Durbin Ties Economic Crisis To Iraq War, Calls For Repeal Of Bush’s Tax Cuts To Pay For $700 Billion Bailout
Durbin Ties Economic Crisis To Iraq War, Calls For Repeal Of Bush’s Tax Cuts To Pay For $700 Billion Bailout
In an interview today with ThinkProgress, Sen. Dick Durbin (D-IL) directly tied today’s fiscal crisis to the Iraq war:
The Iraq war has driven us deeply into debt. We borrowed $700 or $800 billion to finance that war, mainly from foreign companies, which have flooded our markets with investments — many of them in the big problem areas we talked about, like subprime mortgages. So they have just compounded the problem and we have invited them in, because of the debt that we have. This has been the first president in the history of America to ask for a tax cut in the midst of a war. He made the debt situation even worse.
Durbin also commented on the ballooning size of the debt, noting, “The accumulated debt of America from the beginning of this country to today is about $9.7 trillion.” But between the rescue of Fannie Mae, Freddie Mac, AIG, Bear Stearns, and now the bailout package, “the accumulated exposure added to the national debt over the last several weeks equals the entire debt that we have accumulated in the history of this nation.” Watch it:
The Iraq war — on which the Bush administration is spending $12 billion a month — combined with Bush’s tax cuts, have significantly contributed to the national debt. According to the Center for Budget Policy and Priorities (CBPP), Bush’s tax cuts accounted for 42 percent of the “unprecedented” explosion of the deficit in recent years, which of course adds to the debt. Durbin told ThinkProgress today that he supports repealing Bush’s tax cuts for the wealthiest Americans to help pay for the $700 billion bailout.
As Pat at the Wonk Room has pointed out, these irresponsible policies have meant that the United States has had to turn to foreign investment for financing. Currently, 45 percent of U.S. Treasury securities are owned by foreign nations; other nations owned fewer than 20 percent of these securities as recently as 1994.
Transcript:
DURBIN: The Iraq war has driven us deeply into debt. We borrowed $700 or $800 billion to finance that war, mainly from foreign companies, which have flooded our markets with investments — many of them in the big problem areas we talked about, like subprime mortgages. So they have just compounded the problem and we have invited them in, because of the debt that we have. This has been the first president in the history of America to ask for a tax cut in the midst of a war. He made the debt situation even worse.
The accumulated debt of America from the beginning of this country to today is about $9.7 trillion. In the last two or three weeks, we have accumulated additional liability for our government — $5 trillion by our guaranteeing Fannie Mae and Freddie Mac, $3.5 trillion by guaranteeing with FDIC deposit insurance money market mutual funds.
Then we put the suggestion now, some $700 or $800 billion on the table for this bailout. Then of course we have the purchase of Bear Stearns for $29 billion and the purchase of a major share of AIG for $80 billion. When you total it up, it turns out that the accumulated exposure added to the national debt over the last several weeks equals the entire debt that we have accumulated in the history of this nation.
So this administration will leave town with a sad record when it comes to foreign policy, for the worst decision made in modern memory — the invasion of Iraq — and for the most disastrous economic policy since the Great Depression. It’s not exactly a great send-off gift for America.
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but…but…but…I thought the Iraq war was going to pay for itself!
September 26th, 2008 at 5:25 pmBush & McBush will not stand for repealing tax cuts for the filthy rich, but will instead argue that even MORE and DEEPER tax cuts will pay for it all.
Sorry about this one last post for the day. I was about to log off and could not resist a final dig to “the man”.
The Devil made me do it. (:-o)
September 26th, 2008 at 5:25 pmAt last, a solution that is reasonable.
September 26th, 2008 at 5:26 pmBush’s ardent corporate enablers should absolutely shoulder the financial cost of the war. Then the war profiteers among them should be executed. After a fair trial, of course.
