Thirty-nine years ago I was shot in an ambush while a Marine on a night patrol in Vietnam. I had potentially fatal wounds to my chest and a serious wound to my right leg. To put matters bluntly, I had never been more terrified in my life. Would I die? And if I died, would I go to heaven?
I also thought about the buddies I was leaving behind. Somehow, I wanted to believe that they would be better off without me to slow them down.
The next morning I woke up at a hospital in Da Nang. The doctors told me that my days as a fighting Marine were over. Somehow, I felt that I had more to give but wouldn't get the chance.
My history is relevant only because there are huge differences between then and now when it comes to our Wounded Warriors. For the past couple of years I have had the privilege of knowing Col. Jack Cox (USA, ret.) who is a stalwart in the Wounded Warrior Program at Fort Bragg. He has been a great friend and mentor, and has taken the time to introduce me to some of this generation's wounded.
There are at least two important differences between my generation and the young men I have seen at Fort Bragg's Womack Hospital which is near where I live.
For openers, the Army acts as if the wounded person is going to remain forever a soldier. That is their basic operating assumption moving forward.
Second, the attitude of these kids is amazing. These brave warriors, no matter how badly wounded they are, believe that they will soon be backwith their units fighting in Iraq or Afghanistan.
Today, there are 17 Marines who are amputees fighting in Iraq. I am certain that there are as many soldiers doing the same for the Army. Recently, I received a widely distributed email from Col (Dr.) Brett Wyrick. He was a trauma surgeon at Balad Air Base in Iraq.
He wrote: "If I ever hear (anyone) griping and complaining, I jump into them pretty quickly, now. Most people over here have nothing to gripe about compared to Marines. Marines are different. They have a different outlook on life.
"One Marine Private was here for several days because he was a lower priority evacuation patient. He insisted on coming to attention and displaying proper military courtesy every morning when I came through on rounds. He was in a great deal of pain, and it was a stressful to watch him work his way off the bed and onto his crutches. I told him he was excused and did not have to come to attention while he was a patient, and he informed me he was a good Marine and would address '. . . Air Force colonels standing on my feet, sir.' I had to turn away so he would not see the tear in my eye. He did not have 'feet' because we amputated his right leg below the knee on the first night he came in.
"I asked a Marine Lance Corporal if there was anything I could get him as I was making rounds one morning. He was an above the knee amputation after an IED blast, and he surprised me when he asked for a trigonometry book.
'You enjoy math do you?' He replied, 'Not particularly, sir. I was never good at it, but I need to get good at it, now.' 'Are you planning on going back to school?' I asked. 'No sir, I am planning on shooting artillery. I will slow an infantry platoon down with just one good leg, but I am going to get good at math and learn how to shoot artillery.' I hope he does.
"I had the sad duty of standing over a young Marine sergeant when he recovered from anesthesia. Despite our best efforts there was just no way to save his left arm, and it had to come off just below the elbow. 'Can I have my arm back, sir?' he asked. 'No, we had to cut it off, we cannot re-attach it,' I said. 'But can I have my arm?' he asked again. 'You see, we had to cut it off.' He interrupted, 'I know you had to cut it off, but I want it back. It must be in a bag or something, sir.' 'Why do you want it?'
I asked. 'I am going to have it stuffed and use it as a club when I get back to my unit.' I must have looked shocked because he tried to comfort me, 'Don't you worry now, colonel. You did a fine job, and I hardly hurt at all; besides I write with my other hand anyway.'
Now, please tell me that these young guys aren't the Greatest Generation that has ever lived.
#1
'I am going to have it stuffed and use it as a club when I get back to my unit.'
"... was a centurion with a terrible reputation, Lucilius Fabilus. Nicknamed Cedo Alteram ("Fetch me another") for his habit of breaking his cane on the backs of legionaries he would beat for various infractions..."
#2
That story does indeed make one well up. Such stories inspire me and make me wonder why I bitch about anything. The story frames what's really important--men such as are in this story and what they stand for--they are the very finest we have.
