Posted by Matt Hawes on 11/24/08 12:02 PM   [Newer: "Fed Bets $800 Billion on Consumers"] [Older: Obama Selects Economic Team]

Dr. Paul's latest Texas Straight Talk:

This week the bailout of the Big Three automakers was under heavy consideration in Congress’s lame duck session.  I have always opposed government bailouts of private organizations.  Back in 1979 Congress had hearings about bailing out Chrysler and I was on record pointing out that these types of policies are foolish and very damaging to the long term economic health of our country.  They still are.

There was also renewed pressure this week to bailout homeowners and send another round of stimulus checks to “Main Street” to balance out all the handouts to big business.  It seems that eventually the entire economy is going to be blanketed over with Federal Reserve notes.  Most in Washington are completely oblivious as to why this model of money creation and spending is so dangerous.

We must remember that governments do not produce anything.  Their only resources come from producers in the economy through such means as inflation and taxation.   The government has an obligation to be good stewards of these resources.  In bailing out failing companies, they are confiscating money from productive members of the economy and giving it to failing ones.  By sustaining companies with obsolete or unsustainable business models, the government prevents their resources from being liquidated and made available to other companies that can put them to better, more productive use.  An essential element of a healthy free market, is that both success and failure must be permitted to happen when they are earned.  But instead with a bailout, the rewards are reversed – the proceeds from successful entities are given to failing ones.  How this is supposed to be good for our economy is beyond me.

With each bailout we hear rhetoric that this is the mother of all bailouts.  This will fix the problem once and for all, and that this is absolutely necessary to avert disaster.  This sense of panic squeezes astonishing amounts of dollars out of reluctant but hopeful legislators, who hate the position they are being put in, but are relieved that it will be the last time.  It is never the last time, and again and again we are faced with the same scenarios and the same fears.  We are already in the bailout business for such a staggering amount that admitting it was wrong in the first place would be too embarrassing.  So the commitment to this course of action is only irrationally escalated, in the hopes that somehow, someway eventually it will work and those in power won’t have to admit they were wrong.

It won’t work.  It can’t work.  We need to cut our losses and get back on course.  There is too much at stake for too many people to continue down this road.  The bailouts thus far to AIG, Bear Stearns, Fannie and Freddie, and TARP funds amount to around $1.5 trillion. Considering our GDP is $14 trillion, and our Federal budget is already $3 trillion, this additional amount will significantly eat into our future lifestyles.  That amounts to an extra $5,000 that every person in the country needs to somehow produce just to keep up.  It is obvious to most Americans that we need to reject corporate cronyism, and allow the natural regulations and incentives of the free market to pick the winners and losers in our economy, not the whims of bureaucrats and politicians.

Posted 11/24/08 12:07 PM Andrew Sica Woodbury, CT

Thank god we've getting leadership from Dr. Paul because otherwise congress just consists of rulers who are dropping the ball. Does anyone know of a web site tracking the sum of all of these bailouts, credit we're extending to businesses, etc.? Does anyone maintain this in table of some sort?

Posted 11/24/08 12:24 PM StatusQuoJoe Phoenix, AZ

Again, Dr. Paul is right on I wish congress would actually listen to him, but I suppose that would mean curtailing their unlimited checkbooks. Andrewsi, not sure I have seen anywhere from $2 trillion to the latest Bloomberg estimates of $7.7 trillion obligations. I would think that the best tabulations would come from Shadowstats but I do not have a subscription. Sometimes they post their statistics in the open content area, and since this is such a huge topic I imagine they may compile something by the end of the year. Sorry, I don't have anything else :(

Posted 11/24/08 12:30 PM forcegrip Newton Falls , OH

andrew: see the drudge report for more on the 7+ trillion http://bloomberg.com/apps/news?pid=20601109&sid=arEE1iClqDrk&r efer=home

Posted 11/24/08 12:37 PM forcegrip Newton Falls , OH

$7.4T / 113 million households = over $65k/household 113 million households found here: http://www.census.gov/population/projections/nation/hh-fam/table1n.txt

Posted 11/24/08 12:39 PM Fu Manchu Belleville, MI

I say it's high time we kick the bastards out and "appoint" a new congress.

Posted 11/24/08 12:53 PM Ender Louisville, KY

We should all convert our 'stimulus' checks into gold, then use its increased value to fund C4L efforts for 2010/12. Talk about poetic justice.

