We're Losing the $700 billion anyway...

By Andrew Birnbaum

Here’s a thought…let the market work itself out. Don’t use taxpayer funds to rescue private banks. Don’t buy “bad” assets. We are told such a path (no bailout) would lead to a depression.

Well, what if we take the $700 billion dollars and use it to make new loans. Wouldn’t that loosen the otherwise restricted credit market? Wouldn’t that avert a depression? The government making the loans at a reasonable interest rate would result in socialized profits which could be used to make further loans and/or lessen our tax burden. However you feel about socialism, socialized profits makes more sense than socialized losses, which is what the current bailout proposal offers. Plus, and this is a huge bonus for all Americans as opposed to a select few, the government could direct the loan money to finance green energy projects transforming us into a 21st century viable green economy. These projects might include new construction of green homes, renovating existing homes to increase their energy efficiency (thus increasing their long term value), advancing alternative fuel technologies and harnessing renewable energy sources.

Under any plan, innocent people will be hurt. But mitigating harm to vulnerable persons was (unfortunately) long ago discarded as a basis for government action. Otherwise, we would not have so many people who are hungry, homeless and/or evicted from hospitals because they lack adequate insurance. Even in boom times, people lose their homes. Recent legislation made it more difficult for people to escape from crippling debt. The reason the government is now ready to act is the institutions “at risk” are deemed too large to fail. Yet the little I know of Jesus’ life suggests he would have helped people too small to fail.

Let this period be the death of an old system where oil companies and CEOs make outlandish profits and bonuses, and the birth of a new economy drawing on renewable resources and offering true economic opportunity for all.

Does this sound too touchy-feely-communist for you? First, recognize that Cumbaya is actually playing in the background and turn down your radio. Second, remember it was not my idea to apply $700 billion dollars of your money toward socialist goals. I am just saying if we are going to socialize something, let it be profits, not losses.

To use the terms we have been taught to respect and fear, let’s be smart and greedy, not stupid and victimized.

Andrew Birnbaum @ shenluk.blogspot.com