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  • From: Clansgian AT wmconnect.com
  • To: homestead AT lists.ibiblio.org
  • Subject: Re: [Homestead] Wrong admission
  • Date: Thu, 25 Sep 2008 08:39:19 EDT

In a message dated 9/25/2008 7:02:02 AM Eastern Daylight Time,
lynnw1366 AT hotmail.com writes:


> >Listening to Bernanke and the president confirms that I live in a
> different world than them. They both pointed out that one of the biggest
> reasons to support the bailout is so the banks will have money to
> lend, so everyone can get credit again so they can buy houses and cars
> and college educations for their children. Like that's a Good Thing?
> Wasn't too much credit (to people who couldn't repay) the problem?
>

You understand this far better than most. The president's, Bernanke's, and
Paulson's tragic flaw is they still see the world through the paradigm of
Reagan's old "Tinkle Down Theory". That is, the only way to make us common
people
prosperous is to make the rich much richer and then all that wealth trickles
down, rising tide floats all ships, as it were.

It hasn't worked out that way and we will never get these types to see the
world differently. The entire bailout is based on this paradigm, it is gives
money to the wealthiest institutions in the world in the expectation that
someday, somehow you will get the residual effect from it.

It's like one collosal debt consolodation loan.

And you are very right, Lynn, it will only add more fuel to the fire. During
the housing bubble I got ten or more telemarketer calls a week wanting to
offer a mortgage on my farm (which falls into the "when Hell freezes over"
department). Suddenly they all stopped cold. Then two days ago, another
call
.... "Now with the bailout of Fannie and Freddie, there is mortgage money
available! Don't you deserve that vacation? Let us lend you the money on
the
equity of your home ...." Just friggin' insane.

THe second most important message in all this debacle is that a life based on
debt, a government based on debt, and businesses based on debt are a BAD IDEA.

It's very much like facing the upcoming fuel scarcity. Instead of working
hard at public transportation and redisigning citys and workplaces, what do
we
do? Try to come up with more ways of putting more gas in the tanks! So now
having scorched ourselves on a debt society, our greatest concern is to make
more debt available. </HTML>




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