Bailout Fallout-

So here we are, feeling like we want to scream out the window and yell “I’m mad as h*ll and I’m not gonna take it anymore’ like Howard Beale in the movie ‘Network’. Many are a bit stunned. Could this really happen so quickly, almost overnight? No, it did not happen overnight. We just have not been listening/reading the signs nor have we bugged the cootie out of our Reps. Until now. Now we are ringing their phones, emailing, writing. We are frightened. We are Mad as H*ll!

What will happen? What did happen? How did we get to this place? What does it mean for our families? These are the questions we are asking. Does anyone in Government believe truly that this will fix the problem? Yes and no. No one really knows the answer to that one. Read the excerpts below and the links to see how we got here. In addition, read the links in blue that are within the post.

Hey, when you are calling your reps, if there is something objectionable that you think is ridiculous for us to have to pay for..let em know would ya? There really are some doozies in there. It’s got quite a bit of self interest with a lot of pork thrown in that has nothing to do with housing. Check it out. Get sick and tired enough to reenergize to scream at the buffoons we elected to keep watch. Tell em you want to be looked out for in the payback! Does it not make you wish you had lived just a tad above your means…just saying.. Some of us now feel foolish for clipping coupons and trying to save. I should have had a V8! A V8 engine that is. Don’t let em off the hook..no recordings. no closed until further notice. Take no prisoners!


Now, we must account for decisions made long ago. The dream was an America where every person could borrow enough money to buy a home. The Community Reinvestment Act, signed by President Carter and strengthened by Bill Clinton, encouraged bankers to loosen underwriting standards to “meet community needs.” Communities, of course, were not the ones obliged to pay the loans back.

As one former banker recently shared, “It is easy to recall sitting around bank board meetings in the last decade where it became a badge of honor for bankers to give loans to those who could not afford them. From that came lesser rates, larger loans and chicanery galore.” With this came the perverse incentives of sub-prime lending: loans without down payments, loans without equity, loans without verification of income or assets. New lenders like Countrywide lent money without tempering the risk with savings deposits.

It worked, as long as the value of the underlying asset, the American home, kept increasing: If a homeowner couldn’t pay the mortgage, he could sell the home for a profit. In 1997, Bear Stearns started securitizing these poisoned loans, packaging and reselling the tainted candy in large, Wall Street-sized containers. More Wall Street money chased risky loans and more speculative borrowers chased easy money. You would have thought they would have learned a lesson here. NOT!

When government regulation creates perverse incentives that disrupt the normal workings of an economy, it finds itself obligated to create equally perverse disincentives and regulations to limit the side effects of their good intentions. Government intervention attempts to repair its disruptions with even more regulation, an endless hall of mirrors from which policymakers can find no exit. Now we find ourselves socializing capital markets. GOODBYE AMERICA…HELLO RUSSIA, CHINA.. HEY BROTHER..ER COMRADE, WILL YOU LEND ME A DIME ?

They are all to blame, Republican and Democrats alike, however:

On Section D of this bill proves that the Democrats in Congress have learned nothing from this financial collapse. They still want to game the market to pick winners and losers by funding programs for unqualified and marginally-qualified borrowers to buy houses they may not be able to afford — and that’s the innocent explanation for this clause.

The real purpose of section D is to send more funds to La Raza and ACORN through housing welfare, via the slush fund of the HTF. They want to float their political efforts on behalf of Democrats with public money, which was always the purpose behind the HTF. They did the same thing in April in the first bailout bill, setting aside $100 million in “counseling” that went in large part to ACORN and La Raza, and at least in the former case, providing taxpayer funding for a group facing criminal charges in more than a dozen states for fraud. Gee is it anything like the money Obama got for that field of Unfulfilled dreams that suddenly went astray to others? That kind of fraud? Some just can’t handle other people’s money. Taxpayers money seems free to all!

One of the biggest likely beneficiaries, despite some Republican objections: Acorn, a housing advocacy group that also helps lead ambitious voter-registration efforts benefiting Democrats.

Acorn — made up of several legally distinct groups under that name — has become an important player in the Democrats’ effort to win the White House. Its voter mobilization arm is co-managing a $15.9 million campaign with the group Project Vote to register 1.2 million low-income Hispanics and African-Americans, who are among those most likely to vote Democratic. Technically nonpartisan, the effort is one of the largest such voter-registration drives on record. THIS IS KIND OF LIKE I NOT ONLY HAVE TO PAY FOR A HOUSE I AM NOT LIVING IN NOR INVITED TO BUT NOW I GOTTA PAY TO HELP SOMEBODY I DON’T CHOOSE TO VOTE FOR GET ELECTED!

It’s bad enough that taxpayers have to pay the price for Congress’ decade-long distortions of the lending and investment markets. If we realize a profit from the bailout, that money should go to pay down the debt or get returned to taxpayers as dividends from their investment — not to organizations committing voter fraud, and not to restarting the entire cycle of government meddling in lending markets. I’d support a rational bailout package, but anything that funds the HTF needs to get stopped. AMEN TO THAT!

