I am a lowly research scientist at Baylor College of Medicine and I don’t normally keep track of the news. I am, however, quite aware of the bailout and the economic implications of acting and not acting. Ben Bernanke is the most powerful man in the world right now, and that is quite peculiar. I am well aware of the implications of a tight credit market. Nonetheless, I urge you to block this bailout as the consequences of acting could be far more damaging to the future of this country.
Fannie and Freddie are at the forefront of this mess. These banking geniuses have figured out a way to exploit the loopholes, and were encouraged by this and previous administrations to provide credit to people who can’t afford it, for decades. Fannie and Freddie attempted to profit mightily off of it, and these other banks followed suit. We must decrease the size of these GSEs for the good of our economy long term.
This isn’t 1930. We have FDIC now. I currently have my assets in FDIC accounts. Millions and millions of Americans have opted for this. Speculators have not, and have instead bought risky investments. If they were so smart, how could they not see that people could not afford the adjustments on their mortgage rates? However, they must be geniuses if they can sucker our entire government into bailing them out. Senator Hutchinson, please be reasonable about this. We must not create a market for financial greed without risk. We, the citizens, elect representatives to represent us and appropriate our tax dollars judiciously. If the bankers come hat in hand, they must not be allowed to dictate the terms of the negotiation. Bailing these banks out now will only kick the can down the road for the next few years or months, until the next crisis comes along. Since the founding of this nation it’s credit rating has been top notch. Would not the addition of another trillion dollars or more (this is just the beginning) of debt endanger this status?
We cannot afford this bailout. It is as simple as that. When the bankers beg for a blank check, we simply have to tell them, “No, you cannot have it”.