#3
God bless them and watch over them, and bring them all back to those who love them when they've finished the task they set themselves. I am proud to be part of the nation such men and women think worth fighting for.
#4
"We had been told, on leaving our native soil, that we were going to defend the sacred rights conferred on us by so many of our citizens settled overseas, so many years of our presence, so many benefits brought by us to populations in need of our assistance and our civilization.
"We were able to verify that all this was true, and, because it was true, we did not hesitate to shed our quota of blood, to sacrifice our youth and our hopes. We regretted nothing, but whereas we over here are inspired by this frame of mind, I am told that in Rome factions and conspiracies are rife, that treachery flourishes, and that many people in their uncertainty and confusion lend a ready ear to the dire temptations of relinquishment and vilify our action.
"I cannot believe that all this is true and yet recent wars have shown how pernicious such a state of mind could be and to where it could lead.
"Make haste to reassure me, I beg you, and tell me that our fellow-citizens understand us, support us, and protect us as we ourselves are protecting the glory of the Empire.
"If it should be otherwise, if we should have to leave our bleached bones on these desert sands in vain, then beware of the anger of the Legions!"
Marcus Flavius,
Centurion, 2nd Cohort of the
Augusta Legion, to his cousin
Tertullus in Rome
Jean Larteguy quoted this in his novel, The Centurions, about the Algerian War. We now have a real problem in both Washington and Wall Street. If the Left gets elected in November they'll make it worse. Then this quote comes into play. Men such as this won't take the squandering of their sacrifices lying down, and squandering those sacrifices is exactly what the Left intends to do.
To quote Thomas Jefferson, "I fear for my country when I remember that God is just."
#5
While it is laudable that our soldiers are willing to return to battle after losing a limb, even back in the days of the US Civil War, it was noted that such men almost invariably have permanent personality changes, and need to spend a long time to find their new niche where they can perform to their own satisfaction.
#6
Where do they come from? They come from Montana, Idaho, Illinois, Missouri, Kentucky, and the other forty five states and the U.S. territories. Many of them in their youth watched the Twin Towers fall, some at the beginning of their life journey. They chose to defend our country, not for glory but out of a sense of obligation to defend our freedoms, our nation, and our way of life. One day they build roads and visit schools in far away lands. The next they experience the unimaginable horror of close combat with a inhumane enemy. They make sacrifices that our "betters" in Hollywood, on Wall Street, or Martha's Vineyard could not even comprehend. They are the best of us, our sons an daughters who make us better by knowing they are on the gun line manning the walls to keep the barbarians at bay. To quote Winston Churchhill, after reading the U.S. entry into World War II, "I have read of the American Civil War, and I sleep the sleep of the saved." God bless them and their families, may He hold them close to his heart and grant them safe passage. Thank you to all of the veterans and their families here on Rantburg.
#7
my eldest son volunteered for the Army, two years ago, based on 9/11/01, which occurred when he was 13. Don't write our coming generations off. They are volunteering in a hot war to fight America's enemies, knowing full-well what that means.
Posted by: Frank G ||
09/28/2008 20:26 Comments ||
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#8
We should assemble an entire unit of disabled soldiers and set them loose in Berkley, kicking hippies.
#1
On a spring day in 2004, Nadhmi Auchi, one of the world's richest men, flew in to Midway Airport on a private jet. Met by a welcoming party that included Lt. Gov. Pat Quinn (there at the request of the Blagojevich administration) and businessman Tony Rezko, Auchi was brought to a downtown hotel where he was the guest of honor at a reception hosted by Blagojevich.
The Iraqi-born billionaire -- who lives in London -- had come to Chicago on business. He would go on to invest nearly $170 million in a prime piece of vacant land in the South Loop -- 62 acres along the Chicago River that Rezko wanted to develop.
Chicago politics keep coming up. Resko is connected to BO. Aren't Rezko and Blagojevich under indictment? Does this mean that if BO gets elected that Chicago politics have a new D.C. address?
