Top Banks Want More of Our Tax Dollars!

As if a quarter of a trillion were not enough, at least 4 of the nation's largest banks claim they need multi-billions more in taxpayer bailout funds.

And what should we say to these bumbling, befuddled, bottomless pits of financial buffoonery?

That, my friend, is discussed in my column today at Columbia Conservative Examiner.

Give it a read and tell a friend. Thanks!

GOP Senators Say Paulson Misled Them on Bailout

Stating that Treasury Secretary Hank Paulson misled them by unilaterally changing the agreed-upon terms of the federal government's bailout of Wall Street, 3 GOP Senators sent a letter to Paulson protesting his decision on Thursday to renege on his pledge to buy up bad debt.

Senators Coburn, Burr, and Vitter are upset that Paulson nixed what they claim is the very heart of the program to get money flowing back into the housing, banking, and mortgage markets.

The GOP had problems with the entire plan from the beginning, but were cajoled to join Democrats in a bi-partisan plan that pleased Nancy Pelosi, Harry Reid, Barack Obama, and John McCain.

However, since that original agreement was made, Paulson has unilaterally decided to purchase a government stake in bank ownership (fascism)--all with the support of Congressional Democrats and Barack Obama--and drop plans to buy out the bad debt which led to the financial crisis to begin with.

The 3 GOP Senators are protesting that decision, stating that the entire agreement is at stake unless Paulson adheres to the original terms.

3 TRILLION DOLLARS AND COUNTING

First, it was the bailout of large banking and mortgage firms on Wall Street in order to 'stabilize the economy.' Then, it was the government forcing large banking firms to accept the Federal Government as part owner of those firms.

Then, it was the bailout of the 'average homeowners on Main Street who are about to default on their mortgages.'

But even that wasn't enough.

Next, the government was informed that the auto industry needed tax dollars just like the banking and mortgage firms. Commissar Nancy Pelosi is all for it as is 'The Chairman.'

And then yesterday we learned that American Express has been thrown a tax-dollar lifeline. This required that the definition of the type of business American Express does had to be changed.

So, with a wave of the magic wand, the Federal Government now considers American Express to be a 'bank holding company' that is eligible for millions of dollars of bailout money from the taxpayers.

And let's not forget that Hollywood, insurance companies, and even China, all have their stake in the loot.

But guess who's making noises about wanting some of the taypayer-provided loot now? Big liberal newspapers that are on the brink of bankruptcy due to plummeting subscriptions.

Look for the New York Times and others to go begging the government for a handout.

The total cost of all of this to the taxpayers? 3 TRILLION DOLLARS and counting.

NO DEAL...YET

The President, the Congress, candidates McCain and Obama, and members of the government have not reached a deal on a Wall Street bailout at this hour...yet.

House Republicans have reportedly balked at the idea of a 700 billion dollar taxpayer bailout of Washington's mistakes.

And yes, I say Washington's mistakes deliberately.

Washington, particularly the Congress, created this mess with the maze of senseless regulations they have imposed upon free-market capitalism. The major players in this fiasco? Schumer, Reid, Pelosi, Obama, Dodd, and other Democrats who not only support government meddling in free enterprise but kept their hands in the lucrative cookie jar to boot.

Some of these people should be jailed.

The problem, however, is the massive debt the U.S. has amassed, which has been bought up by China and other foreign countries which, at any moment, could call for all the money from a country that's flat broke (that means us).

And that scenario, my friends, could well mean the spread of a Wall Street problem to Main Street and our local banks.

As Senator Jim DeMint, R-South Carolina, stated so eloquently, 'The government had no business going into the mortgage business with FannieMae and FreddieMac.'

This was the step that started it all.

Very true, Senator, and now that we know our government did that very thing so that it could push lenders to give money and mortgages to people who could not afford to pay it back, the question becomes, what do we do now?

Our government has created a gigantic mess that has the potential of hurting millions of innocent Americans who have paid their bills on time, paid their taxes, and been model citizens.

Bailing out Wall Street will potentially hurt those citizens through their taxes. But we know without doubt that if Wall Street and our entire financial system fails under the weight of our government's mistakes, those model citizens will be hurt infinitely worse.

What is needed is not more regulation but less and more prudent regulation so that the playing field is level. And businesses should not have to compete with government-chartered entities which immediately have a built-in advantage.

I don't know if 700 billion is needed, but I do think that we are going to have to cough up some dough for Wall Street to keep Main Street from going under...and as a means of taking the first step toward financial solvency, a balanced budget, and reducing the national debt in order to keep America's creditors such as China off of our backs.

Yes, supporting such a measure for me goes against every fiber of my being. But if we as the citizens do not fix the problem the only way we can through the money and the principles of free market capitalism (at least once the problem is fixed), then who will?

Even Reagan supported the Savings and Loan bailout in the 1980s because the economy depended upon it. We may need to do the same now.

Remember, free market capitalism did not create this mess. Government did. And now government must fix the mess it created.

Quote of the Day on the Wall Street Bailout

From Mark Krikorian at National Review:

"I have no way of judging whether the Wall Street bailout is a necessary evil or an impending disaster. But we're in this mess, ultimately, because our political elites thought it was good social policy to encourage banks to give mortgages to uncreditworthy people."

H/t to Glenn Reynolds.

Read the whole article by clicking on the author's name.

'Stubborn Ignorance'

Dr. Walter E. Williams is Professor of Economics at George Mason University and a major syndicated columnist, author, and lecturer.

In light of today's massive bailout of Wall Street, which the Congress and the President have been hammering out over the weekend, I thought it fitting to post these words of Dr. Williams on government and economics:

Here's what the U.S. Constitution says: "All bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills." How many times have we heard politicians, pundits and guardians of our news media say that President Bush cut taxes, or Obama is going to raise taxes? The fact of the matter is that presidents have no power to raise or lower taxes. They can propose tax measures or veto them but it is Congress that has the ultimate power to raise or lower taxes since they can, with a two-thirds vote, override a presidential veto. The same principle applies to spending. Presidents cannot be held responsible for budget deficits or surpluses. A president cannot spend a dime that Congress does not first appropriate. Given these plain facts, are politicians, pundits and media people -- who persist in talking about a president cutting or raising taxes, or creating a budget deficit -- ignorant, stupid or deceptive?

Dr. Williams goes on to state that the mess which Congress has created in the markets is not the taxpayers' doing, yet it is the taxpayers who will surely pay the costs of bailing out Wall Street.

The article is a MUST-read, and it is entitled, 'Stubborn Ignorance.'

Dr. Williams does an excellent job in shedding light on the problems the nation faces in the markets and the wrong-headed notion of a massive, taxpayer-funded bailout.