Posted 11/24/08 1:30 PM dkowis San Antonio, TX

@Ender: Stimulus to gold! That's exactly what I was thinking! And I'll probably do exactly that ;)

Posted 11/24/08 1:59 PM StatusQuoJoe Phoenix, AZ

I'm torn over buying silver with the stimulus or a new set of tires for my truck. Or maybe become an official member of C4L? Thanks Obama!

Posted 11/24/08 2:17 PM Buster Las Vegas, NV

Convert cash savings to something else and not paper IOU notes dollars are IOU notes that may be worthless or loosing value at 20% + per year. Silver or gold IOU notes are about as safe as dollars since your counting on someone to give you silver or gold when you need it. Buy real gold coins you can hold, any supplies you might need if the economy crashes.

Posted 11/24/08 2:45 PM galtgulch Southborough, MA

Buster ,I agree it makes sense to take possession of gold or silver coins. I had invested in precious metals with Deak Perrera back in the late eighties and when they went belly up all was lost even though they claimed that the gold and silver and platinum I had invested in was mine! just in storage with them! Take possession and tell no one you are even interested in such things.

Posted 11/24/08 3:10 PM forcegrip Newton Falls , OH

where could one aquire gold or silver coins?

Posted 11/24/08 3:11 PM Connie Jackson, TN

OT: Washington Post/msnbc reported a story today about the Federal Reserve and it's reasons for not disclosing any information. I'll bet this was written in response to "End the Fed" rallies. http://www.msnbc.msn.com/id/27886155/

Posted 11/24/08 3:13 PM shepherd Lafayette, IN

A quick question... Do you think it is better to try to finish paying off my house, in which we will be debt free,in about 2-3 years or should I be stocking up in gold? I would think being debt free would be just as good as holding gold if the dollar collapses? Besides, won't the govts of the world, esp US, try to manipulate the price of gold to keep it low? Just wondering what others may think? Thanks.

Posted 11/24/08 3:20 PM Michael Salvi Elkins Park, PA

pay off your house. this way you'll own it free and clear and avoid any risk of loan acceleration from the bank (i don't care what the terms of the loan say, if you're on this website, then i'm not telling you anything new by saying they can change the rules whenever they see fit). if you're one of the fortunate few that can pay off your house, pay it off.

Posted 11/24/08 3:24 PM Michael Salvi Elkins Park, PA

stock up on dry goods, canned food, and water. gold is great, i'm all for a goldbacked currency, but if you want to stock up on something, i'd say stock up on food. can't eat gold.

Posted 11/24/08 3:26 PM Fu Manchu Belleville, MI

Mike, don't forget guns and plenty of ammo, for when the looting starts... especially all you in the city.

Posted 11/24/08 3:28 PM Doug.Bach Wheaton, IL

Amen.

Posted 11/24/08 3:32 PM BillNM Carlsbad, NM

Spend it on non-perishables. And if you can do it, buy a farm. Some gold, but not all. As the inflation takes off at the accelerated rate there will be some resistance to the legal tender laws. Black markets otherwise denominated are sure to follow.

Posted 11/24/08 3:34 PM Robert Hillman Saint Charles, MO

Andrew, H.R.1424, Section 114: Market Transparency requires the treasury dept. to publicly display all transactions. It does, on the treasury site. What it does not do, however, is display the actual signed contracts. And this was a failure of Congress' to ensure we could see what was really going on. In terms of H.R.1424's "brake" resolution authority, have any of your congressmen authored the resolution to discontinue funding H.R.1424 at the $350 Billion cutoff point? Why not? In terms of the two previous public handouts, 2002 and 2008, I agree with many commentators. They weren't large enough, in the sense that not enough of us converted frns to physical and, hence, the cabal continued playing its paper game. Converting frns to physical employs silver and gold miners and boosts local economies in Nevada and Idaho, by the way. Converting to silver eagles, currently rationed to the only eight U.S. dealers because there isn't enough silver, also provides the U.S. mint with a profit. Converting frns to physical U.S. minted dollar coins also provides the U.S. mint with profit; the federal reserve board must pay one frn for each minted dollar (as opposed to four cents for each printed note). U.S. minted dollar coins are a direct obligation of the treasury dept, as opposed to obligations of the fed reserve. Trade in minted dollars as often as you can. Minted dollars also save the U.S. government $500 million dollars per year; because they last 30 years. Paper frns last 18 months. Forcegrip, there are many local and eight national coin dealers. All exist for profit. Some will work with you. NCI in Inglewood, CA doesn't disappoint. Silver is very scarce - be careful of the premiums over spot. Gold bullion isn't much of a problem converting to yet.

