A time for action, not partisanship.
Robert Krulwich had an excellent report on the ABC Evening News broadcast last night. He was asked to explain the current credit crisis in terms that most Americans can readily understand. He came up with a wonderful animated segment that showed a banker lending out $100 to a farmer who then spends it on supplies. The farm supply business then uses the $100 to order more items and then that business owner uses the money to pay for other goods and services and so on. Money circulates around the system and businesses can thrive and workers can get paid. (You can see this great animation segment at the ABC News website.)
The report and the animation cut to the heart of the problem we are facing and explained why Congress needs to act quickly. The bank lending system is slowing to a dangerous crawl. This is not just a problem that affects Wall St firms. Small businesses in cities and towns across Massachusetts and the country are being adversely affected.
Senator Kerry held a press conference in Boston today to argue the urgency of the problem. At the press conference, the Senator stated his strong support for a balanced rescue plan that puts the interests of the taxpayers first and demands accountability and oversight in the process. The legislation he supports:
- Requires the Treasury to modify the loans they buy to help American families keep their homes and expands federal assistance to families facing foreclosure;
- Includes strong Congressional oversight, establishes a special Inspector General and allows Judicial review of the program;
- Requires companies that take advantage of this program provide warrants so taxpayers will benefit from any future growth of these companies;
- Includes important limitations on executive compensation for those participating in the program.
These provisions safeguard the investment the American taxpayers are being asked to make in the financial system. There will be no "golden parachutes" of money that reward corporate executives for failure. The money the plan dispenses will be carefully watched and used as necessary to help weather the financial storm, not reward the very people who might have helped worsen the storm.
The credit crunch is a problem for the whole country, not just Wall St. Addressing these problems honestly and quickly will help small businesses and consumers alike. As Robert Krulwich explains in the ABC News segment, the lending and credit system cannot be allowed to freeze up. Too many jobs and businesses might never recover and the problems would only get worse. Congress needs to put aside partisan politics and concentrate on actions that serve the interests of the American people. Congress should craft responsible legislation that is not a give-away to special interests, that has oversight built into it and that keeps the interests of the taxpayers first and foremost. That is what the American people want and expect their leaders in Congress to do.
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you have got to be kidding me. did you see the interview with o’reilly last nite? so this is non-partisanship john kerry style? i really think JK is still reeling over the fact that just about anyone could have beat bush in 2004, yet he couldn’t. can we get this self-important blowhard to retire?
John Kerry did a great job on his interview with O’Reilly last night. He had the facts and understands the situation. I think he did beat Bush in 2004 and I always will! I wish he would have run again. He would have had my full support and the support of a lot of people in Iowa, that I do know. John Kerry is one of the best men in in the U.S.Senate and would have made a great President!
If credit and liquidity is the problem I don’t understand why the proposal isn’t to LOAN tax dollars to banks so they in turn can write loans to credit worthy businesses and individuals.
Giving taxpayer money to the same Wall Street banks that created the mess is AN IRRESPONSIBLE ABUSE OF POWER. The $700 billion GIFT does not guarantee these banks will even provide the needed loans. DON’T SELL OUT AMERICAN TAXPAYERS.
Senator Kerry,
My support for you goes back for years. You have the chance to demonstrate leadership NOW.
1. The hearings of 2004 in which Congressman Barney Frank resisted stronger oversight on Freddie Mac and FanniMae. He did not look out for us. You should ask for his resignation from the Congression Financial Committee.
2. The Speaker of the House should be asked to for her issue an apology for her partisan speech prior to the bailout vote.
This bailout plan is very simillar to what Herbert Hoover attempted in 1930 to restore the agricultural and industrial sectors of the U.S. economy to the levels of prices and production that they had in the roaring 20’s (The myth that Hoover was a hands-off president is that, a myth. FDR ran on a platform of decrying Hoover’s disastrous interventionism, especially in agriculture).
If passed, it will have a similar effect, triggering a depression. I strongly urge Senator Kerry to read Dr Murray Rothbard’s analysis of the Great Depression, posted online here. he is making the same mistakes that lawmakers made in the late 20’s and early 30’s.
