Socialist programs do not work, and the bank bailout is a socialist program. And yes, President Bush made a huge mistake putting this bailout through.
Let us pretend you are a bank, and you got an infusion of cash. You know the economy is bad and people may have difficulty. Are you going to begin lending right away, or keep the cash and wait until clear signs the economy is improving?
Most play it safe and that is exactly what banks are doing. Essentially, they just received a huge direct deposit and are doing nothing but keeping it to run operations. It’s as if the bailout never happened.
And for similar reasons, Obama’s health care plan will bankrupt the government’s health department. Obama expects Business owners to keep on paying health insurance and expects individuals to keep paying co-pays and premiums while the government will offer a plan for the uninsured.
Most businesses and people will simply transfer people to the government’s plan.
It’s the same thing that happened in Hawaii.
Obama’s plan, like the Bush bailout plan sound good on paper. But when you consider the consequences of human decision, they fail.
Below is an article on the bailout not working…
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WASHINGTON – An impatient White House is serving notice on banks receiving billions of dollars in federal help to quit hoarding the money and start making more loans.
White House press secretary Dana Perino told reporters Tuesday that the Bush administration is trying to “get banks to do what they are supposed to do,” which is lend money. Though there are limits on how much Washington can pressure financial firms, she noted that banks are regulated by the federal government.
Perino said that the administration is watching lending activity very closely and working with the banks to step it up. She said that Anthony Ryan, Treasury’s acting undersecretary for domestic finance, was delivering a speech in New York on Tuesday that made this point.
Meanwhile, layoffs, plunging home prices and tumbling investments have pushed consumer pessimism to record levels in October, a private research group said Tuesday. Wall Street shook it off, though, focusing instead on higher global markets amid optimism the Federal Reserve will ease interest rates further.
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- Corporate Welfare on Steroids and the Coming Inflation Crisis
- Democrats release papers on Bush prosecutor firings
- FED BAILOUT TOPS $7.4 TRILLION – $54,371.79 PER TAXPAYER