Posted 11/24/08 3:35 PM Michael Salvi Elkins Park, PA

guns and ammo are cool too, i like bow and arrows better...and chinese stars...blow darts like in apocalypto. no, no they cannnnnnnnnnnnn't take that away from me!

Posted 11/24/08 4:22 PM forcegrip Newton Falls , OH

Robert thanks for the insite do you think it makes sense to invest in a foreign minted Coin such as the Gold MapleLeaf since Peter Schiff and others suggest getting into foreign currency ect...? also does anyone have a runnig blog on this site about the ins and outs of investing in gold ect...? i don't know much about it and I'm sure there are other like me.

Posted 11/24/08 5:12 PM Michael Salvi Elkins Park, PA

not a bad suggestion for the site. although i'd see the C4L staff being rightfully hesitant to have a section on where to invest money.

Posted 11/24/08 5:17 PM Timothy Gandee Perry, OH

I wonder when more of the American public will wake-up to what is going on around them. The one thing that already resembles the great depression is the line that leads to the Federal Reserve’s doorstep. Right now the corporations are in line. Many of our politicians have been in this line for quite some time as they can “do something” without having to raise the in-your-face income tax. Since 1913, the Federal Reserve has been serving welfare at the expense of the dollar and you and me. The military industrial complex was the first to get in line for WWI right after the Fed was established. Soon its citizens were in line for the great depression and corporations have filled in the gaps between welfare and the military contractors up to where we stand today. The one thing we actually have going on our side is that this system is over and will need a replacement. Just two years away from congressional reelection. I hope we have more liberty candidates getting their campaigns moving.

Posted 11/24/08 5:49 PM BDiego San Diego, CA

We've seen a rapidly accelerating massive transfer of wealth from taxpayers to failed banks, and renters to subprime homeowners. This isn't an upper/middle/lower class battle, it's a responsible/irresponsible divide. Hard work, frugality, and sound business practices are thoroughly punished. I've never seen so many people in top hats and tuxedos in the soup line, taking their handouts by the billion. Or so many deadbeats home "owners" underwater rob banks $100K at a time, rewarded for 15 months of default with instant equity. Bailout beneficiaries come from all classes from the "tuxedo and top hat" deadbeat to the subprime "buy as much as you can" deadbeat gardener. Bailout victims are exclusively taxpayers and renters. This is as legitimate an economic policy as piracy.

Posted 11/24/08 5:57 PM StatusQuoJoe Phoenix, AZ

Wow great comments in here, I am in the midst of some real thinkers, I appreciate that it helps my confidence in the American (real patriot) spirit. Thanks Robert for those great points, I learn more everyday. Forcegrip, when I have been getting some excess cash I have called my local coin dealers and bought some silver dollars or rounds. You can also buy "junk" silver which are silver coins minted prior to 1965 (1964 and earlier). "Junk" silver has about 90% the value of silver dollars. When you buy silver dollars you pay a higher premium and that premium fluctuates with the current demand and supply. The current spot market value posted on sites like Kitco.com are way lower that the prices you will pay in coin dealer shops due to the actual demand in the physical markets. I would be wary anymore of placing orders for gold on-line since I have read about possible defaults in COMEX in december, meaning you may not get the bullion you ordered on-line. Maybe thats real paranoia, but anyway I am poor so I just buy a little silver from the local coin dealers. Happy hunting!

