Tag Archives: Congress

The Bailout – Will it Work?

In the last month, it seems like every financial giant was on the verge of failing.  Lines of credit began to freeze.  There were claims that the financial world is about to crumble unless government acted.  We were warned by President Bush, Treasury Secretary Paulson, and congressional leaders from both parties that if the government didn’t act, credit lines would freeze.  

Last Monday (September 29), the House failed to adopt the bailout as was presented to them.  The Senate added tax breaks for wooden arrow makers and rum producers to help the plan pass.  After much arm twisting, the House passed the plan on Friday.  

It is important to know that the financial sector throws in over $100 million in PAC money every year to both parties.  Many financial experts have been saying that the bailout plan will do little for the economy.  Buying bad debt will liquidate markets, but will not necessarily make it easier for small businesses to get a loan.

Credit lines were beginning to loosen on October 1, two days before the bailout bill was passed by the House and signed into law by President Bush.  They started to tighten again as soon as the bill was passed by the House.  Wall Street soon realized that the bill would not help most sectors of the economy and the bill would not do what it was intended to do.

What would have happened if Congress were to do nothing until after the election?  Credit lines would have gotten tighter temporarily, until the banks had enough capital generated from the loans it was collecting from.  The capital would have opened lines of credit because the banks need to give out loans to make money.  

The media did not tell the consequences of a bailout:  Since the treasury had to borrow money, it had to create $700 billion to loan to the financial sector affected by failing banks and corporations.  The end result is inflation.  Prices will continue to rise because the dollar is weakened because each dollar created by the treasury weakens the value of the dollars in the marketplace.  Precious metals like gold and silver rose iin value, mostly due to a weaker dollar.  The bailout bill did nothing to relieve what caused the root of the problem:  Congress mandating banks take sub-prime loans.  The government assured that the losses would be covered.  Foreclosures were happening at a faster rate than the government was expecting and soon the banks had so many bad loans, they did not have liquid assets to offer loans for anybody else. 

We need leaders.  We don’t need people who react in a panic mode when something goes wrong.  John McCain and Barack Obama both panicked and voted for the bailout package.  This is not the leadership we need to get us out of the economic mess that government caused.

Advertisements

Leave a comment

Filed under debt, Democrat, McCain, Obama, policy, politics, Republican, spending, Washington

The Silence

I began surfing the web for news about Bob Barr formally being announced the Libertarian Party candidate for president.  There was not mention of it.  It wasn’t mentioned on network TV.  The only mention I saw on the web from a mainstream media source was from Yahoo’s AP wire.

Drudge Report never mentioned it.  In fact, when Bob Barr officially announced he was running on May 11, it was the first mention of the Libertarian Party in any capacity since Harry Browne’s death in March 2006.  Harry Browne’s death was the first mention of libertarianism in any aspect since Vanity Fair’s Graydon Carter announced in January 2003 that he was a “libertarian.”

There will be no Libertarian candidates in the Presidential or VP debates unless somehow Barr and Root poll at 15% or higher nationwide.  The most optimistic of the bipartisan pollsters has Barr at 8% in Georgia.

Bob Barr will not have many more opportunities to spread his message to a large mainstream audience.  He will encounter the same barriers that Michael Badnarik did in 2004, Harry Browne did in 1996 and 2000, Andre Marrou did in 1992, and Ron Paul did in 1988.

The one thing Barr has going for him is name recognition.  Over 80% of people polled have heard of him.  More people know who Barr is now than people knew who Ron Paul was in 1988.  While Barr has a lot of negative connotations about him, being a “pot smoker who frequents brothels” is not one of them.  In this aspect, he could be a plus.  Too many people have given libertarians this false label, including myself in the early 1990s.

If there is a curse in running for office in a third party, Bob Barr will soon know what it’s like to be from one of the most powerful members of Congress to somebody as politically relevant as Lenora Fulani.

Leave a comment

Filed under Bob Barr, Election, libertarian, Libertarian Party, politics, Washington