[Vision2020] Why are we bailing out all these large corporations?

[Tom Hansen]

Paul -
 
It is my impression that this economic crapshoot was instigated by deregulation of the industry under both Reagan and Bush Sr..
 
It used to be that it was difficult (stringent requirements and constant federal monitoring) for banks, S&Ls, and other financial institutions to qualify for FDIC/FSLIC "protection".  Once Reagan removed these requirements and Bush Sr. drastically limited (if not eliminated) federal monitoring, banks approved loans to people/businesses that possessed no viable capability of ever repaying the loans and investment firms made investments that would make third-world countries cringe.  These financial institutions were not concerned about going "out of business", not as long as they had that FDIC/FSLIC sticker on their doors.
 
So, as Bush Jr. tries to pass himself and potentially McCain (who coincidentally has been in the Senate since Nixon left the White House) as heroes to the American people, remember who made this all possible.  Hint:  It wasn't Obama.
 
Tom Hansen
Moscow, Idaho



> Date: Sun, 21 Sep 2008 16:59:05 -0700> From: godshatter at yahoo.com> To: vision2020 at moscow.com> Subject: [Vision2020] Why are we bailing out all these large corporations?> > If a large corporation is about to go bankrupt because they loaned money > without proper collateral behind it and without a determination that the > person taking out the loan could reasonably pay it back, shouldn't we > let it crash and burn? Isn't that what is so casually referred to as a > "market correction"?> > I've heard it stated that there is something different about this > situation - it's more dire and it could have a snowball effect on the > rest of the economy or even the globe. Does anyone here know enough > about this to explain that?> > What is so important about this situation that would result in the > necessity for an Iraq War-sized expenditure?> > Or is it a case of the rich looking out for the rich, which I'm > half-tempted to believe is the case.> > Paul> > =======================================================> List services made available by First Step Internet, > serving the communities of the Palouse since 1994. > http://www.fsr.net > mailto:Vision2020 at moscow.com> =======================================================
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