Posted 11/24/08 6:20 PM diesel30 Mankato, MN

I recieved this letter from Senator Norm Coleman in response to my letter urging him to reject any auto industry bailout. Thank you for contacting me with your deep concerns about a government bailout for the auto industry. I certainly share your concerns and oppose the plan crafted by Senate Majority Leader Reid (D-NV). With a major automaker in our state, I am extremely concerned about the economic impact from the failure of one or more of the three U.S. automakers. That said, I will not support any taxpayer provided assistance to troubled automakers and others in the industry that is not accompanied with an ironclad assurance that the industry make fundamental changes to ensure its long-term viability. The fact is, the current business model in Detroit doesn't work for the time we live in. Automakers simply must restructure for the 21st century. There must be a shared effort by all - management, labor, creditors, dealers and others - in order to ensure the necessary changes. When executives of GM, Ford and Chrysler came before Congress during the week of November 17, I found it deeply troubling and offensive that they were unable to give any real commitment to the restructuring necessary to ensure long-term success. They failed even to be candid about the amount of assistance needed and whether they will need more funds in the future. To come to Congress and ask for billions in taxpayer support without providing clear and honest answers to the most basic of questions is indefensible. As you may know, on Thursday, November 20, Senate Majority Leader Harry Reid and Speaker of the House Nancy Pelosi (D-CA) postponed a vote on their auto rescue bill and instead announced that in order for Congress to consider emergency taxpayer supported assistance, the Big 3 must first provide a long-term viability plan by December 2. I am currently awaiting the submission of this plan, and also monitoring the work of Senators Bond, Voinovich, Levin and Stabenow who are attempting to craft a compromise. One possibility we should consider is pre-packaged bankruptcy as suggested by Senate Banking Committee Chairman Chris Dodd (D-CT) and others. Under this approach, the government would provide financial assistance in return for a bankruptcy-like reorganization that will enable the Big 3 to reemerge as profitable companies. Please know that I will not support any financial rescue plan that merely extends business as usual. It would simply be unacceptable to ask taxpayers for their support if Detroit continues with its failed ways. I appreciate hearing from you and if I may be of further assistance to you or your family in the future, please do not hesitate to contact me again. Sincerely, Norm Coleman United States Senate

Posted 11/24/08 6:35 PM Robert Hillman Saint Charles, MO

Andrew, H.R.1424, Section 114: Market Transparency requires the treasury dept. to publicly display all transactions. It does, on the treasury site. What it does not do, however, is display the actual signed contracts. And this was a failure of Congress' to ensure we could see what was really going on. In terms of H.R.1424's "brake" resolution authority, have any of your congressmen authored the resolution to discontinue funding H.R.1424 at the $350 Billion cutoff point? Why not? In terms of the two previous public handouts, 2002 and 2008, I agree with many commentators. They weren't large enough, in the sense that not enough of us converted frns to physical and, hence, the cabal continued playing its paper game. Converting frns to physical employs silver and gold miners and boosts local economies in Nevada and Idaho, by the way. Converting to silver eagles, currently rationed to the only eight U.S. dealers because there isn't enough silver, also provides the U.S. mint with a profit. Converting frns to physical U.S. minted dollar coins also provides the U.S. mint with profit; the federal reserve board must pay one frn for each minted dollar (as opposed to four cents for each printed note). U.S. minted dollar coins are a direct obligation of the treasury dept, as opposed to obligations of the fed reserve. Trade in minted dollars as often as you can. Minted dollars also save the U.S. government $500 million dollars per year; because they last 30 years. Paper frns last 18 months. Forcegrip, there are many local and eight national coin dealers. All exist for profit. Some will work with you. NCI in Inglewood, CA doesn't disappoint. Silver is very scarce - be careful of the premiums over spot. Gold bullion isn't much of a problem converting to yet.

Posted 11/24/08 6:59 PM Robert Hillman Saint Charles, MO

Andrew, H.R.1424, Section 114: Market Transparency requires the treasury dept. to publicly display all transactions. It does, on the treasury site. What it does not do, however, is display the actual signed contracts. And this was a failure of Congress' to ensure we could see what was really going on. In terms of H.R.1424's "brake" resolution authority, have any of your congressmen authored the resolution to discontinue funding H.R.1424 at the $350 Billion cutoff point? Why not? In terms of the two previous public handouts, 2002 and 2008, I agree with many commentators. They weren't large enough, in the sense that not enough of us converted frns to physical and, hence, the cabal continued playing its paper game. Converting frns to physical employs silver and gold miners and boosts local economies in Nevada and Idaho, by the way. Converting to silver eagles, currently rationed to the only eight U.S. dealers because there isn't enough silver, also provides the U.S. mint with a profit. Converting frns to physical U.S. minted dollar coins also provides the U.S. mint with profit; the federal reserve board must pay one frn for each minted dollar (as opposed to four cents for each printed note). U.S. minted dollar coins are a direct obligation of the treasury dept, as opposed to obligations of the fed reserve. Trade in minted dollars as often as you can. Minted dollars also save the U.S. government $500 million dollars per year; because they last 30 years. Paper frns last 18 months. Forcegrip, there are many local and eight national coin dealers. All exist for profit. Some will work with you. NCI in Inglewood, CA doesn't disappoint. Silver is very scarce - be careful of the premiums over spot. Gold bullion isn't much of a problem converting to yet.

