What Taxpayers Get From the Bear Stearns 'Bailout'

The bailout is UNCONSTITUTIONAL. The federal government IS NOT AUTHORIZED to take OUR MONEY to bailout PRIVATE companies. The FEDS are taking public money and using it for a private cause. My taxpayer dollars are authorized for government services only like defense (and I'm not talking about a fake war like IRAQ), public education, infrastructure, etc. It is illegal to take the American people's money and redistribute it towards private entities like financial institutions.

This is like a "reverse taking". When my business lost 60% of its income, I didn't get a check or a loan from the FEDS. When people were getting foreclosed on, the FEDS didn't step in to help nor did the banks which wanted our help. If banks had conducted private loan workouts with struggling consumers instead of foreclosures, this problem would have been contained a long time before it had an $85 billion price tag. Banks could have even done "home swaps" to get people into cheaper houses.

If we are going to redistribute wealth, redistribute it to the people. How much would each American get if they paid us a proportional share of the $85 billion. That's what I call an economic stimulus check. We could pay off all the loans that we are now in default on, which would stimulate the economy autmatically, revive the financial institutions (who are worthy) and put cash back in the economy. The IRS would automatically get their 30% back (since we are taxed on everything but the kitchen sink... and probably that also) so they would see a definite return on their investment.

Or, how about this. We make the FEDS stop charging us so much money on our income. The FEDS can levy taxes, but they have certainly overburdened this amendment by charging us 1/3. I don't think this is what the legislators had in mind when they passed the Amendment. We sat still, said nothing and let them do it. Now, they have 85 billion to "play with". If we keep more of our own money, we would be able to pay our mortgages, cars and credit cards, save for our own kids' colleges, invest in our own "social security", pay for our own health insurance and even buy our own food.

So, why they're on the subject of the bailout, let's talk about the fuel for the fire - ILLEGAL INCOME TAXATION. If we cut the purse strings, we can cut the corruption and special interest groups. AMERICAN GOVERNMENT's MOTTO - WHEREEVER THERE'S FUNDING, THERE WILL BE CORRUPTION.

The PREAMBLE to the constitution says that people are more prone to suffering than to right the wrongs from which they are afflicted. How visionary. How true.

Ms. Esq. of GA 7:52AM October 01, 2008

Although many are defending this scheme as "a loan, not a bailout", it IS a bailout. Bear Stearns stock was valued at $170 per share a year ago. JPMorgan bought this stock at $2.00 per share. The shareholders have been fleeced already, the taxpayers are now being fleeced further. The economy we have is not the problem, it is our continuous efforts to control said economy that cause these inflated bubbles. The constant calls for "liquidity" in the markets, that are answered by the FED with more spiraling debt, are not a sustainable solution. If I have $10.00, I can only loan it to 1 person. Banks are different. They can loan that same $10.00 to 10 people. Where does the extra money come from? Nowhere. It is not from a deposit in someone's savings account, or some pile of gold in Fort Knox, it is created on the bank's balance sheet by typing it in. That is the dirty secret that no one wants you to know. Constant calls for "liquidity" are how the bank's keep the debt swirling around so no one sees that the money is not really there. They can cover up the shortfalls by having enough ink on their balance sheets. That is where the FED comes in, by continuously propping up this ponzi scheme with more debt-based "liquidity". It is NOT a "government bank", it is a private corporation owned and run by banks. Do not believe the rhetoric. 30 billion for Wall Street, legally stolen from Main Street. Expect more of the same in the future, very wealthy bankers DO NOT care about inflation, it does not affect them.

Marc of OH 12:22PM June 04, 2008

if you don't like capitalism, go to france where they love socialism, they also love to protest because their unemployment rate is over 15% and no one is allowed to work more than 35 hours a week. socialism is an idea, not a practical application ( not one with success anyway). the pilgrims tried socialism and it failed because not everyone contributed equally, thus the reward system of capitalism for those who contribute more than others. that is why we ARE the most successful nation on the entire planet. (and yes i know the pilgrims did not invent capitalism, i was proving a point) now to address the "forced" work at 18. no one forces you, as a matter of fact there are many people who refuse to work, they are called welfare recipients. there's your socialism at work, are you happy that your idea of society is actually the biggest drain on society. let's pretend socialism works and that all contribute and receive equally, YOU STILL HAVE TO WORK TO CONTRIBUTE SOMETHING YOU GOOFY LIB.

if you have an issue with the bailout as a single incident, that's fine, but to bash capitalism because your don't want to work is pathetic. there is one community that has made socialism work in small groups, they are called the omish. go ask them what age they start working at, it's a far cry from 18 i'll tell you that.

signed: the blue collar, bottom of the pyramid capitalist working man who came from a christian single parent home, renting out a basement of someone else, to owning my own house with my own yard where my son can play, all by the age 23.

all thanks to capitalism and the american way.

ps wingnut, your socialist views are treason.

Zdan of VA 1:22AM May 09, 2008

This problem goes beyond the solvency of Bear Stearns and even that of our financial system. Eric (first comment) gets props for the best argument. This is all about privatized profits and socialized losses; moral hazards.

As this catastrophe continues to cycle through our and the global economy we will see skyrocketing inflation, crime and social unrest. In addition this could lead to the next World War. Americans and congress became unglued about toys with traces of lead based paint, what will the globe think about securities tainted with fraud.

1) Paulson should be arrested for aiding and abetting loan and bank fraud. While he was at the helm of Goldman Sachs most of this toxic debt was originated and also sold through GS.

2) The constant blame placed on state regulators is false and only conceals the real problem. See Eliot Spitzer

http://www.washingtonpost.com/wp-dyn/content/article/2008/02/13/AR2008021302783.html

3) Karl Denninger writes:

http://market-ticker.denninger.net/2008/03/articles-of-impeachment-bear-stearns.html

please sign petition

4) The Executive branch issued a directive to the FBI to NOT prosecute fraud for housing. Under the United States Constitution our President is charged with caring for the faithful execution of law. As alleged by Spitzer, Denninger and myself (FBI directive); this is not a question of negligence, but obstruction of justice.

America wakes up we will have social unrest, skyrocketing unemployment, crime, etc. People will be fighting to survive instead of getting

Michael Blomquist of CA 5:09PM April 04, 2008