HIDDEN HORRORS IN THE "BAILOUT" BILL
Wednesday night, the Senate passed the latest permutation of the $700 billion "bailout bill" that morphed from the Administration's 3.5 page bill (too little) to 451 pages (too large).
If we taxpayers thought that we were getting hosed with the first proposal, this one, signed by the President on Friday, will leave us feeling screwed, blued and tattooed!
Since the Senate was afraid that it couldn't just pass this bill on its own merits (saving our entire financial system!); it felt the need to shove another $1.7 billion in pork into an already astronomical $700 billion to get members on board. It will, by most accounts be $3.5 trillion not the conventional wisdom that says $700 billion.
While the Senate and most of the media refer to these additions as "sweeteners," or "targeted tax breaks," this bill is full of pork. Oink, oink.
No rose that sweetly smells here...just downright stinking garbage!
Outrageous!
You won't believe some of the provisions in this bill. Some of the worst are tax breaks for:
-Auto racing tracks: $128 million
-Small- to medium-sized film producers: $10 million
-Manufacturers of wooden arrows: $6 million
-Corporations in American Samoa: $33 million
-Rum producers in Puerto Rico and the Virgin Islands: $192 million
-Fishermen and others who suffered from the Exxon Valdez oil spill in 1989: $223 million
-Wool "research": Cost not available (wonder why?)
All of this is necessary to salvage our financial system? As The Wall Street Journal pointed out in an editorial the other day, the Senate makes sausage-making look good!
Oh, and for us taxpayers? Nothing. Nada. Zilch in the way of tax breaks in the Senate version.
The only thing on which we may surely count is, if the bill finally passes the House, these tax breaks for vested interests will bring in less tax revenue for Uncle Sam...guaranteeing tax increases for the rest of us.
Both Presidential Candidates Vote "Yes"
We "get" why Barack Obama voted "yes" on this bill. Although he has claimed that he will reform "pork" abuses if he is elected, in reality, he asked for $931 million in pork for Illinois.
John McCain has built his entire economic plan on ridding the government of pork. However, no matter the terminology used by the Senate to approve this bill, it's loaded with pork!
So, John...tell us. Why would you vote "yes" on the bill?
Frankly, it's beyond us to understand.
We continue to watch this situation very closely. Once we see what the Senate does and know for sure what will be in any final version of the bill, we will be back in touch with our analysis of what it means for you and what actions you should take as a result.
Yes, it's time to put that hard earned money into something that you can touch feel and see... hard assets. So investors... before the Fed is forced to take the lid off of these artificially low interest rates, get your money safe.
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