Saturday, September 20, 2008

American Bailout – Unanswered Questions

As Hank Paulson makes the case that ‘tax payer dollars have to be at works’ in Resolution Trust manner circa 1988; there are still few questions unanswered for an average American.
(http://www.realclearpolitics.com/articles/2008/09/secretary_of_treasury_henry.html)

1. The initial number put in by Politico for the bailout size is around One Trillion. When it comes to losses and expenses, America’s rulers use a new measure – trillions. Whether it is Iraq war cost over the years or total of all bailouts in 2008; Bush Administration wants to talk only in terms of Trillions of dollars. Unfortunately, for common folks we can not even find a billion here and there as a help from this government. Well, that is GOP philosophy in any case. So the first question is - how in the world proposed or existing Bush Tax Cuts are possible when Fed needs all these Trillions? With what ‘straight face’ Obama and McCain claim that both of them would continue tax cuts during this calamity?

2. The only way any of these tax cuts, full or partial, can be sustained is by increasing Fed Deficit; bring back that ‘Al Prints-a-Lot Greenspan’ to run those extra shifts in Ben’s Dollar Printing Press. So the second question Washington needs to explain is ‘why deficits don’t matter’? When I try to balance my monthly expenses and income; deficits matter to me. For long, Cheney’s of this world have maintained that deficits don’t matter. Ben and Greenspan have argued over the years that in global markets these deficits don’t matter. After what has happened in the last week, do we expect common voters to ‘believe’ any of these gospels? Do we assume that rest of the world will continue financing our deficits always as they have been doing for last 2 decades? So we need the answer from Washington; no more taking on ride for voters. Any one of these wise men/ women is fine to answer this question – Ben, Paulson, Cox, Bush, Harry Reid, Nancy Pelosi, Obama, McCain or any other person worth his or her salt.

3. Third, we all know when average, poor, tax payers money is all going to be used to bail out ‘house of cards’ created by the Wall Street; how in the world Americans would allow ‘$17K per hour’ compensation like Lehman Brother’s CEO in this world? Where is America’s shame? Or are we still talking free market, private enterprise, business of private company boards to set compensation? If Wall Street and America’s Businesses do not adopt ‘hard’ compensation guides immediately; why Congress is hesitating in this manner? Is it too late here? How about, until all the RTC type bailouts are working their ways over the next decade or so; America’s CEOs come forward and say that they will stick to moderate compensation?

4. Finally, while in dosing the fire of Wall Street House of Cards Trillions are poured; are we going to get any ‘nickel and dime’ for we commoners who still have to struggle for increased gas prices, expensive health care costs and decreasing employment opportunities? Or are we a different, lower ‘class’?

Why shouldn’t ‘have-nots’ of America start understanding this whole farce as nothing but ‘class struggle’? Does that wake up those who are sleeping in the Capital of Free World and Mecca of Capitalism? Because America’s ruling class is resembling more and more like those Monarchies from past – let us take America on brink as like Iraq war or Wall Street fiasco; spend Trillions of tax payers money to come back from the brink and then claim credit for ‘how I saved’ you. Washington sucks; it is brutal not only for folks outside USA but to its own citizens too.

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