Ramifications of a Bailout?

Almost everyone that I get into my taxi these days has something to say about the poor shape of the economy. They ask me if my business is down. They tell me if their business is down. I have recieved literally a dozen calls to see if I am hiring in the last two months. I am not hiring; I am quite satisfied with the size of my company now, and I need less, not more, headaches. Bringing in a new driver would just make the headaches worse. One woman called me from Sacramento California. Another guy called me from Saginaw Michigan. Both wanted to know if I was hiring and what the economy was like here in Phoenix. Now, I am no Human Resources director, but I do know that a cab driving job is not the kind of job one normally moves hearth and home to take in another state. It is rather odd.

Chief among the economic concerns is the bank bailout. No one knows what it's all about. No one knows what is going on. No one likes the bailout and no one trusts the government. In the last few weeks, of the hundreds of people I have had in the car, only one, a securities lawyer, mentioned the bail out in a positive light. And he did not seem too thrilled with the idea. He was referring to it as a necessary evil.

The amounts of money are what scares people the most I think. No once can fathom what a billion dollars is, much less make it apply to their own life. Actually, it is rather easy to figure out. There are 350 million Americans. That is a little over a third of a billion people. So, if you want to know how much is your share of these multi billion dollar give aways, simply knock off the word "billion" and multiply the remaining number by three. Thus, the $83 billion AIG bailout cost YOU $249. It also cost your wife another $249. And $249 for each one of your kids. (The good news is it also cost your worthless brother in law $249, too.) The $700 billion bank bailout cost YOU and everyone else $2100. Each. Now, I cannot fathom $700 billion, but I can fathom $2100. It's a third the price of a taxicab. I can't imagine $83 billion. but I can comprehend $249. that's the price of a rifle. (Hint hint).

Where are they getting this kind of money? No one really says. But if you look deeply enough, you can see only one of three options: They can borrow it. They can steal it (taxes). Or they can just make it the hell up out of thin air (inflation). The sale of bonds, which is what borrowing the money means, inevitably means higher interest rates (which will kill the rest of the sub-prime borrowers). Higher taxes means the Guvmint Goon Squad steals more of your cash. Inflation is... well, it's inflation. If you didn't live through the 1970s, you will find out what it's like soon enough. Either way it is disasterous for the economy as a whole.

Not to worry though. The government, in exchange for those dollars they just made up or stole or borrowed, is going to end up with ownership stake in all the major banks of the United States. Oh goody. Has anyone thought this through? If they own stock in the banks, won't they demand representation on each bank's board? If they have representation on every bank board, won't they have access to all the bank's records? Including yours and mine? "Badges? We don't need no stinkin' badges!" As board members, won't they have ability to approve and disapprove loans? Think about that for a minute. Every loan is suddenly a government loan. And forget about private equity funds, since the government has access to all the money, it can set interest rates in such a way as to put all the private funds out of business. Just exactly where is this authorized in the Constitution by the way? Or does anyone give a damn about that any more? What about defaulting on your property loan? If the government owns the mortgage company that owns the loan, then doesn't the government own the loan? Ever try to get out of paying a government loan? It doesn't work. Those are loans that are EXEMPT from bankruptcy discharge. Hey, at least we solved the mushrooming foreclosure problem!

Yes boys and girls, your Congress has just sold you and all of your freedoms to the banks and created a financial dictatorship. We have now gone back into the days of old King George, who could do anything he damn well pleased, because he was the king. I guess it is right what they say: If PRO is the opposite of CON, then Congress is the opposite of Progress! Back to the lead mines everyone!