Posted 11/24/08 6:59 PM brader@hrw.com Austin, TX

If you can't buy a farm, as Bill in Carlsbad, NM, suggests, then start your own vegetable/fruit garden. Some towns/cities have allotments that you can farm for a modest fee. Also, you can sell some of the goods you produce at local co-ops.

Posted 11/24/08 7:15 PM Michael Salvi Elkins Park, PA

ok norm coleman!

Posted 11/24/08 7:34 PM BillNM Carlsbad, NM

Here is the deal, all. The farm doesn't have to be a hundred acres. In the early days of the depression Grandmother had 3/4 acre. The fence rows were in grape vines and blackberry vines; fruit trees from plum to apple to peach dotted the land, a small section was planted with vegetable crops in season; a small section was for money crop (hay or whatever); chickens were kept for eggs and a special Sunday dinner; a cow was there for milk; and canning was a regular routine. I didn't get to stay there all the time, but there was never want, even during the height of the depression and even without money. Of course, to do that today I would have to read a few books. If title is not wiped out along with the FRN this could insulate us from the idiots in Washington for a while. At least until they start telling us what we will work on this week.

Posted 11/24/08 8:01 PM Robert Hillman Saint Charles, MO

I view converting to physical, food, land, weapons, training, as forms of insurance rather than investment. I neither expect to make a profit nor want to have to use any of them. Maples are fine. There's plenty out there from Murphy, Sinclair, Butler, McHugh, Turk, and others; don't need a dedicated tab here on a political education site. 2004 Pollock, writing of Rothschild's mistrust of the U.S. "1. Rothschild may be consolidating and accumulating positions in gold in advance of a global financial collapse, or a US financial collapse. 2. A financial collapse could be induced or timed to meet political objectives. This would be the equivalent of financial terror attack". http://www.financialsense.com/editorials/murphy/2004/0419.html Question: is it simply coincidence that the banking industry collapses in the few months leading up to November? 2006 Kirby, writing of European mistrust of U.S. govt "I first noticed this back in 1997, when ECB member banks had already repatriated about one third of the gold they had stored in America in the aftermath of World War ll. This process is on-going and accelerating. You can't blame these ECB banks! When a nation drops habeas corpus and the Geneva Convention, a little matter like theft of other nation's stored gold is not a stretch....." Yes, shepherd, you are correct. Kirby again, 2006: "Reality and logic would dictate that no one - other than a party that stands to benefit from gold price suppression - would benefit from "swapping" a hoard of American Gold Coins in this type of transaction which is, by definition as a "swap", reversed at maturity. What this type of transaction would accomplish for the owner of less than fine gold; it would provide instant gratitude of exchange tradable [deliverable] gold and perhaps more importantly - it would BUY TIME. To understand the relevance of "buying time" - one only need remember the words of former Secretary of the Treasury [Clinton Admin.] Robert Rubin as he revealed the motivation or drivers of crisis management in the interaction between himself, Lawrence Summers, the ESF [exchange stabilization fund], the IMF and presumably the Maestro at the Fed - during the Clinton administration. On pages 290 - 291 of his book, In An Uncertain World, referencing the Brazilian financial crisis of the late 1990s, Rubin outlines how very expensive "bad decisions" can buy time. Sometimes, he asserts, these bad decisions have a great deal of merit because they can, "..Probably defer the impact of the collapse for six or eight months, and that will more than justify the effort." http://www.safehaven.com/showarticle.cfm?id=6115 Question: any "very expensive bad decisions" made lately by the U.S. government? Question: who did Obama hire today as his Economic Counselor? Question: "defer the impact of the collapse for six or eight months"? Sinclair 2008 "This is it, and it is now. Now it is out of control. Now we enter the Collapse of Confidence period. Then we begin the Weimar Experience. It has all hit the fan, and still the absolute majority have no clue. The next two months are going to be shocking, but nothing compared to what you will have to experience in 2009". https://www.kitcomm.com/showthread.php?t=28758