September 26th, 2008 at 5:29 pmFlag the impotent troll…
September 26th, 2008 at 5:39 pmTracy__5 Says:
###########
How do oyu propose we pay for this? Now that our government has decided to adopt a socialist perspective of using government money to bailout private companies – how do you propose we pay for it? I think suspending tax cuts would be a good start.
September 26th, 2008 at 5:41 pmsorry – inc]vest = invest
typing way too fast ….
September 26th, 2008 at 5:43 pmTracy,
How many poor people do you know who inc]vest in credit derivatives? What about poor people seeking venture capital from wall street firms? The fact is, the exorbitantly rich caused this mess, and now President John McBush wants to extend welfare to them at the cost of the taxpayer. Why do you support socialism?
September 26th, 2008 at 5:43 pmOops,
September 26th, 2008 at 5:44 pmForgot linky, linky
http://www.marketwatch.com/news/story/ccagw-blasts-chairman-obey-1/story.aspx?guid=%7BACF8AA88-1085-4885-8F08-BE00F1FE5C05%7D&dist=hppr
.
CCAGW Blasts Chairman Obey for $1 Trillion Budget Circus
Last update: 4:44 p.m. EDT Sept. 25, 2008
Quick math…
What do you get when you add:
$600,000,000,000.00 (defense authorization)
$600,000,000,000.00 (DOD “security omnibus” bill)
$700,000,000,000.00 (CEO bail out if done AFTER Oct 1, 2008)
… We end up with a number around $2,000,000,000,000.00 FY’09
That’s 2 T R I L L I O N dollars, +/- a few billion…
.
September 26th, 2008 at 5:44 pmOh come on now TP…
Post #10 was done AFTER post #11…
How else could I have forgotten my Linky, Linky?
ARE WE BACK TO PRE TIME STAMPS… A G A I N?
September 26th, 2008 at 5:46 pmThe result of a republican majority in congress for 12 years, and a republican president for 8 years.
AIG, WaMu, Lehman Brothers, Bear Stearns, $11,000,000,000,000.00 debt ….
September 26th, 2008 at 5:47 pm.
We do know the less we respond to Tracy_Troll, the less She’ll have to respond back and eventually she’ll dry up and blow away… NO?
.
September 26th, 2008 at 5:48 pmTracy__5 Says
September 26th, 2008 at 5:37 pm
____________________________________________________________
I’m assuming then that your solution is that NOBODY pays for it and it just gets tacked onto the national debt. You know, that thing that we taxpayers paid half a trillion in interest on last year and will be paying even more this year. And even more when the debt tops $10 trillion dollars as it will with this chunk of change added to it.
Face it — somebody is going to pay for it (or pay interest on the debt until it’s paid off). Who do you think it should be?
Oh, and just in case you don’t comprehend what “half a trillion in interest” means, it comes out to roughly $1,667 for each man, woman, and child in this country. Every year. In taxes. Multiply that by the number of people in your family and you have an idea of how much of your tax bill is going just to national debt interest.
September 26th, 2008 at 5:48 pmMax-1 Says:
We do know the less we respond to Tracy_Troll, the less She’ll have to respond back and eventually she’ll dry up and blow away… NO?
####
No, she doesn’t go away. She just starts lying about her dead child.
September 26th, 2008 at 5:51 pmChris LeJeune,
September 26th, 2008 at 5:53 pmThen flag her and let TP whipe her @ss.
Max-1 Says:
Chris LeJeune,
Then flag her and let TP whipe her @ss.
####
I got tired of flagging. It doesn’t do anything. We just end up with Tracy_6 or Mighty Aphrodite_138
September 26th, 2008 at 5:56 pmSee Dick run. See Dick run rings around repukes.
September 26th, 2008 at 6:01 pmSee Dick not step in the repuke. Dick’s shoes are clean.
Chris LeJeune,
September 26th, 2008 at 6:02 pmLOL…
How about raising taxes on those who have trouble answering the question “How much money is ‘enough’?
