The American public is almost 80% against the Bush/Paulson ' Cash for Trash ' bailout plan and for good reason. The Bush/Cheney/McCain administration has lost virtually all credibility with their transparent bailout for Paulson's rich investment banking cronies as well as our foreign lenders in China and the middle East ~ who bought into our financial debacle and are now holding worthless mortgage-backed securities.
This bailout plan is about buying mortgage-backed securities, not mortgages and there is a big difference.
It's all about Wall Street ~ not Main Street.
Despite what George W Bush and Secretary Paulson say ~ our largely unregulated financial system is NOT fundamentally sound and the Dow will tumble even lower when the closet on derivatives is finally opened, for we are looking at $180 trillion dollars of unregulated debt ~ with much of it at risk .
First of all, you must realize that the Bush stock market is a giant crap shoot and much of it is unregulated ~ especially the unseen market of Derivatives. As I predicted last year, the sub prime mortgage market collapsed, which is now being followed by a giant ongoing credit crisis but the final nail in the coffin of the American financial system will be the collapse of the Derivative market ~ the mother of all unregulated debt structures.
Of course, in the midst of the worst financial crisis since the Great Depression, former N.Y. Mayor Rudy Giuliani has begun drumming up business, positioning his law firm to advise corporate clients on how to profit from the government's $700 billion bailout ~ which is, in essence, the biggest corporate welfare check in American history.
Martin Weiss, Money and Markets, who has been dead right on the economy for the last three years, laid out his grim economic forecast yesterday:
" Whether the Congress passes the bailout legislation or not, the outcome will be similar: The debt crisis will continue to deepen and spread. Many more banks will fail. The economy will sink into a severe recession. And those who stubbornly hold onto vulnerable investments will suffer some of the greatest losses in modern times. Bottom line: The Black October we've been warning about has barely begun. The worst is yet to come." http://www.moneyandmarkets.com/Issues.aspx?NewsletterEntryId=2355
Americans subjected Congress to a relentless, overwhelming, resistance numbing pressure ~ particularly on the internet. Never have I seen such negative pressure against a bill and Congress responded ~ 95 Democrats and 133 Republicans voted to defeat the Big Bailout.
Please call Congress at 202-224-3121 and demand ~ "Bailout homeowners, not the bank owners." The U.S. needs to build its economy from the ground up not from the top down.
If you're not outraged, you're on life support !
Allen L Roland