#5
he has an October sentencing date. Any deal has to be done before that ;-)
Posted by: Frank G ||
09/28/2008 16:56 Comments ||
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#6
You're a bit naive, Betty. I take it you haven't had much experience with the judicial system. If you ever do, be sure to have a lot of money available.
Posted by: Barbara Skolaut ||
09/28/2008 9:58 Comments ||
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#3
Quite frankly, I'm sick of it all. The Palin drama is meaningless compared to the CLASS=ED HREF='HTTP://http://governor.mo.gov/cgi-bin/coranto/viewnews.cgi?id=EkkkVFulkpOzXqGMaj&style=Default+News+Style&tmpl=newsitem'>thuggish tactics of Obama's campaign and his Bill Ayers communist/marxist/ Acorn connections. Not to mention the welcome his cronies gave mass murdering tyrant Ahmadinejad in NY.
#4
The first time I read the Times of London, I thought that it was a shoddy rag not fit for fish wrap, compared to American tabloids. Silly gossipy articles like this that impute base motives where none exist merely reinforce that opinion. I believe the phrase "brutal Afghan winter" was coined here.
#6
The Palin family issues are the Palin family issues. It is for them to decide. I would pray that for them in their decisions.
These side issues reported by the British media don't have much to do with our elections. The $700 billion bailout and how it is handled is a far more important issue for this country and ultimately others in this world than some insipid little gossip article from the UK.
#1
McCain needs to get an ad out that uses this clip from You Tube. Also "Burning Down the House" describes debacle brought on by mismanagement, corruption, and campaign fund kickbacks from Fannie Mae and Freddie Mac; the great flirtation--no it was a passionate love affair with social engineering and socialism.
Political correctness is driving this thing too--there is the political correctness notion in this country that corrupts everything it touches and that is that no one can fail; that no one should suffer any consequences and no one should have to work for anything.
Adolph Hitler came to power during the Great Depression just because people thought he was the messiah and who would bail them out. The rest of the world suffered greatly. The U.S. and allies had to make it right at great cost. Not making it right would have cost far more in the generations to come. We had principles forged by our forefathers and we had an abiding faith that there was something greater than ourselves that guided us. These principles and faith was far larger than the idea of making a buck, partisan politics or getting elected.
#3
What bothers me is the condition has not been addressed honestly. I know where the blame lies, but I want an open admission from a party I see as reckless. And I would like another bill to meet what Barons: Memo on the street found as well as the communities reinvestment act.
If you want markets to work, you fix the cause.
P.S. a small bill would work, one that actually regulates or deregulates properly. Screw all of your pork.
There is a market. The businesses holding the mortgages do not like the market because if they sell in that market they will not recover most of their original investment. That is not lack of market.
In fact, the businesses holding mortgages are wagering that a government bailout will pay more for these mortgages than the market. So much so that they are refusing to participate in an existing market.
I have $5.00 in my wallet. I will pay $5.00 for any $1,000,000 portfolio of American mortgages held by any entity. There, I have created a market for mortgages. [more at link]
#1
Right. Just remember to make those property tax payments on time otherwise that other American institution, the sheriff's sale, is going to make that piece of paper just a piece of paper.
#2
I don't have a mortgage (worked hard, paid it off, paid my bills on time through the years thanks to Mrs. JohnQC's diligence) but I have a feeling I am going to get mugged, robbed, and strong-armed nonetheless.
#3
In fact, the businesses holding mortgages are wagering that a government bailout will pay more for these mortgages than the market. So much so that they are refusing to participate in an existing market.
And mortgage holders currently behind on payments, credit card debt, Escalade payments.... will also soon be "refusing to participate in the market" ie, PAY THEIR PHUECHING BILLS "wagering" that the Obamessiah and affirmative action by ACORN and the donk congress will bail them out.
#4
Besoeker, you're right. What political party wants to be in charge of foreclosing? Cash flow from the mortgages may drop to zero without repercussions.
#5
I don't think our government is qualified to run a neighborhood lemonade stand. Can anyone think of anything Washington does well other than overspend, blow the budget, look they other way at corruption, and be fiscally irresponsible?