Posted 11/24/08 8:21 PM Robert Hillman Saint Charles, MO

I view converting to physical, food, land, weapons, training, as forms of insurance rather than investment. I neither expect to make a profit nor want to have to use any of them. Maples are fine. There's plenty out there from Murphy, Sinclair, Butler, McHugh, Turk, and others; don't need a dedicated tab here on a political education site. 2004 Pollock, writing of Rothschild's mistrust of the U.S. "1. Rothschild may be consolidating and accumulating positions in gold in advance of a global financial collapse, or a US financial collapse. 2. A financial collapse could be induced or timed to meet political objectives. This would be the equivalent of financial terror attack". http://www.financialsense.com/editorials/murphy/2004/0419.html Question: is it simply coincidence that the banking industry collapses in the few months leading up to November? 2006 Kirby, writing of European mistrust of U.S. govt "I first noticed this back in 1997, when ECB member banks had already repatriated about one third of the gold they had stored in America in the aftermath of World War ll. This process is on-going and accelerating. You can't blame these ECB banks! When a nation drops habeas corpus and the Geneva Convention, a little matter like theft of other nation's stored gold is not a stretch....." Yes, shepherd, you are correct. Kirby again, 2006: "Reality and logic would dictate that no one - other than a party that stands to benefit from gold price suppression - would benefit from "swapping" a hoard of American Gold Coins in this type of transaction which is, by definition as a "swap", reversed at maturity. What this type of transaction would accomplish for the owner of less than fine gold; it would provide instant gratitude of exchange tradable [deliverable] gold and perhaps more importantly - it would BUY TIME. To understand the relevance of "buying time" - one only need remember the words of former Secretary of the Treasury [Clinton Admin.] Robert Rubin as he revealed the motivation or drivers of crisis management in the interaction between himself, Lawrence Summers, the ESF [exchange stabilization fund], the IMF and presumably the Maestro at the Fed - during the Clinton administration. On pages 290 - 291 of his book, In An Uncertain World, referencing the Brazilian financial crisis of the late 1990s, Rubin outlines how very expensive "bad decisions" can buy time. Sometimes, he asserts, these bad decisions have a great deal of merit because they can, "..Probably defer the impact of the collapse for six or eight months, and that will more than justify the effort." http://www.safehaven.com/showarticle.cfm?id=6115 Question: any "very expensive bad decisions" made lately by the U.S. government? Question: who did Obama hire today as his Economic Counselor? Question: "defer the impact of the collapse for six or eight months"? Sinclair 2008 "This is it, and it is now. Now it is out of control. Now we enter the Collapse of Confidence period. Then we begin the Weimar Experience. It has all hit the fan, and still the absolute majority have no clue. The next two months are going to be shocking, but nothing compared to what you will have to experience in 2009". https://www.kitcomm.com/showthread.php?t=28758

Posted 11/25/08 02:22 AM nima1981 San Francisco, CA

Amen to that. The bailouts are bankrupting our country. http://www.economicsjunkie.com/the-economics-of-corporate-bailouts/

Posted 11/25/08 04:34 AM Fu Manchu Belleville, MI

Rothschild mistrust!!!??? That family is a part of this mess! I'm entirely convinced it's because of the planning between people like the Rothschild's and Rockefellers, the FED, and our own government that got us to where we are today! But that's just me...

Posted 11/25/08 07:45 AM AuthenticAuthor Canutillo, TX

I'm currently training myself to be involved in the stock market via investopedia.com and by being part of free economics classes given by our local millionaire. Last week, I was up $34,000 by trading (not investing) on stocks based on market flows. My last decision; to short on companies like Sandisk and Delta Airlines whose earnings were in the deep negatives. Now I'm down $24,000 (for now at least, haven't covered yet) and while I'm sure that part of this was the result of traders covering their shorts, the media's been touting the bailout of Citigroup as being a beacon of light for the financial market. Right now, the last thing I want is a false "beacon" promoted by my tax dollars on businesses whose methods are failing, yet it seems as if once again we're getting a ridiculous turnaround! Of course, this up-trend in the market will be temporary, but for those of us trading in small-cap stocks hoping to make big on small companies...we're screwed. The few and powerful (yet stupid) get to steal from the many and the weaker, regardless on who is running on a sound financial foundation. More than I want to make money on GM on the up-swing due to bailouts, I don't want to have anything to do with fraud and thievery. Now I'm seriously considering trading actual commodities instead of stock; perhaps there's a simulator for that too? Then again, I'm only using a simulator trading fake stocks with fake money. It's not like I'm actually LOSING cash, although the irony of my involvement in a FAKE system does not escape me.

