Tight Credit

All Mr. Paulson can talk about is loosening up credit so the spending will begin again. Is he spending our National Treasure for the hope that banks will once again start loaning to credit unworthy people? Our banks just went through the ordeal of loaning to credit unworthy people. It was the banks and other financial institutions that were bankrolling the economy with those loans. Money is not free, but those in Washington seem to think it is.

Now, after the government insisted on making bad loans, here comes Paulson and Bernanke insisting that the taxpayers pick up the tab. This bailout is more for the politicians that were behind the push for loans to unqualified borrowers.

If the taxpayers have to pull the financial institutions fat out of the fire, so be it, but the politicians that got us into this mess have to go. We all know who they are. It was Barney Frank, Chris Dodd, Maxine Waters, Barack Obama, and a few other Democrats who were pushing and encouraging the lending institutions to make bad loans. For us to be out this much money because of them, they need the boot. Congress will certainly be better off without them.

I'm not sure what we do about Jimmy Carter. His poor presidency left the far reaching tentacles that has wrecked this economy. One of the worst was the Community Reinvestment Act. That was what gave the Congress the authority to force the banks into making bad loans to poor and minorities. Carter did so many stupid things like signing over the Panama Canal, and selling the Shah of Iran down the river. After the Ayatollah took our embassy people prisoner, Carter even managed to bungle their rescue. What a disgrace for a President.

We are already the world's biggest debtor nation. One of my readers asked, "What is wrong with the Government printing more money if they need it?" Well, money is sort of like soup. If you keep watering it to make it stretch further, you will soon reach the point where you wind up with more water than soup. Printing more money just devalues the money already in circulation. After diluting the money supply, everybody now needs more money to live because the money is worth less. Ahh, inflation, just what this economy needs. And inflation is what we will get if Paulson, Bernanke, the Congress, and Obama continue to carry out the bailout plans.

Personally, I want the banks to be more judicious with the money they loan. We don't need to be giving banks a pile of money to just give away because we need people to spend more. Good business practices will bring us out of the recession faster than all of the give-away programs that our leaders can dream up. Remember the rule of thumb, "Government programs never work as they are intended because they never have enough money." Government programs always turn into a 'sinkhole' for money. The more money you throw at it the deeper the hole gets.

Cheers,

-Robert