The taxpayers will be far better off if the failing businesses are allowed to go bankrupt. There will be 6 months to a year of cotnraction while the assets of those failing businesses are purchased by people who have ideas on how to convert them to producing what people actually want to consume. It will take some time for the workers who worked for the bankrupt firms to be absorbed into economically profitable ventures.
The bailout will force people who are producing profitably to divert what would otherwise be savings fueling economic expansion into propping up failing businesses which are consuming more wealth than they are producing. The end result, years of contraction and stagnation - lasting however long the government is trying to “bail out” the economy.
Remember, if Bear Stearns collapses, it does not destroy a single factory, home, bridge, office building, generating station or ship. If, on the other hand the owners of thsoe things are heavily taxed, or have their wealth confiscated in the form of currency debasement, then they will not maintain or replace those assets. they won’t expand production. And then we will suffer far more damage than if some businesses which gambled unwisely in their investments are allowed to lose the money they tossed into the pot.
Senator Kerry famously allowed the Bush administration to stampede him into this ill-considered war which has maimed and killed hundreds of thousands, and done trillions of dollars of damage to the U.S. economy. He has a chance here to redeem himself and actually make the correct choice by voting no on a bailout.
DO NOT VOTE TO BAIL OUT WALL STREET. Why on earth would we want to bail out the people who got us into this mess by being irresponsible. We need to force integrity on people in this country and clearly define what doing “the right thing” means! The middle class and working poor seem to be the only people in this country paying taxes with no relief in sight. Now you want to pass this one on to the tax payers? I say NO WAY - you are supposed to be intelligent men and women - take the time to draft a real plan - look what pushing a bill through congress did to us with the war on terror!!! Learn from your mistakes and don’t let this President repeat the biggest blunder in our history by making a quick decision on the Wall Street debacle the same way we entered into the war in Iraq!!
I received this in an email as a joke but reading it makes allot of since. Besides helping out all adult US citizens it could bring out of the woodwork illegal immigrants looking for their share of the money. Here is the email:
The Birk Economic Recovery Plan
Hi Pals,
I’m against the $85,000,000,000.00 bailout of AIG and the “Wall Street Greed Mongers”.
Instead, I’m in favor of giving $85,000,000,000 to America in a ‘We Deserve It Dividend’.
To make the math simple, let’s assume there are 200,000,000 bon-a-fide U.S. Citizens 18+.
Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up… So divide 200 million adults 18+ into $85 billon that equals $425,000.00. My plan is to give $425,000 to every person 18+ as a ‘We Deserve It Dividend’. Of course, it would NOT be tax free. So let’s assume a tax rate of 30%. Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam. But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has $595,000.00.
What would you do with $297,500.00 to $595,000.00 in your family?
Pay off your mortgage - housing crisis solved!
Repay college loans - what a great boost to new grads!
Put away money for college - it’ll be there when it’s needed!
Save it in a bank - create money to loan to entrepreneurs!
Buy a new car - create jobs!
Invest in the market - capital drives growth!
Pay for your parent’s medical insurance - health care improves!
Enable Deadbeat Dads to come clean - or else!
Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.
If we’re going to re-distribute wealth let’s really do it...instead of trickling out a puny $1000.00 ( “vote buy” ) economic incentive that is being proposed by one of our candidates for President.
If we’re going to do an $85 billion bailout, let’s bail out every adult U S Citizen 18+!
As for AIG - liquidate it. Sell off its parts. Let American General go back to being American General. Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up.
Here’s my rationale. We deserve it and AIG doesn’t. Sure it’s a crazy idea that can “never work.” But can you imagine the Coast-To-Coast Block Party! How do you spell Economic Boom?
I trust my fellow adult Americans to know how to use the $85 Billion ‘We Deserve It Dividend’ more than I do the geniuses at AIG or in Washington DC . And remember, The Birk plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.
Ahhh...I feel so much better getting that off my chest.
Kindest personal regards,
Birk
T. J. Birkenmeier, A Creative Guy & Citizen of the
Republic
PS: Feel free to pass this along to your pals as it’s either good for a laugh or a tear or a very sobering thought on how to best use $85 Billion!!
John Kerry is one of the most dynamic politicians in in the U.S.A Senate and should have been our President!
