Unfettered Letters

Government bailouts

All this talk about stimulus packages and bailouts scares the daylights out of me. We know from history, if we care to learn, that creating new money and spreading it far and wide in an attempt to get prices up does not work. It did not work in the 1930s. In fact, the attempts to re-inflate the economy prolonged the Depression by many years.

Yet here we are, doing what we should know cannot work. What the Bush administration has done and what the Obama administration is promising to do is exactly the wrong thing. The politicians are responding to the imperative to do something, anything, however foolish it is. In addition, it gives the politicians an excuse to do what they love to do — spend huge sums of money to buy votes and favors from the recipients.

The root cause of this problem is the ability of the Federal Reserve to print new money without restraint. This has driven prices of real estate up to unsustainable levels.

We cannot fix the problem by doing more of the same.

Michael Kerner
Lenexa

The government’s bailouts remind me of the T-shirt that says “I’m not broke. I still have checks left.”

David Scott
Lee’s Summit

The Big Banking bailout

The people of the great state of Missouri want accountability for the billions of dollars being doled out to the mismanaged financial institutions that are being bailed out with our tax money. To date, none of the companies receiving the largest amounts of money is willing to make a statement of what the funds are being spent on. This is wrong.

Americans reluctantly agreed to help these greedy, money-grubbing financiers due to the promise that the credit crunch would be eased and a deep recession held at bay. Instead, they take hundreds of billions of dollars, credit is not eased and they refuse transparency in the use of our money.

Congress has to lean heavily on the Treasury Department to insist on accountability for the funds spent and refuse to allocate any further expenditure without strict oversight. These are the very entities that have driven our country to the brink of economic disaster, and we don’t trust them at all.

We want answers, and we want them now!

Robert Allen
Jefferson City

How are the banks spending our money?

AIG just reported that they have lost $30 billion but, of course, they still have their fleet of corporate jets. What kind of deal is this?

The Associated Press recently asked 21 banks what they have done with the billions of dollars you and I have given to them. They refuse to say.

Is this crazy, or what? It certainly isn’t transparency. And my congressman, Dennis Moore, voted for this fraud. He needs to retire ASAP. No wonder Congress has only a 9 percent approval rating.

We continue to allow a group of private bankers to create our fiat paper money that has lost 60 percent of its value in the last 20 years. And they charge us interest to use this nearly-worthless money, which means they have made billions of dollars from us.

Why do we continue to reward failure and ignore the Constitution that says Congress is to create our money via gold and silver?

R.J. Brown
Leawood

Disgusted with hotshot bankers

I am disgusted as I read about the hotshot bankers who make the big bucks because they “need extra money to be motivated” (12/22, A-1, “Banks in bailout gave big rewards”). Is this still America? Do we still have a collective soul?

I think of the thousands of workers whose daily efforts keep the country going and who do not always quit at quitting time if there are still people to be served. Do the hotshot bankers think they are more intelligent and deserving than the teachers, social workers, nurses and other caregivers who chose to enter a service profession despite the lower pay?

And what of the people who are overseeing the bailout? Does U.S. law not provide the clout to hold accountable the recipients of the bailout money that taxpayers were told would salvage the country’s economy?

In less than a month, a new administration will take over. Will the hope of the campaign carry over past Jan. 20 in the face of so much brokenness in America? Hopefully, Washington will take its cue from the middle class. Those at the top are too far removed from the reality of the rest of us to be of much help.

Janelle Lazzo
Roeland Park

Bailout funds are our money

Most banks bailed out by U.S. taxpayers will not disclose how they are spending our money. JPMorgan Chase, which received $25 billion from taxpayers, will not give any accounting on how our money is being spent.

Thanks to the Securities and Exchange Commission, we now know that top bank executives were awarded nearly $1.6 billion in salaries, bonuses and other benefits last year at the same time these banks were in economic crisis.

Should these wealthy bank executives be forced to tell us taxpayers how our money is being spent?

Dan Lykins
Topeka

For years it has been known that the compensation committee and board of directors of the largest firms rubber stamp executive pay regardless of company performance, and 2007 was no different.

As a taxpayer, I want to know what restrictions were placed on executive compensation for companies that were bailed out this year. Also, what is to prevent our money from being used for political contributions?

