Class Warfare: An Analysis of the $700B Rejection

The $700B Bailout Plan was lackluster, and I am glad that it was rejected. I think that it was necessary but not well thought out, and not well-developed. There is the appropriate public perception that the taxbase (comprised, mostly, of ordinary "modest-means" citizens) is underwriting the cost of "bad [CEO] behavior," and compensating the "CEO Class" (and those that both overty and indirectly colluded with the CEO Class (banks, lenders, financial investment firms, et al)) for actions, approaches, and a fiscal philosophy regarding mortgage lending and other financial investments in which a particular class (the least equipped class, in terms of their socio-economic positioning, history, and education) was preyed upon for the benefit of the elite CEO Class ("the haves"), at the long-term detriment of the "have-nots."

If the banks need $700B of the taxpayers' money, why hasn't it dawned on the respective CEOs to ask the people if they can borrow it? Boone Pickens and others are taking out ads to ask people to lobby their congressmen to enact responsible, renewable energy policies. Right now the Bank/Financial Investment CEOs seem to be taking the "main-street-is-too-stupid-to-get-it" approach. These CEOs could do a lot to restore the public trust that they have steadily eroded by simply taking out an ad, or holding a press conference, to admit that they need the public's help in order to continue to do business. And, a further requirement should exist (or be self-imposed by the CEO Class and the Mortgage/Banking/Lending Sector) which would reward the public for their support in this time of shared crisis. They could probably just offer to waive all banking fees...or cut the interest rate that their "paycheck advance" branches charge...or cut the "rate-over-prime" that they charge on credit cards for 5 years, and pay a small fee to hedge against taxpayer losses.

I think that their arrogance prevents such a commonsense approach, because they don't accept that "their failure to MANAGE RISK is at least half of the problem." In addition, they feel entitled to be rescued with free money. They found out yesterday, however, that they're not asking for Congressional money. They are asking for taxpayer money.


"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -Henry Ford

Progressively,
LeftAngst