September 26th, 2008 at 6:03 pmLet’s see…worst attack on the US, worst foriegn policy decision, worst natural disaster and gov’t response, and now the worst economics. Is there anything left for this Worst President Ever (not just US, EVER) to fck up?
Just think, if he quit while he was ahead, he would’ve had to resign less than six months into his presiduncy.
September 26th, 2008 at 6:04 pmThe important point our troll misses is that folks APPLY for a mortgage, they don’t order one. The financial institution is the final arbiter as to whether the APPLICANT can qualify for the loan terms (principal, dwn payment, interest, terms, collateral, etc). It is up to the loan committees and underwriters to determine if the APPLICANT
September 26th, 2008 at 6:04 pm.
What Tracy_Troll meant:
.
September 26th, 2008 at 6:04 pm#24 Bob,
September 26th, 2008 at 6:05 pmAnd that was when he was just a bumblin’ fool…
how about showing some integrity?
That’s funny. Do mean like John McCain?
September 26th, 2008 at 6:09 pm.
What Tracy_Troll meant was:
.
September 26th, 2008 at 6:09 pmAll this Republican rhetoric about what is bad for job creation and what is good for job creation is totally contradicted by the evidence that is taboo for our MSM to mention. Not only that 22 million jobs were created under Clinton compared to the 5 million (and dropping) created under Dubya—-but ever since the 1920’s, whenever we go from Repub to Dem the job growth rate improves, and whenever we go from Dem to Repub it worsens. I can’t go back further than the 20’s because records weren’t kept then.
September 26th, 2008 at 6:13 pmTracy__5 Says
September 26th, 2008 at 5:59 pm
Make the government sell the loans, cut spending, pass effective regulations (including cutting out the absolute garbage 0% down payment part) and grow the economy. Raising taxes on capital gains isn’t going to spur investment. Raising taxes isn’t going to help with the financial markets liquidity. Raising taxes on small businesses isn’t going to create jobs. On principle I don’t like the government buying up all of this debt but what other entity has the ability to do it?
_________________________________________________________
Cut spending? Grow the economy? Spur investment? Create jobs?
(smacking forehead) Wow — why didn’t I think of that?
Our Republican-controlled government has already given us tax cuts. They’ve given corporations tax cuts. By your figuring, this should have spurred investment, created jobs, and grown the economy. And everything should be hunky-dory now, right?
And as far as the “cut spending” part goes — where do you think we should cut? The past eight years of Bush and Cheney (not to mention 12 years of a GOP Congress)have caused spending to skyrocket, which is one of the reasons we’re in this mess. If cutting spending was such a great idea, why hasn’t our Republican-controlled government done that? And if cutting taxes was such a great idea, why isn’t our economy booming?
September 26th, 2008 at 6:13 pmTracy__5 Says:
I don’t. I this case, however if you can think of an entity that has the cash you let us know.
The republicans already have. Their recent proposal includes removing laws and regulations that are “an impediment” on off-shore entities’ entering into the credit markets.
Think Halliburton…
September 26th, 2008 at 6:14 pm.
Bailout can’t hide it – the United States is broke
By Chris Powell
Published on 9/26/2008
September 26th, 2008 at 6:15 pm
Oops,
September 26th, 2008 at 6:15 pmForgot the linky, linky…
http://www.theday.com/re.aspx?re=e9bbdf59-9773-4a21-b738-34efa1d76cc8
When the government sells these loans it can will recoup alot for the taxpayer.
Like we’ll eventually be reimbursed for the invasion by Iraqi oil revenues?
Fool us once…
September 26th, 2008 at 6:16 pmChris LeJeune,
September 26th, 2008 at 6:17 pmI do BOTH…
Tracy__5 Says:
…..Who signed the The Gramm-Leach-Bliley Act?
That’s why I (and I guess most progressives) have always said I am to the LEFT of Clinton (Hill & Billary). Why don’t you know whether a policy is to the left or right? Why do you only have simplicities like “Bush good. Clinton bad.”?