Randy Maddox
Kansas City

Madoff’s Ponzi scheme

Appalling. Scum. A ganef (Yiddish for thief).

Nothing has my ire as much as the Ponzi scheme of Bernard Madoff. No conscience, no heart, no integrity. He puts his head down every night on his pillow, with no thoughts whatsoever about humanity. He’s a picture of greed, self-absorption, manipulation and disgust.

What goes around, hopefully, will come around for Madoff. May he live to be castigated in front of the world.

Susan Goldenberg
Kansas City

Why do people keep saying Bernard Madoff ran the largest Ponzi scheme in history? By my calculations, I conclude that dubious distinction goes to the Social Security Administration.

At least Madoff’s clients were willing participants and not forced into it by their government.

Dan Werkowitch
Overland Park

Punish executives for malfeasance

What is so infuriating about the current economic crisis is that it was created solely by people in the banking and mortgage industries who, as middlemen, produce zero yet receive unconscionable sums for mismanaging the redistribution of resources of productive Americans.

Such money manipulators have always been reviled. Once known as money changers and robber barons, we now simply call them financial schemers, swindlers and thieves.

One would have thought that Enron, WorldCom and others would have served as effective cautionary tales for the financial community, but there is no accounting for the arrogance, greed and dishonesty of some.

If Ken Lay deserved what was coming to him for helping to destroy a single business enterprise, what do these current corporate titans deserve for the financial destruction they have caused the entire national economy?

We taxpayers must insist that they soon face appropriate accountability for their malfeasance, including criminal prosecution.

Crosby P. Engel
Weatherby Lake

Automakers held to higher standard

Supporting the auto industry is essential. They’ve provided more information about their plans and goals than the ruthless Wall Street organization.

Treating the auto industry with less respect than Wall Street is wrong. Auto industry CEOs are more responsible for their actions than Wall Street culprits. Why aren’t Wall Street wrongdoers under scrutiny for their luxurious lifestyles?

As a taxpayer, I find Wall Street leaders’ insensitivity toward hardships placed upon taxpaying citizens insulting. Regardless of employment status, autoworkers will continue paying taxes for the mess made by Wall Street offenders.

It is offensive that Wall Street executives apparently are exempt from being held accountable for their actions. Why are they being protected for negligent actions that brought on this corruption? Why aren’t severe stipulations being placed on individuals involved with the downfall of Wall Street?

Cynthia Miller
Shawnee

Auto executives treated unfairly

I am tired of the congressional circus of self-righteous representatives happily bludgeoning the CEOs of GM, Ford and Chrysler for all to see because they asked for a loan of $25 billion.

Isn’t this the same Congress that approved $700 billion (not a loan) for the banking giants whose greed prompted this crisis? When were the CEOs of AIG, IndyMac and Washington Mutual pummeled in a photo-op parade?

And I am tired of a Senate that now is holding the autoworkers hostage as scapegoats for our anger at the $700 billion. Is this not an old mentality — let those at the bottom pay for the sins of the rich?

If virtue were required for recipients of such grants, none would receive.

Eugene L. Lowry
Kansas City

Wall Street CEOs should walk the plank

The pirates of Wall Street

For a long time we have been hearing about the pirates of Somalia. The hijackers have extracted millions of dollars from insurance companies and ship owners. Their crimes are obvious. Their piracy at sea was born on land out of poverty and desperation.

In America, men who were never impoverished practiced maneuvers so clandestine they went undetected. Since they were not poor, it’s hard to fathom why the cargo has vanished and the ship left crippled.

On CNN, Lou Dobbs said that Wall Street CEOs were guilty only of “bad management.” This mess is so complicated, our justice system wouldn’t know how to unravel it anyway.

I resent this financial disaster. We have borrowed the savings of the rest of the world and consumed them, and now we are forced to accelerate that strategy. How will we ever pay it all back? Will others keep lending?

It’s like watching the fall of Rome governed by a leader who uses credit cards to make credit card payments.

Cory Thompson
Tonganoxie

Dodd man out …

I am with Sen. Chris Dodd. Those auto CEOs need to resign. In fact, everyone who caused the subprime fiasco needs to go.

Oh, I guess that would include Chris Dodd, too.

