House Passes Bailout Bill—Why It Won’t Work

So much for morals in America. We just sent a message to all of corporate America that you can play dirty and we’ll be there to help you when you fall.

More than this was about what was right or what was best, it was about President Bush being able to leave office without an economic crisis on his hands. This was his way of washing his hands clean of the situation.

History shows that bailouts don’t work. In 1979, Congress passed a $1.2 million bailout for Chrysler. Chrysler then spent the next 3 years bankrupt…only not willing to declare bankruptcy. They negotiated and renegotiated with lenders and investors until the only thing lenders could do was swallow large losses and agree to keep Chrysler afloat.

But lenders don’t take defeat well. They turn to the next guy on the totem pole and take it out on them. Know who that is? It’s the citizens—you and I. We pay taxes. We pay for loans. We suffer higher prices and loan percentage rates because of it.

So go ahead and think this bailout will work. It won’t. Time will tell. As someone recently told me, “This bailout is just a stall. It’s like a kid looking in his backpack when he knows darn well he didn’t do his homework.”

Click here for the final tally of who voted what.

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3 Responses

  1. The more I read and listen, the more convinced I am that corporate America is necessarily to blame – at least not as the policy initiators. Liberals turned the American dream of home ownership into a right, extended that right to the poorer folks and then set policy in motion that forced lenders to makeing risky loans – loans they would never have touched without governmental pressures. The kicker is… Congress obligated the taxpayers just as if we had co-signed the risky loans; in essence, we did (vicariously through Congress.)

    I’m also dumbfounded that the champions of this bailout package was not the president’s party, rather it was his political advasaries the Democrats,who so loathe him, that fought with congressional GOP members until they could get the bill passed. There is something rotten in Denmark, that is for sure.

  2. Old Soldier,

    Thanks for stopping by and for the comment! I appreciate your feedback.

    I agree. It was greedy corporations who controlled Congress and fed them through lobbyist payoffs to ignore the problem for so long (not at all saying Congress is not to blame).

    I too was surprised to find myself on the opposite side of Pres. Bush and so many Congress GOP….it was as if the roles were reversed on this one. But through it, I believe we found out who the true conservatives are.

  3. We’re not even dealing with free markets anymore. What has America come to? What literally has happened here is the corporations screwed up, and the Americans are handing them a paycheck on a silver platter. Not only that, but we’re giving the Secretary of Treasury more power than he has ever had before.

    What happens when you give the same guy who spends the $700 billion the power to hire the oversight committee that watches where the money goes? What happens when he creates the oversight committee? What a joke.

    America is headed down a very dangerous path right now.

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