RUSH: Last night on Charlie Rose he interviewed Larry Summers, the National Economic Council director. They had this short little exchange, it’s ten seconds.
ROSE: What idea, what person has most influenced your thinking on how to deal with this crisis?
SUMMERS: Keynes. Keynes and all that followed from him.
RUSH: John Maynard Keynes, Keynesian. There’s a quick definition for Keynesian economics: Government prints money; government spends money; government picks winners; government picks losers; government can make better decisions than you can with your own money; government is in charge of virtually as much as it can get its arms around. He admits it, that’s what they’re doing. The question is, why? I, of course, have the answers. I know what Obama’s up to. Obama is up to a massive restructuring of American society. Last night on a show on MSNBC, David Shuster talked to Barney Frank, and Shuster says, ‘I want to ask you about some of the Republican criticism. The president’s plan actually will use taxpayer money to pay people who do what they’re already supposed to do: pay their mortgage.’
FRANK: This is an argument that many conservative Republicans hold, which is let the market alone and never intervene no matter what happens. The fact is that we are suffering in the overall economy for people’s inability to pay mortgages. If you continue to have millions of foreclosures and it spreads and property values go down, cities get hurt, you talk to any mayor, you know, a foreclosed property used to pay taxes. Now it eats taxes. So this is something that’s central, trying to deal with this, for the economy.
RUSH: There you have it, ladies and gentlemen. You’re gonna subsidize people who can’t pay the mortgage all over the country. You’re gonna pay people who refuse to pay their mortgages so that cities collect property tax.
(playing of Banking Queen)
Barney Frank and Banking Queen, Rush Limbaugh, the EIB Network speaking now so other shows cannot steal it.
(continued playing of song)
BREAK TRANSCRIPT
RUSH: Okay, quick question here, folks, from Barney Frank — a question you will not hear asked anywhere else. Barney Frank says we have to subsidize people who are not paying their mortgages because those properties thus have value and pay property tax. Now, help me out here. Those of you who have mortgages, your property tax payment is in the monthly payment, is it not? Mine was when I lived in Kansas City and Sacramento. A lot of people’s property tax payment is in your mortgage payment. If you refuse to pay it — and what’s to make ’em pay it after they’ve been bailed out? If they’re being bailed out not making a payment, how is this gonna inspire them to start paying?
Then what happens if the property tax (so important to Barney Frank) never gets paid because the mortgage never gets paid? What do you do? Well, you bail out the property tax. You bail that out, too. That’s what Keynesian economics is. It never stops! When some segment of the market doesn’t come through, the government says, ‘Well, we gotta pick up the slack here,’ and so you bail out the property tax. The real question is, if they’re being bailed out after not having paid, why start paying? Especially when you got a president on there who is your champion, who’s up there saying, ‘You’ve been screwed by being an American in the free market, and we’re going to come to your rescue.’
Let’s go to the phones. People have been waiting patiently.