Charley Morasch
Leawood

Interest-rate cuts unfair to retirees

The American people are being represented by a large group of “smart” politicians, bankers, economists and strategists who believe that throwing “our” money at a failing economy will fix the problem.

These “experts” have given billions to the financial industry, but as yet it hasn’t helped the housing foreclosures any. Now the Treasury Department wants to make home loans to new buyers at 4.5 percent interest rates. Who is going to pay for this new effort to stimulate the economy? Everyone who has savings accounts, money markets, CDs and other retirement income — mostly retired people. They will have less income to spend with lower interest income, thus subsidizing new homebuyers.

Remember what Joe the Plumber said? He was right all the time.

Paul Clum
Lone Jack

Where are their brains?

The Big Three couldn’t succeed with their own money, and our federal government is about to hand them $15 billion dollars of our money.

Can you imagine the neck muscles it takes to hold up that much granite?

Mark Forster
Lee’s Summit

Make automakers put up collateral

When an American taxpayer borrows a large sum of money, the lender typically obtains commensurate collateral to secure the loan. What have the big three automakers offered as collateral?

Before they are given a single dollar, each one of the principals of each of the auto companies should be required not only to put up their respective auto businesses and all business assets as collateral, but also all their private homes, cars and all other personal assets. This will motivate them to rethink how much money they actually need and will encourage them to properly manage it.

Unless these loans are secured — to the degree that it will be personally painful for them if not repaid in a timely manner — this bailout will be nothing more than a prescription for trouble that will leave the American public strapped with yet another massive debt.

Carole Hawkins
Kansas City

Tax-dodgers don’t deserve bailouts

So here’s a fair idea: Any company that formed an offshore subsidiary to avoid paying U.S. taxes should be ineligible for a bailout from the U.S. taxpayer.

This should thin the ranks of corporations in line for a handout considerably.

Ed Mickells
Overland Park

It’s time to hold Democrats accountable

I am amazed at all the politicians calling for resignations of corporate CEOs.

How about the resignations of members of Congress that got us into this mess — Barney Frank, Christopher Dodd, Nancy Pelosi and Harry Reid?

These hypocrites call for resignations for those who caused the failure of corporate America, but what about the failure of government?

The fault cannot all land at the feet of President Bush.

When are we going to start holding the majority party in Congress accountable? We did when they were Republicans, and rightfully so.

It is time that we started holding Democrats accountable for there actions and calling for their resignations.

Enough is enough!

Ward M. Dickmann
Raytown

Consumer spending got us into mess

We keep being told by the “experts” that the way out of the recession is consumer spending. Consumer spending is what got us in this mess in the first place.

For several years, personal credit card debt has increased, and now the average credit card debt per household is reaching the $ 9,000 vicinity. The mortgage fiasco wouldn’t have exploded if consumers had examined their personal finances and purchased a home within their needs and means.

So go ahead, consumers, and spend yourselves out of the recession. But before you use your past-due credit card for that iPod, Blackberry, big-screen TV or $200 concert tickets that you just can’t live without, bring that credit card balance down to a manageable amount.

Clyde Houghton
Shawnee

Dear politicians,

Attention all politicians: Here are just three simple questions.

1. Where are going to get the money?
2. How are you going to pay it back?
3. Is this the way you manage your own personal affairs?

With all your brilliant minds, would just one of you step forward and explain this to us? You owe the legal American citizens of America an explanation. We are scared.

Jim Lockhart
Merriam

Bank donates bears to homeless children

Not all banks are cold and indifferent to their communities and cities.

On Nov. 22, the Bank of the West near 87th and Pflumm in Lenexa donated more than 100 toy bears to homeless children in the old Northeast area in Kansas City.

Santa Claus passed out the bears to many kids who may not receive another Christmas gift this year. The kids hugged their bears as adults would protect a very expensive gift.

The next time you are near 87th and Pflumm, stop in and thank Jeannie Martin and the other great employees of the Bank of the West for a sincere act of kindness toward the homeless kids of our city.

Joe and Lorene Thomason
Lenexa

Big Three vs. Big Banking

It’s hard to understand the debate over the bailout of the Big Three, when we just approved $700 billion for the banks who represent the most corrupt, inept CEOs on earth.

