Congress…Don’t do this deal!!

The people in the hinterland are having a tough time wrapping their fingers around “Bailouts for Wall Street”!  The reality that the Dow could fall to the 8,000 level….is not Space Science.  We did it ….about 10 years ago.  How bad was our world then?  Just to remind you…this was the launch of the Dot Com Explosion!  Then came the Dot Com Bust, 911, Short Recession, Sub-Prime Explosions and Hedge and Derivative Fund Nuclear Expansions.

Sustainability….of any market is always difficult.  Markets go up and markets go down – right?  Not when they are being manipulated artificially!  Welcome to the Crude Oil, Natural Gas and Real Estate markets.  Banks have been the willing co-conspirators, strongly utilizing the now and ever defunct Investment Bank system as their front men…in order to take a bite out of those big 22 percent annual returns.  Those days are now officially on hold…until banks like Washington Mutual……..and others that were deeply involved in these scams get bought up ( WAMU – got picked up today by JP Morgan Chase).

The real issue is DeValuation of the Dollar!  World opinion would quickly work its magic…if we said….”America is devaluating the dollar!”.  Should the Congress use this Bail Out as an excuse….to devaluate the dollar… who knows where that will land our economy?  This is called “Net Effect”……as we keep pumping worthless money into the system…..the value of the currency is bound to fail.  Zimbabwe currently gives $3Trillion Z-Bucks to the US dollar.  We do not need to domino the world economy into a total collapse!

Real property….needs to have real values established.  The simple solution of course is to simply go back to 1998….and “use comps” for everything at that time!  The problem of course is the rise of Pensions, Retirement Plans and Public Employee Insurance accounts.  It is going to be tough to convince the people involved in these funds that if they take “half” they will be making out like bandits.  The great greed of Wall Street has been established to infect anyone with two bucks to rub together.  Saying NO to any of these people will be a very difficult task.  Saying YES is guaranteed to possibly ruin the American way of life. 

There are some pretty good ideas running around out there that do not include Devaluing the American dollar.  You need to remember that if in fact we “Net Effect – devalue the American Dollar”…the price of oil may double, the cost of living may double and job growth and wages are then destined to fall like rocks.  Not a good outcome…now or in the future!  The one good idea that makes better sense…is having the banks borrow their way out of harms way!  Make these bankers and Investment vehicles…borrow from the Federal Government… on one!  They would have to have tough Lender documents….at high interest rates…warrants some say….better yet putting CEO’s personal assets at risk in the process.  Without that…..without any true responsibility by these people…..we may be just whistling Dixie!

The “Net Result” will be different than the “Net Effect”.  Banks, companies and Investment vehicles will have to bargain, sell, merge or do what is necessary with real effects….of their actions impacting them personally!  The thought that we are going to give US Taxpayer monies (some say up to $4 Trillion dollars to World Investment Vehicles…..over half from Foreign Countries…is despicable!  If the Fed wants to open up their wallets to Credit Markets…start their own:  1-800-FED CASH! 

We cannot sit by and approve or accept that our Congress is going to approve a very bad economic plan……that doesn’t take into account the future of our country!

About Ron & Anna Winship

Independent News Producers/Writers and Directors for Parker-Longbow Productions. Independent Programming which includes a broad variety of Political, Entertainment and Professional Personalities. Cutting Edge - a talk the flagship of over 30 URL websites developed or under development. The Winships have been blogging for the Orange Juice since back when nickels had buffalos on them, and men wore onions attached to their belts, because it was the fashion back then.