Posts Tagged ‘$700 billion bailout’

Barnes Effort to Prevent this Financial Crisis was Overturned by Sonny Perdue

September 29, 2008

  Former Governor Roy Barnes saw this financial debacle coming and had the Georgia legislature pass a law to prevent it happening in Georgia. It held lenders accountable for their lending policies. Bill Shipp reports that K Street lobbyists in Washington tried to get Barnes not to do it, but they failed. In order to stop what Barnes was doing because it could have spread to other states, Wall Street bankers and K Street lobbyists poured money into the Sonny Perdue campaign. Once Perdue won the election, he saw that the Barnes’ law was dismantled.

  You can get the details by reading Shipp’s column. Just click on this link.

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Why No Bailout for Bill Heard Chevrolet?

September 28, 2008

  The government’s bailout of the banking industry raises some interesting questions. The biggest one is where does it all end? If we grant 700-billion-dollars to bailout the Wall Street investment banks, and 25-billion-dollars to save American car makers, why shouldn’t we bailout Bill Heard Chevrolet?

  After all, all Mr. Big Volume was doing is the same thing that the mega-banks were doing. As an Atlanta Journal-Constitution story says, “Like the Wall Street investment bankers who grabbed up securities backed by risky subprime home mortgages, Heard apparently staked too much on people who couldn’t pay what they owed.”

  Another interesting question is where does this bailout business end?  And what is the lesson it sends?  Is it that risk is taken out of doing business because the taxpayer will make up the difference when the business fails?

  Don’t be ridiculous, you might say, the government can’t do that for everybody. In that case, is it fair to do it for some and not others, and who decides which ones are insured against failure by the taxpayer?  And that tax payer, by the way, will be our children, grandchildren, great-grandchildren and their children, because the government will raise the money not by raising taxes now, but by borrowing it from China and other countries willing to take the risk.  The only alternative to that, if taxes are not raised, is for the government to print money. That causes runaway inflation which is another disaster.  

  What a mess.

  Just look at what the successful deregulators have done. They have put us right back where we were in 1929 when the stock market crashed and the Great Depression followed.  As the 60’s anti-war protest song went, “When will they ever learn? When will they ever learn?”