Warren Whitney
Stilwell

Views on the U.S. economic woes

Opinions on aiding the Big Three

Like Lawrence MacLachlan (11/22, Letters), I grew up in Detroit, on the east side. When I drive through my old neighborhood, wonderful memories emerge, along with tears for what it once was.

Hard times are not new to Detroit. There have always been strikes and layoffs. What is different are the attitudes.

A worker today looks into the TV camera and cries about how they will not have a Christmas in anticipation of being laid off. One time when I was a kid, my dad — and most of Detroit — was laid off or on strike for nine months, and we kids never knew his worries. He just kept working any odd job that he could find.

Please TV reporters, the poor are still quietly helping the poor. Find them and tell their story.

Barbara Smith

Shawnee

Steven Addison (11/24, Letters) writes that we owe the unions a “thank you.” He states: “Those of you do not belong to a union should thank a union worker every time you meet one.”

Steven, I don’t feel the need to thank the United Auto Workers from the old Fisher Body Leeds plant. In the ’70s, they used to giggle about striking while talking in the restaurant across the street. One plan I heard included placing lug nuts inside car doors during assembly, which guaranteed a rattle for a customer. Not much thanks needed there, is there?

Then there were the union Kansas City firefighters who staged a strike three times: 1975, 1979 and 1980. Among the things we need to thank them for is that they walked out on a half million citizens of Kansas City, leaving them without professional fire protection. Who wouldn’t want to thank them?

Union air traffic controllers? In 1981, President Reagan pink-slipped about 11,000 air traffic controllers who walked out in violation of their contract and federal law. Some were quoted as saying they thought Reagan was bluffing. Apparently, he wasn’t.

No, Steven, I don’t owe them any thanks.

Larry Dickstein

Lone Jack

I wonder why the Honda and Toyota people are not begging for a bailout.

Bob Bacchus

Kansas City

Bailout for Citigroup

What’s with all this hand-wringing about a lousy $25 billion in bailout funds for the auto industry?

We just gave Treasury Secretary Henry Paulson (an unelected official) almost 30 times that amount to do with as he pleases. The pork-barrel spending alone in the Wall Street rescue bill dwarfs anything that has been proposed for the auto industry. Citigroup just received an additional $20 billion to go with its previous $25 billion. It needs the money to finish building a new ballpark for the New York Mets.

Perhaps its time to make Paulson king and give him another trillion dollars to play with. Maybe we can build a new stadium for every professional sports franchise in the country.

Let’s keep our priorities in order.

Bill Kuhlmann

Independence

The taxpayers are being asked to bail out Citigroup from bankruptcy.

If we lend Citgroup the money, certain conditions should apply. They should be treated as a poor credit risk and charged 28.99 percent interest. If they fail to meet any of the conditions, interest will increase to 39.99 percent.

What goes around comes around.

Suzanne Colbert

Gladstone

Use money to create jobs

I am glad that we are a nation that helps those who are in need. My concern is that we are continually finding ourselves in a financial crisis, and we are going to be out of money.

We have increased by almost a million people within the last year who are in need of the Supplemental Nutrition Assistance Program. I wonder if some or any of the billions of dollars that have been floating around in the air are going to be used to actually get our nation back on its feet. I wonder if any of the money will benefit our supplemental programs, our schools, health insurance and all of the other financial issues that have been affecting us.

Let’s find a solution to decrease poverty. I believe the bailout money should be used to create more jobs. More jobs would make it less likely that people would need to use the Supplemental Nutrition Assistance Program.

Let’s begin to rebuild our nation and start meeting the needs of our people by strengthening small businesses.

Brandy Herrera

Kansas City, Kan.

Pure capitalism doesn’t exist

Mark Robertson (11/25, Letters, “Obama supporters ill-informed”) calls Obama’s economic plan “socialistic wealth redistribution.” He merely spews more supply-side Reaganomics tripe. That angle has reached a cyclical bottom, and to maintain this status quo is ignorant.

Our suppliers of goods and credit are crumbling. Mr. Robertson offers “capitalism” as a solution. But there are no pure economic systems. These ideals are used only for analysis. The problem is people. People cheat, people lie, people steal, and people commit all varieties of crimes to secure themselves wealth. These human inclinations quickly and radically change any economic studies that lead to official policy

Any system we adopt now must include more oversight, not less, as we now painfully see. The supply-side has cycled out, and it’s time to create real jobs and demand. Frankin Delano Roosevelt did it successfully, and not too many people look back at him as a socialist.