I would hope Mr. Kerry would vote AGAINST the bailout bill as now made up. It’s spending more than we spent In Iraq, with less reasoned study. We don’t want to make this kind of mistake again. And, now, the idea seems to be to add some ornaments to the Christmas tree to attract House members while leaving the uncontrolled overkill untouched. See the position of democratic house member Bobby Scott for a much better reasoned solution.
Senator Kerry,
Seems that this bailout bill has been loaded up over 400 pages of stuff. Clearly the three pager was a joke but have you actually read this latest version? Has any committee discussed unintended consequences? True, something needs to be done but the idea that we should do SOMETHING makes no sense. Spend the time and do it right. The market will calm if the discussion is reasonable, responsible and productive.
Please vote NO WAY this time around and be a leader in doing the job right.
Senator Kerry,
I would appreciate an explanation for your comment that “the house Republicans took a Dixie” on Bill O’Reilly on Sept. 29th. I am a Southerner although I happen to have wound up in Kansas for the moment. That you would use such a deragotory phrase when you could have simply said absconded or any other applicable phrase offends me greatly. Do you have an issue with the South or Southerners that you have to insult us with the use of such phrases? Beyond any other dislike I have of your politics, this is a basic courtesy to treat all men as equal. I am currently taking college classes online. I have already been up and down the path of inclusive language. The phrase “took a Dixie” is definitely NOT inclusive. If you are willing to use such an “innocent” phrase on national television, what else are you willing to say about a person or a part of the country that you do not care for?
If you are truly attempting to bring a country together and unify it, you should not insult part of it. Maybe you aren’t attempting to bring the country together?
Dear Senator Kerry,
I am extremely disappointed in your vote last night. You didn’t look at any of the excellent alternatives from Dave Ramsey and others but instead presumed that this bill was the only option. It is not.
This bill is a short fix that will cost us and future generations to come—just like your vote to go to war. Maybe your family can handle it financially, but mine cannot.
This bailout is not what is needed. IT will not help main street, it is to help Wall St. Banks will sell their toxic waste to the gov’t, then hoard the money anyways becasue we are headed for a recession/depression and they will still be too afraid to lend. So much for the free market,, hello socialism…
Since Kerry voted for the measure,, I will be sure to vote for whoever runs against him. I am a democrat, but will not vote for Kerry any more because of his vote on this bailout.
Mike from Pittsfield,,, your math is way off…
85 billion divided by 200 million is 425.00 each, not 425,000.00 each....
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So the Dow Jones fell 777 points on Monday to 10,300. Did anyone notice that the Dow was at this level just 3 years ago? I think the downturn is just a self adjustment in the market. Greedy investment bankers are going out of business and the smart ones are being more consevative- as they should be. Housing prices were growing too fast as was the price of oil. They needed to be adjusted and the market has done that. Oil is now below $100 per barrel. A quick bail out will only overburden the American tax payers in the long run. Please vote no on the bailout.
Once again, legislator “opinion” outweighs the democratic desire of your constituents. Pork prevails and the extortion of some legislators gains agreement for another $700B loan to be thrown on the backs of the taxpayer. I am outraged! What the hell do wooden arrows have to do with “main street”? What the hell do tax breaks for movies makers have to do with “main street”. And how does accelerated depreciation for race tracks benefit “main street”. These are only a few examples of the pork that has once again infected the rational thinking, if it ever existed, of our lawmakers. Once again, the smarter than thou in Washington know better than their constituents. This is just another example of the elite serving the elite. This isn’t about “main street”. This is about the greed of not only Wall Street, but Washington as well. As the prophecy goes, “the rich have been doing it to the poor since the beginning of time”. You can guess where my vote goes this November.
This bailout will put us even further in debt to PRIVATE bankers. This is the worst robbery yet and amounts to enslavement of the US population. Anyone who doesn’t understand this should watch:
http://www.organicconsumers.org/articles/article_14910.cfm
and…
http://www.youtube.com/watch?v=QlIhhYGujoQ
-We need to get rid of the “Federal” Reserve, not take more loans from them! I am VERY disappointed in the Democrats, I’m switching to a 3rd party.
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