He’s Finally Done It

Today, Treasury Secretary Hank Paulson announced the biggest government bailout of all, and it’s finally gotten on my last nerve.  Bush was great after 9/11, but he’s since lost any and all respect I had for him as a leader.  If his doing the sword dance with the Saudi royals wasn’t enough, he started approving billion-dollar bailouts direct from John Q. Taxpayer last summer.

First, it was only supposed to be a bailout for those facing foreclosure on the homes they’d spent too much money on (after they cashed out the enormous equity during the housing craze without thinking it might bite them in the ass later on).  It was only supposed to help individuals even though the vast majority of them deserved to lose their homes.  There’s no such thing as a temporary government program, though.  We should’ve known it would keep going like this. 

Next came Countrywide Home Loans.  They got a huge bailout.  (Of course they would have, they gave Democrat Chris Dodd VIP-rate mortgages, a practice completely illegal according to the Fair Lending Act.)  THEN, the government declared Fannie Mae and Freddie Mac “insolvent” and started talking about bailing them out, too.  Wachovia posted a nearly $9 million loss, and IndyMac drowned in the subprime crisis it helped create.  Chase had to bail out Bear Stearns, and now we’ve had Bank of America bail out Merill Lynch while Lehman Bros. have also gone belly-up and declared bankruptcy.  As if that wasn’t enough, AIG started to give hints that it was about to go under, so our government decided to bail them out, too–to the tune of around $85 billion smackers.

NOW, both Obama AND McCain support a $25 billion bailout for automakers GM, Chrysler and Ford.  That’s ostensibly to help the companies retool their factories to start building cleaner, more fuel-efficient vehicles for America (since, God knows, Americans haven’t figured out what the Japanese already have).  The fact of the matter is that if they can’t do it on their own, they should face their own troubles.  I love America and I own a Ford–despite the fact that it guzzles gas, I love it–but the government can’t be expected to keep bailing everyone out.  So far there’s been an excuse for everything.

This is aside from Obama’s close involvement with Fanny/Freddie, you know.  Two of his closest advisors are the heads of those two companies.  And he’s been using them for business for years.

Bush could put his foot down and give the ol’ Texan saying, “not only no, but HELL no!”  He won’t, though.  God knows why.  I may like his charming personality, but as a leader, he’s just proven himself nearly impotent.  The federal government never should have gotten involved in this brouhaha to begin with.

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5 thoughts on “He’s Finally Done It

  1. Somehow this all happens the DAY AFG and I put in an offer on a house.

    Coincidence? It better damn well be. And if it isn’t, I’ll just have to start buying houses in enemy countries. Stealth warfare and all that.

  2. Oh God AFW, I have put in three different offers on separate homes that need fixing up here in the midwest. It’s all about you.

    Offer the sellers bottom dollar, try to get a land contract with them with the selling point that they get the mortgage interest instead of a finance company, and you save closing costs and real estate fees.

    Seriously…hold off and be firm. This is the time.

  3. Thanks for the advice, Steve!

    We’re actually offering on a foreclosure – and one that is priced at less than half it’s value for the moment. It needs paint and carpet, but other than that is in really good shape in a great neighborhood.

    And, luckily we do our finances through USAA – which is pretty financially strong.

    But good LORD this whole mess going down just as we try to buy is disconcerting!

    And I felt kind of bad that we’re profiting off someone else who lost their house, but on the other hand, we waited for ten years to be stable enough to buy a house within our price range and not above it. It has irked me to no end to see the people that caused this mess by buying too much house when they should have still been renting.

  4. If finger pointing is necessary then point them at Bill Clinton. When he took office the home ownership rate was 60% and he wanted it to go to 70%. That was a declaration of open season on sub prime lending and the rest of the mess that followed.

    When will the Democrats ever learn that are those who have and those who will never have because they blow every opportunity ever given to them?

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