September 26th, 2008 at 6:18 pmTracy, learn something. The big money boys pulled their chips to the sidelines. They won’t loan to each other at less than pay day loan rates. Now, how are they going to treat you, when they decide they need to make some ka-ching?
You’ll be paying even more…
As for the insurance proposal from Boehner & Co, that might’ve worked if it started 10 years ago. Insurance companies won’t write homeowner’s coverage when a hurricane enters the Gulf of Mexico, much less after it devastated hundreds of miles of coastline.
Also, insurance companies are riddled with the same explosive credit bombs as banks and the ex-Wall Street investment houses. The unregulated credit default swaps went kaflooey the week of Sept. 15. That caused the economic clogged arteries.
Now our uninsured economy has to figure out what to do. Do we get the $700 billion artery freeing procedure or just go without?
September 26th, 2008 at 6:18 pmTracy is talking about integrity while spewing lying talking points. Typical.
September 26th, 2008 at 6:25 pmChina says no more credit. And I don’t blame em.
September 26th, 2008 at 6:25 pmWhere are SEC papers kept since 9/11? We’ll have to get “terrorists” to strike that building, too!
September 26th, 2008 at 6:25 pm.
http://faculty.chicagogsb.edu/john.cochrane/research/Papers/mortgage_protest.htm
To the Speaker of the House of Representatives and the President pro tempore of the Senate:
.
September 26th, 2008 at 6:27 pmTracy is here working for McCain points and he’s worried that the fat cats might have to pay capital gains taxes. There should be a special category on the IQ scale somewhere under “moron”.
September 26th, 2008 at 6:27 pmYeah Keith all that insider trading that’s been going on since and who goes to prison. Martha Stewart. Who is next, somebody on the Food Network no doubt.
September 26th, 2008 at 6:29 pmShayne, Dubya’s insider trading with Harken was ten times Martha’s. She lost money. If she had not sold, she would have made. I think it was because she and the other guy were Democratic contributors.
September 26th, 2008 at 6:34 pmSection 105(d):
TRANSFER OF A PERCENTAGE OF PROFITS.
DEPOSITS.Not less than 20 percent of any profit realized on the sale of each troubled asset purchased under this Act shall be deposited as provided in paragraph (2).
USE OF DEPOSITS.Of the amount referred to in paragraph (1)
65 percent shall be deposited into the Housing Trust Fund established under section 1338 of the Federal Housing Enterprises Regulatory Reform Act of 1992 (12 U.S.C. 4568); and 35 percent shall be deposited into the Capital Magnet Fund established under section 1339 of that Act (12 U.S.C. 4569).
REMAINDER DEPOSITED IN THE TREASURY.All amounts remaining after payments under paragraph (1) shall be paid into the General Fund of the Treasury for reduction of the public debt.
This funnels money to ACORN.
And I can’t believe this crap. Now the mantra will be “Republicans can’t see that we have to raise taxes to pay off their friends.” Instead of “Arrest these people.”
This is professional wrestling, people.
September 26th, 2008 at 6:36 pmAnd the FTC spins its wheels over Whole Foods and Wild Oats. Geeze, now there is a merger that will send the financial systems into bankruptcy. WTF!!! /snark
September 26th, 2008 at 6:36 pmI receivedthis in an email…now we’re talkin!
I’m against the $85,000,000,000.00 bailout of AIG.
Instead, I’m in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.
To make the math simple, let’s assume there are 200,000,000 bonafide U.S. Citizens 18+.
Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up..
So divide 200 million adults 18+ into $85 billion that equals $425,000.00.
My plan is to give $425,0 00 to every person 18+ as a We Deserve It Dividend.
Of course, it would NOT be tax free. So let’s assume a tax rate of 30%.
Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam.
But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has $595,000.00.
What would you do with $297,500.00 to $595,000.00 in your family?
Pay off your mortgage – housing crisis solved.
Repay college loans – what a great boost to new grads
Put away money for college – it’ll be there
Save in a bank – create money to loan to entrepreneurs.
