The proposed bail out plan is allegedly making progress this weekend. Leaders of both parties have stated they expect a deal to be voted on Sunday or Monday.
The problem stems from Mortgage Backed Securities and Credit Default Swaps. You don't have to know exactly what these things are. Here's a great analogy:
You own a business. Someone comes to you with what they claim is a great product. You buy the pitch. In fact, you like it so much you borrow against your business to buy a whole warehouse full of this stuff. As it turns out, your customers aren't the least bit interested in what you've just acquired. You have nobody to sell them to. You can't pay back the money you borrowed to purchase the garbage. Sure the garbage has some intrinsic value. The material it's made of has some value if it's recylcable, maybe a penny on the dollar or less.
Instead of allowing nature to take its course, whereby your horrendous error in judgment causes your business to fail, the government steps in and offers to buy your worthless inventory for something like 75 cents on the dollar, with taxpayer money.
The above scenario would never happen in real life. The government doesn't give a damn about the small business, the engine and the real foundation of this economy. They will do exactly what I've described above for the banking community that's currently putting the squeeze on you because the government was complicit in pushing the lousy product that's now on their books.
They will justify it by saying that after they bail out the banks who made the aggregious errors in judgment, these banks will suddenly loosen up credit, lower interest rates and offer you access to cheap money. Do you really believe that?
We're being robbed. It's a bi-partisan robbery. I will not vote for anyone who in any way supports this fraud. Of course that means in the presidential election I'll either be voting for a third party or no one at all. Neither candidate has had the intestinal fortitude to even attempt to put a stop to this.
If this country is to preserve free enterprise, we the people must get angry. The only way to get the stink of fascism off ourselves from the passage of this bill is to toss out anyone who had anything to do with it. Most politicians, including both presidential candidates are completely divorced from your interests. They must be reminded who is really in charge here.