That hissing sound is not flatulence. It’s the sound of your billfold or purse deflating as middle income Americans are called upon to bailout an ailing Financial Industry.
Generally speaking, I’ve backed President Bush on the hard decisions he’s made during his years in our nation’s highest office. However, I’m not so sure this bailout mess is the best option. I listened to the Presidential Address last night (24-September) and came away with less understanding as to what caused the market failure than I had going into the President’s speech.
If we Republicans have a fault, it’s a failure to do unto the Democrats as they do unto us. While, the root cause of the financial fiasco, as agreed upon by every commentator I’ve read, was formed during the Clinton administration, our modest President did not go there last night. He missed a great opportunity to explain to John Q. Public how the arm-twisting of the Clinton administration forced lenders to take huge risks, often making loans and mortgages available to entities unable to repay. As long as housing prices kept rising, the bad loans were not seen as bad, as a foreclosure could result in a property eventually bringing more than the initial amount of the loan.
Ronald Reagan once said that the nine most terrifying words in the English language are, “I’m from the government and I’m here to help.”
I’m confident the latest governmental “fix” will bite the average taxpayer not only in the billfold but elsewhere, too.