Wednesday, October 01, 2008

Choose your words carefully

That 'cow patty' comment from Paul Broun is biting back now, as Time takes him to task ...

Some of the homeowners who are losing wealth reside in Clarke County, Georgia, Congressman Broun's home turf, which also had $1.9 billion in deposits in financial institutions in 2006, according to the University of Georgia. That ain't chickenfeed. And speaking of which, the fourth largest employer in the region, poultry processor Pilgrim's Pride, is now struggling with financing because credit markets have seized. There are 1,500 jobs in the balance if, say, Pilgrim's Pride can't make payroll because it doesn't have access to funds. It is unlikely that any of those workers invested in CDOs. It is certainly possible that some of them are in over their heads on subprime loans. Some 63% of Georgia's subprime loans were late over the past 12 months; 6.2% are in foreclosure, according to the Federal Reserve.

Could any of them be helped by the bailout bill? Possibly. Do they deserve it? Good question.

The market today gave legislators the opportunity for a do-over, rising nearly 5% on the notion that all those folks who were sending angry messages to their Representatives might have a doubt or two after checking their mutual funds balances. Broun is resolute that taxpayer money won't be used "to give a golden parachute to Wall Street that our grandchildren may still be paying for many decades from now." But Wall Street is all of us, including the Congressman from 10th District in Georgia. We are all going to eat the cow patty. The only question is, how big will it be?


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