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31 October, 2008

Something that bothers me about the bailout

Apparently if we didn't hand out billions - almost trillions of dollars, our economy would have imminently collapsed. But now that we've handed that money to the corporations, they are sort of free to do with it whatever they want. Ironically, the reason for this is because we are a capitalist society! If we absolutely forced them to do some things (start issuing credit), and not other things (continue issuing executive bonuses), then we would have some type of socialism. As if it is not already completely socialistic to be giving them the money in the first place. But the reality is that this bailout is going to help "Joe Corporation" first, and foremost. Second beneficiary will likely be "Joe Investor". Although one could argue that the savvy investor has probably been making an absolute killing in day-trading this volatility for the last month. The third beneficiary might eventually be the employees of these corporations, because they will actually have jobs. But the middle class... what do we get to do? Well, most of us are primarily impacted in terms of the ability to get loans, the ability to find jobs, and the health of our retirement plans, if we even have one. It's trickle down economics, to the maximum extent. And the poor people... as George Carlin put it "The poor people are around to scare the shit out of the middle class".

And now, tier two of the bailout has me even more worried. They're supposedly going to help people whose homes are being foreclosed. I wonder what that will mean, though. Is it for anyone? Or only for people who earn less than a certain amount? Because I really would hate to think that the person who had a dot.com income and bought a $900,000 house in the Bay Area, with zero down, will get their mortgage rescued. Why is it that fiscal responsibility is actually being inversely rewarded here? The people who borrowed within their means and have not foreclosed will receive nothing from the government. The companies that did not cook their books, or engage in extreme practices get nothing from the government. Only the dishonest are rewarded here. The people who diligently saved money in their 401k every month - those people have been fucked by this credit crisis. Why not tell the American people that the $700 billion will be used to replenish our retirement accounts from the money that the fleecers fleeced from us?

Would that be socialism? Or just a plain-old handout?

The deception and crime continues, and both parties are selling it. The beneficiary is corporate America, and the victims are the little people.

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