The Wall Street Journal reported on the HTF/ACORN/Democratic connections in July:

The housing bill signed Wednesday by President George W. Bush will provide a stream of billions of dollars for distressed homeowners and communities and the nonprofit groups that serve them.

Again, One of the biggest likely beneficiaries, despite Republican objections: Acorn, a housing advocacy group that also helps lead ambitious voter-registration efforts benefiting Democrats.YOU ARE NOT PREJUDICED IN ANY WAY ARE YOU?

Partly because of the role of Acorn and other housing advocacy groups, the White House and its allies in Congress resisted Democrats’ plans to include money for a new affordable-housing trust fund and $4 billion in grants to restore housing in devastated neighborhoods. In the end, the money stayed in the bill; the White House saw little choice. LIKE WE CAN AFFORD THAT NOW ON TOP OF THE BAILOUT! lots more ridiculous things that have been included that are too lengthy for this post. Another day..perhaps?

The delay this week, why it did not get passed Thursday or Friday.

What most riles Republicans about the bill is the symbiotic relationship between the Democratic Party and the housing advocacy groups, of which Acorn is among the biggest. Groups such as the National Council of La Raza and the National Urban League also lobby to secure government-funded services for their members and seek to move them to the voting booth. Acorn has been singled out for criticism because of its reach, its endorsements of Democrats, and past flaws in its bookkeeping and voter-registration efforts that its detractors in Congress have seized upon. GOOD GRIEF, WHAT IS FAIR ABOUT THAT? ME PAY FOR YOU TO GET ELECTED?

Now that we’re here, what do we do? I am massively conflicted about this bailout program. The idea of government stepping in to bail out international banks that were reckless with their own business literally makes my stomach churn. We are privatizing gains and socializing losses.

While it took the people in power far too long to recognize it, they are now understanding the same sad truth. This bailout plan is not a good idea — it’s an absolutely terrible idea. It’s just the only idea we are hearing about. Some Republicans are suggesting loans versus buying this debt. Who will win? What compromises will they make? I say let it ride out and the American people will rise again just like our grandparents did in the Great Depression. To this, I know the potential job loss, the pain and suffering. No credit. No help from other countries either, Strange how we helped many Nations in their time of need. But don’t hold your breath!

It could be a disaster of the likes we have never seen but these are my instincts.

Our financial system is like a 747 flying around with all four of our engines on fire. The bailout effort will not stop us from landing hard, but without it, we may simply drop out of the sky. iReport.com: Will a bailout save us?

What Congress is attempting is a last-second search for an open field to land this plane with as little damage as possible. With that in mind, I think some kind of action may be a necessary evil, but we must be very, very careful.

Action for the sake of action, much like change for the sake of change, doesn’t solve problems. It usually inflames them. And what’s worse is that it creates brand-new catastrophes we haven’t even considered yet. Wall Street and Congress have been playing with fire, and now it’s Main Street that’s beginning to sweat.

Once again, the Democrats want to set up a self-funding mechanism, this time by exploiting a severe financial crisis. Despicable.

When it is all said and done, I as many other Americans just want someone to stand up for them, for the man and woman that goes to work every day, pays their taxes, gives to church and/or charity. Tries to raise their children decently. Send them to school and save for college. That Man and woman’s dreams usually take a backseat to the welfare of their children. They do without to save for their education and welfare. Can we expect less from our Political leaders..in that we sent them there to look out after our interests. We don’t want your blame game on each other nor your posturing. We want you to do your job! That means we want our interests over Wall Street..our interests over the pork added into the bill. Our interest, GOT IT?

Road Sassy has a lot of the real story at her site:She is an excellent writer and takes no prisoners. She will call it as she sees it.

John Boehner and the GOP House Plan That Democrats Fear

Read the background Source Links

Politico: Climbing From the Wreckage
Weekly Standard: There Was No “Deal” Yesterday – Stephen Hayes
NRO: Democrats Blame McCain for Why Their Majority Can’t Find a Majority of Votes
HotAir: The Democratic ACORN Bailout
Commentary Magazine: Meanwhile. . .- Jennifer Rubin
The Atlantic: What Happened In The Cabinet Room – Marc Ambinder
CNN: Bailout Talks in Disarray
Wall Street Journal: Mr. McCain Goes Back to Washington – Kimberley A. Strassel
American Spectator: Paulson and Obama
National Review: The Tyranny of Good Intentions
Newsbusters: 1999 NY Times Article Revealed True Cause of Current Fannie Mae Crises

GatewayPundit,
MichelleMalkin

GlennBeck

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11 Comments

  1. And if John McCain had not went back to Washington the bail out would not have anything in it to protect us the tax payer! From what I understand the republicans at least got some protections added after McCain talk to them about it! We shall see today sometime as I think they have come to a deal on the bail out. Good post and a lot of hard work for you, thanks!

