Save the banks, screw the people!

WASHINGTON – Struggling to stave off financial catastrophe, the Bush administration on Friday laid out a radical bailout plan with a jawdropping price tag — a takeover of a half-trillion dollars or more in worthless mortgages and other bad debt held by tottering institutions.

A grim-faced President Bush acknowledged risks to taxpayers in what would be the most sweeping government intervention to rescue failing financial institutions since the Great Depression. But he declared, “The risk of not acting would be far higher.”

The administration is asking Congress for far-reaching new powers to take over troubled mortgages from banks and other companies, including purchasing sour mortgage-backed securities. Administration officials and congressional leaders are to work out details over the weekend.

I wonder if I’m the only one who believes that some sort of substantial financial crisis but serve us well, reminding us that living beyond our means is responsible irresponsible, not to mention not a particularly conservative value.

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One Response

  1. I think you meant “irresponsible” in that last sentence. You’re not alone in thinking that the cure is worse than the disease with this $500 bi, er, $700 billion bailout:
    http://whereslumpy.net/2008/09/20/privatized-profits-and-socialized-losses/

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