- 2012elections - 9/11 Special Coverage - aca - africanamericanalzheimers - aids - Alabama News Network - american - Awards & Expo - bees - bilingual - border - californiaeducation - Caribbean - cir - citizenship - climatechange - collgeinmiami - community - democrats - ecotourism - Elders - Election 2012 - elections2012 - escuelas - Ethnic Media in the News - Ethnicities - Events - Eye on Egypt - Fellowships - food - Foreclosures - Growing Up Poor in the Bay Area - Health Care Reform - healthyhungerfreekids - howtodie - humiliating - immigrants - Inside the Shadow Economy - kimjongun - Latin America - Law & Justice - Living - Media - memphismediaroundtable - Multimedia - NAM en Espaol - Politics & Governance - Religion - Richmond Pulse - Science & Technology - Sports - The Movement to Expand Health Care Access - Video - Voter Suppression - War & Conflict - 攔截盤查政策 - Top Stories - Immigration - Health - Economy - Education - Environment - Ethnic Media Headlines - International Affairs - NAM en Español - Occupy Protests - Youth Culture - Collaborative Reporting

Outrage at “Mother of all Bailouts”

Black Voice News, News Report, Chris Levister Posted: Sep 25, 2008

"It's disgusting! The average American can't begin to comprehend $700 billion. What does AIG stand for anyway?" "How many trips to the gas pump will $700 billion buy?" "Think of the alternative. It's scary but something has to be done." "Lucky enough, I'm only 16, I can ride this out. But it's a big problem." "This is the mother of all bailouts."

That's Vincent, Salah, Loren, Steve, and Sharlee outside a Wal-Mart Super Center in Fontana, CA. ordinary Americans reacting to what's being called the "Mother of all Bailouts", a bailout that could cost American Taxpayers a trillion dollars according to Senate Banking Committee Member Richard Shelby.

"The big guys have run amuck now they want the rest of us to pay for it," says San Bernardino Caltrans field engineer Festus Apakama. "The little guy is struggling while overpaid CEO's fly around in private jets and live in expensive houses what's fair about that?"

Fierce criticism greeted the tax-payer funded plan Tuesday as Democrat and Republican lawmakers rejected dire warnings from the government's top economic officials of recession, layoffs and more lost homes if Congress dares to kill or delay quick approval of the Bush administration's emergency bailout plan.

"Personally speaking the economy is a big mess and the bailout will hurt the little guy. The big guys have run a muck, now they want the rest of us to pay for it. It's unfair," says Caltrans field engineer Festus Apakama.

"We demand to know why overburdened taxpayers should bail out the Wall Street firms that created the crisis. It's their problem. It's their bill. We won't be pushed around by their time demands," Nancy Pelosi (D-San Francisco) said of the Republicans.

The dollar figure alone is staggering, amounting to 5% of the nation's gross domestic product. But the most distinctive element of the plan is the extent to which it would allow Treasury to act unilaterally: Its decisions could not be viewed by any court or administrative body, and once the emergency legislation was approved, the administration could raise the $700 billion through government borrowing and would not be subject to Congress' traditional power of the purse.

"It essentially creates an economic czar with no administrative oversight, no legal review, and no legislative review. And it gives one man $700 billion to disperse as he sees fit," said Sen. Diane Feinstein (D-Calif.), referring to Treasury Secretary Henry Paulson.

Already taking a financial beating at the forefront of the nation's housing crisis, Inland Empire taxpayers are understandably anxious if not outraged. How far will the bailout bingo go? So far this year, the federal government has put up nearly $30 billion to avert a major financial default by the investment bank Bear Stearns; committed to investing as much as $200 billion in preferred stock of the loss-plagued finance giants Fannie Mae and Freddie Mac and at least $5 billion in their mortgage securities; and agreed to provide an emergency loan of $85 billion to (AIG) American International Group, Inc. in return for an ownership stake of as much as 80% in the stricken insurance giant.

"We're talking about hundreds of billions of dollars that are needed," said Secretary Paulson of the bailout plan. "That doesn't mean we will go all the way there..and that doesn't mean we will not go for more."

"First, we were told that Bear Stearns was too big to fail, then we were told that Freddie/ Fannie were too big to fail, then we were told AIG was too big to fail. What's next -

Shell Oil?" explained Sharlee Williams who in June lost her Riverside home to foreclosure. Last week the senior student financial aide officer was laid off after ailing Lehman Brothers sought bankruptcy protection.

"The economy is a big mess. It's terrible. I've been jobless for three months and I'm just getting my first unemployment check, said San Bernardino resident Shawn Ernest Bane with his son Shawn Jr. 3 in tow at a Highland Avenue bus stop. "The system is corrupt and broken and the government doesn't care."

Shawn Ernest Bane with son Shawn Jr. has been jobless for three months. Last week he received his first unemployment check. "The economy is messed up, the system is broken, people are struggling and the government doesn't seem to care," he said.

While some locals are deciding how to navigate the job market and housing meltdown, Alfonso Murphy and others are putting the brakes on retirement.

Decades of saving and hard work as a teacher earned Murphy what he thought would be a comfortable retirement. In 2001 he bought a home in Redlands then the bottom fell out of the real estate market and stocks tumbled, wiping out a third of his $625,000 net worth over the last two years. Tight on cash the 71-year-old retiree recently took a job as a substitute teacher to supplement his dwindling nest egg.

"How do you justify these big bailouts when millions of hard working Americans are struggling? This is obviously coloring my judgment about the upcoming elections and who I should be voting for," said Murphy.

Both Presidential candidates have weighed in on the bailouts. Senator Barack Obama blames the economic meltdown on Wall Street greed and the Republican's failed economic policies. Meanwhile Senator John McCain points the finger at the Democrats' lack of economic planning to solve the crisis.

Related Articles:

NY Working Class to be Hit Hard by Financial Crisis

‘Dr. Doom’ Optimistic About U.S. Economy

Desperation Moves from Wall Street to Main Street

Page 1 of 1




Just Posted

NAM Coverage