Buy a new car – create jobs
Invest in the market – capital drives growth
Pay for your parent’s medical insurance – health care improves
Enable Deadbeat Dads to come clean – or else
Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company
that is cutting back. And of course, for those serving in our Armed Forces.
If we’re going to re-distribute wealth let’s really do it…instead of trickling out a puny $1000.00 ( “vote buy” ) economic incentive that is being
proposed by one of our candidates for President.
If we’re going to do an $85 billion bailout, let’s bail out every adult U S Citizen 18+!
As for AIG – liquidate it. Sell off its parts! Let American General go back to being American General.
Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up.
Here’s my rationale. We deserve it and AIG doesn’t.
Sure it’s a crazy idea that can “never work.”
But can you imagine the Coast-To-Coast Block Party!
How do you spell Economic Boom?
I trust my fellow adult Americans to know how to use the $85 Billion We Deserve It Dividend more than I do the geniuses at AIG or in
Washington DC .
And remember, The Family plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.
Ahhh…I feel so much better getting that off my chest. Kindest personal regards , A Creative Person & Citizen of the Republic !
September 26th, 2008 at 6:41 pmI almost pity the troll. It must be horrible to see the GOP abandoning the sitting President and the Presidential nominee in the same week. Especially when said nominee, by his odd maneuvering, has lost all support among the once friendly media. The poor old codger has lost Jon Stewart, Dave Letterman and even Larry Freaking King!
Meanwhile, his running mate displays more inanity with every word. And that’s while following a script. No wonder a little thing like nearly 30 years of bad economic policy, topped by the Worst President Ever, being exposed is enough to push them off the cart..
Yep. It’s a BAAAAAAAAAAD month to be a troll. And they deserve every last paranoid nightmare which their realizations bring on. And watching them unravel as the GOP implodes by their own farcical machinations will be a great pleasure.
September 26th, 2008 at 6:41 pmTracy_5, “Uh, the Democrats control both the House and the Senate. Ask Pelosi and Reid. Have they proposed any spending cuts?”
This is specious and you know it. Republicans have done their best to be an obstacle to anything of value passing. Just look at Coburn’s blockages. And only to keep Democrats from showing any progress. So your bogus quote is blown to hell. Try againg, with a bit more thought. Please stop wasting our time with bullshit.
September 26th, 2008 at 6:58 pmThat’s because those organic food people have a liberal bias. They must be stopped.
September 26th, 2008 at 7:06 pmLeft Coast Mike Says:
NO——$425——-NOT $425,000!
September 26th, 2008 at 7:06 pmPleasant thought, though.
And yet the incompetent, thieving, lying, POS, war criminal is still in office, ain’t he.
He should have never, ever been put in office by those scum bags in the Supreme (not so much now) Court.
Keep trying Tracy5…you’re sure to change our minds to your way of thinking sooner or later….LOL…idiot.
September 26th, 2008 at 7:08 pmTraycy, FYI, nobody gives a rat’s a$$ what you “think” or “want” or “propose”. Don’t you have a peer group you could go share your small minded ideas with?
September 26th, 2008 at 7:09 pmWhile nasty little trolls and repugs fight who’s the richest Sen. Obama takes the lead once again to explain his outlook on the economy.
Unlike the dummies that plague our financial system.
I don’t trust anyone who’s made money off this crooked system or allowed this debacle to happened. NONE OF THEM. FIRE THEIR ASSES.
September 26th, 2008 at 7:12 pm#56 Tracy__5 Says:
The point was that you are not able to tell that your criticism of Bill Clinton is coming from the LEFT. I do keep putting it in bold and all caps for you to help your understanding. I also criticize Clinton for signing it, as should all progressives. I also opposed NAFTA and GATT. Why are you not able to tell whether a policy is to the left or to the right? Why do you only have simplicities that really do not explain things?
September 26th, 2008 at 7:14 pmTP, can you take away my “recommend” for Tracie at #62? I meant Shayne at #61. Thanks.
