Learning from History

The last post makes me think to remind people to learn from history. Here's the Wikipedia entry.

Under the section labeled "Early Response"...

Secretary of the Treasury Andrew Mellon advised President Hoover that shock treatment would be the best response: "Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate.... That will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up the wrecks from less competent people."[32] Hoover rejected this advice, and started numerous programs, all of which failed to reverse the downturn.[33]

What did financial services executives do with their bailout?

They gave themselves bonuses!!! And they want more money from us, the taxpayer!! Here's the NBC News Story with the details.

President Barack Obama issued a withering critique Thursday of Wall Street corporate behavior, calling it "the height of irresponsibility" for Wall Street employees to be paid more than $18 billion in bonuses last year while their financial sector was crumbling.

This, a day after he hosted them at the Whitehouse doting on their front line status in the "war on recession". 2007 Executive bonuses were the 6th highest ever during the year that was the worst financially since 1939 when the last "great depression" ended.

How did we get here?

Here's a great CNN article that tracks the basics of what happened.

"As long as everyone was paying their mortgage, that was fine," said Ali Velshi, CNN's chief business correspondent. "[But] we didn't take into account with these mortgages that people might lose their jobs, the interest rate might go up and the housing prices may go down.

"Guess what? All three happened."

New $819 Billion followup to TARP Passes House

Now that this pork filled bill is through the US House of Representatives, it goes to the Senate next week. Here's an article on the package. All Republicans and 11 Democrats voted against this bill. If the American people see the details we would be even more opposed. 

Here's some pro/con on the bill.

Big Investment Banks and the Oil Price Bubble

60 Minutes report tonight reveals something of the financial institutions we've bailed out and according to our next president must continue to bail out with even more of our hard earned cash.

How much have you been paying for gasoline, diesel, heating oil? This story shows that during the winter of 2007-2008, while demand was dropping and supply was rising, the world's largest financial institutions drove up the price of fuel on the commodities market, earning billions. Who paid for their gains? Us, the consumers.

More on the story here

Help stop the federally assisted fleecing of the US consumer by writing your representatives NOW! Links are below.