Uh, Just Another Question or Two About That 700 Billion Dollar Bailout!

"The Secretary's authority to purchase Troubled Assets under this Act shall be limited to $700,000,000,000 outstanding at any one time" --- a statement from U.S. Treasury Department legislative proposal for an asset-purchase fund as delivered to the Congress -- entire document was obtained by Reuters on Sunday, September 21, 2008

As financial chaos seemed to rule supreme for a number of days recently and announcements kept coming out of a place called Washington DC, it seems that big financial institutions had little to worry about – if going belly-up was in their future, why get into a state of deep distress about it? The government would come along on a rescue mission and bail them out – the president even took a lot of time to comment and state that it was necessary to do these acts of mercy in providing billions of dollars and keep these outfits afloat! And this was backed up by his Secretary of the U. S. Treasury, Henry M. Paulson, Jr.

Now, here is the first question – are the CEO’s and those who are 2nd in command of these financially strapped institutions as well as other upper level management people going to still receive all those plush salaries, lavish “perks” and “golden parachute” benefits? Shouldn’t this group be penalized for their very flawed “leadership” which contributed to the financial fiascos involving their companies/institutions? If the leadership had been careful, cautious and discerning in charting a course through rough seas, the “ship” would still be stable and not on the verge of capsizing! So if the captain causes the ship to end up on the rocks, he should not be rewarded should he?

Second question – will all these companies and institutions that are beneficiaries of the proposed 700 billion dollar “bail out” be required to pay back what they have received by way of a very expensive rescue from financial disaster? What arrangements will be made public regarding a pay back schedule? Also, to what extent will U. S. taxpayers be informed that their money used for the rescue operation will be returned to the U. S. government?

And while we are on the subject of the public being informed – will we taxpayers be told in detail what those top level people are being paid plus the “perks” and how all that has been reduced as the money for the bail out is being repaid to the federal government? Would it not be good if a sizable percentage of those CEO salaries were added to the repayments made each month?

Yes, I, along with many other people, at times am a dreamer – this happens to be one of those times, since we all know the answers to the foregoing questions, do we not? The mix of politicians with their meddling in business affairs along with wealthy and powerful people in the corporate world results in a concoction that is far from producing the smell of a rose!

Why should I fear in the days of evil, when the iniquity at my heels surrounds me? Those who trust in their wealth and boast in the multitude of their riches, none of them can by any means redeem his brother, nor give to God a ransom for him; for the redemption of their souls is costly, and it shall cease forever; that he should continue to live eternally, and not see the Pit. For he sees that wise men die; likewise the fool and the senseless person perish, and leave their wealth to others. Their inner thought is that their houses will continue forever, and their dwelling places to all generations; they call their lands after their own names. Nevertheless man, though in honor, does not remain; he is like the beasts that perish. This is the way of those who are foolish, and of their posterity who approve their sayings. Selah --- Psalm 49:5-13

Please, Mr. Fed, I’m in Financial Distress – Will You Bail Me Out?

The U. S. Treasury along with the Federal Reserve revealed plans to “shore up” those odd-named mortgage outfits known as Fannie Mae and Freddie Mac. Shares have plunged due to losses from their mortgage holdings which posed a very serious threat to their financial survival. --- news information released on July 13, 2008

Here’s the key – get BIG and invest tons and tons of money, getting it from whomever you can convince to go along for the ride! And then when things go sour and the money is leaving you faster than it can be flushed down the toilet, just yell, “Help!”

And guess who will come running? Why the financial “Dynamic Duo” of Washington DC – the Federal Reserve and the U.S. Treasury, of course!

Years ago there were “bail outs” of big companies and since history doesn’t really change in such matters, we are seeing a repeat – only this time it is in the wonderful world of mortgages with two biggies on the verge of going belly up!

News information revealed that the “government is prepared to take all necessary steps to prevent the credit market troubles that started last year from engulfing financial markets and further weakening the economy and housing markets.”

And how about this – the Federal Reserve Bank of New York has been given “authority” to lend those outfits with those odd names the money needed at a rate of 2.25 percent! That’s the present rate paid by commercial banks and what are considered “big’ Wall Street firms!

When was the last time you got a loan at a rate of 2.25 percent? If you have the misfortune of having certain credit cards, you are paying well over 20 percent on unpaid balances. Your vehicle loan is quite a bit above that 2.25 percent level is it not? Although in desperation some manufacturers once in a while bait potential customers in with an offer of 0 percent financing over a number of months. But the price of that gas guzzler is so high that getting that 0 percent is not that much of a bargain in the long run -- especially when you discover it likes its "tea" in huge amounts!

But here’s the point – if you are big enough, when you wallow and begin to sink in financial disaster, just yell and the government will bail you out! But if you a “little guy” as most of us are, and you are trying to deal with financial disaster, don’t go to the government for help – all those people are interested in is the tax money you pay, and if possible, they will scheme somehow to get more out of you in the future!

A couple of things to remember:

First, the government is itself so deeply in debt, that the day will come when it won’t be able to bail out a person who is $1.00 in debt! The national debt is increasing steadily by billions each year – total now is over 9 trillion – that’s a 9 followed by a lot of zeros!

Second, there is good news – the day will also come when government officials in every nation will be dismissed from their positions, because One Who is identified as the King of kings and the Lord of lords will have returned and taken control of the affairs of this present world. Now it will be a bit messy at the time of this transition, but He will get it all settled down and finally, peace will be the order of the day.

You can read all about it in a book called the Bible. Yes, yes, I already know – for some people, to talk like this is to talk like a crazy person who should be put in a padded cell. So it comes down to a choice – did Jesus know what He was talking about when He mentioned quite often that He will return to this earth, or is He simply a deluded fool? What do you say, and how has this impacted your life? Does it make a difference when you wake up in the morning and when you lay your head on the pillow at night?

As for me, He’s the best Friend I have and I’ve know Him personally for over 5 decades. I and some others excitedly look forward to His return and taking control of the chaotic governments and financial systems of this world! In the meantime we seek to carry out His parting command to confront the world with His call to repent of all sin and rebellion and believe on Him as Savior and Lord, the living Son of God. Yes, some of us still believe that command is still in effect -- in spite of what you may have heard in some church circles!

Then Jesus came and spoke to them, saying, "All authority has been given to Me in heaven and on earth. Go therefore and make disciples of all the nations, baptizing them in the name of the Father and of the Son and of the Holy Spirit, teaching them to observe all things that I have commanded you; and lo, I am with you always, even to the end of the age." --- Matthew 28:18-20

Then the seventh angel sounded: And there were loud voices in heaven, saying, "The kingdoms of this world have become the kingdoms of our Lord and of His Christ, and He shall reign forever and ever!" --- Revelation 11:15