John D. Colle

Blue Springs

Crying ‘socialism’ a scare tactic

I read with great interest Roger Merryfield’s Midwest Voices column (11/22, Opinion, “A post-election primer on the new ‘fairness’.”). How useless are inaccurate, sarcastic rants from poor-loser Republicans during this time of crisis?

This is the U.S.A. No one is going to try, or be successful at, implementing a socialist system into our economy. To say otherwise is another example of the politics of fear that the American voter clearly demonstrated that they no longer want to be a part of.

Rob Meacham

Overland Park

It’s time to restrain the demons

By now as we go deep into recession we should understand that democracy and economic stability are incompatible with a wholly unregulated market system. Yet the Ayn Rand folks are still in denial and, from reading letters to the newspaper from various angry citizens, I sense that Bush and his crew have planted well the seeds of fear, ignorance and false certainty.

How can we as a nation address our very critical problems when the only majority we can muster is the one of complaint? And another question, posed by Saul Bellow, “With everyone sold on the good, how does all the evil get done?”

I think an essential task of political leadership is to keep the demons within us all from getting loose. The last few years make me believe the demons are out and about. Can they be restrained in the coming administration? I can only hope.

Being an old man, playing in the late innings, hope is about all I have left. Maybe, just maybe, that will be enough.

Charles Litz
Topeka

Waiting for help to trickle down

We were told that it was imperative we rush through a $700 million dollar bailout package. “Immediately” was the language used — now, fast.

So weeks later all I hear is that the government will soon begin to release money to help the economy. After making it seem extremely desperate that we get the bailout package passed, our government is dragging its rear?

Now I hear they have changed the direction of how the money will be used. Instead of buying up the bad debts, it will be given to the banks directly — the same institutions that got us into this mess.

How will this help me? My home is on standby for foreclosure, as I try to sell it. I do not want to lose my home to foreclosure or sell it, so if I walk into one of the now “saved” banks and ask them for a loan to keep my home, will it happen? No. I have no collateral, and I am still searching for a paying job. So how exactly is all this helping me?

Bait-and-switch is illegal. Another “trickle down” theorem leaves me desperate for my life-saving drop.

Laurie Todd
Olathe

Quick, easy credit at stores

Given the current financial crisis in this country, I find it amazing that major chain stores are still so willing to grant credit in a matter of minutes.

Recently, I had to wait in line at the checkout while two consumers in front of me were asked, ”Would you like to save 10 percent on your purchases today by opening an account with us?” In both instances, the consumers said yes.

I, as well as those behind me in line, had to wait to buy our items while the consumers filled out the credit application. One consumer could not speak English very well and had to have help from the store clerk filling out the form. Both consumers were approved instantly. One saved $3, and the other saved $4.

The icing on the cake came just yesterday when I made a purchase of $8.70, and, yes, was asked the same question. My savings would have been 87 cents. When I asked the clerk if she was kidding, she told me it was her job to ask everyone, no matter the purchase amount.

Will these stores be the next bailout? Where are their standards?

Sue Genske
Weatherby Lake

How can I become a bank?

While I understand the reasoning behind the desire to bail out banks, I don’t understand that recently-started banks and companies like American Express are allowed to be eligible for the bailout.

Recently-started banks that are in financial straits seem to have been started on the same bad business model that most banks have used in the past. It is time to just hand out credit to each other like candy?

Can I still become a bank and be eligible for the bailout?

Claus Wawrzinek
Kansas City

Questions linger after bailout

This pertains to the banks: Where and how is the bailout money being spent? Just a few simple questions answered would be nice to know.

How much is being paid out to CEOs and management in bonuses?

How much is being spent for upcoming holiday parties, gifts, travel and resorts for meetings?

Why are banks using money to buy out other banks and not helping homeowners, where the money is supposed to go?

When are banks going to start lending money at 2 percent over prime like they used to?

I think the general public could use a few good answers.

In the Constitution, freedom of the press was created to be tool to keep government in check. What happened? This is our tax money being spent.

