September 21, 2008

Bush Proposal

The plan allows the government to buy the bad debt of U.S. financial institutions for the next two years. less than three pages, it would raise the national debt ceiling to $11.3 trillion, an $800-billion increase in the national debt limit.

And it would place no restrictions on the administration other than requiring semiannual reports to Congress, allowing the Treasury to buy and resell mortgage debt as it sees fit.

The proposal asks Congress for $700 billion, more than the Pentagon’s total yearly budget appropriation. The risk of steep declines in worldwide markets posed a grave risk to all Americans, especially their retirement plans and college savings for children but also their access to consumer credit including auto loans.

The free market system is temporarily suspended, while it gets fixed. It will never be the same, more regulation, less speculation and all those math and science PHd's that populated wall street creating financial instruments that no one understood will be going back to the campuses they came from. We will never see the likes of this kind of Frankenfinance again. Its not the first time its destroyed real wealth and real people. lets hope its the last.

Im for plain vanilla from now on.

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Howard Bell
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