Step In The Right Direction

Today the House of Representatives rejected TARP, the $700 billion bailout proposed by treasury secretary Henry Paulson and favored by Bush and bipartisan congressional leaders alike, and all I hear from the mass media is that we are in dire circumstances now! Albeit, I agree we are in bad times, but let’s take a minute to look at what would have unfolded as a result of the bill being passed. First off, the economy would worsen as a result of the number of foreclosures and job losses that will continue to rise. This would be inevitable seeing that this poorly conceived plan mentioned nothing to regulate against it. Come to think of it, it doesn’t mention much, only that it needs $700 billion (kind of scary to think this is the only idea that they can come up with). With no plan in place to avoid this crisis in the future than what’s the point! Instead of calling it the “trillion dollar crisis” it will be called the “two trillion dollar crisis” down the road. Next on the list, what’s in it for the dollar? I’m not talking about inflation (this time, next article) which already has taken a heavy toll on our economy, but rather the affect that wall street investors will have when they again start to focus on negative interest rates, account deficits and ever increasing banking problems (Wachovia just made the list). The dollar will retreat even farther turning inflation into hyperinflation or worse. In fact the dollar has already begun to retreat, falling somewhere in the area of 5% since its mediocre rally that only lasted about two in a half months. So what can be done in place of this rushed proposal? I hate to just bitch about the problem and not offer any solutions. After reading an anonymous email that is also posted on this blog, it got me thinking. It talks about the $85 billion that had been used to bailout AIG being instead given to the taxpayers. Not such a bad idea in my book. Alright, maybe not so much to the extreme of the email (even though it’s still better than Paulson’s plan), but giving part of that money to hurting homeowners in order to pay part of their mortgage can go a long way. This would help preserve the value of these mortgage backed possessions and add a certain degree of liquidity to the market. It would also mean keeping these taxpayers in their homes where the economy needs them! A friend of mine only a short time ago told me his house recently devalued because the guy next to him had to foreclose. Scary stuff! To come to the point people, I’m fed up with hearing what the overly rich have for solutions. Let’s hear what the majority has to say! I always love to hear what you the “Mob” has for ideas, so feel free to post your ideas in the comments section below. Let’s follow the constitution for a change; it’s there for a reason!

--Charlie Mullen