The same people that got into this financial mess are making the decisions on the bailout. That is crazy and scary. We are becoming the country of bailouts. Their is no penalty for failing or being very risky or imprudent anymore in government or business.
#6
Can anyone think of anything Washington does well..
Well, your military has shown remarkable abilities for a bureaucracy to self correct, reform, and clean its own house. That's not healthy in the long run for a republic, cause work eventually seems to flow toward competency.
#7
For my money, the repository of the national honor is now in the U.S. military. They represent the old-fashioned virtues of duty, honor, country in a way that the politicians couldn't imagine doing, much less the glitterati of this society.
It's not supposed to be that way. The military is supposed to be inspired by the citizenry. When you invert that flow, bad times are ahead for both the citizens and the military, and the country they represent is headed for ruin.
#8
As a national institution, certainly the most trusted with our honour, Jolutch Mussolini7800. But there are plenty of organizations -- companies, churches, community groups -- and plenty of individuals who strive daily to live those virtues. Just because the scum rose to the top does not mean there isn't a lot of cream in the U.S. even now.
#11
Hellfish, I'm not. I have a son in the Army, totally respect their mission, and their mission in America is under civilian administration. You're welcome to take that shit elsewhere. Thx
Posted by: Frank G ||
09/28/2008 19:59 Comments ||
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#12
What would it take for a military take-over of Washington? Not very much I'd wager. There's a lot of congress critters that belong in jail or the river. Their undermining of America has gotten to the point of doing real damage, I think only the military can clean out government. Would they then have what it takes to step down and turn it over to civilians again?
Posted by: Mike N. ||
09/28/2008 20:39 Comments ||
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#16
We still vote here and can handle this by voting. For all the lefties and other loons around, remember that GWB won the vote in 2004. Remember that the Democrats have only held the presidency for 12 of the last 40 years. Most voters know how to vote sensibly. All is not lost.
As for Congress, what have you done lately to throw out the Democrats? If your answer is little or nothing, shut your trap about the military. You're just an armchair anarchist.
#17
P2K, the way that's written it sounds like you are not a legal American. Am I confused?
Rhetorical flourish. I don't own it, it belongs to the people. It's their military not mine though I did my time in service when it was even more unpopular among the usual suspects. I hung around for the rebuilding from its nadir.
#18
But isn't Pakistan the kind of country where the military periodically clears away the corrupt civilian government? That's not the kind of place I want to live in. I prefer our military being equal citizens, not a foreign body. (Which makes Procopius2k mine, even though he appears to have become a civilian. However, I am willing to share.)
WOW, WE'VE MADE QUITE A MESS OF THINGS here on Wall Street: Fannie and Freddie in conservatorship, investment banks in the tank, AIG nationalized. Thanks for sending us your new trillion dollar bailout.
We on Wall Street feel somewhat compelled to take at least some responsibility. We used excessive leverage, failed to maintain adequate capital, engaged in reckless speculation, created new complex derivatives. We focused on short-term profits at the expense of sustainability. We not only undermined our own firms, we destabilized the financial sector and roiled the global economy, to boot. And we got huge bonuses.
But here's a news flash for you, D.C.: We could not have done it without you. We may be drunks, but you were our enablers: Your legislative, executive, and administrative decisions made possible all that we did. Our recklessness would not have reached its soaring heights but for your governmental incompetence.
THIS MEMO PROVIDES A BRIEF HISTORY OF your actions that helped create this crisis. We on Wall Street do not deny our part.
rtwt at link for a 10 year history. A lot of this remains and needs to be fixed.
We created these securities, we rated them triple-A, we traded them without understanding them. Now that they have gone bad, we are real close to getting the rest of the country to take them off our hands. Thanks, D.C. None of this would have been possible without you.
Very truly yours,
Wall Street
In my opinion, the greatest fault with the $700 billion bailout is that it encourages more moral hazard on the part of the financial community and our whole culture. No one is held responsible. No one will suffer for their individual greed and error. But everyone will suffer to the tune of $ 2,300 for every man woman and child to fix it. And that's just for starters.