  2. Well said Angie, after all the politicians can put together fancy bailout plans and all that, but it’s not their money, it’s your money, yours and every other taxpayer’s money that is going to be used to bail out those who lost theirs.

  3. It could be a disaster of the likes we have never seen but these are my instincts.

    Your instincts hit the nail on the head, Angie.

    When it is all said and done, I as many other Americans just want someone to stand up for them, for the man and woman that goes to work every day, pays their taxes, gives to church and/or charity. Tries to raise their children decently. Send them to school and save for college.

    Sadly, there appears to be no-one to stand up for them and the one person, Sarah Palin, who has come close to that ideal lately has been the object of so much hatred and bile, it’s simply unbelievable.

    There’s only One to turn to now. Pray for mercy and ride into the storm because I think the storm is inevitable at this stage.

  4. Brillinat expose Ang..things will get better but not if we give more power to the govt to fund our own demise!! 🙂

  5. […] corrupt officials in other capitals are also hard at work undermining what’s left of the U.S. dollar – by printing […]

  6. This whole situation is a major clusterphuk, Miss Angie. What kills me is that it looks like the major beneficiaries of the fiasco are going to be the ones that caused it! Obama’s lead over McCain is slowly widening and I feel like the election is slipping away.

    Great. Just great.

  7. I also did a piece on the root causes of this problem with some very good videos. It just shows one that free markets work and fascist markets do not!

  8. Again, a brillant piece of writing! You speak out on what so many of us have said over and over again in our heads. Keep it up!

  9. Thanks to all of you for your comments,

    Goodtime, Aa one of my blog buddies said, we have been so used to voting for the lesser evil, that I am afraid most people are immune to real truth now. Some of us know from keeping up with the info that McCain was asked to come back and help but then you got the sound bites from the left that were critical. Most have bought into it as being a political ploy. One thing, if they are honest is that those in the House that know McCain know he is honest. I have not been fond of a few things McCain has done, they related to crossing over and being bi-partisan. I just did not believe in the Feingold bill and his illegal immigrations stand. However, I have not doubted his allegiance to this country. It is as Sarah Palin says he is the one who has truly fought for us.

    MK, I think when they get elected Washington does indeed change them and they forget who supplies the money.Power goes to their heads to our detriment.

    Aurora, yes, we must pray for mercy..we are on the tip of the storm.

    Angel, Government must not be given any more power. They have assumed 40% more power since the 60’s. or so I have been told.Probably the problem. If we wanted to live in a government dictatorship or socialism, we should have moved there .

    Dinah, yes, they will be the beneficiaries. Sad to say but people vote with their pocketbook and rhey are ready for change..so we will probably end up with a dem pres and a dem congress. There will be change but I don’t think it is going to be what they thought. Again, most are not checking and are listening to the MSM. I am sick from thinking of how we are being led like sheep to the slaughter. Granted, it will be tough going no matter who is elected because of the mess we find ourselves in. But the NObama will finish us off. He may save the worst part for the second 4 years.

    No Compromise, I will come over soon and watch the video. You always have it covered well.

    Exemployee, you are too kind..Thank you.

  10. […] Bailout Fallout- […]

  11. I took the pledge – Have you?

    Well the congress has done it.

    As of the morning of the bail out vote in the House of Representatives, polls showed that the American people were 74% against any bail out for the Wall Street fat cats. We wanted a fix from the bottom up and not from the top down. Fix ‘Main Street’ not Wall Street we told them. They didn’t do it.

    However they did agree with the bloated $700 billion the Senate passed for their greedy Wall Street friends with another $150 Billion of Pork. So now our children are on the hook for at least $850 billion and no one can tell us if it will work or will be the last.

    Meanwhile, ‘We The People’ continue to lose our jobs and homes.

    Our elected representatives have chosen to ignore us, ‘We The People’ whom they swore to represent.

    They think we are stupid. They think we don’t have the guts to clean house. They think ‘they know better’ than we on ‘Main Street’ do.

    So…

    I have taken the Pledge:

    I, (put your name here), will NOT vote for any incumbent in the upcoming election regardless of party or who the opposition may be. I intend to do my part in ‘throwing the bums out’ in Washington that continue spending my money on those that have wrecked our economy rather than the people who sent them there. This is my solemn pledge.

    Mail this to your Representative and Senators, to all your friends and all news media, both local and national. Email this to all the talking heads on the cable outlets, Lou Dobbs, Bill O’Reilly, Keith Olbermann, Chris Matthews, Alan Colmes, Sean Hannity, Rush Limbaugh and with every blog and talk show host you know of.

    Urge everyone you meet to take the Pledge.

    This the only way we, the American People, will ever take back our own government.

    They keep telling us that the only power we have is the vote. So… For once let’s use it!!!!!

    Believe me… if we turn them all out THERE WILL BE CHANGE!!!!

    Do we have the guts? Do you???

    If not, then you don’t have any right to complain if they continue to screw us over.


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