$13 trillion......That is quite a load of money! This
is the amount of the tarp and tarp 2 money that has been set aside to
be dished out to banks that made bad investments. This is the money that
was supposed to fix our economy. So, hows it going? Helicopter Ben
Bukkake err Bernanke is ready to get another "bailout" rolling as I
write this. GDP is growing at less than 1%, unemployment keeps climbing,
and consumer spending is nonexistent. So what happened? They screwed
the pooch and they did it on purpose!
You see...A bunch of banks
decided to give mortgage loans to people who couldn't afford them. As
soon as the loan was created, they sold it to another bank. The banks
that bought these loans combined them into funds and sold shares of
these funds. This is called a derivative! This
gave banks incentives to make more and more bad loans since they
assumed no risk in them. Once people can no longer keep their head above
water, they get foreclosed on and the fund that their mortgage was a
part of loses value. Enough people default on their loan and the fund
becomes worthless.
They did this a lot with adjustable rate
mortgages. I had a bank try to do it to me. I was going to buy a house
for $68,000 because I sat down with a calculator and that was what I
could afford. The bank tells me that they will not give me a loan for
less than $85,000 because they don't make enough money on it and that I
qualified for up to $115,000. How is that possible? I know how much I
make and what I can afford. They did too! They didn't care because as
soon as that loan was on paper, they were going to sell it. I said no!
There is no way I am going to bury myself in debt so a broker can get a
5% commission.
Anyway, when the rates adjusted, there was a huge
amount of people who could no longer afford their homes and the bubble
burst. What was Washington's answer? Reward the banks and let the poor
people become destitute people. What could they have done differently?
Here is the answer:
In 2009 there were 236 million tax returns
filed in the US. If the government and the "federal" reserve had given
each and every taxpayer $20,000, it would have cost $4.072 trillion.
What would people have done with this money? Catch up their mortgage and
renegotiate their rate? Mortgage crisis solved. Pay off credit cards?
Credit crisis over. Buy a car? No need for an auto industry bailout.
Start a small business? Unemployment rates get a boost...Whoa!!! That
would have fixed the whole "crisis" for just over a quarter of what they
have spent to date. For
what they have spent, they could have given everyone $60,000. It's your
money since you, your children, their children, and their grandchildren
will be saddled with the debt for eternity.
What did Obama, your government, and the privately owned "federal"
reserve have to say about this idea? They said it wouldn't work because
Americans can't be trusted to do the right thing with their money!
That's right folks....The government thinks you will buy twinkies and
crack......Or they knew it would fix the problem and that wouldn't fit
their agenda!
You be the judge. Either way, I'm pissed and you should be too.
Check out my new site at TacticalEdge.org for free Army field manual downloads, videos, pictures, links, and blog.