There needs to be a lot more judgment of and consequences for these malefactors as individuals. If it doesn't start till after November 4, that's OK with me. But it's time people were held responsible for the errors on their watch. Should have started with Tennant and Mueller. Casey and Abazaid.
There will be consequences for these failures. What is being debated in Washington is who bears the burden of those consequences. The current plan does not allocate the burden appropriately. I prefer inaction to this plan.
#1
Typical of wall street and current America. "It's not my fault". It IS wall street's fault. Not our Congress, they were just too stupid to see this comming. When 30% loans were allowed, I did not buy. My home loan is fixed and affordable, not an interest only or ARMM. Wall street needs to stand up and be accountable for their greed.
Posted by: 49 Pan ||
09/28/2008 11:15 Comments ||
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#2
...they were just too stupid to see this coming.
Nah, there's a difference between being blind and looking the other way. Best Congress money can buy.
#3
rtwt. They weren' blind and they didn't look the other way. They were a prime contributor helping to spread the corruption. Think CRA, repealing Glass Steagal, failing to fix Fan and Fred, appropriating more for the Smithsonian than the SEC. The list goes on and on. They're as guilty as Wall Street. That's why Wall Street gives them so much money. Coongress of Whores led by the Slut of the House.
#4
In the last three days, conservatives have turned against this deal big time. While I generally agree that it is blackmail, and damned unfair, to make matters worse I will mention two things:
1) Treasury officials are saying if it doesn't happen, the stock market could lose 1/3rd of its value in short order. And,
2) It is unlikely it will work in any event.
So the big question is not really one of moral outrage. It is, "Will it work, and if not, then what?"
Ironically, this is only a rhetorical question, because it won't work. It is a band aid over a bullet hole.
#6
Many of these Congress Critters are like crack whores who will do anything to feed their habit. With these Congress Critters votes, money and power = crack. Not all of our Congress fits into this category but we should remember all that do on November 4th and then again, again, and again at each subsequent election until these Toxic Congressmen/women are removed from the taxpayer-financed Congress welfare roster.
Posted by: Frank G ||
09/28/2008 13:30 Comments ||
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#8
1) Treasury officials are saying if it doesn't happen, the stock market could lose 1/3rd of its value in short order.
That would be okay, short lived, and a great buying opportunity. Maybe if we spent the time it takes for the stocks to fall investigating who is at fault here, democrats, democrats, democrats, and democrat supporters, just maybe we can elect a responsible Congress in November.
This is the result of corruption and immoral behavior. Without a full accounting and corrective measures, nothing is gained. We are at opportunity's door and it is open.
#11
Of our instruments of power, Diplomatic, Informational, Economic, and Military, we as a nation are broken on three fronts. Sad situation. JQC is right, Nov 4th is a very important day.
Posted by: 49 Pan ||
09/28/2008 16:22 Comments ||
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#12
Some of my best friends are crack 'hos.....
Posted by: Alaska Paul ||
09/28/2008 17:51 Comments ||
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#13
well, at least they aren't Democrat office-holders.
Posted by: Frank G ||
09/28/2008 17:55 Comments ||
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SAN FRANCISCO - Not even $700 billion will be enough to spare the United States from more economic anguish if the government's proposed banking bailout pans out like similar desperation moves during the past two decades.
It usually takes years to recover from a financial crisis severe enough for politicians to ride to the rescue with truckloads of taxpayer money.
Take, for example, the U.S. government's August 1989 bailout of the savings-and-loan industry. The stock market fell by 12 percent within the first 14 months of the rescue plan while the economy slipped into an eight-month recession that began in July 1990. Housing prices that had just begun to erode continued to fall for another three years.
There's little reason to believe it will be dramatically different this time around, particularly since this bailout involves harder-to-value assets and comes with the U.S. economy already on the edge of a recession, if one hasn't begun already.
