Bush's $700,000,000,000 Bailout!!!

[Miroslav]

Re: Bush's $700,000,000,000 Bailout!!!

And by the way, here is a GREAT article that everyone should read - by someone against the bailout:

http://www.thecuttingedgenews.com/index.php?article=796&pageid=89&pagename=Features

He's right about how we got into this mess. He's right that Greenspan and government meddling in the markets fundamentally caused this mess. And he's right that Paulson is no hero, and his ilk should be hung out to dry. And he's right that institutions should not be too big to fail, and that the government has created a moral hazard by bailing people out.

You might ask: why am I agreeing with him, if I've been supporting the bailout so far? Because, as Rep. Jim Marshall recently said, "we can't go 'cold turkey' on credit." I absolutely think that we need to get to the state of the world where people bear responsibility for their actions and there are never any bailouts again, but I fear that we can't do it overnight without destroying our economy, given how far down this path we've gone.

[runningman]

Re: Bush's $700,000,000,000 Bailout!!!

Hey to be honest with everyone here I am against the bailout but even if the bailout had to happen I would be ok with it as long as:

1. Proper plan was put together to show how they are addressing the problem
2. The people responsible for why this happened are held accountable and their assets stripped and thrown in jail. Whoever is responsible (not just individuals but corporations) for this should be tar and feathered.

Number 2 is my biggest thing.

Oh ya Miro Buffet would be for the bill of course.. Buffet is a snake and would sell his mother for more profits.. I don't listen to one thing Buffet has to say.

Kucinich said a great thing today "We borrow money from banks, to give to banks, so they can give us $700 billion in toxic debt from all over the world, I couldn't vote for this." He also stated that this bill was immoral.

The smartest and real economists know that you have to address this issue from the bottom up not from the top down.. none of that money is going to trickle down to lowly US citizens. Top down is a bandaid. Bottom up is building on a strong foundation.. no foundation no nothing.

[Jenks]

Re: Bush's $700,000,000,000 Bailout!!!

So...the revised bailout passed. One of you finance nerds explain what this means to me now. What has changed?

Tbh, even with my limited financial knowledge, I was ready to hunker down for the fire and brimstone- fuck wallstreet.

[ddr]

Re: Bush's $700,000,000,000 Bailout!!!

sad that they had to add a bunch of other bullshit that has nothing to do with the bailout in order for it to pass.... but then again its american politics =\

[Miroslav]

Re: Bush's $700,000,000,000 Bailout!!!

So...the revised bailout passed. One of you finance nerds explain what this means to me now. What has changed?

Tbh, even with my limited financial knowledge, I was ready to hunker down for the fire and brimstone- fuck wallstreet.

They just added a bunch of stuff in an attempt to sweeten the package for Main Street - and thus to make the House more likely to pass it when this goes back for a vote. For one thing, you should get temporary FDIC protection up to $250K. There are also a veritable shitload of tax breaks in there for just about anything you can imagine, which may perhaps benefit you as a consumer or as a business owner.

Of course, the downside of that is that it will just further increase the federal deficit. Oh well, the next generation of kids can work hard to pay it off.

As far as the original $700B bailout part, I think it's very similar... I think it has two oversight boards now. Anyone know if they included equity stakes in it? If not, they should have. My primary concern with it is that in our rush to avert financial collapse, we may go too far the other way and give a free ride to everyone and his brother in the banking world. I want it both ways; I want enough of a bailout to stabilize things, but not such a big one that the moral hazard problems become enormous and seriously impede the de-leveraging of the nation, which needs to occur over time.

[asdf_admin]

Re: Bush's $700,000,000,000 Bailout!!!

ugh. it passed the Senate. Onto the House for approval. I think it is going to be win-win. I can only hope the house says no. I can only hope.

[Jenks]

Re: Bush's $700,000,000,000 Bailout!!!

Main Street - .

^Stop saying this, please.

I know it's Obama's fault. i'm really sick of it.

"...from Wall Street to Main Street!!"

[asdf_admin]

Re: Bush's $700,000,000,000 Bailout!!!

Out of the 700 Billion dollars ... why can't it be divided to Americains? In average each person would gain 250,000.00 after taxes.

I vote with my money.

[88Mariner]

Re: Bush's $700,000,000,000 Bailout!!!

