First, I don't pay too much attention to Wall Street or politicians (hate them all), but does anyone else think the $700 billion bailout will actually do any good? Why give this much money to the big corporations / banks? Can the ceo's who regularly make in the millions per year not afford to fix their own company? With the inflation going up and up (especially gas) and our money losing its value, why would we put more money into the pockets of the drivers of the inflation train and not into the pockets of the people? I don't know too much about this, but I see that the govt. is more and more controlling the country doing what THEY want rather than what the people want/need. If we continue down this path, I see a revolution in the not too distant future. It's about time this govt. gets a kick in the ass to show that we are FREE people, and won't go back to the days of old. Food for thought...
If the Bailout plan goes accordingly, it should work...theoretically... The theory behind the plan is the government buys all the fallouts from the banks and big businesses for something ridiculously cheap, like say $0.20 on the $1.00. Then, after the corporations recover from the consumers who actually pay their bills and don't overspend, they can buy the properties back from the government for cost + interest, like say $0.30 on the $1.00. The excess money the government makes should roll back into the economy, helping everyone out in the future. That's the theory, anyway...I personally disagree completely with the bailout. It's a $700 billion dollar bandaid that does nothing to address the problems that got us in this situation to begin with. It's simply some idea (albeit one of the best ones) to help us recover from wounds we already have. My .02 cents
It's a bit difficult voting on a bill to spend 700 billion when a lot of people have difficulty with their monthly mortgage....that's why it got shot down the first time
Most of it is over my head but.. from everything I've read, this is a "damned if you do, damned if you don't" type situation. Something had to be done... The bailout sucks, but so do the consequences of not doing it...
It will save a few banks, but more will fail... the problems are deeper than 700B. Mostly it was to get banks to start lending to each other, which is absolutely vital to our economy. the problem is that this is more of a "feel good" measure to stem the bank ceo's from freaking out and seizing inter/intra bank lending. it's not going to fix bad decisions that have been/yet to be made. It's no more a step towards socialism than providing bailout money towards the auto industry, tax breaks for oil corps., or limited/no bid contracts for military logistics corps. the govt has gotten progressively larger since the US's inception. our politicians have been passing bills with "coat tails" geared towards interest groups/lobbys ever since it was personally profitable to do so. what really bothers me, is that wallstreet has historically told capital hill to "fuck off"... and are asking for govt help on "their terms" since this awful mess has overflowed into mainstreet.
^^:rofl::rofl::rofl: Still not in favor of the bailout as it does nothing for the underlying problems. Complete waste and sure helped the market today.
Werd... now the brilliant minds at work are saying "Oh, we'll the bailout will take a while for us to see the effect." FAIL! Giving money to the very idiots who got us into this mess was blatant idiocy and reckless. You cant jump start an economy from the top down. Not to mention the 170 BILLION earmarked for special interests and lobbiests ADDED to the bill so all our representation would vote for it! I wrote my representative and senator. Neither made mention or would respond when i questioned them about that 170 billion. I hope everyone remembers messes like this on election day!!!
saxby wrote me back (one of his lackies) and tried to 'reassure' me. I emailed them back and told him he likes being unemployed next election cycle. stupid fucks
Exactly, I don't like it either but I don't want our nation's credit system to freeze. If people can't buy new cars and businesses can't get loans I'll be out of a job. Then I won't be able to buy tires or go to the movies or eat out etc etc. I'm sure every person on this board would be affected (badly) if credit wasn't available. As for people who can't afford their mortage because they took an ARM out or bought too much house or borrowed against their home's value I feel some pity but not much. Buying a house is a big deal and shouldn't be taken lightly like it's a new TV or DVD player. For people that have been laid off and can't pay their mortage... yeah I agree that does suck.
I put the KEY to an economy in bold The vital factor in making an economy is circulation of money. Right now no one is spending and struggling to meet their commitment. Less cash in the system reduces sales and increases businesses goods on hand. They pay interest on that and lose money, they cut jobs to balance the books. Less people have money and more lose their homes. This bail out was politicians making big business happy. The reason the market reacted like it did: they know this wont work. It is only propping up a falling structure. Home values will have to equalize to the quantity thats on the market. Homes in foreclosure or in danger of should be evaluated for value and their loans restructured/refinanced in relation to that new value. The elitest government could have made that happen and helped more than the industry that doomed us to this crisis. Those familes would again have disposable income and be more confident consumers. Some home owners would be hit with the new values, but its a bit too late for that. They're already there. Suck it up, a home is an investment. Its a risk. This plan wasnt the only option. It was the only one Washington was willing to discuss. Funny, it bailed out the richest in the country, not our neighbors. :unamused:
fixed for you.... if businesses don't have credit they won't buy things or hire new people. If consumers can't get credit they won't buy houses, cars, tvs etc.
Im sorry, but supply is just as worthless as demand if there is not any of the other. The purchase power of the end consumer drives the economy. Comsumers could care less about business' ability to aquire credit. It boils down to the fact that if there is an entity that wants to sell 'X' to the masses and the masses want to buy 'X', the two will find a way to make that happen. The business' and their transactions inbetween are inconsequential. Now, when looking at the American economy, credit has become such a huge function inside of that supply and demand it has become a limiting factor between the supplier and the buyer. No offense to you or your industry, but the credit industry has been sucking us into this hole for years. The system needs to balance and that is often an ugly time.
A normal person could nerve afford half the stuff they have, thats where credit comes in. Its just a fact of life....
I don't work in the credit/banking industry... I work in plastics. See my point? Also look at countries like South Africa were there is not readily accesible credit for consumers... there is no middle class there. People have to pay in cash for everything from cars to houses.
I completely agree Untill they can't get a job because business cannot get loans or credit to expand, hire new workers or buy new equipment. There is an old statement "you can't hire a worker for a line you don't have". If people aren't working and working at a steady job they aren't going to buy or consume anything (with cash or credit).
Again, a basis for the AMERICAN economy. The rest of the world works in a similar, but less reliant way. Jobs = purchasing power for consumers consumers = demand demand = suppliers selling stuff suppliers selling stuff = jobs Can you agree that all of the above are true? All the BS in between is insignificant provided each side of supply and demand are balanced. Credit, aka expensive money, is a creation of the supply side of the equation in attempt to increase (aka force) more sales based on a fixed demand market. Thus, unbalancing the equation. Credit is an artifical stimulant to the supply/demand market. It, eventually, must get balanced.
http://michellemalkin.com/2008/10/06/the-missing-snl-bailout-skit-and-the-soros-connection/ this got pulled from the air. what a coincidence