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Cavuto and Company All Over the Map re Bear Stearns' "Rescue"

Reported by Melanie - March 17, 2008 -

Neil Cavuto and the reporters and guests on his show today (March 17, 2008) used some interesting words, and some interesting arguments, to describe the action the Federal Reserve took yesterday to bailout the country's 5th largest investment bank, Bear Stearns (BS).

Cavuto opened with a FOX NEWS ALERT and said BS was "scooped up," it was "sold." Later he said we had to, "rescue these guys." Reporter Brenda Buttner called it a "Fed-led buyout." Wall Street guy Jonas Max Ferris said, "the government essentially had no choice," when there's a potential panic, it "steps in and makes sure it's okay."

Roughly twenty minutes later, Cavuto hosted a segment about how our "do nothing" Democratic congress began a two week vacation the very day the "Bear tear" hit the fan (failing to mention, of course, that it errupted literally over the course of the last 72 hours).

One of his guests was Raj Bhakta, the founder of GoAmericaGo, "an organization dedicated to educating today’s youth about American exceptionalism and promoting an optimistic vision of the future of the greatest country in the history of the world." Bhakta enumerated all the usual right wing talking points about the economy -- entitlements, "pork barrel projects," etc. -- and said congress has got to get to work to fix these things; it needs to,

[T]o focus on unleasing the most productive asset in America -- that is American entrepreneurs -- instead of burdening Americans with regulations and this huge entitlement thing, this huge deficit, we need to focus on injecting money back to...

Unfortunately Cavuto cut him off so I can only guess that the end of his sentence went something like, "...the private sector," or "...small businesses," but who knows.

Comment: "Burdening Americans with regulations and this huge entitlement thing?" The reason we're in this credit crisis and mortgage mess and "Bear tear," is precisely because of a lack of regulation:

Between 2002 and 2007, false beliefs in the private sector — the belief that home prices only go up, that financial innovation had made risk go away, that a triple-A rating really meant that an investment was safe — led to an epidemic of bad lending. Meanwhile, false beliefs in the political arena — the belief of Alan Greenspan and his friends in the Bush administration that the market is always right and regulation always a bad thing — led Washington to ignore the warning signs.

And as for entitlements, isn't it the mother of all entitlements when our tax dollars go to bailout a private investment firm whose chief executive officers are still in place, still reaping million dollar salaries even though they're the ones who drove the bank into the ground? Not only that, but it's the mother of all coverups for Cavuto and crew to use words like "rescue" and "buyout" to disguise what amounts to a humongous bailout -- using our money -- of an elite bank that is at the heart of this mess (Rescue Me: A Fed Bailout Crosses the Line). So much for taking responsibility huh? You can be sure that when Joe and Jane Citizen need help, words like "bailout" and "handout" and "free" and "lack of responsibility" will be flying all over the place.