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Friday, September 19, 2008

$1 TRILLION Mortgage Bailout

In a very serious effort to save the American economy from outright collapse the federal government wants to write a blank check to all of the good old boys in banking and George W. Bush. Why the hell not? We could put California up on Ebay to pay for it and I bet we might just have a few bucks left over to go to McDonalds for lunch.

What angers me about this whole situation was the deliberate melt down of serious oversight of the financial markets by the federal government. George Bush and the Congress that let him ride for free will go down as the most destructive President to our economy in our nations history! Thanks W!

Over at Politico they have this on the $1 Trillion Dollar bailout…

Congressional leaders said after meeting Thursday evening with Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke that as much as $1 trillion could be needed to avoid an imminent meltdown of the U.S. financial system.

Paulson announced plans Friday morning for a "bold approach" that will cost hundreds of billions of dollars. At a news conference at Treasury headquarters, he called for a "temporary asset relief program" to take bad mortgages off the books of the nation's financial institutions. Congressional leaders had left Washington on Friday, but Paulson planned to confer with them over the weekend.

"We're talking hundreds of billions," Paulson told reporters. "This needs to be big enough to make a real difference and get to the heart of the problem."
- Politico

Let there be no doubts on this financial disaster, John McCain is not walking away from this bailout squeaky clean. While some Senators were screaming for regulation even two and four years ago, Maverick was pushing for absolutely no regulation from the Federal Government. With John McCain fighting for less oversight he was in fact enabling the people in the financial markets to recklessly loan out money to people that could never afford to pay it back. But McCain still saw no problem with that issue till this week when he flip flopped on the bailouts needed from the Federal Government to save not just a few banks but dozens.

If you look at the facts then you can clearly see who bares responsibility here and it isn’t the SEC Chairman Cox! Going back to March of 2008, not that long ago really, Politico had this to say on Phil Gramm aka the Mavericks Campaign General and finance guru…

The general co-chairman of John McCain’s presidential campaign, former Sen. Phil Gramm (R-Texas), led the charge in 1999 to repeal a Depression-era banking regulation law that Democrat Barack Obama claimed on Thursday contributed significantly to today’s economic turmoil.

“A regulatory structure set up for banks in the 1930s needed to change because the nature of business had changed,” the Illinois senator running for president said in a New York economic speech. “But by the time [it] was repealed in 1999, the $300 million lobbying effort that drove deregulation was more about facilitating mergers than creating an efficient regulatory framework.”

Gramm’s role in the swift and dramatic recent restructuring of the nation’s investment houses and practices didn’t stop there.

A year after the Gramm-Leach-Bliley Act repealed the old regulations, Swiss Bank UBS gobbled up brokerage house Paine Weber. Two years later, Gramm settled in as a vice chairman of UBS’s new investment banking arm.

Later, he became a major player in its government affairs operation. According to federal lobbying disclosure records, Gramm lobbied Congress, the Federal Reserve and the Treasury Department about banking and mortgage issues in 2005 and 2006.

During those years, the mortgage industry pressed Congress to roll back strong state rules that sought to stem the rise of predatory tactics used by lenders and brokers to place homeowners in high-cost mortgages.

For his work, Gramm and two other lobbyists collected $750,000 in fees from UBS’s American subsidiary. In the past year, UBS has written down more than $18 billion in exposure to subprime loans and other risky securities and is considering cutting as many as 8,000 jobs.
- Politico

I just want to be clear on this issue, John McCain is going to reform the banking system and Wall Street by taking advice from one of the people to blame for the crisis? Sorry, not buying that!

Don't stand there telling the people that you are going to clean up this mess when you Senator McCain and your best buddy for life Phil Gramm were more than complacent for this massive and very costly mess. This isn't even funny, how can McCain face the American people and claim total innocence and he knows how to fix it. To late Senator McCain, the damage you have done is now complete.


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Anonymous kingdom media said...

from a historical point of view, it's hard to object to the government's mass bailouts since similar debt-producing methods were used to bring the U.S. out of the Depression... our economy has been supported and driven by debt ever since

5:42 PM  
Anonymous Anonymous said...

Papamoka, I just want to curl up in a ball lately and wait for the political storm to pass. But I still look forward to pokin' my head out to read your posts. You write with both your head and your heart. And... with your conscience. So I nominate Papamoka Straight Talk for the "I Love Your Blog" Award.

8:10 PM  
Blogger Papamoka said...

Chell, Ya know I love ya like a sister but you still owe me the dollar I loaned you two years ago right?

Seriously, you touched me on this one and I really appreciate it. You are a good friend and I hope that there are more folks in the world that have such a big heart just like you. Mega HUG'S!

Always your friend and now your brother.

10:11 PM  

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