How did the
The answer lies in the abject failure of both America`s financial elite and the political elite of both parties—the same elites now working together to determine how much of our wealth will be needed to bail the nation out of the crisis of their own creation.
Big Government is riding to the
rescue—saddlebags full of our tax dollars—to save us
from the consequences of the stupidity and folly of Big
Had there not been a steady and
constant infusion of easy money and credit into the
Had the politicians of both parties not coerced and pressured banks, S&Ls, Fannie Mae and Freddie Mac to make all those sub-prime mortgages, then to tie this rotten paper to good paper, convert it into securities and sell to banks all over the world, there would have been no global financial crisis.
Had they seen this coming and acted sooner, the Federal Reserve and U.S. Treasury would not today, like Henny Penny, be crying, "The sky is falling!" aand the end times are at hand, unless we give them 5 percent of our gross domestic product to buy up suspect securities backed by sub-prime mortgages.
Consider what the "Paulson Plan" of Treasury Secretary Hank Paulson, against which Sen. Richard Shelby and the House Republicans rebelled,, entails.
Since Americans save nothing and
have to borrow from abroad to finance our trade and
budget deficits, wars and foreign aid, what the
secretary proposes is this: that Congress authorize the
Treasury to spend $700 billion to buy up the toxic paper
on the books not only of
Why should we do this? Because otherwise there will be a financial panic, followed by a market collapse, wiping out pensions, 401Ks, portfolios and defined benefit plans of Middle America, forcing millions into bankruptcy and millions more to put off retirement and continue working until they drop.
In a democracy, it is said, you get the kind of government you deserve. But what did the American people do to deserve this? What did they do to deserve the quality of financial, corporate and political leadershiphip that marched them into this mess—and that today postures as their rescuers?
Consider what this mess has already cost taxpayersers: $29 billion to buy the rotten paper of Bear Stearns so J.P. Morgan would buy the investment bank; $85 billion for 80 percent of AIG to nationalize it; $150 billion in a stimulus package to flood the nation with cash; perhaps $300 billion to bail out Fannie Mae and Freddie Mac; and now $700 billion to begin taking the toxic paper off the hands of America`s big banks.
And even if this is passed, say
Paulson and Fed Chairman
Ben Bernanke, there is no guarantee this will
resolve the crisis. If the $700 billion is not provided
and the toxic paper is not pulled off the books of the
world`s banks by
Yet, the fellows who tell us we face a financial mushroom cloud over every American city if we do not act at once to provide the $700 billion did not see this coming and can make no guarantee that this will succeed and end the crisis.
Nevertheless, it must be done, and done now, as collapse is imminent.
Looking at all the money being
ladled out by the
Yes, indeed, we have arrived at the Day of Reckoning for Uncle Sam.
COPYRIGHT CREATORS SYNDICATE, INC.
Patrick J. Buchanan needs no introduction to VDARE.COM readers; his book State of Emergency: The Third World Invasion and Conquest of America, can be ordered from Amazon.com. His latest book is Churchill, Hitler, and "The Unnecessary War": How Britain Lost Its Empire and the West Lost the World, reviewed here by Paul Craig Roberts.