September 26th, 2008 at 7:17 pm.
What Tracy_Troll meant:
September 26th, 2008 at 7:18 pm
Game of Life Says:
…I don’t trust anyone who’s made money off this crooked system or allowed this debacle to happened. NONE OF THEM. FIRE THEIR ASSES.
How about this:
September 26th, 2008 at 7:20 pmIn 2006, Henry Paulson had 4,580,000 shares of Goldman Sachs worth $700 million!
Keith Says:
Like I said, I received it in a email…I didn’t check his math :(
September 26th, 2008 at 7:27 pmIt is on CNN right now that Barney Frank, Chris Dodd, Blount and others have received millions from the industries they are now negotiating the bailout for. So, the foxes were in charge of the hen house all this time. And I did so like Barney Frank but he is one more tarnished Washington liar.
September 26th, 2008 at 7:30 pmtexaslady,
The REAL CHANGE America needs is FRESH BLOOD.
I say sweep the House of Representatives AND the Senate CLEAN!
V O T E 3rd Party!
September 26th, 2008 at 7:42 pmCharlieSmarlie, Okay, so what legislation did Frank, Schumer, and Dodd push that caused the problem and how? The executive branch had nothing to do with it? It’s all that liberal House the past 18 months? Come on, lets fill in the blanks—or did FOX just give you the “blame Dems” slogan? I do criticize conservative Dems, but this sounds like a worse shot in the dark than Phil Gramm (who used to be a conservative Dem under Reagan).
How about Paulson and his 4,580,000 shares of Goldman Sachs?
September 26th, 2008 at 7:52 pm.
What’s a McKeating Five…
… Besides a cake walk compared to the current “crisis”?
.
September 26th, 2008 at 7:54 pm.
War Bailout…
http://www.youtube.com/watch?v=jUo0zVkVOew
.
September 26th, 2008 at 8:02 pmMax-1 Says:
What’s a McKeating Five…?
Didn’t they do “Bits and Pieces” back in the day?
September 26th, 2008 at 8:08 pmKeith,
September 26th, 2008 at 8:21 pmI believe they sang:
Road to Hell…
Is nothin’ but an
S&L.
.
Foreclosures Hasten Dickensian Utopia – PF025
http://www.youtube.com/watch?v=-s4kTFcfs6o
(yes it’s 6 months old, but it was right on target… and still is)
.
September 26th, 2008 at 8:24 pmBecause it couldn’t possibly be Clinton AND Bush policies that caused this mess, right?
There’s a one-note Democratic party front feel around here.
And it wasn’t the Democrats rushing to jump on board the giant giveaway, and it’s not Nancy “impeachment is off the table”) Pelosi smiling from ear to ear about this heist?
The Democrats have given Bushco everything they wanted for 7 years now. They continue to do so despite rumors to the contrary.
The Democrats are as bankrupt as the treasury (as your grandkid’s treasury will be…)
PS
“Bush’s tax cuts” were also the Democrat’s tax cuts. You ever check the votes on these things?
http://crimesofthestate.blogspot.com/
September 26th, 2008 at 8:38 pmEwww, Tracy called me “little girl”. I’m so beside myself I have the vapors. What a tool.
September 26th, 2008 at 8:49 pmListen Schmucky you probably didn’t see them with your nose planted at Fox News but Schumer, Frank and Dodd have been all over the news. McKeating Candidate is the only guy hiding out today.
September 26th, 2008 at 8:52 pmKeith, the Schmuck doesn’t know what big words like “legislation” mean. You better simplify it for him.
September 26th, 2008 at 8:54 pmChuckySmucky, you sound just like Mr. Pee. It’s not good enough saying it’s all out there. Tell me what these three did that is worse than what the Republicans did.
I can’t find any evidence that Paulson is a Dem. I did find that he was assistant to John Ehrlichman under Nixon. I judge people by their policies, not their label. I hated Phil Gramm when he was a Dem under Reagan and passed everything he wanted. Some Dems were taking money from S&L’s and helping with their deregulation that cost the American people about $400 billion—but it was mostly Republicans.