Joe Parizek
Overland Park

Foreclosures in fraud case

Betty K. Lusby (11/5, Letters) mentions “illegal foreclosures” in her letter about the upscale mortgage fraud cases (10/30, A1, “17 indicted in upscale mortgage fraud case”). What evidence does she have of these “illegal foreclosures?”

I cannot imagine what these crooks could have perpetrated that would have given rise to such foreclosures. It would appear that all involved were party to the fraud.

Additionally, expecting Rep. Emanuel Cleaver or Sen. Claire McCaskill to get involved is a pipe dream. They are too busy following Barack Obama around to work for their respective constituencies.

Tom Turner
Lee’s Summi

Upscale mortgage fraud case

Thanks to those who brought justice to those responsible for this local mortgage-fraud case (10/30, A-1, “17 indicted in upscale mortgage fraud case”).

I would like to see some of the money from the $700 billion rescue plan be used to help get people back into homes that were lost to illegal foreclosures, help people to stay in their houses and compensate some of the homeowners in neighborhoods where their house values were lowered by these illegal foreclosures.

I would like Sen. Claire McCaskill and Rep. Emanuel Cleaver to help Missourians to achieve the above goals.

Betty K. Lusby
Village of Loch Lloyd

Greenspan’s costly ‘mistake’

So former Federal Reserve Chairman Alan Greenspan made a “mistake” in presuming the leaders of financial institutions would look out for the interests of their shareholders (10/24, A-1, “Greenspan admits he misjudged the threat; Free-market failings, overeager investors share in the blame, he tells House panel”).

Obviously Mr. Greenspan was never a parent. Nor did he listen to Ronald Reagan, who believed in “trust but verify.”

These people should have been taken to the woodshed more than decade ago.

Mr. Greenspan’s fantasy beliefs about human nature coupled with a monumental dereliction of duty on the part of our elected representatives (among others) have gotten us into, in the words of Ollie Hardy, “another fine mess.”

Ross Warnell
Smithville

Private gains, public losses

The tragic irony of the bailout fiasco is that the titans of Wall Street, many of whom are conservative Republicans, have turned our capitalistic system on its head and embraced worldwide financial socialism. But, as true capitalists, they used their prowess with free markets to privatize the profits while socializing the losses.

Karl Marx predicted this scenario in 1848 in one of his manifestos.

Is God watching all this? If so, she sure works in funny ways.

Brian Casey
Kansas City

Moore’s vote on bailout bill

A letter writer (9/22)http://www.kansascity.com/309/story/807383-p3.html thanked Dennis Moore for helping with a medical coverage issue. So what did Moore do? His job — what we pay him to do.

But I just called Rep. Moore’s office, and his aide said he voted for the $700 billion bailout bill, in spite of the fact that the majority of his constituents told him not to do that. And of course we know that the National Taxpayers Union gave him an “F” for his irresponsible spending.

Jim Cramer, host of CNBC’s “Mad Money,” just wrote a column titled “Fed Responsible for Market Miscues” The Fed’s bankers charge us mega thousands of dollars to use their fiat paper money. Congressman Ron Paul has introduced HR 2755 to put an end to that graft.

Will Dennis Moore support that resolution? If not, we should follow the many voters who recommend voting against any incumbent who voted to support that giveaway to the money powers. That’s not doing your job, Mr. Moore.

R.J. Brown
Leawood

Role of Congress in bailout

Is anyone else disappointed and outraged? The two presidential candidates both told us in their last debate that earmarks and pork-barrel spending must be stopped. Then, only a few days later, they voted to pass the bailout bill that is full of it — more than $100 billion of it. I see this as another example of how out of touch they are. You know, what’s another $100 billion? They will not stop it, so we the people are going to have to.

We need to start over in the Congress. If an incumbent is on the ballot, don’t vote for him or her. If they are not directly guilty of putting in all the pork-barrel legislation, then they are indirectly guilty for not doing enough to stop it.

Let’s get all new people in there who do not owe any favors, who are not using their seat in Congress for personal gain and will do anything to get re-elected, who remember that their job is to be a voice for the citizens they represent, and who have recent experience living in the real world and know how it feels to live normal lives outside of Washington.

