Author: Ernie Fitzpatrick

Where is it in teh Constitution that it says the role of the Federal government is to bail out business? And when we begin that process and enter the black hole, how low, how deep can we go anyway? At what point does the one who does the bailing out, need bailing out? Is that even a possibility? We have entered unchartered waters and I’m sure we’re going to encounter some “unintended consequences”.

Now that Congress has approved the $700 billion bailout, Paulson isn’t going to use the funds for what we were told they would be used for. We’re not taking all those toxic mortgages off the market. The first thing we’ve done is GIVE $125 BILLON to the banks. Bankers nee bonuses this Chrismas you know.

Treasury Secretary Henry Paulson said Wednesday that original plan to purchase distressed mortgage assets from Wall Street firms is not the best use of the $700 billion financial rescue package, and officials will now focus on direct capital injections into the struggling financial firms.

Can he do that?

Paulson said that nonbank financial institutions, including companies that deal with credit cards, auto loans and student loans, may be eligible for direct capital injections. Companies such as American Express, which is one of the country’s largest credit card companies, is reportedly seeking $3.5 billion in fresh capital from the government. Hey can I get just one milion? I can probably make it on just a half million if things are tight.

The US government could be entering a bottomless pit of bailouts if it starts propping up failing companies outside the financial sector—including the struggling auto industry, economists say. Many economists are against the idea, saying an auto maker bailout would open the door to a taxpayer rescue of virtually any major company with cash problems. As though we haven’t already entered those turbulent waters.

“Where do you stop?” says Bill Isaac, former chairman of the Federal Deposit Insurance Corp and now managing director at the LECG global consulting firm in Vienna, Va. “Circuit City’s going down. Do we help them? What do you do if Starbucks gets in trouble? Do you help them?” Now you’re making this PERSONAL! Hell yes we save Starbucks!

NOT!

Article Source: http://www.articlesbase.com/economics-articles/bailout-business-639705.html

About the Author:

As a spiritual-futurist, I interpret current events in light of possible macro-universal forces at play leading up to 2012, but not limited to it.

Tags: $700 Billion Bailout, American Express, Bailout, Bailout Business, Circuit City, Ford, General Motors, Henry Paulson, Pelosi, Starbucks

This entry was posted on Wednesday, November 12th, 2008 at 7:52 pm and is filed under Economy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.