Out of the 700 Billion dollars ... why can't it be divided to Americains? In average each person would gain 250,000.00 after taxes.

I vote with my money.

do honestly trust americans to prudently use it, save it, and pay back the loans?

[asdf_admin]

Re: Bush's $700,000,000,000 Bailout!!!

I don't think our total population is made of Tony Montana's. Though that might create them.

[FM]

Re: Bush's $700,000,000,000 Bailout!!!

gee $250K temps on the FDIC and THEN they can borrow money from the Treasury...

anyone want to bet a few more banks fail in the interim?

I hope the House doesn't pass this...I really really hope....

[Miroslav]

Re: Bush's $700,000,000,000 Bailout!!!

Out of the 700 Billion dollars ... why can't it be divided to Americains? In average each person would gain 250,000.00 after taxes.

I vote with my money.

If you accept the premise that there is a serious liquidity crisis systemically crippling the financial system in this nation, then giving you that money will not do much good...you'll lose the vast majority if not all of it anyways.

gee $250K temps on the FDIC and THEN they can borrow money from the Treasury...

anyone want to bet a few more banks fail in the interim?

I hope the House doesn't pass this...I really really hope....

Alas, you're probably out of luck. I get the sense that they will repackage this thing as many times as it takes.

I have mixed feelings about it. I think we're in very dangerous territory whether we pass it or not... Danger in passing it comes from the standpoint of our Constitution; danger in not passing it comes from our money system. It looks pretty horrible either way...but you all know my thoughts on this already.

Here's a sobering read:

http://www.cnn.com/2008/POLITICS/10/01/beck.future/index.html

[shosh]

Re: Bush's $700,000,000,000 Bailout!!!

Out of the 700 Billion dollars ... why can't it be divided to Americains? In average each person would gain 250,000.00 after taxes.

I vote with my money.

how do you figure you get 250K? only 2.8 million would get that 250K (before taxes). if we say 200 mil people will each get a share of the 700 bil, that is $3,500 per person.

If you accept the premise that there is a serious liquidity crisis systemically crippling the financial system in this nation, then giving you that money will not do much good...you'll lose the vast majority if not all of it anyways.


Alas, you're probably out of luck. I get the sense that they will repackage this thing as many times as it takes.

I have mixed feelings about it. I think we're in very dangerous territory whether we pass it or not... Danger in passing it comes from the standpoint of our Constitution; danger in not passing it comes from our money system. It looks pretty horrible either way...but you all know my thoughts on this already.

Here's a sobering read:
http://www.cnn.com/2008/POLITICS/10/...ure/index.html

i read that this morning. actually a pretty good article fom beck

[runningman]

Re: Bush's $700,000,000,000 Bailout!!!

everybody should get the $3,500 to help out with the inflation problem everyone in the US is going to feel. Warren Buffet interview last night on Charlie Rose was for opening the faucet whenever there is a problem. Then asked about inflation and he admitted that inflation is going to be a huge problem in the coming months.

It is unfortunate that the US government isn't listening to the people. According to the calls made to senators and emails to the House website was 95-1 not in favor of the bailout. Now that it is the first quarter of a football game and the US has used all its trick plays it is apparent that the fallout will be much greater now.

What else is funny is it passes the Senate and the market is still down -235..

[Miroslav]

Re: Bush's $700,000,000,000 Bailout!!!

everybody should get the $3,500 to help out with the inflation problem everyone in the US is going to feel.

I'm sorry, I know you don't like it when I do this - but I have to correct your statement above. You have it backwards. Printing up cash to give everyone $3,500 is not going to help out with the inflation problem - it's going to cause the inflation problem.

You can look at inflation in two parts: monetary inflation and price inflation. Monetary inflation is an increase in the overall money circulating supply. Price inflation is what you see at the stores when stuff costs more and more. It generally well accepted that the former inflation (monetary) to a large degree leads to the latter (price) over time. To take an extreme example: if everyone's salary were to double tomorrow, Subway is going to wise up quick and not just keep charging you only $5.00 for a footlong. Your real purchasing power will remain constant. Warren Buffett knows this, and this is why he was conceding that inflation may be a problem in the future.

Btw - it's no different with the bailout bill. It, too, risks pumping up inflation...as does any action by the government that floods the market with money. Of course, the other side of the coin is that if we do nothing and the economy folds, we could see aggressive deflation. And that's probably even worse.