Now that the House of Representatives caved in to pressure from thousands of constituents angry at having to bail out Wall Street to the tune of $700 billion, the Senate has taken up the arms of the bankers against the will of the people and will be voting on Wednesday on virtually the exact same bill that the House just voted down. Victories for homeowners and families of America are apparently small and fleeting, while the politicians insist on forcing through a bill that 90% of the people they supposedly represent oppose.
And the entire bill is designed to save the financial system, provide stability to the markets, not reward greedy CEOs, and help Main Street. These are all somewhat ambiguous goals, at best, and even the government admits it has no real idea if the measure will help the markets in general, although they are quite aware that $700 billion will certainly help at least a few people and corporations. How it will help actual homeowners facing foreclosure, though, is not laid out too clearly.
Estimates of the cost of the bailout expect that it is going to cost families an extra nearly $7,000 in terms of the interest on the national debt they and their children will have to pay back potentially through increased taxes at some point. But government rarely raises taxes and rarely cuts spending. This means they will most likely inflate the money out of nothing, “assisting” families in paying more for groceries, gas, and other goods and services through the rising prices that are a symptom of deliberate currency devaluation.
Thus, the bailout is designed to confiscate homeowners’ money right now and hand it over to the large financial institutions that need it to cover up their losses on mortgage backed securities. The government will be “assisting” in this securities fraud through its inflation machine at the Federal Reserve, printing the money out of thin air and debasing the value of the money already in circulation. Banks will get to use the fresh money at today’s value, while all of the rest of us deal with the rising prices this causes in the future once the money has had time to work through the system and dilute the value of the currency.
As for direct help from the bailout to homeowners facing foreclosure, banks will be “encouraged” to work with homeowners through the previous government programs that were supposed to address the housing crisis. There are no new programs, no new proposals, no money being created out of thin air to stabilize homeowners’ ability to pay their mortgages. But maybe this is not such a bad thing. After all, how much help has any family in foreclosure received from the already existing government programs so far? In fact, all of them have been abject failures in addressing the housing crisis. Count on more of the same, albeit with a little more “encouragement” from the Treasury Department.
Unless a foreclosure victim’s job was Chief Executive Officer of a financial investment firm, they probably should not expect to get a lot of help from this bailout. This is one of the reasons why so many were opposed to it and remain opposed to it, despite Washington’s continuing attempts to thwart the will of the people and hand the money over to Wall Street. Of course, if homeowners facing foreclosure due to a job loss were a corporate CEO making millions of dollars a year, then they can most likely take a little bit extra from the taxpayers and have part of their golden parachutes financed by the people they have helped impoverish.
Otherwise, most homeowners should consider finding better jobs pretty soon so they can stop foreclosure quickly and get right to work on paying off their share of the bailout plan before another one is proposed and passed. It is obvious that no amount of money or bailouts will help cure the ills of the banking system at this point, although many more will probably be passed to cover up the insolvency of the system. In fact, American families may want to look for a couple of jobs — $7,000 is a lot of money and the banks need it right now, according the Secretary Paulson, or we will all be in quite the financial pickle.