“The administration and the banks keep talking about a credit crisis, but there isn’t one. Banks are lending. If you want a mortgage and can afford to pay it back, you can borrow at low rates today. You can finance a car at low rates for seven years. But most Americans don’t want more debt because it is a debilitating path to poverty. The average American family already pays 14 percent of annual income in interest to banks.
To fix this fake crisis, there are fake discussions about what the government must do. The endlessly recycled plan to buy ‘troubled’ assets isn’t to get banks lending again, because they haven’t stopped lending. The plan seeks for taxpayers to buy worthless assets at high prices to absorb rich investors’ losses. That’s it. It keeps coming back as a different plan, but with that same goal. There is no goal beyond that one goal: keep rich people from taking losses.
Obama and his economic gurus all chant, ‘Credit is the lifeblood of the economy,’ but they don’t mean credit. They mean debt. Imagine the president saying, ‘Debt is the lifeblood of our economy. We desperately need to get more American families deeper in debt.’ That’s what he means, and that’s what these bailouts hope to do.” (Read more from sfgate.com)