$11.3 trillion is the new national debt ceiling figure proposed by the Bush administration for the MoaB (Mother-of-all-Bailouts).
This comes on top of the more than 3 trillion (and counting) that Bush has already added our national debt. According to the New York Times (it sounds about right with 300 million people), the $700 billion in new spending amounts to $2,000 for every man, woman and child in the United States.
That means you – yes, you – are going to spend $2000 to bailout every Wall Street prick living on Park Avenue with a blond, bony-assed wife and tow-headed toddler. You’re giving $2000 directly to them to pay for their child’s pre-K private school and the wife’s tennis lessons. They’re laughing about this at their weekend home right now. Uncle Sucker.
But, we’re told, it’s absolutely necessary. And, frankly, I believe that. If you’ve been reading this blog, I have long forecast this catastrophe. This is the price we pay for lax oversight, for letting bankers leverage themselves beyond any acceptable definition of calculated risk; the price we pay for letting Americans take mortgages they could never afford; the price we pay to save our entire economy from a collapse greater than the Great Depression.
Plus, we’re told, the government is going to get some this money back when it sells off these securities as housing finds a floor. After all, not every mortgage out there will default.
Be that as it may, a hell of a lot of them will (and already have). And if you think defaults are bad now, wait until 2009-2010 when there is (I guarantee this) double digit unemployment, a deep recession, and higher taxes. Congress is going to make sure that there is help for “Main Street” as well as “Wall Street, but how much we will get back is anyone’s guess (a lot depends on the price the Feds pay to take the junk off the banks’ books).
So…are you pissed, yet?
Because here’s what this all boils down to: Every irresponsible prick from Wall Street to Main Street is going to find themselves bailed out of a situation that they are solely responsible for. Leveraged up to your eyeballs and taking incredible risks? Here’s a check. Unable to understand that you have to pay back your mortgage when interest rates rise in two years? No problem, here’s a check.
Meanwhile, every prudent American – those who did not borrow more than they could afford, those who never made a supercharged return on a derivatives trade – is stuck paying the bill for those who did.
Needless to say, I am super-pissed. America is going to be suffering deeply for the foreseeable future and I am going to be paying for it. But this meltdown was not my fault. It is the fault of Wall Street pricks, irresponsible borrowers, and a GOP government that believes that the market does not require oversight.
I want punishment meted out. I want this bill to have consequences beyond just enhanced regulation and transparency. I want heads to roll.
We must have satisfaction.