We have two options. We could make a list of all of the stimulus projects that were nothing but fraud, waste, stupidity, political paybacks and corruption. Or, we could make a list of stimulus projects that have been good investments.
Let’s do the second list. It would be much shorter. In fact, there might not be anything to put on that list. However, there is yet another item for the first list.
What is it?
Anyone remember WorldCom? WorldCom was one of the largest corporate frauds in US History. And one of the key players in the WorldCom collapse, someone who served time in a Federal Prison for his role in the WorldCom fraud, has received a stimulus loan guarantee.
The loan guarantee is for David Myers and a partner to purchase a home healthcare business in the Mississippi Delta.
WorldCom, just for those who do not remember it, was a massive fraud that wiped out $184 billion dollars in assets, and cost 17,000 people their jobs. Myers pled guilty to falsifying the company’s books so they could create an $11 billion dollar fraud.
Myers did not commit a fraud in obtaining the loan guarantee. He disclosed his conviction and there is no law prohibiting someone like Myers from getting a loan guarantee.
There should be.
There is a huge difference between simply screwing up and making a mistake and participating in a fraud that wiped out a massive company and cost 17,000 people their jobs.
When you commit that kind of crime, there should be consequences that follow you the rest of your life so that others are discouraged from doing similar acts.
While everyone jumps up and down and screams that someone like David Myers could get a loan guarantee, there is a more obvious problem that no one is addressing.
Why do we even have these loan guarantees?
Banks make money by loaning money. They charge interest on their loans not only to cover their risk but also to make a profit.
If David Myers’ venture is such a great idea, why does he need a loan guarantee?
Loan guarantees are nothing more than crony capitalism. They guarantee the bank will not lose money.
Unfortunately they take a significant part of the free market out of play. Risk is a factor every businessman considers. But if the possibility of personal liability is taken out of the equation, people will take foolish chances.
In business, those foolish chances often spell disaster. Banks do not care because their loses are covered.
Would a bank under any other circumstances give this loan to David Myers?
I suspect not.
If insanity is trying the same thing over and over again, expecting a different result, can we argue that giving these loan guarantees out is insane?
We have seen business failure after business failure with these loan guarantees. We have seen this with the so-called “Green energy” projects such as Solynrda. We have seen it in the guaranteed student loan program.
Time and time again, loans are made that if it were not for the government taking the risk for the bank, no such loan would ever be made. We see money being poured into bad businesses and we see students being buried alive in mountains of debt, used to pay for degrees that in many instances are totally worthless.
Meanwhile the bankers stand with their hands out for the government to cover their losses on bad loans and they celebrate their profits on good loans.
The loan to David Myers is an outrage. But it is a symptom of a much worse problem.
It is time we start asking our Congressmen and Senators why they allow these programs to continue.
Permalink Reply by William T. Olson on Giving "loan guarantees" from a country who has to borrow 40 cents for every dollar spent, will cease under new leadership that is coming in January. This Green Energy scam is ending also. One term for Obama and Company.
Permalink Reply by Linny Redd on HEAR, HEAR!! Enough robbing from the poor and giving to the RICH! While I am at it,
Give ME a chunk of the $9 billion for handouts that created all 900 jobs--by the way,were those permanent jobs--
any of them? I could create a few more than that with just 1 of those Billions!
Permalink Reply by Monica Babcock on so could I
Permalink Reply by Debrajoe Smith-Beatty on More of Obama's criminal activity.
Permalink Reply by John S Bacsenko IV on He will just break out that 'executive privilege' rubber stamp again. He finally found another handy tool to continue to assault the Constitution with.
Permalink Reply by Billy Bowlegs on http://www.therightscoop.com/bombshell-proof-obama-and-holder-knew-...
Video Only
http://www.youtube.com/watch?feature=player_embedded&v=L54gOgJxIRQ
Thanks for the lead in Debrajoe;
Permalink Reply by Micheal McClean on Obama was not President at the time of Worldcoms demise. Bush was but I do not think he had anything to do with it. But I could be wrong.
Permalink Reply by Lawrence Brown on The people have allowed corruption to flourish for many years. It seems that working man or woman could care less until a problem hits them directly. This country was built on hard work without someone guarantee a loan. This is just another entitlement for corruption of this country.The only guarantee I ever got,eas right to vote and speak my peace,everything else was gotten from work.Many of these loans come with kickbacks to elected ones in Washington.
Permalink Reply by Gail E. Engelhardt on Hopefully, we will see an end to these loan guarantees with a new Administration, but why has Congress approved these types of loans in the first place. We must stop throwing good money after bad and digging the financial hole we are in even deeper. I'll ask my Congressmen, but I will guarantee you I'll get back a typical form letter that tells me absolutely nothing but how much they appreciate hearing from me with no real positive results to say they will do anything about it. AND, I live in a Red State with so called Republican representation. We need sound fiscal responsibility, and we aren't even getting it in our current Representatives. Boehner needs to go, and so do all the career politicians and RINOs in Washington. We need new blood that isn't tainted by years of special interest and crony capitalism or just plain going along to get along attitude. We need people who value our Constitution and value the principles of our Founders. We need honest, ethical, God fearing individuals who can't be corrupted by money, greed and power.
Permalink Reply by Lawrence Brown on I look at congress like kids. They will do anything until they are punished for misbehavior. Our youth of today runs wild without discipline and we see the outcome everyday in news. Until we the people set guidelines for our youth and elected ones we will not get any results.Our kids receive everything just like congress. How many have been disciplined in congress last 30 years? Very few,most have been rewarded for bad behavior with re=elections. It is voters fault for what has happened in this country. I don't see much change so far as the people will not admit they have screwed up big time. I am very fearful of what November brings. Every city should have peaceful protest every weekend until we solve this problem. I know many citizens are afraid of what law enforcement would do. I believe we have to go down fighting for our country just like our forefathers did.
Permalink Reply by Cathy Cambridge on Where is Corzine???
Permalink Reply by John S Bacsenko IV on Not behind iron bars....where he belongs!
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