Monday, September 29, 2008

House 228-205 Vote To Reject Bailout!

American can breathe a sigh of relief today.

From the MSNBC article:

Stocks plummeted on Wall Street even before the 228-205 vote to reject the bill was announced on the House floor.

Bush and a host of leading congressional figures had implored the lawmakers to pass the legislation despite howls of protest from their constituents back home. Despite pressure from supporters, not enough members were willing to take the political risk just five weeks before an election.
Ample no votes came from both the Democratic and Republican sides of the aisle. More than two-thirds of Republicans and 40 percent of Democrats opposed the bill.

Update: Apparently received so many emails from concerned voters that the website went down (or at least slowed it to a crawl and made it unusable). So maybe people can make a difference in government sometimes...OK rarely... I'm sure the protests didn't hurt either. The problem is they are protesting the wrong place. Although every financial institution in America is scrambling to be included in this potential handout, the idea for the for the bailout is coming from Washington, from all those politicians with something to lose if their buddies companies go tits-up. Thankfully the will of the greedy and "Still" President Bush was not imposing enough to force the bailout through the House uncontested. So thank whatever higher power you may or may not believe in, that there are still a few souls left in politics who look out for the nation as a whole.

1 comment:

JoshMayr said...

If we keep fighting this we can prevent this. Most polls are showing up to 90% of Americans are not on board here. This is a full scale market-run/power-grab of epic porportions with the fear laden propaganda machine fully lubricated.

"You will lose your investments","Your house value will plummet","You may lose your job."

Don't let them bully you out of the market! Step back off the ledge. There are safe places to put your money and earn modest gains, at least enough to hedge inflation anyway. Market panics are a creature of design and history shows us this. Inflation by excessive credit causes prices to spike up sharply. Taking that credit away and raising rates causes losses. Losses so bad the public cries that the government do something about it fast. Typically a very hasty and unconstitutional piece of legislation was used to create the centralization of money authorities with the taxpayers money. With their money the government buys their old assets they just sold thanks to their leaders scaring the shit out of them. The assets are then dolled out to the banks so they can recapitalize and turn the credit spicket back on to the thirsty masses, fully completing the circle of the transfer of wealth. Real wealth never disappears in a crash, it only changes hands. How many times will we be Munsoned by these hoodwinks? If your thinking its those damn Wall St bankers you can't see the forest through the trees, look at the big picture. There's only one element in any nation that has the power to turn on enough credit to create wide distortions in the market place, the central bank or our Federal Reserve. Not largely owned by Americans or any form of government institution they are not "federal" nor a "reserve" of any kind. In 1913 they were granted the ability to create a "flexible" currency (to accomodate the countries seasonal, agriculture based economy) and regulate member banks through a network of 12 regional banks. Legislation forced member banks to buy non-transferable stock in their regional banks as well as deposit a specified amount of non-interest bearing reserves with the regional bank. Essentially, place some money with us that we will pay no interest for (we will also invest and loan as we wish worldwide ten times over) and we will make sure we protect all your malinvestment by creating new money out of thin air. Serious centralization of power, serious moral hazard created, seriously concerning.

Will some of those things happen if the government doesn't pass some sort of legislation in the near future? Loosing your job such? Yes. But we can have 1-2yrs of this, let the markets reprice themselves so goods and services become affordable again, or we can battle skyrocketing inflation over the next 15yrs, take your pick. We can also bank on the fact that the next time our debt catches up with us it will be much, much worse.

The are things that can be done though and it includes all of us. Save instead of borrow. Cut excessive and unnecessary costs, just be frugal. Pay down debt but pay the debt you do have. Sound economies are based on strong debts markets. Meaning, it's important that financial institutions are solvent in a strong economy. For that to happen people have to pay their bills on time.

The government can start cutting wasteful spending not only overseas but at home at any time now. Just yesterday a $600 billion defense spending bill was passed without a whisper while most of us are focused about the Bailout package. The welfare-warfare state needs to start losing some limbs.

Finally a full repeal of the Federal Reserve Act should be brought before the House. Currency laws repealed to allow alternative forms of commodity-backed currency to circulate. Interest rates should be determined by the market place through a system of smaller federal, state, and local banks all competing for deposits and loan business. Outlawing fractional reserve banking (threatening deposits by loaning more money than you have by multiples and collecting interest on that fictional money) would put the breaks on dangerous malinvestment and bring some sanity back to this country who has been continuously mis-led at every intersection.

Don't give up because the fight isn't over yet. The Federal Reserve Act (first known as the Aldrich Bill after Sen. Nathan Aldrich) was in the works for 5yrs before it was passed. The powers that be will use all their might to pass this bill but theirs is no match to the will of the people as was demonstrated today, it just takes a little engagement.