Monday, March 23, 2009

Joe Scarborough: Bush Dug Hole Obama Digging Deeper

Burning a village to save it, says Joe Scarborough of Barack Obama's approach to rescuing and reviving the economy of the United States.

Treasury's toxic asset plan could cost $1 trillion Mar 22, 5:03 PM (ET) By MARTIN CRUTSINGER

The Obama administration's latest attempt to tackle the banking crisis and get loans flowing to families and businesses will create a new government entity, the Public-Private Investment Program, to help purchase as much as $1 trillion in toxic assets on banks' books.

The new effort, to be unveiled Monday, will be followed the next day with release of the administration's broad framework for overhauling the financial system to ensure that the current crisis - the worst in seven decades - is not repeated.

A key part of that regulatory framework will give the government new resolution authority to take over troubled institutions that would pose a threat to the entire financial system if they failed.

Administration officials believe this new power will save taxpayers money and avoid the type of controversy that erupted last week when insurance giant American International Group paid employees of its troubled financial products unit $165 million in bonuses even though the company had received more than $170 billion in support from the federal government.

Under the new powers being sought by the administration, the treasury secretary could only seize a firm with the agreement of the president and the Federal Reserve.

Once in the equivalent of a conservatorship, the treasury secretary would have the power to limit payments to creditors and to break contracts governing executive compensation, a power that was lacking in the AIG case.

The plan on toxic assets will use the resources of the $700 billion bank bailout fund, the Federal Reserve and the Federal Deposit Insurance Corp.

Morning Joe's host, former Congressman Joe Scarborough, said he wrote a book years back - which was poo-pooed at the time, he said - outlining how the United States would go bankrupt spending recklessly.

Rome Wasn't Burnt in a Day

About Joe

He not only raked ex-President George W. Bush over the coals for spending, he blasted Bush for tax cuts at a time when deficit spending was rising because of the costs of handling so many things at once.

Scarborough said President Bush tried to do everything all at once at the same time.

The Iraq War, increasing government involvement in health care were two Scarborough highlighted.

What was astonishing about Scarborough's remarks: he didn't promote the underlying theme of conservative thought - government tax cuts actually invite growth in government resources (taxes) by stimulating the economy with more availability for 'private' investment and job creation results.

Scarborough dissed George W. Bush on everything he did, in one fell swoop, saying outright "Bush dug a hole... Obama is digging a deeper and wider hole..."

Medicare is going bankrupt... a tough leader needs to be telling the truth about health care... not going on Leno and 60 Minutes, laughing... We need cuts, not 4 to 5 percent deficits... spending as much on new health care as on the Iraq War - that's reckless.

There's no doubt what Scarborough is up to at this point in time: plugging his new book reportedly due out in May.

Basically the only thing Scarborough was right about and anybody who highlights the same is as well: none of these past administrations have done the country any good by such astronomical government spending. Period. No future government spending will do any good either. It's all deficit spending - money the U.S. Treasury does not have.

But Scarborough neglected to point out that cutting taxes - every single time it is done raises government resources because the economy is stimulated by private business. In turn, coupled with cutting taxes the government (bloated like a giant) eliminates, wholly and cleanly, unnecessary and unconstitutional government programs.

Government programs stimulate nothing. That's a dream cooked up by government to continue its business of being needed, creating a dependency hard to break.

Coupled with cutting federal taxes, states likewise free up resources by cutting unnecessary and useless programs the private sector can do best for less, and more efficiently. The state doesn't need as much for those unnecessary government programs, and state taxes are cut all around, too.

Voila. Freed up (with some necessary protective oversight) the free-market capitalist system - works.

Well, just leave it to Steve Forbes to hammer away at the other guest(Donny Deutsch, author of the Big Idea) who just simply said: I'm tired of my rich friends complaining about paying higher taxes! Stop it already.

Good thing Forbes was present since Scarborough's got his Republican-bashing book to sell.

Steve Forbes - what works - you know when taxes are lowered that creates more government resources. Taxation, increasing government taxes = a state of power.

Deutsch's book highlights people who've made bundles of money with their big ideas.

Big Idea, The: How to Make Your Entrepreneurial Dreams Come True, From the Aha Moment to Your First Million (Hardcover)

Yet now they've made so much, Deutsch believes their earnings, their income, should be taxed more, and not only that, they should pay up with a smile on their faces!

Unbelievable. Seriously, he just doesn't get it does he? Tax more income of individuals, get less willingness to earn so much, get less ingenuity, less big ideas... the result of that should be studied as history, but sadly, it's unfolding right before our very eyes, and with the outcry from the public... over bonuses at AIG which received billions in government help...

We can only hope to see more Tea Party rallies for less government and less unconstitutional government spending and programs.

But with public outrage over bank bonuses, it's more likely we'll see the pitchforks come out at the houses and property of AIG bonus recipients. Disturbing to say the least.

Orlando 'Tea Party' rally draws more than 4,000
By Helen Eckinger | Sentinel Staff Writer
March 22, 2009,0,426670.story

Protesters visit AIG officials' lavish Conn. homes Mar 22, 7:29 AM (ET) by JOHN CHRISTOFFERSEN

The Morning Joe panel continued to discuss President Obama's plan for the government to buy up toxic assests - but what was continuously troubling - well everything about Joe Scarborough.

Where was his argument for both decreasing and eliminating government spending, and lowering taxation? He continued to highlight one, but ignored the other.
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