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  • Stop the Bailouts

    The Treasury

    When you do a Google news search for “TARP” there is a common theme throughout the results: more and more banks want to repay the money. The reason for the change of heart, it fuels government power within the financial markets and tax payers have had enough and rightfully so.

    This trend to return TARP funds started with smaller banks, such as the Community Bank of the Bay in California, who plans on repaying the $1.7 million in TARP funds after applying for them this past fall to shore up their already strong balance sheets. But the bank is doing more than just returning tax payers money – they are giving the Treasury Department a piece of their mind.

    Brian Garrett, the CEO of Community Bank of the Bay, recently said, “We did not make subprime loans, engage in predatory lending, sell ‘toxic derivatives’ or open off-shore accounts.” This sentiment is shared with William Fenstermaker, the chairman of Iberiabank board, albeit expressed in a softer tone, when he said: “In the very beginning, if you got TARP you had kind of a seal of approval that were healthy. And I think that time has gone by, it’s turned into, if you took TARP, you were unhealthy.”

    This trend isn’t just prevalent in the financial world. In a separate bailout, Ford Motor Company, the only one of Detroit’s Big Three to not take bailout money, is in the best position financially:

    Ford, which has not taken any bailout money, has had more success initiating its restructuring than G.M. and Chrysler have achieved under government edict. Those companies are struggling to meet the terms of federal loans.

    Analysts said that Ford’s debt initiatives, and an earlier agreement it secured with the United Automobile Workers union, reinforce its status as the healthiest of Detroit’s automakers.

    “Ford is being proactive and showing that progress can be made and that things can be done expeditiously,” said Erich Merkle, an independent auto analyst in Grand Rapids, Mich.”

    The reality is, when it comes to bailouts, the resounding feeling coming from the American public is simply this: Stop. And it looks like that idea is spreading to at least some of the recipients as well.

    [youtube]http://www.youtube.com/watch?v=F816XEsD-HM[/youtube]

    Posted in Economics [slideshow_deploy]

    27 Responses to Stop the Bailouts

    1. Ozzy6900, CT says:

      The Federal Government is not a bank and should not act like a bank. The Federal Government is not responsible if business fail nor should they be expected to be. This is one of the big problems with society, we let the Government into our lives every time we turn to them for help. Once the Government gets involved, it thinks that it has to run the show and make the rules and this stifles freedom. Sure, it's tough on the economy when business fail but under capitalism, the larger fish eat the smaller fish and there is the balance. If you try to mess with the "system", you only delay the inevitable. Business that are failing now should have been gone already and the employees should have been taken by another company. Instead, everything was delayed and the "Virus" spread to the larger fish and who really suffers? The worker and the taxpayers!

    2. Joe Doe, Texas, USA says:

      Let me get this straight, The Secretary of the Treasury actually designed the “bail out” for AIG? With such skills that the executive bonus issues are spilling out like torrents of garbage dumped intentionally into a street intersection? This is like sending up a rocket to the moon without a guidance system?

      I don’t support bail outs period. Controlled bankruptcy is the legal answer to legal problems. There is nothing wrong with the economy, there are legal problems created by the executors of financial instruments, and “bail outs” only suspend the legal process designed to handle these kinds of issues? I am inclined to think so, for I would imagine how many companies will actually incorporate the “bail out theory” into part their business plan, into an economy not designed to function this way?

      This goes back to the definition of “liberals”? It would appear to merit discussion, since it can be a confusing term to one who only occasionally considers the political environment with which they live?

      A liberal is one who experiments with changing the current system by enacting very risky behaviors or policies that will probably fail (or else we would be doing them now after 200 years). So this definition, in my book (sigh, that’s on the horizon too) also includes the definition of someone who does not defend the Constitution, but wishes to “liberally” interpret it to include new concepts, ideas, policies, regulations, etc., that actually and sometimes fundamentally change the core values of the Constitution.

