Seven Hundred Billion Dollar Bailout

The "talking heads" on the Sunday talk shows indicate that the 700 Billion dollar bailout of Wall Street and big business is needed to avoid bigger problems later. (Actually, I believe the dollar figure is closer to one trillion dollars, if the money already spent is included. But, why argue over a few hundred billion dollars in an election year.)

Treasury Secretary, Henry M. Paulson, Jr., made the rounds of the talk shows to "sell" the notion that the massive bailout is necessary.

Given the penchant of the Bush Administration to lie to the American people, I'm not confident that we know the whole story. Mr. Paulson says that the additional 700 billion dollars will be used to buy impaired assets and we will get our money back when those assets are sold. These comforting words come from an administration which told us that Iraqi oil would pay for Bush's Three Trillion Dollar War.

I sure wish that there was an authoritative source of unbiased information to help guide us in deciding what's right.

One thing for sure. A select group of individuals got wealthy by selling loans to people who could not afford to repay them. Too many people bought this bad debt, some of whom were not aware that it was impaired. A number of CEOs were given big bonuses based on the returns "earned" on this bad debt.

The CEOs and executives will walk away from the mess with their large bonus payments. Some will also walk away with large severance payments. Some large firms will cease to exist. Many "innocent" employees will lose their jobs. And, a number of families will be forced out of homes that they couldn't afford in the first place.

As is typical in such situations, the average innocent citizen will be hurt the most.

Homeowners who have faithfully made their mortgage payments for years will suffer from a double hit - the declining value of their homes due to the number of foreclosed homes being offered at "bargain" prices, and the tax burden (whether direct, or through inflation, or both) caused by the one trillion dollar (so far) bailout.

For far too long the Republicans have indicated that free markets will solve all evils. The don't. They've also indicated that enriching the wealthy is good, as the money from the wealthy will trickle down to those of lesser means. While it may flood into political campaign coffers, it never quite makes it down to average citizens.

The wealthy can survive a downturn with a little pain ("My portfolio lost a billion dollars today. I'm so unhappy."). For those of lesser means - without a financial cushion - a downturn can quickly turn to disaster ("I'm 57 and was just laid off. I can't afford my mortgage payment. I can't afford tuition for my two kids in college. What will I do?").

We're long past the point where the Republican's failed social experiment needs to be ended.

The greedy cannot be trusted to regulate their businesses or their industries. Government must provide reasonable regulation to keep the actions of the greedy from crippling the dreams of all.

The tax breaks for the wealthy must be ended. The taxes they don't pay are a "hidden tax" on the remainder of the population.

Trickle Down Economics has failed. It's time for executive salaries to return from the stratosphere. America's workers deserve fair compensation.

And, yes, Senator McCain, starting a war then refusing to raise taxes to pay for it is unpatriotic. Future generations are being charged this stealth tax by your not paying for the war now.

It is time for a change. Vote accordingly.

Then, continue to demand change.