Posted by Wayne Parham [ 70.234.96.130 ] on October 05, 2008 at 12:32:10:

In Reply to: Re: That's What Rush Has Been Saying posted by FredT on October 03, 2008 at 21:08:45:

Good link, thanks Fred. I don't know why I didn't think of looking there. That website has tuned into a really good source of information, in most cases.

Honestly, it only increases my feelings that we should not have done the bailout. I had worried in the back of my mind that the "sky is falling" reports might have been real, that maybe if the bailout didn't happen, unemployment would go to 25% and other bad things like that. But really, I don't think this bailout will help much, it just directs funds to organizations that shouldn't get it. If we're headed for a deep cavern economically, this probably won't help it. Only true protection of our workers and industries will work, in my opinion.

I think no job should be exported or allowed H1B status without a prohibitive tax applied, nor should any import be allowed without a high tax. I used to not believe in protectionism, but now I really do. Lower income tax, lower corportate tax, lower all internal taxes but juice up the import tax and impose a tax on any work that is exported, whether by outsourcing overseas or by bringing in H1B workers. That's what I think should be done. It will increase prices of things, but at least Americans will have jobs to pay for them.

As for the credit crunch and the "sky is falling" guys, it still looks to me like the problem started when the door was opened by liberal policies that forced commercial and mortgage banks to lend to high-risk borrowers. Liberal congressmen pushed the impossible situation where people that couldn't afford homes were given unnatural opportunities. Once that door was open, the housing market grew artificially. Banks that were originally forced to make bad loans then adapted themselves to take advantage of the situation. After a while, you had these weird situations where "loans" were given to just about anyone, and they weren't even looking at the ability of the borrowers to pay back the loans. Then, when the leaks in the system started showing, they began to offer even weirder loan types, those "Ninja" loans and "payment option" loans in addition to ARM loans.

In my mind, this is all a progression of the initial attempts at wealth redistribution by the liberals, starting decades ago. It looks like they have gotten what they wanted, millions of homes in the hands of people that can't afford them, and a bailout of the banks that lended the money on the taxpayers tab. This is socialism, forced on us all by crisis. It came in the form of subsidizing homes, millions were living in homes that weren't paid for for months or years. But worse even than taking the money from taxpayers and giving it to the poor in the form of subsidized housing, it looks like lots of mortgage bankers were allowed to profit from the situation. They aren't paying the consequences of their bad actions, instead, their bad loans are being paid for via bailout.

Some have said what caused the problem was the lack of regulation. Perhaps that is true. But if you're going to regulate the banks, the first thing you should do is absolutely prohibit it from being an avenue for the redistribution of wealth. So that pretty much means the liberals need to leave their opinions at the door. They're the ones that pushed that direction in the first place. The second thing is probably the banking games that arose as a result of opening the door to subprime lending should be stopped. But then again, that takes me back to the first point that if you don't allow (encourage, even force) subprime lending in the first place, then the games will stop. The dominoes started falling when the subprime loans were being forced on the banks. That's the root cause, in my opinion.

If we vote in Obama and have a Democrat executive in addition to the Democrat majority in Congress, my fear is we in America will have a real "sky is falling" economy. I'm not sure we can avoid a pretty serious correction, but I am downright afraid of a Obama win. I think America will see 1930's style depression if that happens. I hope I'm wrong.

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