JP via RSS
The Emperor Has No Clothes; Nor apparently do his financial advisers
Geithner’s PPPIP relies on the FDIC to guarantee toxic asset acquisition loans to hide even more unpopular bailout borrowing. Do we really want a government agency already stretched thin guaranteeing our bank deposits to go out of business guaranteeing toxic banker waste?
Now that government decided to let automakers go out of business and break their labor healthcare and pension obligations, there is even more pressure on the Pension Benefit Guaranty Corporation and other government guaranteed agencies.
Where will the money come from other than more funny money and debt? Folks, it just ain’t gonna happen. TinkerBell and Peter Pan do not run this country. We do.
Before we citizens acquiesce to yet another fraudulent bailout plan for bad bankers wrapped up in bogus claims to protect the consumer, we need to know the truth.
Bailouts so far did not work because debts, derivatives and potential defaults are far greater than the public know or most politicians comprehend.
$100 Trillion in unfunded government mandate liabilities dwarf the American economy. $800 trillion in derivatives crush the world economy. Why let the people who did this to the economy hurt us more bailing themselves out at the public trough?
Another painful truth is Bankers still think they run this country, under the principle that the borrower is servant to the lender.
Yet when the bankers are broke, they come running to the politicians, taxpayers and savers to bail them out. Ain’t gonna happen folks. The politicians work for the taxpayers, not the bankers. They answer to US, not the bankers. They can try to kill Jackson, Lincoln, Wilson, Kennedy and others for daring oppose the bankers, but not all of us.
We feel free to let our elected representatives know what we think and feel: We are not going to bail out broken bankers and their prodigal sons.
We know Darwin and Schumpeter were right about survival of the fittest and creative destruction. Our economy and markets will survive and even thrive another day, bailouts and fear mongering or not. As usual, prudent savers will make the most on their money, and not by bailing out broken banks. Let them eat their fiat currency lunch.
Food, land, gold, silver and live stock savers preserved Egypt under Joseph, Continentals after the Revolutionary War, Greenbacks after the Civil War, flappers after World War I, babyboomers after World War II. They will do it again after bankers finally quit trying to paper over their mistakes, and politicians quit trying to borrow, bs, spend and tax our way to prosperity.
If we don’t believe this, then let’s reread the Wizard of Oz, Aesops Ants and the Grasshopper, or Hans Christian Andersen’s Emperor’s New Clothes. Now these are some character stories we can trust.
