The government is going to buy bad investments made by money lenders. The government will then own the bad investments. It will then sell them if it can. If it cannot it will collect the money coming in on the assets. If the money does not come in the assets will be turned into investments in real estate. The real estate will then be sold. The government stands to lose as much as a trillion dollars. It stands to lose hundred’s of billions. It is said, it had to do this because if it did not money lending would be substantially reduced and the economy, an economy dependent upon credit, would be severely hurt.
However one describes what is about to happen, the basic truth is this: Government is being used to benefit private parties. The broad group of tax payers will be paying for this benefit to private parties. The government will be robbing Peter to pay Paul. One might ask, did the founders provide this power under our constitution? Does the United States constitution allow congress to tax the people to pay money to some of the people?
It is September 19, 2008 in America. What is your congressman doing tonight?