      This is a radically different definition to someone who may think they are a liberal, by believing in freedom, but actually live by and cherish proven, conservative values. This disparity of definitions plays a significant role in the ability of the media to actually be used as a tool for people to not take a second look at policies when they are announced to the public? The average joe says to himself “I believe in liberty, so I must be a liberal!” This is largely due to a public school system that is also disingenuous by not allowing the pursuit of thoughtful and practical civic discussions in the classroom?

      Can you conduct such discussions if you are a member of a union?

      There is nothing wrong with changing the law, but to propose new ideas and then propose that they are simply part of the existing system, is disingenuous, to say the least. Take for example Executive cabinet positions with extra-ordinary powers, isn’t that a conflict with the role of Congress, and the Separation of Powers? So that is a philosophical argument than can span many pages, but I then venture to offer this, if members of Congress are now given regulatory powers that are equal or more powerful than powers exercised by past Presidents, why then do the American People allow members of Congress to serve more than two terms?

      Getting back to the Secretary of the Treasury, unless he disavows further “bail outs” and encourages the use of accepted, proven methods, bankruptcies, I believe he will be haunted by the question “what if” for the rest of his life? Personally, I believe the executives earned their bonuses, they could have walked away from the business, and not cooperated with the public at all? I am inclined to think that way, without proof of any other wrong doing?

      And what pray tell do you tell people about bonuses for Fannie Mae? Meanwhile we have members of Congress, without term limits, getting wheel barrels full of campaign cash contributions, which they get to legally keep whatever is not spent at the end of their terms? Does that sound like the actions of liberals? Or people that serve the public, serve the nation, and believe in liberty?

      I don’t support a President who thinks his job is create a vision where executives can not think big. If you want to limit executive pay, then what good does it do if no one else in the organization gets a pay raise? Wouldn’t it make more sense if you said, if everyone in the organization gets a yearly pay raise of say 5% (we can debate how much), unless documented incompetence exists, then the executive can charge as much as share holders want to pay for his services?

      And if members of Congress are paid so well, why is the government paying for their insurance? Anybody over G7 should be paying for their own, unless they serve in the military or law enforcement?

      The author of this discussion reserves the right to incorporate this into another literary work, and posts this material as a public service for fair use discussion only.

    3. jambok,Pittsburgh,Pa says:

      Baiouts ?? The purpose is to eliminate the constitution right to control Money budjets by using Pelosi as a zhar of " additional moneys for the Bailouts

      Ie Medicare and eergy

    4. Ron, Derry NH says:

      I hope this resurgence of American pride takes away some of the lust for power that the Obama administration has used like a coke head to further and expand his drug trade through addiction to his product.

      Obamafascist are doing to America what the drug dealers have done to our youth; taken away hope with a false promise. Perhaps that is all that the fed understands is pimping its resources to addict the weak.

      These banks perhaps have seen through the extortion racket that is trying to be imposed on them finally, and are starting to respond like Americans should. Bravo to them for just saying no to the overlords of federalized monetary addiction!

      Its hard to believe no one is noticing how PIMIP like and base the Obama tactics are. The democrats are attacking human nature with greed, theft, threat, extortion and addiction like common thugs not saviors of an ailing economy. They are on an aggressive attack on the very principles of decency, humanity and Americanism.

      So similar to a drug kingpin who destroys his own neighborhood to enslave the people to his marketing scheme, so they can neither decide or escape with out his authority, that I wonder where these horrific people of ghetto like character went to school.

    5. Grace, Florida says:

      It's going to be very interesting to see what Barney boy has to say about the Freddie and Fannie bonuses.

    6. mike baker Dallas Ce says:

      I agree Grace. I can barely stand to watch B. Frank anymore. He's got to be the rudest congress-whatever out there and should have his microphone turned off after slobbering one minute of each non-answer he starts to give. On the one hand, he should be a monstrous embarrasment to most of his district but, on the other hand, a bad example can be very valuable. I think he might know how close he is coming to being a national pariah, but his arrogance won't allow him to admit that he is a jack-ass and a menace to America's future.

    7. Lynn B. DeSpain says:

      You help a relative or a friend when they are in need, only up to the point that you do not sacrifice the needs of your family and creditors.

