Letter to the Editor

The bank bailout fiasco

Wednesday, June 23, 2010

Since reading Jack Knowlan Sr.'s recent op-ed, I've wrestled with the notion of responding. While I admire the way Mr. Knowlan respectfully expressed his opinion and refrained from name-calling, I felt compelled to respond with my perspective. I can be labeled a conservative, probably more a tea-party variety than Republican.

I attribute the banking problem to too much government regulation and the Community Reinvestment Act in particular. Fannie Mae and Freddie Mac were essentially established to shore up the problems caused by banks complying with this act. Ask someone you know who is a banker. He or she can explain. Then ask when the act was passed and for what reason.

The bank bailout fiasco began under the Bush administration. One can argue the merits of the bailout, but a more important discussion may be which banks have paid back the money lent to them by the government. Research will show that nearly all money lent under the Bush administration has been paid back with sufficient interest.

To gain a full understanding of how the two administrations handle government assistance, contrast the bank bailouts of the Bush administration with the bailouts under President Obama. General Motors is a good example. Creditors with first liens were moved from first place to last, and an infinite number of bankruptcy rules were ignored.

The war: Remember, the terrorists are the problem. Until they are stopped we will always be at war. Thank God for our armed forces.