The Bush administration continues to put forth a policy that will, in the end, bring down the house of cards surrounding Wall Street. As has been the case before now, Bush continues to protect big business and the rich at the expense of the consumer. Taxpayers are being asked to foot the bill once again; the same taxpayers whose jobs have been out-sourced overseas. Where is the logic in trickledown economics in a global economy?
Previously, I suggested that the way to recover from this dilemma is to simply renegotiate the loans of delinquent customers in such a manner that each of the delinquent consumers will again be able to make the payments on their respective loans. Notice that I didn’t make one reference to shelling out money to achieve this goal. This would improve the liquidity, to some degree, for local loan agencies. If every delinquent homeowner were allowed to keep his home, and if these marginal loans could be bungled for purchase by investors willing to take the risk, then we could see a two pronged attack to resolve the issues facing the banking industry overall.
The Secretary of the Treasury has this brilliant idea to immediately throw billions of dollars onto a fire that can only be put out over time with what I call ‘trickle up’ economics. If the money used to shore up the economy was done by printing more paper money as part of the buyout that will signal the devaluing of the dollar. Once the dollar, used by most of the free world as the currency of choice in trading loses its value, we will began to see the dollar swirl within the confines of the toilet bowl and disappear forever as the currency of choice in trading. China, the Pacific Rim investors, and the Arabs will have a terrific choice to make, one that we will have no say in the makeup of.
Instead of letting investors take the cream off of the top, the policy should be to allow the cream to rise to the top by supporting the consumer base. One can only hope that these educated individuals will began to realize that it has been the consumer that supported the American economy in the past, and only the consumer can return this economy to where it was previous to the mass deregulation instituted by the Bush administration. Yes, I do blame Bush and the Republican dominated Congress because none of the deregulation was done with Democrats in agreement of these new regulations, and you can point your finger at Phil Gramm – thanks for nothing Phil.
This writer and others with no measure of discipline in economics predicted that the Bush doctrine on economics would destroy the delicate balance held by the United States in the global economic arena. I complained to everyone that I could write to that we are about to, with this grand tax cut program that rewards the rich at the expense of the poor deal a death stroke to the United States economy. You simply cannot spend every dime that you have (surplus – from the Clinton administration), ring-up deficits by charging where possible (the selling of bonds) and mismanage your house (taxes received) the way that the Bush administration has done and survive.
I continue to warn that if the Bush administration continues to try to bring this problem under control by buying out every failed bank that we will be involved in the most volatile non-recoverable situation ever. It will surpass the 1929 crash of Wall Street in comparison like an anthill next to Mt. Everest.