Posted 11/25/08 08:18 AM Ender Louisville, KY

Just thought I would let everyone know...there is an article running on the front page of Yahoo Finance about the Fed's role in engineering this crisis. http://finance.yahoo.com/expert/article/richricher/124339

Posted 11/25/08 08:51 AM Timothy Gandee Perry, OH

With all of the money that the Fed has printed in the past 6 months, they could have printed out each and every taxpayers income tax. We have printed enough to cover what we pay in taxes two times over in the past 6 months alone. If printing money will fix the problem, then they should print us out of taxes. It is obvious to me that this money is not even real, so why hold the taxpayer accountable at all? If the dollar is going to be broken by the Fed, let us at least keep more of our own worthless dollars. If they are going to print whatever they need for revenue, then why collect revenue from us at all? These guys are crooks in broad daylight. The public has spoken-out loudly against further action by the Fed, yet the screams are being ignored. Why? Our calls can be ignored as many of these crooks were voted right back into office through the ignorance of the masses. Our educational journey for the masses has only just begun. We have to get more liberty minded candidates in the Congress and Senate. Only two more years till voting and these clowns are giving us a clear voting record that should cause these crooks to be fired by the people. Enough is enough already.

Posted 11/25/08 09:27 AM ghendric Burlington, KY

"It is obvious to most Americans that we need to reject corporate cronyism, and allow the natural regulations and incentives of the free market to pick the winners and losers in our economy, not the whims of bureaucrats and politicians." Uh..yeah, how do you do that without an armed conflict with the nimrods in Washington?

Posted 11/25/08 10:50 AM ScottEStewart Princeton, KY

Not sure if anyone's picked up on this yet.. but CNN just reported on the new fed program that was unveiled today, and their report says the Fed is "creating new money" to buy back these loans. http://money.cnn.com/2008/11/25/news/economy/paulson_consumer/index.htm?post version=2008112505 "Treasury will allocate $20 billion to back that lending by the New York Fed, an attempt to cover any losses that the New York Fed might suffer as a part of the program. But the $200 billion under this program, and an additional $600 billion being made available to increase mortgage lending, will come from an increase in reserves by the Fed. Essentially, the central bank is creating more money to cover the programs announced Tuesday."

Posted 11/25/08 10:54 AM ScottEStewart Princeton, KY

Not sure if anyone's picked up on this yet.. but CNN just reported on the new fed program that was unveiled today, and their report says the Fed is "creating new money" to buy back these loans. http://money.cnn.com/2008/11/25/news/economy/paulson_consumer/index.htm?post version=2008112505 "Treasury will allocate $20 billion to back that lending by the New York Fed, an attempt to cover any losses that the New York Fed might suffer as a part of the program. But the $200 billion under this program, and an additional $600 billion being made available to increase mortgage lending, will come from an increase in reserves by the Fed. Essentially, the central bank is creating more money to cover the programs announced Tuesday."

Posted 11/25/08 2:50 PM mattgeb84 lynn, MA

lets schedule a protest of the bailouts. we can all protest outside of our local statehouses. since the bailouts are a hot topic there is a good chance that the protest will get media coverage. so lets all get together and come up with a date to hold a nation wide anti bailout protest lets get working on it, spread the idea

Posted 11/25/08 6:38 PM John Steinsvold Northport, NY

An Alternative to Capitalism? The following link, takes you to a "utopian" article, entitled "Home of the Brave?" which I wrote and appeared in the Athenaeum Library of Philosophy: http://evans-experientialism.freewebspace.com/steinsvold.htm John Steinsvold