"This is going to take years to work out and it will be incredibly complicated," predicted banking consultant Bert Ely, who has extensively studied the U.S. government's 1989 bailout.
Although lawmakers are still sparring over the precise details, the proposed bailout would authorize the government to borrow up to $700 billion to buy the toxic assets poisoning banks. Most of these holdings are tied to mortgages made to borrowers who either can't afford to make their monthly payments or have simply chosen to default because they owe far more than their homes are worth. No one seems quite certain how much these assets are worth, but the government is betting that with time it can get a handle on it and eventually profit.
Even as the government tries to clean up the mess left by reckless home lenders, borrowers and investors, more problems are likely to stack up.
The trouble could include longer unemployment lines as struggling companies faced with declining sales and limited access to credit trim their payrolls. That could lead to even more bank failures as cash-strapped borrowers don't repay loans. And most experts think there's still a good chance the downturn in the housing and stock markets will deepen to further spook already frightened consumers.
The government is hoping its intervention will unclog the lending pipeline, but that isn't a certainty either, said Sung Won Sohn, an economics professor at California State University, Channel Islands.
"If I am a medium-sized bank on Main Street, simply because the government is bringing a bailout package to Wall Street doesn't mean I am suddenly going to change my mind and start lending money again," Sohn said.
That suggests the economic statistics won't even capture some of the collateral damage all the lost lending opportunities that occur as banks try to bolster their rickety balance sheets. Many banks have curtailed their lending because they are already swimming in losses and don't want to risk drowning by taking chances on more borrowers.
"The real tragedy is we will never know how many businesses would have been started or how many businesses might have expanded if all this hadn't happened," said Jonathan Macey, deputy dean of Yale Law School, who wrote a book about a government bailout in Sweden during the early 1990s.
In a best case scenario, Macey said the United States will bounce back within two years, like Sweden did after the government spent billions of dollars to salvage the country's troubled banks and prop up a slumping housing market.
Before the medicine took effect, Sweden suffered through a 20-month recession that saw nearly 60,000 companies go bankrupt, housing prices fall by 19 percent and the country's bellwether stock market index plunge 45 percent from its peak. Once the hangover ended, the good times resumed; Sweden's economic growth has averaged 3.2 percent since 1994.
Sweden spent 65 billion kronor (about $10 billion at the time), but made most of the money back because it bought a stake in some of the troubled banks. The government still owns nearly 20 percent in one bank a stake that is now up for sale. U.S. lawmakers also have been debating whether it makes sense to acquire stock in some of the banks that the government intends to help out.
In a more sobering situation, the payoff from the U.S. bailout might take much longer. That's what happened in Japan after its government finally intervened in a real estate and banking crisis that began in the early 1990s.
By the time the government acted in 1997, the economic hole was so deep that it took another seven or eight years to climb out. The net public outlay to clean up mess was 18 trillion yen ($168 billion), according to the Financial Services Agency.
The abysmal times in Japan during the 1990s are now known as the "lost decade." Even though the economy is better now, the Japan's stock market still hasn't returned to its peak before the bubble burst. And Japan still has about $9 billion worth of property held as collateral that needs to be sold.
It seems unlikely that the United States will have to wait as long for a recovery because the government is wading into the financial muck much more quickly than Japan did.
It was difficult deciding whether to post this article under Politix, Culture Wars, Lurid Crime, or Terrorism. There wasn't a category of "ALL." Maybe the article is unduly pessimistic but maybe not. As of late Saturday, it didn't sound like a done deal. The Democrats have enough votes to pass the bailout in the House. I think they are looking for a shared blame scenario since elections are coming up.
