Cash for Trash and Trash for Thinking at the New York Times.

The New York Times—aka the Walter Duranty Papers [1]  has a 90+ year history of apologizing for Communism, fostering any form of anti-anticommunism, defending despots like Fidel Castro, World Wars started by leftists, the USSR, Cuba and their interminable endorsement of far left political types who would run for high office in the United States.  They also sit as constant watch dogs and barnyard squealers as the capitalist economies parade past their faces and lament that so much wealth goes untaxed or unregulated.[2] Their famous non-economist frequently blesses us with his political acumen from time to time just to spice up the caldrons.[3] Today, he doesn’t know what to do.

The topic of the day is Henry Paulson’s $700 billion rescue plan for the U.S. financial system “cash for trash.”  The trash comes in two parts here: One is the trash we got in phony mortgages and the other is the trash mentality of the socialists as they try to dump their societal engineering projects upon the public. This now becomes trash for trash.

Here is the reason we have so many trash-grade mortgages:

“The Community Reinvestment Act (or CRA, Pub.L. 95-128, title VIII, 91 Stat. 1147, 12 U.S.C. § 2901 et seq.) is a United States federal law that requires banks and thrifts to offer credit throughout their entire market area and prohibits them from targeting only wealthier neighborhoods with their services, a practice known as "redlining." The purpose of the CRA is to provide credit, including home ownership opportunities to underserved populations and commercial loans to small businesses. It has been subjected to important regulatory revisions”.[4]

This is a simple scam. We have affluent areas in most part of the US and other areas that are simple slums or social dung heaps like Baltimore and Philly and Oakland and parts of San Francisco. Here, the citizens and illegal aliens must be given loans by federal law even if their credit ratings look like the episode from Mad Max [5]as Toe Cutter gets his reward. This is a collision of errant Marxism, stupidity, drug-induced hallucinations and off-Broadway theatre. This is a ‘soak the rich’ scheme that was vied by the left, like Barney Frank and Chris Dodd, as ‘social justice.’[6]

Recently, the NYT, groping for a new way to grab power published this:

“The fifth major federal bailout this year — after Bear Stearns, Fannie Mae, Freddie Mac and the American International Group — is now in the works. Taxpayers have every right to be alarmed and angry. The latest plan is not necessarily a bad one, and officials had to move quickly to prevent credit markets from seizing up.”[7]-- Hard Truths About the Bailout Editorial, New York Times.” [Emphasis is mine in all quotes.]

 In a fireside chat phantasm, Paul Krugman of the The New York Times—aka the Walter Duranty Papers [8]  gives us a frank explanation of what the problems are:

[1] “The bursting of the housing bubble has led to a surge in defaults and foreclosures, which in turn has led to a plunge in the prices of mortgage-backed securities — assets whose value ultimately comes from mortgage payments.”-- Cash for Trash[9] By Paul Krugman Op-Ed Columnist Published: September 21, 2008 [This link references all quotes in this essay unless other wise indicated.][Emphasis is mine in all quotes]

No kidding, and the CRA legislation caused this.

[2] “ These financial losses have left many financial institutions with too little capital — too few assets compared with their debt.”

Lending institutions were forced to issue phony loans and now the loans are bad. That is a startling outcome! Gee, we couldn’t guess that would happen.

[3] “Because financial institutions have too little capital relative to their debt, they haven’t been able or willing to provide the credit the economy needs.”

Brilliant! Why doesn’t this guy teach stale history in some community college in New Jersey? Oh, he probably does.

[4] “ Financial institutions have been trying to pay down their debt by selling assets, including those mortgage-backed securities, but this drives asset prices down and makes their financial position even worse. This vicious circle is what some call the “paradox of deleveraging.”

This is a little simplistic. Actually, there was a convenient pig sty to dump phony mortgages and that was called Fanny Mae and she had a mentally deficient sibling with some name like Frumpy Max. This place was a social suction machine run by Franklin Rains, a parasitic political attachment to the Clinton Era who made millions by fraudulently massaging the books and then taking fat bonuses. This criminal now advises Barack Obama along with some others of his rancid ilk. Let us recall that Chris Dodd and Backside Barney Frank and Obama got fat campaign contributions from Fanny and Frumpie. Bribes?? Of course.

