Bring the bailout bucks home
FDIC Chairman Sheila Bair says the government needs an “exit strategy” from the slew of financial bailouts it has issued. I like this kind of talk.
In the rush to bailout, the Bush administration and Congress based their adventure on faulty intelligence—specifically, that the entire economy would go up in a mushroom cloud if allowed to continue manufacturing weapons of mass consumer debt. Never mind that the government itself once supported the Debt regime through the Community Reinvestment Act and by enriching toxic lending with low interest rates. Those who called for sanctions earlier this decade in an attempt to rein in Debt and the housing bubble were thwarted by shady Democrats whose pockets were lined by F.Q. Mae and Freddie Al-Mac in the Money-for-Protection Scandal. After markets began to collapse last year, the handwriting was on the wall.
Finally, with this year’s implosions of major financial institutions, the administration and Congress had their smoking gun. Something had to be done, and it had to be done immediately to prevent economic apocalypse. A bailout invasion to exact economic regime change was engineered. With no strategy for long-term success, the government shocked and awed the markets with massive bailouts. Despite a few initial signs of victory, though, it quickly became clear that the mission was not accomplished. In the midst of the operation, Republicans took a beating at the polls and following their loss launched a last-ditch effort to right the mess with a bailout surge.
We continue to be mired in this economic quagmire, despite the recent spending surge and the promise of more bucks on the ground from Obama (the same Obama who campaigned on reducing the deficit and began modifying his position after the election).
It’s time for America to face reality: We have lost the economy war. The government had no exit strategy when it went in, and we are now draining our national treasure with a bailout scheme that should have never been waged in the first place. It’s time to cut our losses, set a date certain for withdrawal and bring our bailout bucks home NOW.