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Archive for bailout

Our Government at Work, Again: AIG

By Matt · Comments (0)
Wednesday, March 18th, 2009

I’ve been really busy the past couple of days. The next post in the building a church website series will get posted tomorrow or Friday.

Now, on to AIG. I’m quite disturbed by what I’m hearing. On of the reasons I didn’t like either of the bailouts (the one last fall by Paulson and the most recent one) was the speed in which they were constructed and pushed to the American people. Mistakes get made when anything is rushed, especially legislation, and this is no exception. Chris Dodd, of all people, supposedly insterted a clause into the legislation towards the end that would exempt companies from altering contractual agreements by a certain date. Now that Mr. Dodd, the rest of Congress, and the American people see the implications of that clause they are outraged. Oh the irony.

So, since the legislation appears to stipulate that AIG is not doing anything legally wrong, and Congress just doesn’t like it, crazy solutions to this problem are being suggested. One of which is to tax AIG bonuses at 90%. Is that even legal? I hope not. I don’t want the government to be able to tax specific people in specific situations in a way in which could take all of their money from them. Where could that lead?

Another suggestion I saw on TV was to tell AIG that if their executives accept their bonuses that the government will not give them any more money and let them go bankrupt. I laughed out loud at that one. We already gave them $180 billion because they were “too big to fail.” I bet AIG would call the government’s bluff on that one.

Lastly, when the Omnibus bill was passed, we were told that earmarks were only 2% of the entire bill, not a whole lot, so don’t get worried about it. It’s only $8 billion. Well, the AIG bonuses are only .2% if the $180 billion we’ve given them. That’s not a lot. I don’t think we should get too upset at it.

Comments (0)
Categories : News
Tags : AIG, bailout, bonuses

One for the History Books

By Matt · Comments (0)
Saturday, October 4th, 2008

Will October 3, 2008 go down in the history books?  Will this be the day our country was fundamentally changed?

Yesterday was my day off, and I spent a lot of it listening to radio shows and watching news coverage of the bill passed by congress that will supposedly help out the economy.  It will be left to the academics to argue over time if the bailout helped or hindered the economy.

One thing is certain: people are angry.  People are fed up with their government.  Thankfully, I have a Congressman who listens to his constituency and stands on his principles.  I wish I could say the same for my senators.  All of the presidential candidates voted for the bill.  Great.

It was surreal how, regardless of party affiliation (although perhaps for fundamentally different reasons), the American people opposed this legislation.  Depending on who you read, the American people were against this at a rate of 80-95%.  America hasn’t been so united about their opinion since 9/11.  And what does the government do?  Goes against the will of the people.  From listening to the passion in people’s voices today, some incumbents will have longtime supporters voting against them and taking as many people with them as they can.

Time will tell about the way this bill helps our economy.  If it does not help in the way we were promised by our elected (and unelected) officials, there very well could be an uprising.  Even if the bill soothes the financial situation, October 3, 2008 will likely be the day we mark that our country was fundamentally changed. It will be up to the people of this country if we allow this change to be for the worse or for the better.  This election just got even more interesting.

Comments (0)
Categories : News
Tags : bailout

The Bailout, Education, and Youth Ministry

By Matt · Comments (5)
Friday, September 26th, 2008

[Note: If your head is in the sand and don't know what is going on in the economy and the government right now, go to your favorite news website.  It will be on the front page.  I promise.  Read up.]

On Sunday morning during Sunday school, I asked my high school students, some of whom are seniors taking Government, if they had heard anything about the $700 billion dollar bailout plan currently in the news.  A few of them had heard something about it.  I asked if any of them had talked about it in school, and they said no, which was understandable since the Treasury didn’t get their plan to Congress until Friday.

So, I told them that they needed to ask about it in an appropriate class this week at school.  Wednesday night I asked again if they had talked about it at school, and the answer was no.  One girl who asked her teacher about the plan said that her teacher said, “Yeah, I’ve heard about it,” and that was it.

My seniors who were taking Government still hadn’t talked about it.  They were busy talking about John Adams or something.  Riveting.

Does this bother anyone else?  Regardless of the actual peril that our economy may or may not be in if Congress does not act, Congress is acting in ways that I have never seen.  And Treasury Secretary Henry Paulson sent a proposed bill to congress that included some crazy propositions:

(a) Authority to Purchase.–The Secretary is authorized to purchase, and to make and fund commitments to purchase, on such terms and conditions as determined by the Secretary, mortgage-related assets from any financial institution having its headquarters in the United States…

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

If I was a government, economics, or history teacher I would have had printouts of the bill submitted by the Treasury (you can read the text of the bill here, it’s only two and a half pages long) on the desks of my students on Monday morning.  In economics, we would talk about free markets, investments, supply and demand, regulation, and such.  In government, we would compare the powers requested by the Secretary and the proposed involvement of the government in the financial markets to the powers enumerated in the Constitution.  In history, we would compare our current situation to the Great Depression, which has been thrown around a lot in the news but is probably very overblown.

What should youth ministry’s role be in situations like this?  When significant things are happening in our society and aren’t being covered by the schools, should we step in?  Why aren’t schools addressing this?

Some of our students will be voting in the election on November 4th, but they don’t even know about what is happening in our economy.  Do we in youth ministry have a role in this?

Comments (5)
Categories : News, Youth Ministry
Tags : bailout, education

An Alternative to the $700 Billion Plan

By Matt · Comments (0)
Tuesday, September 23rd, 2008

I don’t much like the idea of the government playing in the markets with $700 billion.  For a possibile alternative, check out this link.  Let me know what you think.

Comments (0)
Categories : News
Tags : bailout

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