This is a discussion on Bailout Yeah or Neah within the Off Topic & Humor Discussion forums, part of the The Back Porch category; Voted no...
Bail OUT? No!
But there are a bunch of people who should be putting up bail...huge sums of it prior to their court dates!
The last Blood Moon Tetrad for this millennium starts in April 2014 and ends in September 2015...according to NASA.
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Secretary of the Treasury Paulson was CEO of Goldman Sachs before his government job, and has a $600 million stock portfolio. Why shouldn't he want the bailout?
I have written all my representatives in Congress.
"Democracy is two wolves and a lamb voting on what to have for lunch; Liberty is a well-armed lamb contesting the vote."
-- Benjamin Franklin
-The Mist (2007)"My God David, We're a Civilized society."
"Sure, As long as the machines are workin' and you can call 911. But you take those things away, you throw people in the dark, and you scare the crap out of them; no more rules...You'll see how primitive they can get."
I saw "No". Its yet another savings and loan scam (which incidently worked out quite well for "W" ). I think the bail out is bailing out the wrong people. In order for good old capitalism to work, businesses that make bad decisions need to fail.
If they actually have $700 Billion burn in their pocket: First of all, make sure that FDIC is able to do its thing (and protect savings accounts), secondly shore up social security so people who are counting on their 401k and such for retirement are protected.
I am not sure if anybody read the initial proposal they put together on how to spent the $700B... its a joke.
Something else people don't talk about: Where is the money coming from? It will be new government debt! The huge recent increase in govt. debt is one of the reasons we have credit issues in the first place. You with your mortage may have to compete against high interest government bonds.
I never considered a difference of opinion in politics, in religion, in philosophy, as cause for withdrawing from a friend. (Thomas Jefferson)
The reason folks are seeing such big losses in their 401Ks is the price depreciation of the stuff purchased and held within the 401K.
Like it or not, you are part of the hated "wall street" if you have money in a 401 K.
The bail out is horrendous, unfortunate, and absolutely necessary if you want to ever see any of the bucks you tried to save in your 401 K account ever again.
Get real folks-- there is a reason Bush looked scared as h when he spoke to the country the other day. If this thing doesn't happen, if it doesn't work, he will have the worst legacy of any prez in history-- worse than Pres. Hoover who was blamed for the depression. Hoover at least didn't have two wars going on at the same time--so that adds to-- THREE STRIKES.
I just looked at my brokerage statement-- AAA investment grade bonds I bought 3 or 4 years ago at par are now worth about 1/4 of what they were worth when they were purchased, and their value went down by about 30% in the last few weeks. Granted, they are in companies which have been publicly known to be shaky, but the meltdown is accelerating the losses.
A lot of folks will eventually need to be put in jail--a lot of records of the CEO of Lehman Brothers are said to have disappeared; like every communication for the last 6 months. Just saw that on the news a few moments ago.
Uncle didn't enforce the securities and banking laws, and now we are unfortunately going to pay a huge price. Even those of you who think you will be insulated; you won't be.
If you want to cheer the ship going down, that is your business, but you will be cheering as you plunge into the icy waters; Titanic anyone?
Rant mode on
This is Total BS I have been preaching for over 15 years to anyone that would listen that this was going to happen.
You have had the I want it, I want it now generation driving housing values over the edge. They pay $300,00.00 for a home that is worth $100,000.00.
Then they go out and fill it with overpriced furniture, High end TV,s sound equipment.
They put two new expensive cars in the driveway.
They buy boats, RV's ATV's Motorcycles, more toys.
They wanted what it took their parents a lifetime to accumulate and they wanted it now.
So they overspend on any credit they can get.
Then they go out and get 2-3 jobs each, because they do not have a job that supports their life style.
Mean while I said they cannot keep it up, they will get tired and stop payments, they will file! Just wait for it!!
Then the loan groups saw all this, they had seen the hand writhing on the wall. But greed prevailed and they chose to ignore it, they got their money back in the first 8 years and then turned around and lent it out again. All the while the CEO's got the big bonus's for how clever they were.
You have the retirements funds invest in this bull because of the high returns offered. But still the CEO's got theirs first.
Take the money from the head of the company's, then what is needed to keep the Retirement firms fluid should be lent not given, make the lending intuitions pay it all back, let the CEO's work for what the teller makes, they made the bad decisions let them suffer first.
Rant mode off
"The sword dose not cause the murder, and the maker of the sword dose not bear sin" Rabbi Solomon ben Isaac 11th century
Practically=Yes. The risks to the global financial system are systemic (except for Bear, Lehman, WaMu, etc.).
I abhor the fact Fannie and Freddie failed and we bailed them out, and the "Bailout Package" is protecting banks and borrowers and not merely the depositors.
BUT......The credit markets are still vapor locking and are tighter than a proverbial drum due to perceived risk and fear in the market. Without a package I believe there is significant risk of very adverse bank, credit, and financial market dislocation and disruption on a global scale. Not a pretty picture here or abroad.
I've posted earlier but there has been some good preaching on this thread! So I have to jump back in. The way I see it; Corrupt power hungry politicians mandating to greedy financial institutions they must lend $$$ to broke people or be labeled racist and suffer from more regulation. Hard working honest Americans investing/gambling in the market not paying attention to their portfolio, get screwed.