#1
I've have never seen such a rush to get this taxpayer bailout bill railroaded through with so little transparency and accountability. The same people that got us into this mess are still making decisions about the bailout. CSPAN is so very interesting. Today, callers called in to talk with Barney Frank. Virtually all of them were pi$$ed to one degree or the other. Frank wiggled, squirmed, deflected, blamed the Republicans, spun the issues, and disembled. One guy that called in said he was running for office as an independent for the first time and he thought all the people that got us into this debacle should just step down. Frank said that would not be the democratic way but what he meant was the Democratic Way (wink, wink). He dodged questions about Fannie Mae and Freddie Man and the fact that James A. Johnson and Franklin Raines ran Freddie and Fannie into the ground while making a fortune. Nothing was said about investment deregulation in 1999 under Clinton that led to this financial mess. Frank made it sound like he was a hard working public servant that was amazed at how the Republican administration got us into this mess.
I don't know what pony George W. has in this race, i.e. why he is pushing the Paulson package and the subsequent compromise package--maybe he doesn't have a horse in this race since he will only be in office a few more months.
I can see the donks looking at my accounts--although they are meager, and telling me what I can have left after they get done with redistributing my wealth and the rest of the country's.
#2
I can see the donks looking at my accounts--although they are meager, and telling me what I can have left after they get done with redistributing my wealth and the rest of the country's. Posted by: JohnQC
A very predictable trend actually....... having experienced for nearly 45 years, the non-receiving end of welfare benefits, affirmative action, housing assistance, minority scholarships, food stamps, income tax credits, job application preference, employment promotion and selection, economic cash incentives, government cheese, and midnight basketball.
I STILL managed to sock away nearly $150. Come hither you sorry communist bastards, NOW YOU CAN HAVE IT ALL!
#3
If I'd known this was coming, I would have told the IRS to keep my refund check earlier in the summer. Thanks but no thanks. If it looks too good to be true, it probably isn't true or good. There are no free lunches or free homes.
#6
Past USG bailouts of Airlines and Auto companies only resulted in higher corporate management salaries while doing little to stop the loss of domestic or international market share. Poor economies of scale ended up being protected and promoted, not eliminated. ITS GOOD ELECTION YEAR POLITICS BUT IN THE END US TAXPAYERS STILL END UP PAYING FOR YEARS AND DECADES FOR NOTHING.
Taxpayers are naturally suspicious that political insiders and contributors on Wall Street are going to make out like bandits once Washington starts spending the $700 billion in the financial market rescue. But Democrats have already decided to spin off potentially billions of taxpayer dollars from the bailout fund to their own political buddies -- not on Wall Street but on nearby K Street.
The House and Senate Democratic drafts contain an indefensible and well-hidden provision. It would mandate that at least 20% of any profit realized from the sale of each troubled asset purchased under the Paulson plan be deposited in either the Housing Trust Fund or the Capital Magnet Fund. Only after these funds get their cut of the profits are "all amounts remaining . . . paid into the Treasury for reduction of the public debt."
Here's the exact, amazing language from the Democratic proposal, breaking out how the money would be divided and dispensed:
"Deposits. Not less than 20% of any profit realized on the sale of each troubled asset purchased under this Act shall be deposited as provided in paragraph (2).
"Use of Deposits. 65% shall be deposited into the Housing Trust Fund established under section 1338 of the Federal Housing Enterprises Regulatory Reform Act . . . ; and 35% shall be deposited into the Capital Magnet Fund . . .
"Remainder Deposited in the Treasury. All amounts remaining after payments under paragraph (1) shall be paid into the General Fund of the Treasury for reduction of the public debt."
What we have here essentially are a pair of government slush funds created in July as part of the Economic Recovery Act that pump tax dollars into the coffers of low-income housing advocacy groups, such as Acorn.
Acorn, one of America's most militant left-wing "community activist groups," is spending $16 million this year to register Democrats to vote in November. In the past several years, Acorn's voter registration programs have come under investigation in Ohio, Colorado, Michigan, Missouri and Washington, while several of their employees have been convicted of voter fraud.
Along with other potential recipients of these funds, including the National Council of La Raza and the Urban League, Acorn has promoted laws like the Community Reinvestment Act, which laid the foundation for the house of cards built out of subprime loans. Thus, we'd be funneling more cash to the groups that helped create the lending mess in the first place.
