Meh Culpa

Meh Culpa: Where the money’s not going

Out of the $8.5 trillion we’re paying for the bailout, only $400 billion is going to local communities so they can purchase and repair foreclosed homes for eventual resale. What’s wrong with this picture?  I would say that it’s the ultimate in Trickle-Downness, which hasn’t worked since introduced by Reagan in the 1980’s. Voodoo economics, indeed.  (Although that is an insult to practitioners of Vodun.)

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November 29, 2008 - Posted by | bailout(s), Economy, politics | , ,

2 Comments »

  1. With all due respect, this bailout was never meant to be for local communities and mortgage relief. This is all about politicians who have been lining their pockets paying back the Wall Street special interests that have been playing BOTH sides of the aisle like a violin whill the republic burns, so to speak. Instead of calling Wall Street out, they chose to be politically expedient and look as if they’re actually trying to do something to help the economy. Somehow, $700 Billion became $8.5 – $10.8 trillion with ZERO Congressional oversight, talk about inflation…

    Comment by Christopher Wiseman | December 2, 2008 | Reply

  2. Hello, Christopher. Actually, part of the purpose of the bailout was indeed mortgage relief and prevention of foreclosures. I remember because that’s the only element of the legislation I liked. I also was quite interested that The Real News network had found instances of funds actually going to local communities. If you follow the link and read the article, you’ll see what I mean.

    Anyhow, in Section 109 of the bailout bill legislation, specifically talks about loan guarantees as well as the facilitation of loan modifications to prevent foreclosures. I believe that under Section 110 the Federal Property Manager is also supposed to come up with a [actual] plan to assist homeowners no later than 60 days after the bill’s passage. Under Section 124, terms of consumer mortgages can be reset, the loans insured and perhaps all indebtedness of those mortgages that are eligible paid in full. That could amount to quite a chunk of change.

    I do understand the self-serving machinations of most politicians. This post was simply meant to highlight the fact that promises made to the American people are not being kept, or at least not at the same rate that Bush, Paulson, Bernanke, et al. are helping the banking industry.

    I think that even in a backwater blog such as this, we owe it to the American people to bring up the subject and keep talking about it. It’s similar to Rove’s strategy: if y’all keep saying the same thing over and over, even when you’re called on it, most people will believe what you say. The difference here, it’s the truth.

    Comment by mehculpa | December 3, 2008 | Reply


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