Told We Need the Bailout Right Now

2008-Sep-23

Mr. Paulson said in prepared remarks to the Senate Banking Committee:

We need to build upon this spirit to enact this bill quickly and cleanly, and avoid slowing it down with other provisions that are unrelated or don’t have broad support.”

FDR: The First Inagural Address:

Faced by failure of credit they have proposed only the lending of more money. Stripped of the lure of profit by which to induce our people to follow their false leadership, they have resorted to exhortations, pleading tearfully for restored confidence. They know only the rules of a generation of self-seekers. They have no vision, and when there is no vision the people perish.

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Bailout: Heads You Win–Tails We Lose

2008-Sep-21

The Great Bailout means we will be paying for the losses of the rich.

The stock market is a legalized gambling arena. It is not investing. Only buying into IPOs (Initial Public Offerings) is investing. Everything after that is just gambling whether prices will rise or fall.

And in the last few decades the market has created ways of gambling to allow rich people to gamble even more than they own, lately called “derivatives” which are ways to leverage bets so you can bet more than you own. Well, the high rollers gambled trillions of dollars, and they are now losing.

What happens when we gamble and lose? We lost everything. What happens when they gamble and lose? They ask the government to make us pay for their losses. When they won, and made billions of dollars for themselves, did we get any of that? Now that they are losing, are we going to make them use their winnings to cover their losses?

Don’t you wish you could gamble money you don’t own, and when you win you keep it, but when you lose then just make someone else cover your losses?

And we are going to let the people we voted into office do it to us.