Who Owns our Government?

Who Owns our Government?
David Schlecht

In recent posts I’ve gone into some detail onto the problems with our existing financial system. As I’ve pointed out, we will never be able to avoid the bubbles and busts without stringent regulation. The lack of regulation directly led to the great depression of the 30s and is the direct cause of today’s financial problems.

Let’s look at today’s disaster. As posted, earlier, the crux of our current disaster is the derivative market. We have numerous home loans bundled up with other loans and sold like stocks. These bundles are then re-bundled and sold off again. By the time the final sale happens, a buyer may be getting bits and pieces of hundreds of mortgage loans, many in default.

The loans, themselves, aren’t the real problem. The real problem is the banks and investors have trillions of dollars tied up in billions of dollars worth of loans.

Think about that for a moment. The main problem isn’t the mortgages going into default, but those mixed and multiplied derivatives.

The cheap and easy way to fix the problem (for today, anyway) is to make the mortgages good by buying them out and negotiating with the owners for terms that the owners will accept. In fact, we could pay off all the bad mortgages for around 800 billion dollars. Our government could buy up the bad loans and negotiate with the borrowers and spend less than we have given to the banks, so far.

Making the foundation of the bubble good, the derivatives problem goes away. Once the bubble is re-inflated, we can reintroduce the regulations that the Republican Free Market Cult has destroyed and get back on track. This, of course, means getting rid of and possibly outlawing derivatives.

If this makes sense, then you’re probably wondering why our government, in all its wisdom, didn’t already think of this.

Well, they did! In fact, they were trying to buy up the mortgages and do just this but the Republicans and the banks were screaming so loud and putting so much money into lobbying Congress, that OUR GOVERNMENT couldn’t do what we needed them to do. Instead, we’ve put trillions of dollars into the banks, and nothing has been fixed.

The stock market is showing signs of rebound, but once one realizes that the root of the problem isn’t fixed, it becomes obvious that we’re spending trillions of dollars to bolster up the banks but the problem won’t go away. The current Free Market Depression will come back with a vengeance by this Fall. By then, we’ll have trillions less to spend where we really need it.

Now, ask yourself, why do the banks get money but the mortgagees are losing their homes? It’s because we are still allowing lobbyists to control our politicians. The only way to resolve this issue is to refuse to vote for any politician, no matter what party, if they accept business donations. Sorry, but that means no more Republican politicians and good bye to many of the Democrats as well, until they come clean.

6 thoughts on “Who Owns our Government?”

  1. Don’t blame the Republicans for everything. The Clinton administration was responsible for many of the current problems, such as deregulation. And, Obama gets more donations from the financials and mediccal profressions than any other politician. Do you want him out, too?

  2. What is Obama doing with those advisors? They’re all from the Bush administration. For krissake get the always-been-wrong people out of the decision process.

  3. The health care industry owns our government, too. Just look at the stream of lies coming to a teevee set near you, and our congressmen are doing the bidding for them, Repugs and Democrats.

  4. Interesting information. Thanks for posting it. I agree with you on the business donations issue. No lobbying and no business donations allowed. That would go a long way toward fixing things.

  5. Which party has always been in the pockets of the rich and big business? The GOP, greedy old perverts. That’s why they resist anything that helps the average American. Health Care, foreclosures, curbing credit card interest rates, bankruptcy protection, denying Social Secirty from negotiating with the drug prices. Anything that screws the middle class is supported by the Republican party. I suppose that explains their whopping 22% approval rating right now. America is waking up. Party!

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