Allow me a minute to take the reader down memory lane.

Do you all remember the Amnesty Bill that President Bush and the Congress were trying to force down our throats? And yes, I recall that our current nominee for USPOTUS supported it. However, he (hopefully) says he has learned from the experience.

Nevertheless, I recall the public outcry, rage, and anger. I remember the grass roots movement that gradually swelled into a general rallying point which in turn eventually led, via many letters, faxes, phone calls, bloggers and other outlets to an almost unanimous voice of the people to our elite leaders in congress that basically told them; vote for this and it will be one of your last votes as a politician. In fact, you will not even win a race for dogcatcher in a one-dog town, ever again.

The people spoke as one, the politicos heard and listened.

Surely, we can do this again.

While I admire and respect President Bush on his handling of foreign affairs, I was none to keen on his domestic fiscal policies. I noted that he has been warning of this meltdown for a long time, but nobody on either side of the political fence listened. However, now that this meltdown has happened he is proposing a 700 Billion dollar bailout. This my friends is outrageous.

In an article at the Wall Street Journal, Andy Kessler, actually supports this insanity. Now Mr. Kessler certainly knows more about Wall Street and is certainly more qualified than I am in explaining his reasons. While I will not go into the full article (which can be read here), I did in particular make note of a couple of comments that cause me to seriously doubt the effectiveness of such a fiscal policy.

First of all Mr. Kessler states;

“So the U.S. will be stuck with a portfolio in the trillions of dollars in bad loans and last-to-be-paid derivatives. Where is the trade in that?”

Well yeah, where is the trade off? The taxpayer no matter what is still picking up the tab. And there is no assurance that this will work. Zero, zilch, zippo, nada, period.

Secondly, Mr. Kessler goes on to say, why it could possibly work;

“Well…unlike any hedge fund, the Treasury and the Federal Reserve get to cheat.”

Translation; we are the government we make our own rules. We are above the laws that require us to do what we want the private sector to do. Remember here also that I had pointed out in a couple of posts back that Fannie Mae and Freddie Mac did not have to report to shareholders any troubles that they might be experiencing.

Thirdly, Mr. Kessler explains how the Feds can accomplish this act of smoke and mirrors.

“It's not without risk, but the Feds, with lots of levers, can and will pump capital into the U.S. economy to get it moving again. Future heads of Treasury and the Federal Reserve will be growth advocates -- in effect, ‘talking their book.’”

In fairness I ask the reader to make note that Mr. Kessler does say it is not without risk. But he seems to dismiss this risk by continuing onward in how the Feds can make this happen. This is all well and good, but again in my previous comments about this disaster I stated that both Fannie Mae, and Freddie Mac, owned approximately 90% of all mortgages in the United States. (As an aside, if a private company had done the same there would have been anti-trust suit lawyers lining the rails of every federal courthouse in America to sue, and break this up). Additionally this sounds less like a temporary Federal takeover and more like a permanent Federal nationalization attempt of the financial industry.

I ask the reader to recall that both programs were quasi-government run companies to begin with in the first place. We on God’s green earth would we want to trust them to administer a bailout plan that does not have;

a) The full confidence and backing of the American electorate

b) Not the best of odds in fully succeeding

c) Allows for foreign banks to recoup losses as well

d) Opens a Pandora’s Box to bailouts to every major corporation in the US, (talk about your corporate welfare programs)

e) Leads to possible nationalization of other industries. (Herein I seem to recall “Whacky Macky” Maxine waters verbal hiccup about socialize, um scratch that, taking over, no, scratch that about running, yeah that’s it running the oil industry)

So here is my summation. Here is our rallying cry. NO BAILOUTS! NO AMNESTY for the financial industry. Let the (blue chips) fall where they may, but allow the market who in time will correct itself to work.

Write, call, fax, post blogs, post commentary on blogs. Write to the editor of your local newspaper. Email national websites. Let the politicos in DC know we the people hold their political futures in our hands, and we are angry and to quote that movie;

“We’re not going to take it anymore!”

WE CAN DO THIS!