This week’s biggest story is the Wall St. Bail Out discussions going on in DC. This entire thing is so incredibly complicated that there is no one simple answer.
First of all, I believe this is another one of Bush’s Iraq War. He sees the country in crisis and is trying to therefore slip in legislation that will change the course of the nation and benefit his friends under the guise of resolving a problem. The Iraq war gave many of Bush’s friends great (if not, unbelievably generous) contracts and screwed the country out of a ton of resources.
Bush’s bail out plan threatens to do the same. His idea is to put $700B in the hands of a few people with no restrictions. Who does this benefit? Certainly not you or I. It certainly will not benfit John Smith who put his savings into the market with hopes of retirement. It won’t help Jose Garcia who works for any of these banks that will evetually close and put him out of a job. It won’t help Ed Jones who can no longer afford to pay his mortgae.
It WILL help the CEO who made the choice to get into predatory lending to trap Ed Jones into a mortgage he would later have to defualt on. That CEO will get paid millions just to leave the job. It will also help the VP who decided to lay off Jose Garcia so they could cut costs. It will also help the VP who ignored the well being of his shareholders and helped steer the company to the brink of death and lost John Smith’s retirement money in the process. All of these excutives will walk away wealthy and without any negative consequences. The people who will pay for the consequences of the executives’ choices are the laypeople of this nation. The employees of these companies, the out of job realtors, the boomers who have lost their retirement funds, the homeowners being crushed under predatory loans, and the taxpayers . That is what Bush proposes.
What we need is a bail out plan that will protect the retirement funds, the jobs of the bank employees, help stabilize the home market, and protect or modify default mortgages. This plan should penalize the executives for their bad decisions. They should leave without a penny, and what’s more they should pay back the company for the time they took to drive it into bankruptcy. Certainly the government/taxpayer should get to maintain a stake in the company if it gets bailed out. If we pay for your mistakes, we own at least a part of you. They shouldn’t get to be bailed out for free. The gorvernment should have the ability to modify these ridiculous mortgage contracts that these bail out companies got so creative with.