Posted on 09/27/2008 7:06:20 PM PDT by T.L.Sink
(VIDEO) Newt Gingrich, interviewed by Greta Van Susterin, explains why the $700 billion bailout ($1 trillion?, they don't even know!) is a "rush job" and scam being foisted on the American people. Newt claims that it's the most "un-Republican and anti-Reagan" scheme he's ever seen. And, its a major step toward socialism - with the Feds assuming control of a vast part of the private sector, perhaps for generations. Worst of all, it's a pure panic and thoughtless reaction to a proposal that is so complex and has so many potential unintended consequences that it could ruin us economically. Newt also reminds us that a federal proposal that may cost a trillion dollars - replete with the usual trillion for earmarks and subversive groups like ACORN - should not be rushed through in 72 hours to rectify a crisis that has been building up for more than three dedecades.
(Excerpt) Read more at foxnews.com ...
Had the DemocRATS listened to Senator McCain back in 2006, we might not even be in this mess. Contrary to what the “media” is reporting, it was McCain who was trying to get some oversite going of Fannie and Freddie.
vaudine
Newt pontificates alot.
I don’t think he is an economic genius.
Obviously, the bailout is a necessaey evil.
The rats have bamboozled GW like they did with his father “no new taxes” History repeats itself. If GW signs this, Mccain should denounce it and the rats can no longer tag Mccain for being a Bushite.
I disagree, the Fed should let these entities fail. They should be dissolved and let the recovery begin. This bailout
package is just going to postpone the inevitable collapse, and cost us trillions that we don’t have. The inflationary result of this mass money printing is going to be brutal, no matter what.
You're half right.
It's evil.
L
I don’t think he is an economic genius.
Obviously, the bailout is a necessaey evil.
Who's pontificating, and are you an economic genius? Mr. Newt has a Phd so he's not a total moron.
He was instrumental in writing this: http://en.wikipedia.org/wiki/Contract_with_America
Well, there are a few of us that agree on this.
There have been many people over the last few weeks (Steve Forbes among them) who have pointed the finger at the “Mark to Market” rule as causing much of our problems. After Sarbanes/Oxley overreacted to Enron, we now have accounting rules that are impossible for financial institutions to comply with.
Imagine this:
Step 1: government sets accounting rule that business can’t comply with.
Step 2: government enforces accounting rule and businesses go “bankrupt”
Step 3: government “bails out” business by buying the “worthless” assets, but they’re only worthless because government says they are.
Step 4: government holds on to asset until later, then resells them to new businesses at a profit.
It sounds like some pathetic extortion ring from a banana republic, but it’s not. It’s the US government.
If this were the result of government planning, it would be sinister. But the fact that it’s the result of sheer incompetence is frightening. One economist estimated that just by eliminating the “Mark to Market” rule, we’d save $500 billion from this bailout.
I feel a lot of televised talks could turn a lot of Dems out of Congress.
WAKE UP CALL! WAKE UP CALL!
vaudine
If there’s any payment in that bailout going to A.C.O.R.N., I’m going to go f’ing nuts.
By 2006, the real estate markets had largely peaked. Loans made in 2005 were already in the Fannie-Freddie pipeline to Wall Street. These are pretty much the same loans clogging investment bank books today.
great line!
“I don’t understand why we get Capitalism on the way UP, and Socialism on the way DOWN...”
We should give notice that if ANY money goes to interest groups that WE will exercise our own power and all of us little people will en masse go to the bank and withdraw our money. This is outrageous! What else can we do since the vote doesn’t work and no term limits. How about to show good faith they first cut off or at least cut BACK their own VERY generous retirement entitlements they have given themselves. Enough is enough.
Absolutely. It’s a fact that McCain expressed great concern years ago that the Freddies were a national disaster waiting to happen. And, by the way, two of rhe biggest recipienta of campaign cash from them were JOE BIDEN and BARACK OBAMA - who also lobbied for them in Congress!!
The Presidential and Congressional retirement programs should be ended all together. Perhaps we need another Congressman Davey Crockett-TN to remind Congress of just what is Not Theirs to give including the bailout.
Since todays value is now much less than before, there isn't enough value to prop up the lenders for credit.
So why isn't somebody out there just proposing that they kill the legislation that forces using current value? Rush said it needs to be taken down, but doesn't that automatically fix the problem? Once lenders are able to adjust their net worth based on realistic future values of their holdings (like they used to do) they suddenly have more capital.
Think about it. If Paulson anticipates a 1 to 2.2 trillion gain for the government out of the deal, where does that profit come from? Partly it comes from the fact that the government is forcing these lenders to sell at 50%, I believe. But the other side of it is the fact that the current values were driven down by the market, something that will correct itself likely next year.
Sounds like the solution may be more simplistic than we thought?
“I don’t understand why we get Capitalism on the way UP, and Socialism on the way DOWN...”
just like freddie mac
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