here we are getting ready to double it, triple it... Do you really believe the people holding our debt will just sit on it forever? They will not.
You worry not bailing out the obscenely wealthy and the non-taxes-paying corporations will mean depression. It will. But to bail them out will equal depression and collapse because there will be too little left in the hands of you and me. The government will be so burdened it will have zero chance of dealing with the additional time bombs of energy decline and climate change, let alone have any hope of pursuing public works projects and such to pull us out of the depression.
You must understand that to allow this will mean the destruction of the economic and political system of the US. Too much power already rests with the Executive Branch, and now we are to have them holding our mortgages and having carte blanche over our financial systems? God help us...
Please view all of the following, then contact your representatives and senators. Tell them they will never get your vote again. Tell them a vote against this is a vote for the Constitution, while a vote for is a vote for the final corporate overthrow of our financial and political systems.
Here is a plan for Main Street and America, not Wall Street:
Here's an analysis of the final bill before Congress:
Here's Dennis Kucinich on the bail out:
There's much more, but let me leave you with this: Did you know they had been planning this for MONTHS?
Please, act. NOW.
If you don't know who Nouriel Roubini is, you should: he's one of the many who have been predicting a crash for years. (That's right, this is a surprise only to those not paying attention... some of them intentionally...)
http://www.rgemonitor.com/roubini-monitor/253801/the_us_and_global_financial_crisis_is_becoming_much_more_severe_in_spite_of_the_treasury_rescue_plan_the_risk_of_a_total_systemic_meltdown_is_now_as_high_as_everBefore that he said:
...if this run accelerates - as it may now - a total meltdown of the US financial 0system could occur. We are thus now in a generalized panic mode and back to the risk of a systemic meltdown of the entire financial system. And US and foreign policy authorities seem to be clueless about what needs to be done next.
http://www.rgemonitor.com/roubini-monitor/253783/is_purchasing_700_billion_of_toxic_assets_the_best_way_to_recapitalize_the_financial_system_no_it_is_rather_a_disgrace_and_rip-off_benefitting_only_the_shareholders_and_unsecured_creditors_of_banks...the Treasury plan is a disgrace: a bailout of reckless bankers, lenders and investors that provides little direct debt relief to borrowers and financially stressed households and that will come at a very high cost to the US taxpayer. And the plan does nothing to resolve the severe stress in money markets and interbank markets that are now close to a systemic meltdown. It is pathetic that Congress did not consult any of the many professional economists that have presented - many on the RGE Monitor Finance blog forum - alternative plans that were more fair and efficient and less costly ways to resolve this crisis. This is again a case of privatizing the gains and socializing the losses; a bailout and socialism for the rich, the well-connected and Wall Street. And it is a scandal that even Congressional Democrats have fallen for this Treasury scam that does little to resolve the debt burden of millions of distressed home owners.And another who has been predicting this collapse is Peter Schiff. Here he is in 2006:
http://www.youtube.com/watch?v=LfascZSTU4oQ: Just how bad do you think [the recession] is going to be?
PS: I think it's going to be pretty bad. ...whether it starts in '07 or '08 is immaterial, and I also think it's going to last not just for quarters, but for years...
Peter Schiff on 9/26/08:
Sadly, Americans now appear willing to abandon their economic heritage at the first sting of financial pain.
Although passage does seem inevitable, it is nevertheless the wrong thing to do...
The bottom line is that there is no way to resolve our economic problems without a severe recession, and our politicians need to level with the public. As a nation, we gambled on the alluring riches of real estate and we lost. The price must be paid. Contrary to the Bush Administration rhetoric, the fundamentals of our economy are not sound. If they were, we would not be in this mess. Recessions are meant to restore balance, purge excess, and liquidate mal-investments. On that score we have a lot of work to do...
In the end it is impossible for the American economy to be rebuilt on a sounder foundation of savings and production without a lot of economic pain. Government efforts to reinforce the shaky foundation of borrowing and consuming will result in the entire structure falling down around us.
It may be too late, but contact your reps/senators. If they vote for this, vote them out. It's time we had 535 Mr. Smith's (Mr Smith Goes to Washington) on Capitol Hill.