Krugman now sums up with his ‘advice.’

“The logic of the crisis seems to call for an intervention, not at step 4, but at step 2: the financial system needs more capital. And if the government is going to provide capital to financial firms, it should get what people who provide capital are entitled to — a share in ownership, so that all the gains if the rescue plan works don’t go to the people who made the mess in the first place.”

And, then he mumbles.  We taxpayers will share in the ownership of the debt.

“But I’d urge Congress to pause for a minute, take a deep breath, and try to seriously rework the structure of the plan, making it a plan that addresses the real problem. Don’t let yourself be railroaded — if this plan goes through in anything like its current form, we’ll all be very sorry in the not-too-distant future.”

The ‘real problem' is the Community Reinvestment Act and the Marxian toadies[10] who run these scams. The real ‘plan’ was to give away property and money in return for votes and then stick the taxpayer with the bill, a slick way of producing ‘equal outcomes’ for losers in our society. This is a ‘piece of the pie’ or parasites, drug addicts, felons, perverts, welfare cheats and the lazy. This is the liberal dream.

The fear, now, in the little minds of the left is that Secretary Paulson will stop this phony mortgage scam and force people to only get loans when they have satisfactory credit. Such a notion does not with in with the social garbage that floats around the streets in San Francisco, Baltimore and New Orleans.

The leftist agenda financially dwarfs this pittance of only 0.7 trillion dollars. Take a look at what they want to burden the taxpayers with and my estimated costs:

[1] Socialized medicine for all including illegal aliens at 0.5 trillion per year.

[2] ‘Education’ for all including illegal aliens including government baby sitting for babies at 0.3 trillion per year.

[3] After failing high school, a new college system for all:  0.2 trillion dollars wasted.

[4] Some weird form of ‘civilian security force’ the size of the military?? Anything ¼ the size or our military is 0.2 trillion.

[5] How about “..proposed at least $858 billion to fight “global poverty” over the next five years”[11]

[6] Then there is his “… $150 billion “green energy plan” earlier in February.”

[7] Obama favors high gas prices so that is another .7 trillion per year.

What are we up to now?? Let us see: 0.7 for the Frumpies, 0.5 for Socialized medicine[12], 0.2 for post high remedial high school, .2 for ‘security’, 0.85/5 or 0.17 trillion, green weenie follies[13] such as Climate Change[14] at 0.15 and 0.7 to pay for oil we should be pumping ourselves. That is just under 3 Trillion dollars! The federal budget is now 3, the debt is now 11 or 12, the GDP is 16 and we want to spend 6.

So that means they want to spend or control 6/16 or 38% of our GDP—up from a historical 25-26%. How to pay for this: Obama wants o hike taxes on business, investments, energy which adversely affects job creation. “His proposals would nearly double taxes on capital gains.”[15]

Adding our failed European ‘friends’ and the hopeless losers in Africa and most of the Middle East we can look to a business stagnation, oppressive taxes and zero growth.  How much will it cost us to bail out California[16], New Jersey and New York?[17] 0.3 trillion?

That is what these parasites offer us and   Paulson just might wreck these plans.

The real problem that our krugmaniacal one cannot discuss is socialism tainted with drugs and Marxism. These parasites want free money [like those wonderful mortgages], free drugs, free ‘education’ and more.

We are out of time so Paulson and his Dictatorship are probably necessary. It worked with Douglas Macarthur in Japan and Pompey as Dictator of the Mediterranean about 80 B.C.E. We have few other choices.

Want a glimpse of the future? Take a close look at liberalism in action in Baltimore, Detroit, Philly, New Orleans, San Francisco[18], East St Louis and Atlanta where real good democrats are in full charge. That is what they offer.  How about incorporating Sharia Law into the Constitution so we can have peace and justice? Maybe Fidel Castro ought to have a seat in Congress. Can we trust Charlie Rangel[19], tax whore, crook, liar, tax evader and sleaze ball to structure our taxes to work with this mess?

Vote out these leftist parasites and cancers parading as Democrats. They are a disease.

rycK

Comments: ryckki@gmail.com