Posted 11/25/08 6:48 PM albe71 saratoga, NY

In 1941 my dad paid $300 for a like new 1938 chevy with 500 miles on it. Today the same model Chevy would cost $20,000. Most of the $17,700 difference is the amount of taxes put on the different stages of manufacture of todays automobile. Consider that the iron mine owner has to add the amount of money he paid for all the taxes on his property to the price of his ore, the mining company has to add all the taxes they had to pay when they purchased their trucks and machinery, and the tax on fuel, phones etc. etc., plus the Soc Sec. and other taxes on their employees. Then you have the trucking company taxes, and you know what they have to pay, to get the ton of ore to the steel mill, and then the taxes the steel mill has to add, then the trucking again to get the steel to the........ You get the idea. The auto companies do not need a bailout, they just need to have the governments cut the taxes that has accumulated on each new auto. How in the world do you expect them to compete with auto manufacturers from countries with little or no taxes.

Posted 11/25/08 9:42 PM sonderweg78 Austin, TX

Dr. Paul is wrong about only on one thing. Governments DO create. They create MASSIVE problems. This bailout is yet another massive problem. It's too bad more people in congress don't listen to him.

Posted 11/30/08 11:53 PM activ8now sitka, AK

Never in the history of this Nation have we witnessed the blatantly criminal acts of the government in bed with private monetary interests, namely, the federal reserve. How can individual citizens stop the hemorrhage and stop the open looting of our country's future by dishonest crooks who have been allowed to extort and hijack our financial futures? How dire do things have to become before an informed citizenry takes a unified stand and DEMANDS its government to cease and desist its greedy and criminal ways and hold them accountable? Our Nation is being liquidated before our very eyes, and everyone seems to be too busy watching football or playing video games. C'mon America, wake up! If this pisses you off, great- take back your country. Get involved! And NEVER QUIT.

Posted 12/10/08 10:02 AM rhytonen Pennsboro, WV

Am I to believe that Dr. Paul also advocates tax breaks to industry and large business as part of the solution? If so, this is why I can't support this GOP version of "Buy Back The FED," "Abolish the National Bank," and "ZERO industry bailouts," in which basic precepts I very much DO believe. I also believe that full, nationally funded, complete health care for all, IS that solution. How to fund it? Stop making war on scapegoat countries, spend $1M or so to have Bin Laden (if indeed he exists) assassinated as a war combatant, and cut out all loopholes, RAISING taxes for those most wealthy and the largest businesses, and drastically so, to make up for the 50 years they've been milking us (by NOT paying taxes proportionally to their wealth,) and riding down the economy while protecting profits. Immedediately seize the personal ill-gotten assets of all the CEO criminals who have been responsible, and tghrow them in jail where they belong, and not country clubs, either. True National Health Care (a la France, Canada, England and Sweden as well as most of the world's other less affluent countries than us,) will actually help business AND the poorest individuals. I do NOT mean "affordable" health care, and for those lucky enough to have jobs and pay taxes. I mean fully, Nationally funded health care for ALL American citizens - most especially the poor and elderly. NO premiums, no exceptions, no "preexisting condition" or other disallowances, and NO HMO-type administratively decided cost cutting or reduction of quality of care. These (expected, and now occurring) practices, must be summarily policed and punished. That's the only administrative cost I would sanction. I do not necessarily support health care for over-reproducing illegal immigrants, however (nor for that matter, for over-reproducing citizens.) That loophole must be closed. And no, I am not afraid of the word "socialized." It works for countries much less affluent than us, because here, a few keep all the money, with the government's help. I have to wonder whether Democracy and Capitalism can -or should- coexist. And finally, I do believe in a free market economy. If a business or industry (OR EVEN A GOVERNMENT'S ECONOMIC SYSTEM!) is failing, there's a reason, and it SHOULD be allowed to fail - not propped up by the government at the already suffering people's expense. Individuals? that's a totally opposite matter. The government should SERVE and support the people, as individual people, not subjugate their rights, solvency or sovereignty in favor of ANY industry's, business', or its own, interests. It should protect the people against business, not vice-versa. And no, we now see "what's good for Gen. Bullmoose" is very much NOT "good for the USA" - at least not for the vast majority of the people who are supposed to comprise it and "its" interests. Those interests should be theirs, the people's, directly and individually - not filtered through some system that serves a larger, profit motivated, predatory group - such as ANY business or industry, and above all, not through any private, for-profit financial institutions.