This isn't the first time this year that Democrats have tried to route money for fixing the housing crisis into the bank accounts of these community activist groups. The housing bill passed by Congress in July also included a tax on Fannie Mae and Freddie Mac to raise an estimated $600 million annually in grants for these lobbying groups. When Fannie and Freddie went under, the Democrats had to find a new way to fill the pipeline flowing tax dollars into the groups' coffers.
This is a crude power grab in a time of economic crisis. Congress should insist that every penny recaptured from the sale of distressed assets be dedicated to retiring the hundreds of billions of dollars in public debt that will be incurred, or passed back to taxpayers who will ultimately underwrite the cost of the bailout.
The idea that special-interest groups on the left or right should get a royalty payment for monies that are repaid to the Treasury is a violation of the public trust. We're told the White House and House Republicans are insisting that the Acorn fund be purged from the bailout bill. The Paulson plan is supposed to get us out of this problem, not start it over again.
#1
Sadly, this surprises not a single solitary soul.
Posted by: Mike N. ||
09/28/2008 0:22 Comments ||
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#2
Well, maybe there won't be any profits realized on the sale of troubled assets -- real estate has been so grossly overpriced it must fall further, and this may happen to MBS (mortgage backed securities also).
#3
The price of housing became so much higher than housing's actual value as a result of two things:
1. The home mortagage interest deduction, which in effect makes real estate (at least two homes' worth) a taz-subsidized investment and
2. An interest rate which was held artificially low (vs the true cost of borrowing) for about 10 years too long.
In the absence of these two things, the attitudes and events and legislation that led up to this mess would probably not have happened.
Posted by: no mo uro ||
09/28/2008 6:46 Comments ||
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#4
'tax', not 'taz', PIMF.
Posted by: no mo uro ||
09/28/2008 6:46 Comments ||
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#5
nmu,
mortgage interest has been tax deductible since the inception of the current income tax in 1913. So the problem it creates is not a recent one and it is difficult to assign it any specific responsibility for this crisis to it.
Your point about interest rates is more appropriate as the Federal Reserve, also established in 1913, kept interest rates far too low far too long. Greenspan's reputation will be as the worst Fed Chairman since Miller.
#7
Agreed on the history of HMID, NS, but the fact of the matter is that making real estate an investment which is federally subsidized in a way that other investments are not has altered the real estate - and mortgage - market in ways that prevented market forces from working as efficiently as they might have otherwise.
In the absence of other factors, it was never enough of an intrusion to do more than artificially elevate the price of real estate with respect to the value of stocks, bonds, commodities, etc. But adding everything else, including foolishly tweaked interest rates, made it suddenly loom large.
Posted by: no mo uro ||
09/28/2008 9:36 Comments ||
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#8
This is a great time for winter wheat, winter rye, etc., Besoeker.
There must be a pertinent analogy in there somewhere.
Posted by: no mo uro ||
09/28/2008 9:37 Comments ||
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#9
It aint gonna be good, I'll tell you that much. Not for buyers or sellers.
But adding everything else, including foolishly tweaked interest rates, made it suddenly loom large.
I don't see how you can make this statement our of clear air. The everything else caused the problem, not the inflated, subsidized price which had been consistently subsidized for 90 years.
#11
Thought the Conservative Republicans in the House forced the removal of the ACORN provision or horse-swapped for the restrictions on CEO golden parachutes. Any way it is cut, it is not going to end for a long, long time and I can't see where are not going to ultimately foot the bill.
#12
It was the gradual removal of reserve requirements down to next to nothing that allowed the credit bubble to form.
When you halve the reserve ratio, you double the amount of credit.
As there are now no reserves left, then you cannot manoeuvre them down to cope with a recession. I've been worried by the credit bubble since 2003, so it takes a lot longer to kill the economy than I thought!
#13
The reductions in the reserve ratio is definitely the big problem, and without that this crunch may never be. And if you buy a house for the going market price, but that price is 20% higher than the house value, then, you buy debt. You gamble. Some houses sold for 30 to 50% above real value. No doubt American educated college grads bought them. Now, if they could get that job...
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