The more conservative you are, the more you are opposed to government regulation. Proper regulation would have prevented this bailout. McCain and Palin are today talking about “healthcare deregulation”. That could be another $700 billion bailout.
September 26th, 2008 at 8:57 pmTracy_5, try reading the rest of my post. Here it is again:
Just look at Coburn’s blockages. And only to keep Democrats from showing any progress.
When you learn to use a search function rather than Faux Noise talking points, try looking it up.
This year, the senator, who indeed is a medical doctor, single-handedly blocked or slowed more than 90 bills
He blocked a ban on genetic discrimination by health insurers. He thwarted a bill to set up a program to track patients with Lou Gehrig’s disease. Also nixed: an effort to promote safe Internet use by children and a resolution to honor the late environmentalist Rachel Carson on the 100th anniversary of her birth. A bill that would authorize government mapping of the ocean floor and coastal areas? No way. One that would require more data collection on the availability and quality of broadband service? Uh-uh. If Dr. Coburn had his way, there would be no new funding for a Justice Department office to investigate unsolved Civil Rights-era killings, no promotion of wild-land firefighter safety. One would help military veterans and reservists with small businesses. Dr. Coburn said it duplicated another program. Another would expand government-backed venture-capital investment in small business. “I can’t imagine the government can be good at it,” Dr. Coburn said.
Find the rest yourself.
September 27th, 2008 at 1:25 amThere is no way to sustain the expenditures we are making in Iraq, and cope with the reckless spending of the first few years of the Iraq war. Most informed people saw the financial meltdown coming; it isn’t solely bad mortgage debt that got us here. The culture of “never admit the economy is in trouble” over the years we had a Republican congress and a Republican president has brought us to this point. It didn’t suddenly happen in the last year – it has been building up to this.
We need to get back to reality-based leadership. I’m reminded of John McCain’s reply to Senator Obama last night – “You don’t say that out loud!”. That pretty much sums up the Republican position on everything that is politically ugly, and an economic crisis certainly is that. We need leaders that acknowledge problems before they become full-blown catastrophes, because you can’t solve a problem until you admit you have one.
I’m reminded of the rhetoric that we got all last year and the beginning of this one when the housing bubble burst “they shouldn’t have signed those mortgages, personal responsibility, no bailouts for those too irresponsible to manage their own money!” We mock those who got in over their heads (many because of loans that started out manageable and then the interest ballooned – that desperately needs to be regulated), and now a year later it is imperative to save the companies that were shuffling around bad paper!?
Everyone is saying that something must be done, but honestly, it is time for Wall Street to get some tough love. We keep bailing out companies that make horrible decisions, get in over their heads and spend recklessly in the summer only to starve in the winter. If Wall Street comes to the American people begging for a hand out, they need to accept that it isn’t going to be painless. We should not hand over money just so they can do what they will with it, AND encourage other companies to make the same horrid mistakes expecting a hand out. We have set too many bad precedents with the Bush Administration, and the corporate robber barons need to be abruptly and harshly reined in.
If we help Wall Street, they need to be under scrutiny, and it is time they felt the pain of Main Street, too. None of us are getting out of this mess without some belt tightening, and neither should Wall Street.
September 27th, 2008 at 10:14 amBravo to Sen. Durbin for making the connection publicly and for his proposed reforms.
September 28th, 2008 at 5:19 amsohbetSallie Mae put a hold on that and actually has the nerve to tell you on the phone that it’s not is not good for students to consolidate econmically based on the current rates. So getting 7% instead of 10 to 18+ is bad? Come on lol.
April 26th, 2009 at 12:49 pmcetCompanies like that have been pushing deregulation in that market heavily. They’ve removed Bedava mp3 indirbasic bankruptcy protections entirely. They’ve managed to get things federally guaranteed.