The Bailout

"Those who do not learn from history are bound to repeat it....."

It is interesting to me that the current bailout is calling for $700 billion for wall street. I find that number rather striking in that is approxamately the same amount of cash that we are sending overseas to unfriendly foreign Governments for our energy needs.

It seems to me that if both republican and democratic administrations in the 70's had paid attention to the energy crisis then, we probably wouldn't be were we are now!

Creating our own energy resources would have provided the needed financial wealth to our citizens to pay for everything from mortgages to stock purchases and perhaps we would have averted the current mess.

While this current crisis is reflective of the stark realization that some people bought homes on credit who should have never been allowed too: And the greed of Wall Street: And the drawback associated with the invention of computer technology which makes it too easy to refinance homes: And the greed and lack of discipline in our banking institutions it is ever bit just as reflective of POLITICIANS who didn't do there job then and certianly haven't done their job since then (1970's)!

Where was/is our leadership!??????
Where is the common sense?
Does anyone on Capitol Hill care anymore?

While it must be the roll of the American free market to produce new forms of energy the departments and congress of our federal government should have understood the delimma in the 70's, 80's, 90's, 00's, and given us leadership on the issue. Ecouraging our business and educational sectors to create new forms of energy would have eliminated our dependence on foreign powers, provided new jobs and fertilized the technological infrastructure to our universities and secondary schools calling upon young people to concentrate on mathematics, science and advancing technology to lead America in this new Century.

They did not! And now all the areas of our nation, financial, science, employment and housing sectors are suffering from this lack of vision.

Obviously, if you haven't noticed already, I am totally opposed to the bail out!

I know that may be harsh and I do not want to be insensitive. But the lesson we must now learn can only be accomplished through enduring the pain so that if we are to remain consistant and loyal to our economic system and our traditional way of life we WILL (must!) learn through this mess so that our children and grand-children will not have to put up with anything like it again.

While in the short term it may stablize markets a bit in the long run it will be detrimental. If we bail out Wall Street here are the dire consquences:

1. Government intervention though providing some immediate relief will cause the dollar to plunge even lower. Imports, and especially, oil, will become more expensive. Just look back at the 70's with the long gas lines, etc. (Then, we dealt with another problem that has rarely been mentioned during this economic downturn over the last year--that nasty virus of all economies: Inflation.) A lower dollar means higher prices and American's buying power will deminish sharply.

2. Government infusion into this problem can only serve to further corrupt the entities involved and puts us on a "slippery slope" that will continue to erode independence of the free market system. In laymen's terms. Government "bailing out" these previously independent organization means more government in the future. Government regulation will lead to "socialization" of the most viable, lucrative, area of our free economy with a "trinkle down" effect on other businesses large and small in American. And when the recovery does occur there will be too much "red-tape" getting in the way of potential, economic, growth.

3. Many of those who are about to lose their home will probably do so anyway. I know that may sound mean. But just because we "bailout" the banks doesn't mean American's will be bailed out. If amendments to the currently discussed plan (helping those facing foreclosure) are allowed to go thru then we will only be putting a "band aide" on the problem. And not solving a deeper issue: Job creation and the sustainment of growth and competition in the ever expanding, global, marketplace.

4. If we go into debt to bail out these companies it will eventually lead to the US borrowing more money from nations who do not like us in order to keep our government going: China, Russia, Middle Eastern nations especially. And if we bail out the banks...who do you think will wind up buying all these empty houses? Foreign governments and foreign businesses, that's who!! Not unlike what we are seeing right now in Florida and California. Yes, we will erode our national sovereignty to nations that for one reason or another do not like us!


Last night I was listening as Former Speaker of the House Newt Gingrinch talking with Greta Van Susteren. He pointed out some significant history that all of us should keep in mind: (I hope all of you can watch that interview)

(to parapharse)

In 1989, after running over with economic opulence in the mid to late 1980;s the Japaneese found themselves in a similar situation. According to Mr. Gingrinch it took the Japaneese fourteen (14) years to face their own reality. For 14 years the Japanese stayed in a relative "recession" that took them away from their economic prowess; And caused them to dwell upon the "saving" themselves and withdrawing from their influence in the rest of the world.

While Japan is still a significant player on the world economic stage most of us realize that it no longer carries the influence it did only 20 years ago.

Will we make the same mistake? I hope the decision is made not for immediate relif but for future generations to come. And if so America will continue to grow. If not the alternative is determential.

The politicians in Washington need to grow a back-bone, stand-up and say "no" to this bailout! Let America be America! Let the greatest economic entity ever devised by human's do its thing. Heal itself for the long-term, best, interest of our nation as a whole!!!

Gritsfed