Don't Expect Uncle Sam To Bail Out Black Communities

Even in a watered-down form, Congress will soon pass a major overhaul of the nation's health care system. Absent from reforms will be any effort by the government to enter the private market via a public option. Capitalists and the uncaring killed that possibility.

The real, but hidden, lesson from this and the recent budget meltdown in California is that the social safety net is likely to shrink in the future. Cuts in social safety net spending programs are always easier than cutting military or law enforcement spending. By law, the feds must pay interest on the debt and each year entitlement programs like Social Security and Medicare take increasingly large shares of the budget pie. Any programs left over will meet the chopping block.

Read the rest at The Loop.

Dr. Cornel West Takes Obama to Task On Economic Policies

In comments from this weekend, Dr. West calls for more of a fundamental shift in economic policy, criticizing Obama's effort to hold on to the traditional economic architecture. Where are the bailouts for poor and working class Americans? (I sure could use a bailout right now... a student loan bailout.... because I purchased an education that I couldn't afford).

While I tend to agree with Dr. West, I also understand that for practical purposes, Obama may see the corporate Wall Street elites who helped crash the financial system as having the solutions for getting the system running again. I personally disagree with the choice of Geithner and Corporate elites serving in the Administration. But Obama obviously sees a practical benefit from their participation.

I think there probably has to be a balance....at least for the moment. I agree that long term, this Country has to invest more time and resources improving the lives of working people. On the other hand, Obama must first fix the economy. In the short term, fixing the economy may require Obama to get cozy with the elites who West rails against.

Does AIG Stand For A*Holes In Gotham?

Even though AIG wasn't legally prohibited from doling out the bonuses, their demonstrable foolishness is indicative of a wanton greed, a willful ignorance and pure disrespect for the taxpayer. I'm not sure what Congress or the Executive Branch can do regarding the bailout bonus money, but given the populist sentiment in America right now, I applaud their efforts. Follow Andrew Cuomo and Max Baucus to know what New York state and the Senate have in mind.

Dana Milbank notes that the bully-pulpit isn't enough for Obama on this issue. So it's no surprise that Obama's poll approval numbers are finally starting to drop.

Homeowners Are Drowning

All the headlines says homeowners are drowning, so I feel I must play off the mainstream media by writing that homeowners are drowning. Nonetheless, it is true and it is sad, one in five are not doing so well with their mortgages. Although, as I've said before, there are plenty of renters not doing so well either and the government generally does squat for them, so despite Obama's latest pledge to help struggling homeowners, the rescue efforts still reek of class bias.

Really, these people don't own their homes. They've agreed to a repayment schedule with their loans from a bank. I wonder if there'd be as much as sympathy if we called it a "Bailout of Delinquent Borrowers" bill? Now, before you comment, I am perfectly aware that plenty of people were snookered into bad deals. We should help those people, but I am a bit miffed that we hold up homeowners as the exalted example of American virtue.

What about people who play by the rules, but are sinking in student loan debt? They've gone into debt to better themselves and better society and what do they get?

Part of my reluctance to support this is that the real victors are builders and realtors. They are two of best organized interest groups and they profit handsomely by the mortgage interest deduction.

Rick Santelli's Offensive Rant Against the Housing Bailout

Rick Santelli's Rant about President Obama's Housing Plan on CNBC



I wonder if this mofo was this outraged when WALL STREET went begging for 700 BILLION DOLLARS.

President Obama's housing plan is ONE-TENTH of the money that went to WALL STREET, and I bet his ass didn't say JACK about THAT money.

And you wonder why folks like me didn't want to give Wall Street ANYTHING?

Give it to Wall Street with no provisions...

But, the Auto Industry - which affects MILLIONS of jobs - it can only be a LOAN..
and, we must talk about the EARNING potential of UAW workers.

And now, that we're trying to help people on the ground - sure, some of them took out loans that they couldn't afford. But, how about those who were straight up DEFRAUDED. How about the ones who SHOULD have qualified for CONVENTIONAL mortgages, but because of INSTITUTIONAL RACISM IN THE BANKING INDUSTRY, were herded into SUBPRIME mortgages.

How entire communities of this country - on MAIN STREET - are being wiped out because of this foreclosure crisis. And, foreclosures just don't devastate those who lost their homes. Their neighbors see their property values plummet with every foreclosure in their neighborhoods. This is the reality on MAIN STREET.

Oh, to drop his ass off on Main Street, give him a megaphone, and see if he'd be that big and bad THEN.

Hear About The Phony Outrage Over Financial Rescue

All week we heard how unpopular the the "bailout" was. Members of Congress, mostly Republicans, claimed that they were getting calls at a rate of 10,000,000 to 1 against the plan. lol

Of course this encouraged opponents to use that as an example to show that Americans were overwhelmingly against the plan.

But polling from the Pew Research Center (and other sources) tell a different story. (click audio tab from NPR page).