      If they move in with you, and you do not establish a real deadline for them to get out and be on their own, they will either live with you forever and hate you, or you will finally kick them out and they will hate you.

      America has proven this time and again with its welfare programs, its 'Gifts' and aid to other Nations and so on and so forth.

      All that is ever accomplished with handouts and bailouts is the needfull get more needy and resentful!

      Hozro

    8. Barbara Harpool says:

      When is there going to be an in depth investigation into the actions of Barney Frank? When will he & Obama return the money they got from AIG for campaigning? When is there going to be an "exit strategy" in the "war on poverty"? WHY DOES NO ONE BELIEVE JESUS' WORDS THAT "The poor you will always have with you." The American dream has never been that everyone gets a home to call their own at someone elses expense. The real Amerrican dream has always been that one can climb a ladder of successs with hard work and is FREE to do it.

    9. Bob4232, Chicago says:

      I generally agree, stop the bailouts. However, there is one category of debt to be bailed out that I approve of: I speak of the huge unfunded mandates that Congress has fosted on the States of the Union! I speak largely of the Medicaid program. The states can't pay most of it and so it's been pushed off onto the backs of the many small business' that make up much of the medical service industry (and their banks). If Congress would flush some paper $$ through that sewer medical costs would decline for all and the banking system would gain much needed liquidity by the pay-off of those debts.

    10. Roy, shelbyville,Ky says:

      Bail outs, TARP, stimulus packages, the whole nine yards – I don't believe any of them were necessary. The sky is falling, the sky is falling, the only thing chicken little had to say for weeks. I'm so tired of all this crap. Have any of you gone out to buy anything lately ? The prices haven't gone down. These so-called sales are nothing but a ruse, prices are raised to a ridiculous amount, then reduced by 50% to 70%, which actually come close to the orginal cost of the product. If people would stop and think, instead of running for cover like a bunch of cockroaches when the light comes on, and figure out that the government got us into this problem, with their asinine, stupid bills, saying everyone should be able to own a house (even though they couldn't afford the cost) and with all the idiots in charge – personally I would rather take my chances in a room with a monkey with a machine gun.

    11. Barb -mn says:

      Who's job is it to arrest those committing treason?

      WHY ISN'T THE JOB BEING DONE?

    12. Olathe, KS says:

      Less drama about $165,000,000 to AIG Exec, and illegally breaking laws written in our Constitudion, and more focus on WHY Billions$$$ were sent to Foreign Banks.

      Jude

    13. Marshall Hill MI. says:

      We need to start Our Investigations of All Senators who were in a Position to Oversee
      the Banking Industry! Then take Pelosi and
      Reid out for not acting in the best interests
      of the American People Re:Tarp,Stimulis,E-verify
      all of which undermine Our Great Country!
      The Charges are Treason and helping themselves
      at others expense!

      Obama cannot sit this out either!”The Government
      owns AIG at 80% and Paid out the Bonus’s”!This
      also shows us how the “Government” can run business! AIG was part of the Free Market till
      Big Brother interfered! Here’s your Change!

    14. Bill Minnesota says:

      I am worryed about where we might find ourselves in the future every time Goverment wants to over tax a group. The bonuses might not be right, but two wrongs do not make a right.

    15. Grace, Florida says:

      The bailouts aren't the biggest problem right now – to me the biggest problem is a growing lack of confidence in this administration. I feel the public is on the verge of panic and that concerns me. Obama has lied to us – yet when I saw a clip from Leno last night he was acting like Mr. Everything to All. It's so obvious that he's a popular guy but he's so full of himself also, to me he is trashing the Presidency. I'm amazed at how badly things are going and how they are trying to pull the wool over our eyes because they don't have the experience needed to do the job.

    16. Paul Schwab, Centerv says:

      SIMPLE: STOP THE BAILOUTS. WE HAVE SPENT ENOUGH OF OUR GRANDCHIDREN'S FUTURE ALREADY.

      STOP THIS FOOLISHNESS. WE NEED TERM LIMITS TO STOP THIS CARRYING ON IN WASHINGTO. GET RID OF ALL OF THEM AND START ANEW.

