Kevin Lamson

Bailouts Are Painful - And Should Be

Bail out what? Wall Street and Washington fail to specifically state what it is that Hank Paulson wants to "bailout" or why it needs bailing. A boat usually needs bailing when their is a leak in the boat. However in my view it is better to determine where the leak is in the boat, stop the leak and then bail. Otherwise you will have to continually bail the water from the boat. So first of all we should identify where is the leak in Wall Street, how do we fix it, fix it and then bail. In my view this "bailout" plan is premature and is a bums rush on congress and the American public. They use fear of “financial failure” as the catalyst for a “quick” decision.
Bush said that "failing to approve it would risk DIRE consequences for the economy and most Americans". Notice Bush did not elaborate what the DIRE consequences will be.
Bush went on to say "Without IMMEDIATE action by Congress, America could slip into a financial panic, and a DISTRESSING SCENARIO would unfold," Seems to me our President is the one who is screaming fire by publicly predicting American's will "panic". The distressing scenario is the ultra rich Wall Street and Washington gang stands to lose lots money by the stock market continuing to contract to its proper place.
Bush said as he worked to resurrect the unpopular bailout package. "Our ENTIRE economy is in DANGER." In danger of what? I mean Wall Street has already flipped trillions of dollars of bad paper on the global market. Why does this create "danger" for the American economy? Someone other than Uncle Sam will simply buy this distressed debt at a discount from its current holders. The selling party will take a loss and that will be that. Where’s the danger to the American Economy? How will using the public trough to buy distressed debt prevent the financial Armageddon that is now being prophesied by our incredibly smart President?
Seems to me that Wall Street and Washington have once again decided to use fear to sell us another line of B.S. in the same way they fooled many people into buying the WMD story or Y2K. Americans should see through this B.S. and be outraged with our politicians who pass the “bailout bill”.