Dorothy Clopton
Lenexa

The bailout bill should have been a clean, line-item proposal showing approximately how much money would go to each entity. Even a personal financial adviser tells you where he or she is going to invest your money.

The unnecessary “pork” that was included in the bailout should give everyone an idea of who the strongest lobbyists are and which members of Congress acquiesce to these special interest groups.

Gail Dunker
Stilwell

Who’s to blame in bailout?

There is plenty of blame to go around for what happened in our financial sector. I’m tired of hearing only about “Wall Street greed.” It’s much more than that. The elephant in the room is Fannie Mae and Freddie Mac. Their purchased mortgages carried an implied guarantee of the U.S. government. They sold this “paper” to banks and financial houses on Wall Street, who were eager to package them up into securities for resale.

Fannie and Freddie needed to be regulated more. Who gave them their expanded powers, and who wanted to rein them in? President Clinton’s social engineering gave them the powers. Why the Republican Congress went along with that boggles my mind.

Later there were politicians — Republicans — who wanted more regulation on Fannie and Freddie, but by that time they were the minority and couldn’t get heard.

Regulating Fannie and Freddie would be regulating government, which the Republicans wanted to do. Regulating Wall Street is regulating private industry, which the Democrats are all about. Who needed the most regulation? Fannie and Freddie. Who stonewalled that regulation? The Democrats. There’s another elephant!

Tony Hawkins
Kansas City

The government and media have done a good job convincing everyone that the financial crisis is caused by some combination of greed, dishonest banks, not enough regulation or whatever. They blame anything but the real underlying cause. Every bubble in human history was caused by excess money and credit creation. This one is no different. The government spent wildly, financing it by borrowing heavily. When that borrowing drove up interest rates, the Federal Reserve created new money to buy back some of that debt to drive interest rates down.

The government does not want to fix the real problem because that means they must stop their wild spending. What fun is being in government if you can’t spend and steal freely? While all government spending contributed to this problem, there has been a dramatic increase in spending during the Bush administration.

I guess that history will record that the Iraq war not only killed tens of thousands of people, it also started the second Great Depression. On the positive side, it might end with an Iraq as stable as it was before we invaded, if we are very, very lucky.

Michael Kerner
Lenexa

I’ve read with a bit of amusement the finger-pointing letters about the financial bailout: “It’s the Clinton administration who is to blame!” or “It’s Republicans’ fault!” or “Those greedy Wall Street executives!” I would question if any of these letters were composed by citizens who:

Refinanced a home taking some cash out to buy something they otherwise could not afford.

Assumed an adjustable-rate mortgage thinking, “I don’t have to worry about this for five years!”

Encouraged themselves or a family member to apply for a zero-down home loan.

Bought furniture “12 months same as cash” thinking, “What a great deal!”

Financed a new car for a longer period than the car is likely to last.

Do any of these creative financing methods make you ask, “Who’s paying for this?” Well, guess what?

Carol Watts
Overland Park

Congress makes the Kansas City school board look cerebral.

Julie Crain
Olathe

Bailout politics

Fannie, Freddie and Obama

Actions speak louder than words.

In 2006, John McCain said, “If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system and the economy as a whole.”

Barack Obama is part of the problem. The only member of Congress (since 1989) to receive more money from Fannie Mae and Freddie Mac than Sen. Obama is Sen. Chris Dodd (D-Conn.), chairman of the Senate Banking Committee. Obama took his funds in four years, during which time McCain raised the alarm about the problems with these mortgage giants. Obama was well aware of the problem but accepted money from them anyway.

Sen. McCain has the vision to see problems ahead for us and the courage to confront them for all Americans.

Linda Johnson
Village of Loch Lloyd

Millions ... billions ... priceless

Five U.S. senators (including Sen. McCain) to obstruct regulators:

Cost: $1.3 million dollars.

Taxpayer bailout of Wall Street years later:

Cost: $700 billion dollars

John McCain’s assurance he is the best one to handle the crisis:

Priceless.

There are some things money can’t buy. For everything else, there’s (the government) MasterCard.

Clyde Waltermate
Raytown

Don’t blame GOP for bailout

The Democrats have been attacking again, blaming the current financial crisis on Republican deregulation. If only it were true.

