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View Full Version : Congress Destroys any Hopes of Economic Recovery


freedom0in0exile
March 21st 09, 12:35 PM
http://www.ft.com/cms/s/0/4ff2f77e-1584-11de-b9a9-0000779fd2ac.html

The AIG bonuses, under the current circumstances, were unconscionable.
So was the response by Congress.

The AIG situation is a Democrat owned and operated mess. The
Administration asked Chris Dodd to insure language defending retention
bonuses was in the "stimulus" (ROTF) bill, then threw him under the
bus when the situation resulted in popular outrage. That's documented.
But, what then happened was even worse.

Without any thought to unintended consequences, Congress (both
parties, now) decided that there was no problem voiding contracts ex
post facto. Hm? Is there any principle more integral to the free
market than the sanctity of the contract?

Ask any auto manufacturer, RV manufacturer, or small business owner:
problems with consumers and businesses getting credit is responsible
for a goodly portion of our economic woes. Congress, the Admin, and
the Fed have all engaged in various bills and tactics designed to free
up the flow of credit, now we have this. Here's what happens now:

Every recipient of TARP funds (thousands of banks and financial
institutions) freezes in place. The most important priority is now to
pay BACK the TARP funds, because government has demonstrated their
inability to keep their (stupid) hands out of the daily affairs of
corporations. This creates fear, and thus the desire to get the
jackboot of Congress off your net. Banks and financial institutions
cut back on lending operations and hoard cash, with the objective of
paying back those funds as soon as possible.

So, the very thing we need for recovery is made less likely by our own
Congress.

Nice going, Congress.

March 21st 09, 01:43 PM
On Mar 21, 8:35*am, freedom0in0exile >
wrote:
> http://www.ft.com/cms/s/0/4ff2f77e-1584-11de-b9a9-0000779fd2ac.html
>
> The AIG bonuses, under the current circumstances, were unconscionable.
> So was the response by Congress.
>
> The AIG situation is a Democrat owned and operated mess.

It is now, it was dumped on them by the previous ninnies.

> The
> Administration asked Chris Dodd to insure language defending retention
> bonuses was in the "stimulus" (ROTF) bill, then threw him under the
> bus when the situation resulted in popular outrage. That's documented.
> But, what then happened was even worse.
>
> Without any thought to unintended consequences, Congress (both
> parties, now) decided that there was no problem voiding contracts ex
> post facto. Hm? Is there any principle more integral to the free
> market than the sanctity of the contract?

It is time for those riding in the cart to get off their butts and
help
the rest of us push. This means they need to feel the pain of
paying taxes like everyone else.

>
> Ask any auto manufacturer, RV manufacturer, or small business owner:
> problems with consumers and businesses getting credit is responsible
> for a goodly portion of our economic woes. Congress, the Admin, and
> the Fed have all engaged in various bills and tactics designed to free
> up the flow of credit, now we have this. Here's what happens now:
>
> Every recipient of TARP funds (thousands of banks and financial
> institutions) freezes in place. The most important priority is now to
> pay BACK the TARP funds, because government has demonstrated their
> inability to keep their (stupid) hands out of the daily affairs of
> corporations. This creates fear, and thus the desire to get the
> jackboot of Congress off your net. Banks and financial institutions
> cut back on lending operations and hoard cash, with the objective of
> paying back those funds as soon as possible.

This is good motivation. If they don't want to be beholden to their
creditors (taxpayers) they need to pay the money back. This is
the same thing they expect from those they loan money too.
I say the govt. should be like a corporate raider and sell off pieces
of the company one by one and make a nice profit for the taxpayers
on the investment. These overpaid people in finance need to get
of their butts and retrain for jobs of the 21st century. This is
what Bush said a few years ago.