    17. Tim AZ says:

      It seems to me that the 90% tax on bonuses from companies who took TARP money should be an extreme incentive for these companies to give back the TARP money. Thus freeing themselves from govt. bondage. Since I don't beleive in class warfare I realy don't see anything wrong with bonuses. Liberals and govt. love to exploit the sin of covet.

    18. Katie, Kansas says:

      How about every Congressman, Senator, AND the President—Return all the funds they have received from AIG,Fannie, Freddie, all Banks, Wall Street etc. They have all kissed the BUTTS of these companies/organizations and now they are upset — passing the buck BECAUSE –THEY ARE THE ONES WHO ARE RESPONSIBLE!

    19. Katie, Kansas says:

      How about every Congfressman, Senator And the President–Return all the funds they have received from AIG,Falnnie,Freddie,allBanks,WallStreet etc. They have all kissed the Butts of these companies/organizations and now they are upset–passing the buck BECAUSE-THEY ARE THE ONES WHO ARE RESPONSIBLE!

    20. Katie, Kansas says:

      Stop the bailouts!!!

    21. Linda , Keansburg, N says:

      We need to stop the whole administration. How can we start impeachment proceedings for Obama, Biden, Pelosi, Reid, Barney Frank and Dodd. Oh and also Geitner.

    22. Lynn B. DeSpain says:

      Our idiots in DC bring to mind the sinking of the Titanic and they are a group of people cutting up paper, trying to plug the holes, while trying to find out who's to blame! Forget that stuff, get off the damn boat! Fools.

      It seems that the hardest thing for politicians to admit is that they are part of the problem!

      We need to go back to the beginning, The basic Constitution of the United States, Realize and admit that this Country is a Republic, consisting of Fifty independent Nations, joined under a common Charter. And that Charter being the Constitution are the Laws to keep the Federal Government in bounds!

      Hozro

    23. Rochelle,Colorado says:

      We need to email, call, or write to our representatives to tell them we are outraged at the massive spending, unfocused or examined purpose, and presence of earmarks in an economic recovery bill. I am so angry at all this outlay of money! This only serves to build power for a few. How can our congress vote on a bill they haven't read? How can we afford to keep them in office? If taxes of 90% can be exerted on a few executives now, what is to keep the government from charging all of us? Be worried! Be very worried!

    24. Marjorie Barber, Ker says:

      President oBAMA HAS CERTAINLY DLELIVERED ON HIS CAMPAIGN PROMISE TO BRING "CHANGE", AS THINGS HAVE CERTAINLY CHANGED SINCE HE BECAME PRESIDENT. I NEVER DID EXACTLY UNDER-

      STAND WHAT HE HAD IN MIND BUT ABOUT HALF OF WHAT MY HUSBAND AND I SAVED OVER OVER A COMBINED WORK PERIOD OF OVER 100 YEARS DISAPEARED VERY QUICKLY

      AFTER INAGURATION.

    25. Joanne Tellez Giron, says:

      Rochelle of Colorado….I've done all of those things… They are not listening…. Hopefully we'll have a chance to vote them out of power….Starting in 2010. We, the people, must be a part of that. We must get involved, NOW!!!!!

    26. RJF says:

      Everybody is overlooking the very worst thing about the bailout process: It's allowing corporations to run roughshod over the consumer without fear of reprisal. Up until about a year ago we could fight back, spreading the word on the internet or even complaining to the shareholders of a Fortune 500 company if they mistreated a consumer. Not now. Corporate America has become arrogant beyond belief. The attitude now is "You can't do anything. You try to hurt my business and Obama will be right there rescue me, so F*ck off!" I thought Bush was the worst president this country has ever had. Thanks to Obama, I stand corrected.

    27. freedom lover florid says:

      To all freedom-loving Americans,

      If you believe like me that no one is too big to fail while our government continues to sell out our children's future then join me by putting the TEAth in TEA PARTY by cashing in ALL our government bonds and bills on "PAYBACK AMERICA DAY", July 3rd 2009. Think of the powerful message this will send to OUR government. For more information visit http://www.paybackamerica.org or email us at freedom@paybackamerica.org

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