Fraud, in the form of improperly filled out loan applications or inflated inspections, is still against the law. We’ve seen recent high-profile cases against local politicians, if you have any doubt. What occurred was not because of deregulation but old-fashioned greed.

If the Democratic-led bailout was really serious about addressing the issue, it would have included an extra $100,000,000 for the Justice Department to review and prosecute mortgage failures for fraud.

Isn’t it curious then that the top two recipients of Freddie and Fannie’s largesse were Democrats, including their candidate for president?

David Small
Olathe

In his Gettysburg Address, President Abraham Lincoln said: “... government of the people, by the people, for the people, shall not perish from the earth.”

The Star’s article “Cleaver switches vote, endorses bailout measure; He says his constituents overwhelmingly opposed the plan” (10/4, A-6) said:

“(Rep. Emanuel) Cleaver noted that calls and e-mails ran 99-1 against the rescue package”

“Cleaver said constituents opposed the package because everyday people were being asked to bail out ‘Wall Street fat cats.’ ”

“Cleaver said, ‘I feel as if I did the right thing.’ ”

Cleaver’s congressional Web site says: “Proudly serving the people of Missouri’s Fifth District.”

Honest Abe must certainly believe that government has indeed perished or is circling the drain. The buzzing sound you hear is Mr. Lincoln spinning in his grave.

Larry Dickstein
Lone Jack

Bum bailout

We know that Congress has already received hundreds of thousands of e-mails in protest of the bailout. At times the capitol computer servers last week nearly ground to a halt.

And yet they still plowed ahead with their condescending, “we know better than you” attitudes, on the basis of secret briefings from Wall Street wolf, Henry Paulson, which probably were just as bogus as the secret briefings on weapons of mass destruction that suckered them all into supporting the invasion of Iraq, another hideous policy blunder. The one redeeming feature of the bill, to allow bankruptcy judges to give distressed homeowners payment relief, is exactly the one that’s been stripped out.

So what are we the American people to do? Just shut up about it all and leave the “done deals” to the done dealers? We will never stop protesting the economically lunatic plan to bailout the billionaires.

William Langsdorf
Kansas City

This is truly the end of eight years of killing in the name of oil, robbing Mother Nature and now robbing all the American people. I do not believe in this “emergency” bailout and know that billionaires do not need more money.

Emily Hillman
Kansas City

‘Affordable housing’ spin

Our government created a culture of “affordable housing.” That’s code for “We want to waive good business practice so people who wouldn’t normally be able to buy houses will be able to buy houses.” When the financial community responds by doing the government’s bidding, our self-serving Congress blames everyone except themselves.

Democrats can blame Republicans, and Republicans can blame Democrats. They can blame the president and Wall Street. But they can’t bring themselves to ever say “we” made a mistake or “I” made a mistake.

Wall Street is also complicit. All of those Ivy League MBAs certainly know better than to take on that much risk. But they also have a plausible argument that the government’s affordable housing directive carried implicit guarantees of government backup. Rightfully the taxpayers have objected.

If the government had ever really explained what they were doing instead of the politically correct “affordable housing” spin, no self-respecting, hardworking, bill-paying taxpayer would have ever elected those fools to begin with. Now they say give us $700 billion or we’ll take it all.

To borrow a concept from Albert Einstein, never fix a problem with the same idiots who got you there.

Jim Wagner
Lenexa

Promote savings

I’ve been in the mortgage business in since 1978, so the following will astound my friends. It will also enrage two million real estate agents. They’ll adjust.

1. Congress should repeal the income tax deduction for mortgage interest. Phase it out over three years to wean the housing industry away from this subsidy. People don’t borrow money to buy houses for the interest deduction, anyway.
2. Congress should immediately eliminate the income tax on FDIC-insured savings accounts. This isn’t a big incentive but it sends a good message. Everyone should save a little more and spend a little less. For the long-term health of our economy, we need more savers.

We tell our kids they should save some of their paycheck for a rainy day. The grownups (at home and in Washington, D.C.) spend and borrow and spend some more. What kind of example is that?

The credit markets are tight because the lenders no longer believe our promises to repay. The rapidly rising number of defaulted loans and credit cards confirms their suspicion.

It is time to move from a spending society to a savings society — starting now. Call your representatives.

Steven B. Chase
Overland Park