President Bush warns of 'painful recession'

9/27/2008 03:24:00 AM

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bush001 Back in late February of 2008, President Bush said that the country is not headed into a recession and, despite expression concerning about slowing economic growth, rejected for now any additional stimulus efforts.   Bush did admit however, that the US economy is in a slowdown but continued to reject claims it is heading for a recession, opposing for now any economic aid other than the $150 billion tax rebate package that would take effect in the spring.  "I don't think we're headed to recession," Bush told reporters at the White House.  "But no question, we're in a slowdown."

"We'll see the effects of this pro-growth package," Bush told reporters at a White House conference on February 28th, 2008. "I know there's a lot of, here in Washington people are trying to - stimulus package two - and all that stuff. Why don't we let stimulus package one, which seemed like a good idea at the time, have a chance to kick in?" (ABC News)

Now, seven months later President Bus is warning of a 'painful recession'.  On Wednesday September 24th, 2008, he warned Americans and lawmakers reluctant to pass a $700 billion financial rescue plan that failing to act quickly that the United States faces a "long and painful recession" if Congress does not pass his massive financial rescue plan.   "Without immediate action by Congress, America could slip into a financial panic and a distressing scenario would unfold," he said from the White House East Room.  He said the goal of the plan is to buy up troubled and underpriced assets so that credit can start flowing again.  In stark language, he said "our entire economy is in danger."

As if it wasn't seven months ago......................

Now suddenly as the wealthy on Wall Street, and long time bankers are loosing their shirts, with possibilities of becoming regular Americans and no longer the super rich, Bush is pushing for a $700 billion financial rescue plan?  Since when does Bush EVER come on TV to talk about decisions that are going to be made that you, the average American, has no control over?

Now forgive me for not being one of those super smart, Wall Street banker type analysts, and just being Jane Doe Schmo American Woman, but how does bailing out banks because of bad loans help the average U.S. citizen?  Does it reduce unemployment?  No.  Does it increase wages?  Ummm.. no.  Will it reduce a loan's payment plan?  Ahh.. no.  Will it reduce interest... maybe, short term... maybe.  Will it reduce the cost of fuel?  Definitely not.

How does bailing out banks, investment companies, and insurance companies help the average U.S. citizen?  In my opinion, it doesn't.  All it does is allow for banks to start loaning themselves money again, and make loans available for the average individual, thus allowing you, Mr, Miss, or Mrs Average American, to only go more in debt. 

So how does that help someone who has lost their job due to the rising unemployment, or someone who has to choose between fuel for their vehicle to commute back and forth to work vs. the rising cost of food?  Or how does that help someone who has lost their entire investment portfolio because a bank overextended themselves?  Or how does that help the average homeowner who is basically ready to lose their house due to foreclosure?  Or how about someone who just lost their entire 401(k) because of these banks?

The only people I see benefiting from this bailout package are the banks, at the cost of the U.S. taxpayer.  Tell me, did your $600 stimulus check bail you out of financial trouble?

Am I missing something here, or am I just too stupid to see what is really happening.... or am I?  Because let me ask you this question.  If you can't pay your bills, because you got laid off, or you can't afford to pay your medical bills because you can only find two or three part time jobs and no full time jobs and are not offered health benefits, do you have the government coming to bail you out?  What profit do you see in bailing out these institutions, with the CEOs walking away with their bonuses, banks having their butts covered for overextending credit, while increasing your tax burden?  So, we the middle class of America pay to bail out the wealthy bankers?

And do you really think this plan of giving the banks $700 billion is going to stop a recession or depression?  And is there any guarantee that this funding, once given to banks, is not misused and ends up in someone's pocket?

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