The TARP bill is a complete disaster. It has done absolutely nothing to fix the economy. Things have gotten worse since. Temporarily there was a phony outcry in the media about what happened to all the money. The banks have either hoarded it, paid it out to their executives, or used it to snap up smaller firms. What do our dear representatives expect from the next $350 billion? Is it too much to ask to apply common sense? I was blowing the whistle back then and I have to do it again. I can’t do more than appeal to reason and reject madness. Contact your Congressman and Senator at http://www.usa.gov/Contact/Elected.shtml
In hopes that this time you will listen to me I have to tell you one more time: You are making a huge mistake if you let this second $350 billion bailout bill pass.
The first $350 billion have hurt our economy. We have dug ourselves a deeper hole. Some people even acted surprised when they noticed that Hank Paulson and Ben Bernanke had no idea what to do with all the money. What do you expect?
You actually did include a little condition. You said that the second $350 billion will need separate approval. The idea being that you wanted the Treasury to take the initial $350 billion, do something good with it, and report to you what actually happened with the money. Here we are. The first $350 billion have been spent. The banks refuse to tell you what happened to the money. Foreclosures keep soaring. Unemployment keeps rising. GDP keeps falling. Retirement savings keep falling. And now you think it is a good idea to give them more money? If so, then what was that initial condition added in for? Is it unreasonable to assume that is was a nothing but phony maneuver to win over a few more skeptics?
These people don’t have the solution to the financial crisis. They have been wrong on everything they said. Remember how Paulson said a few months ago the banking system was sound? Remember Bush’s endless reassurances that the economy is strong and stable? Remember how they said they were going to buy illiquid assets so as to stabilize their prices and then changed course completely by buying outright stakes in the banks?
Why listen to these people any longer?
Why not sit back for a second and listen to the people who have been talking about this problem for years? How about listening to the people who have been right on everything? The people who saw this coming and who have again and again presented logical solutions.
You have to understand: This bailout plan is more of the same. The cause for the credit crisis is that the Federal Reserve and government entities like Fannie Mae and Freddie Mac have been buying up mortgage backed securities with taxpayer money and/or printed money. It has been fully explained by the theory of The Business Cycle (http://www.economicsjunkie.com/the-business-cycle). This bill suggests more of that. It will not fix the situation, it will aggravate it!
I hope you take at least five minutes to seriously think about what I just wrote.
I am furious. I cannot believe what is going on. Especially since we have had this kind of rush scenario again and again. And every time we asked ourselves afterwards: “How could they approve that?”