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Massachusetts Liberal

Observations on politics, the media and life in Massachusetts and beyond from the left side of the road.

Friday, September 19, 2008

Wall Street's ransom note

Memo to Gov. Palin: the Bernanke bailout of Fannie Mae and Freddie Mac isn't likely to cost the taxpayers anything. The new proposal to bail out the entire bank and mortgage fiasco will. And then some.

I never cared much for economics class and I don't profess to know a whole lot more than my retirement has just been pushed back a few years. But it's clear from yesterday's Wall Street rebound that the folks who got us into this mess think the proposal will bail them out.

But it will be interesting to see if that federal largess extends beyond the investment banks, insurance companies and mortgage brokers who ran amok.

Like for instance, will there be help for the homeowners who got suckered into subprime bait and switch mortgages on true good to be true terms and who have been losing their homes and their own futures?

Given the fact the last change in the bankruptcy laws created harder terms for people trying to get out from under crushing debt, I doubt it.

But apparently helping corporations trying to get out from under their own greed is another matter entirely.

I believe the term is corporate welfare.

Yet the bottom line seems to be bail out Wall Street from its own reckless irresponsibility or we all suffer.

The least Congress can do is print the the legislation with slips of letters and numbers from newspapers and other places. You know -- like a ransom note.

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Anonymous Anonymous said...

Is it true that Barney Frank and his oversight committee colleagues on both sides of the aisle were feted and supported by Freddie and Fanny in the years leading up to his mess? The press has been quiet on that front. Isn't it odd that they, who are now so intent on laying blame, never intervened during the multi-year run-up to that crisis.

September 19, 2008 6:45 AM  
Blogger Outraged Liberal said...

Cash is the way of doing business in government and I will be the last person to defend it.

If you are referring to the lack of congressional oversight, the fact also needs to be stressed that it is in just the last two years that the Democrats have gained control. And the filibuster rule in the Senate requiring 60 votes for action has pretty much eliminated the ability to act.

If you are saying has the press missed the story about money in politics, I'd say you haven't been looking in the same places as me.

September 20, 2008 9:20 AM  

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