The Government Bails Me Out

Well, I'm sure you're all well aware that the government bailed out AIG with 85 billion dollars of worthless paper, then came back and made it $150 billion. Then, congress passed the $700 billion dollar TARP (Troubled Asset Relief Program) initiative to bail out almost any bank and lender with a good enough reason to stick its hand into Uncle Sam's pocket. Well, the government has just bailed out Citigroup with another $300 billion, and Obama has said he will pump in another $300 billion in another recovery plan when he takes office. That brings the tally (not including the other money appropriated directly by the treasury that didn't get as much press) to $1,450 billion. That's almost 1.5 trillion dollars. And, most people are saying that no end is in sight. When all is said and done the government of the US may have pumped in over 5 trillion dollars. 

But here's the kicker. The government has now decided to bail me out. I will get $70 billion. They say it's the largest bailout of a private citizen in our nation's history. 

The reason I deserve it is because if I don't get this bailout I will not be able to remain solvent. I personally backed over 40,000 mortgages in the US with my steely grin and chutzpah. But, in these uncertain times that's apparently just not good enough. Some who own my mortgages were going to default (Edna and George, Jay and Carla, Betty and Fred I'm referring to you in particular you pansies). 

In exchange for the money I've given the government a 30% stake in me. Good news? I still own myself. Mostly.

And you thought your money was worthless before this economic downturn. Ha. Quickly, start buying up gold coins! Or go on a quest like Super Mario, Sonic, or play Zelda.

The Banking Crisis

Just about everyone has made reference as of late to the financial crisis, so I'm going to put in my two cents. 

Initially, as with everything, people wanted to blame Bush and lenient regulations that were promoted by his administration and party.  Then people started to get it right and blamed the money managers and CEOs of AIG, Lehman's, Freddie and Fannie for overextending themselves into risk averse loan situations without consideration of the ramifications. Then people went back to blaming Washington, which is a generic cop out strategy, to not put the blame exactly where it lies. Many factors were involved. Yes, it involves many greedy bankers, yes it involves the FED, and yes, it could have been prevented. However, I am horrified by the solution.

The US first bails out Freddie and Fannie, then it lets Lehman Brother's go bankrupt. The next day they bail out AIG, and now they have devised a plan to loan 700 billion dollars to ad liquidity and save the entire financial industry in America and the world. What that amounts to is a free ride for these companies. It's like saying, "Well I know you were irresponsible for more than a decade and a half, causing millions of people to lose their money, but we'll bail you out anyway and you can live happily off your 7-8 figure pension or severance." But, this bail out is not just helping American companies. Paulson has included foreign companies who have a lot at stake here as well, because as he correctly claims "It is a global problem." However, that being said, it should be a global solution, not the American taxpayers bailing all these companies out. We are marching towards socialism. We will soon have a completely state run financial system. And, the best part about it is no one consulted the American people. I suppose they didn't have to, but it sure ads insult to injury. 

Who really should get the help from this crisis are all the people who put money into this failed system, not the system. The lenders screwed up royally and can't pay back their debts, so why should we the people who lost our money to them, bail them out? I know some will argue, "desperate times call for desperate measures," but I would have stopped at Freddie and Fannie. 

Oh, and on another note, the former CEO of Fannie works for Obama, gave a load of money and picked his VP.