Editorial comment

To bail, or not to bail?

The current financial crisis that is endangering millions of people did not just happen. It has been festering for some time now. Mortgages, given by unregulated banks and investment firms, have been a sleep at the wheel causing financial hardship to many Americans. So why is it so important, now, to bail out the big corporations that have created their own problems? Why, was it not just as important to bail out the vast number of individuals who through governmental, and business policy, have found themselves in financial trouble. . The answer is simply global repercussions. The economy of the United States has been deteriorating for quite some time now. What used to be a solid U.S currency, has been wiped out, and in fact reversed. This is what it is all about, the U.S. dollars position on world currency markets.

Congress is trying to fix the problem now, because it is big news, and finally the president, cannot ignore it. It is the perfect time to prop up the economy, and look like we are merely victims of failed financial institutions. That could not be further from the truth. What has happened is this; we are victims of failed financial policy, set into motion by corporate greed. Enhanced by governmental hands off policy. Which in turn goes back to the deregulation policies that trickle down economics set in motion. It is not the fault of the corporations, all though it pains me to say that. They are, and have been doing what corporations do. Seek to make profits, and make their stock holders rich. It is the government that has lost its way. Government is supposed to be of the people, for the people. This translates to protection from the things that we, the people cannot protect ourselves from. The list now unfortunately may include our own Government. As individuals we cannot defend ourselves, which is ironically the governments’ job. That is why we pay taxes. Government should be looking to protect and serve the people. Economies of a global scale are no different than a foreign country, coming in and invading us. Corporations consistently make decisions that erode the American economic soil that is the base of financial growth in America. That soil is the American middle class

If bailing out large corporations is the way to go , why isn’t bailing out the millions of people who have lost their job, or the millions who don’t have health care, or the millions who have seen their wages lie stagnant, for years. Would that not stimulate the economy , through more spendable income.

What are the answers? The answers lie in understanding that, Wall Street has been winning the war to reduce regulation of big business for decades. Now they want to give 700 billion dollars to the very people who have run the ship aground. That would be like giving a drug addict money, and hope he goes to get help instead of drugs. It won’t happen. We must demand that regulations be attached to the bailout. Those conditions should be as follows:

1. Bankruptcy shelter for homeowners

2. Restructured mortgages for people in danger of losing their homes.

3. CRA requirements on investment banks and insurance companies

4. Outlaw predatory lending and cap usurious payday lending rates.

5. Expand Unemployment Insurance and Home Heating Oil for people who are about to lose their jobs.

6. A salary cap for all executives who accept the bailout money, of no more than 10 times the lowest paid individual at their firm. To not exceed 1$ million dollars a year.

Robert E. Chadwick