An interesting question surfaced from a long time Ohio conservative:
"What if the TARP money that was used to bail out the banks, had gone directly to the homeowners?
700 billion dollars, or something like that.
As the gentlemen surmised, "it would have worked like a giant stimulus package. People's mortgages would have been paid down or off. The lenders would have gotten their money. Everyone would have been happy!"
Well, not quite everyone! As he continued, "the banks didn't like that idea at all." You can't make money on interest when your not owed.
It would seem that 700 billion would not have made a dent in the nation's mortgage debt. Well, maybe a small dent!
"Think of it this way," the Ohio man added,"You set the max at the standand FHA cap of $271,200. And, only primary residences are allowed. No second homes. No investment real estate. If you live in a high cost area, you would still be subject to the same cap."
Wouldn't you still be quite a bit short?
He concluded in admitting that "yeah, it probably would have been short. But what if we had also taken the money used to bail out General Motors? After all, Chapter 11 wouldn't have been the end of the world for them!
"And, we could have diverted Obama's giant "stimulus package," which, as we all know, was nothing but an ensemble of chits and boonies for his supporters! Put it all together and you're talking about a lot of cheese!"
Too bad things aren't so simple!
In truth, the entire country bailed out a obscenely small number of people. They represented the better connected and in many cases, some of the best off! Meanwhile, the average American, AKA "Joe Six Pack," was thrown under the bus.
"And yet," the Ohioan reminded,"these decision makers knew what they were doing. You take John Boehner, for example. The guy controls an obnoxious amount of money. With money comes leverage. In other words, if a Congressman doesn't see things the Speaker's way, there will be the devil to pay! Or, should I say, that money won't find it's way into the disobedient Congressman's re-election coffers!"
In Boehner's thinking, the average guy simply doesn't understand how things work! There are too many "loose cannons," too many "well intentioned ideologues" who "don't understand when" to a part of the team. It's a matter of "picking your battles."
Good advice? Well coined wisdom? Or, maybe it's a simple of matter of 24 years in the House of Representatives.
In a recent post, the subject of term limits was briefly discussed, along with the possible sponsor of an amendment. In a perfect world, a simple debate and floor vote should be on the horizon. Sadly, we don't live in that utopia! We are talking about three fourths of the House and Senate surrendering the best jobs in the country. And, with it power and a lot of it!
There is a growing call for a Constitutional convention. Yet, even anti-etablishment, pseudo conservative, Glenn Beck warned of the "danger" of a "con con." Perhaps, there is another way.
Obviously, something needs to give in Washington. It likely will start with a tough, outside the beltway reformer, assuming Presidential duties in 2016. There is no argument that we need a Washington outsider, holding little if any ties to "K" street.
One of the quickest way to reduce the power of Lobbyiests is to shorten Congressional and Senate terms. It might also be a smart idea to term limit bureaucrats. A President, joined by a Senator and Congressman who jointly sponsored such an amendment would capture the nation's attention. Together, the trio could demonize any and all who opposed them.
I like this idea better than a Constitutional Convention, personally.
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