So now we're looking at possibly a TRILLION dollar bank bailout. Why? Because banks took on insane amounts of leverage and risk based on a flimsy base of questionable subprime loans.
So these same Republican corporate masters that railed against Democratic plans to address the housing crisis as rewarding "irresponsible borrowing" by helping individual homeowners avoid foreclosure now come HAT IN HAND begging for a bailout. A bailout for a crisis caused by corporations borrowing irresponsibly on a scale that dwarfs of the value of all of the subprime mortgages in the country put together. (I believe a 30 to 1 leverage ratio was on the low end in this bubble market).
...rant continued below the fold.
WTF? Why is it that corporations get to be bailed out because they're "too big to fail". These same corporate executives that took on massive risk so they could maximize their profits and bonuses, now are unwilling to suffer the consequences when the business cycle INEVITABLY turns against their favor. The inevitable consequences of being massively leveraged is that when things go bad, they go REALLY bad. So not only do they reap massive bonuses when times are good, but they get off scot-free when everything comes crashing down because the Feds will bail them out anyway.
Why are Republicans so unwilling to help out middle class individuals in times of distress and yet are willing to bail out corporations? Simple: economic paternalism. It stems from the belief that the only people that matter are business leaders, and that everyone else should just be happy to have a job provided by the Great Leaders. For those of you that haven't read Atlas Shrugged, you MUST read it in order to understand the Republican mentality.
It's this same attitude that lead Republicans to say that taxes should be cut for the rich because "they're the ones that create jobs". So follow that logic to its full conclusion. According to that logic, the wealthy have fulfiled their debt to society by "creating jobs", and have no further obligation to contribute to the functioning of government and society in general. The rest of us should be happy to bear the full tax burden to keep the government running, because, hey, we just don't contribute as much to society as the wealthy. Never mind that the wealthy also have a larger stake in society (in terms of having more to lose if the country were to be invaded or crime runs rampant, and being affected more by economic/trade policies, etc.).
Obama and Biden have it right. This whole trickle-down economic system and mentality needs to be turned on its head. The Republicans have completely controlled the debate and fed us this tripe for the last 28 years.
This is our chance to kick trickle down economics into the ash bin of history
This is what's at stake here. We have a chance to restore America to the fundamental belief that the basis of a strong economy is a strong middle class. That the basis of the American Dream is economic opportunity - the belief that no matter how humble your origins you have the chance to overcome your condition and achieve prosperity. The Republicans, whatever their rhetoric, fundamentally don't believe this since they are at heart Social Darwinists.
It's time to turn the page and banish the Republican party as it stands today to permanent minority status (though in a two-party system they will realign and adopt a more centrist positioning in order to win close to 50% of the vote again). History will remember the entire era 1980-2008 as a reactionary period, a temporary blip in the inevitable march of progress. It will be remembered as a virulent reaction to the liberal policies and politics of the 60's (Great Society and civil rights).
We are close to the finish line. Now is the time to redouble our efforts. The Reactionary forces are on their heels, but fighting tooth and nail against their inevitable demise. But they can't fight against the tide of history - on Nov. 4, we begin a new era of Progressivism.
Onward to VICTORY!!!