Government Bailouts

Will Bailouts Cost Americans Their Republic?


It has been left to Federal Reserve economists and U.S. Treasury officials to destroy the American system through bailouts spun as anti-recessionary initiatives. What is a severe recession anyway but a well-deserved day of reckoning for financial excess? What is so wrong about the nation taking its needed medicine after a speculative binge?

Is The U.S. Becoming All It Fought Against?


Welcome to the United Socialist State of America. Economic justice is now a function of centralized planning. Americans fought in two world wars and other conflicts for freedom’s sake. We fought against tyranny — Communist, Fascist, Nazi and dynastic. We struggled against injustice in which monopolistic political parties dictated right or wrong without fair regard to an informed public interest. We battled mind control, manipulation of public sensibilities, the skewing of justice, and the redistribution of rewards not in accordance to fair market desserts.

The Fed's Easy Money: What Does $100 Billion Buy?


How should American taxpayers feel about the decision of the U.S. Treasury to send $100 billion of newly minted FED money to nine of Wall Street's biggest banks? Perhaps this new strategy is an improvement upon last week's Treasury brainstorms, but it is still $100 billion of inflation stimulating money that would not be needed if Wall Street had been a proper steward of its trust.

The Obama Administration: Is it Bush III?


David Weidner says that J.P. Morgan’s Dimon will be the Obama camp’s first choice for the next Secretary of the U.S. Treasury. Does America really need another Wall Street C.E.O. as Treasury Secretary? What more does it take than the Paulson experience to help voters see the consequences of putting a Wall Street elite in charge of the nation’s money?

Americans Angered Over Paulson Bailout Plan


The Paulson bailout plan incensed millions of Americans. Financially responsible individuals were dismayed at the prospect of paying for the speculative improprieties of Wall Street. Some people decided to close stock accounts. Others sent redemption notices to mutual fund companies. As MarketWatch chief economist Irwin Kellner points out, a portion of the exodus reflects “capitulation” — the agony of Americans who cannot afford to lose more money if a market recovery is prolonged.

Is California Truly Too Big to Fail?


If California is too big to let fail, then so is every other state in the Union, since state equality in the Senate is a constitutional construct. If the California governor deserves success in lobbying the U.S. Treasury, then the federal government might as well bail every state (and every state-dependent municipality). This trend — already underway in the financial sector — will lead to the anarchical destruction of justice. When people realize that any hope of economic justice is lost, the American experiment with “free democracy” will die.

Lessons from Russia on Plutocracy


The investing public needs to make sense of the fast changes underway in the U.S. economy. One useful means of untangling current events is to compare the Russian experience with our unfolding situation. The comparison illustrates the likely fate of both countries.

Wall Street Misrepresents Capitalism

Today’s 777 point sell-off in the Dow signals Americans that our capitalism is not properly serving our interests. American capitalism is now an asymmetrical game that benefits elite traders while undermining the common good. People’s retirement savings should not be exposed to the capital destruction that occurs when prices in the “float” fail to provide fair market discovery of real corporate value.

What Warren Buffett Could Have Done


Warren Buffett missed a great legacy opportunity yesterday when he placed a five billion dollar bet on Goldman Sachs. Buffett said he was betting on brains. He said his move was conditioned on his confidence that the 700 billion dollar government bailout would occur. Buffett put more than money on Goldman Sach’s table. He left a cryptic message that Wall Street brains will get the better of the U.S. Congress and the American taxpayer. In less than code language he conveyed his intention to capitalize on any resultant surge in the valuation of investment banks.

A Bailout Alternative: Create New Banks on Main Street


It is time to formulate alternatives to the flawed Paulson plan. Unless superior alternatives take shape soon, the Paulson plan will pass in modified form — the modifications sufficient to preserve Wall Street’s dominance of America’s capital markets. Paulson’s plan will prolong high inflation and lead to a weaker dollar. A weak dollar will produce higher oil prices, which in turn will undercut the economy while debasing the standard of living for most Americans.

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