Will the Government Bailout Work?
A reformed Wall Streeter explains the latest Treasury-Fed-SEC plan to revive the markets.
Friday, like an electrical shock to a failed heart, federal money promises lifted the pulse of the financial markets. Unfortunately, Washington still doesn't know how much risk it's taking on.
Treasury Sec. Henry Paulson's multi-billion dollar market rescue includes four things to save the market: Creating a toxic waste fund for worthless mortgage assets, extending the Fed's discount window to investment banks, using a $50 billion Depression-era Exchange Stabilization Fund to guarantee money market investments, and installing a temporary ban on short-selling 799 financial stocks.
The stock market loves all of them, finishing Friday's trading session with a flourish. Even Bush came out of hiding to optimistically note that, "in the short run, adjustments can be painful…in the long run, I'm confident that our capital markets are flexible and resilient and can deal with these adjustments."
The waste-removal vehicle that Paulson is proposing is similar to the S&L crisis one; the Resolution Trust Corporation created in 1989 to assume over $125 billion in bad assets owned by insolvent savings and loan companies. Its primary goal was to sell them into the market slowly, giving the industry time to heal.
Will that work now? Not really. The packaged mortgage assets today are much more complicated than they were 20 years ago, and the entangled credit default products less transparent. Plus, S&Ls were regulated by the government, whereas the institutions that could benefit from such a fund today, like investment banks and hedge funds and insurance companies, are not.
As for a short-sale ban—this isn't the first time that SEC Chairman Christopher Cox has proposed one under a measure provided by the 1934 Securities Exchange Act. After four months of deliberating the role that short selling might have played in the pummeling of Bear Stearns' stock, he installed a 10 day short-sale ban, between July 21st and 29th. That didn't work for long.
But, sort of like with Sarah Palin and the bridge to nowhere, before he was against short selling, he was for it. Last year, the SEC removed a post 1929 stock market crash rule that only allowed short selling when the stock price's last tick was positive, which was designed to prevent the kind of short selling he's concerned about now.
Meanwhile, Central Banks around the world are lavishing cash on the financial industry to keep liquidity alive. Today, Japan, Australia, India and Indonesia pumped $42 billion into their money markets, a day after the US Federal Reserve pushed through an $180 billion package. The Bank of England, Swiss National Bank, and European Central bank lent $70 billion of cash to their markets.
But,
Here's the thing. Bear Stearns and Lehman Brothers didn't go bankrupt because of individual mortgage loans defaults and foreclosures. These were simply the catalysts at the bottom of a huge pyramid of leverage that ultimately uncovered the sheer lack of transparency in the financial markets. Without a clear understanding of the risks in our US financial system, including huge new conglomerate balance sheets like that of Bank of America-Merrill Lynch, this euphoria will soon give way to further disintegration.
Using terms like 'adjustment' and 'correction' makes it seem like this episode of financial destruction can be cured by the equivalent of a chiropractor visit. What we really need is something more drastic: a Glass-Steagall style wall.
Already, the US national debt has nearly doubled in the past eight years, and it will keep going up. If Congress really wants to alleviate this crisis, they need to not set themselves up for another round of handouts while making the public shoulder the risk of the entire banking community.
Here's a breakdown of the $555 billion running total of Wall Street aid to date: The Fed backstopped $30 billion of Bear Stearns risk in its sale to JPM Chase in March, is loaning $85 billion to AIG in return for an 80 percent equity stake, opened a $150 billion window for banks who could use risky mortgage securities as collateral, and extended the use of its discount window to investments banks who aren't supposed to have that privilege, since they're not regulated by the Fed. The Treasury has pledged to backstop Fannie and Freddie up to $200 billion, created an emergency $40 billion worth of T-bills to be auctioned to spot the Fed some extra cash, and is using a $50 Depression-era emergency fund to support the money market industry.
Nothing converts free-marketers to pseudo-socialists like fear and an international spotlight. But instead of discussing intense new regulation, the US government is just writing out checks. The New Deal didn't just include the Glass-Steagall Act of 1933, which disentangled riskier speculative investment banks from the more consumer-oriented commercial banks, it provided safeguards to the entire financial system. Today, Washington is using the ones that it didn't destroy. It would be much better if they were discussing how to resurrect the ones they did.
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By 2002 the mainstream business media were SHRIEKING that meltdown was imminent in the mortgage market.
There’s no excuse for allowing the collapse of the U.S. economy to happen.
No amnesty, no pardons.
Pursue the Bush administration beyond January 20 until they are brought to justice.
FREE AMERICA
REVOLUTIONARY (DIRECT) DEMOCRACY
My understanding is that the shadow prism market of credit default swaps sitting at $40-60 trillion stressed out the paltry $7 trillion mortgage market. I believe the fed is not addressing the credit default swap prism. Instead, they are using duct tape to stop the bleeding and at the same time prop up banks like JPMC that appears to have around $15-20 trillion credit default swaps in their kitty. So, in essence, the fed is now loosely providing a mother of all credit default swap to all the credit default swaps out there. In my opinion, the bailout is unavoidable and probably will not fix much. I believe, if we unravel the credit default swap counterparty linkages and current valuations we can then systematically manage this market. Obviously, that takes time. As such, the mere announcement of a magical bailout with no real depth of details did do something. I am sure short sellers got clobbered even though I believe short selling to be a market balancer. Now, the cohabitation of investment and commercial banks (and insurance too) should hopefully make the fed extend the reserve requirements to all the players. It seems that we are now merely socializing capitalism. I wonder why I myself can't buy my own mortage at a massive discount. Additionally, I should be able to sell my bank a credit default swap too. After all, it seems that I am already getting ready to do that with the fed being my agent without my agreement. Maybe, I could buy my mortgage from the fed and sell them a credit default swap too.
People keep referring to "Federal" and "government" aid being used to try to help this situation. Those are weasel words because what we are talking about is using tax dollars that have been taken from US citizens (and the corporations who have not yet figured out how to avoid paying US taxes) and using that money to save businesses who have pushed the limits and lost. Some of this money being proposed does not actually exist, it will have to be created on paper. These are the same businesses that are fully integrated through the political parties and government; they have re-written and eliminated laws to allow them to practice business any way they want.
The result is that they have legalized theft. Money has been legally stolen from the system, trillions and trillions of dollars, and now Americans are going to have to replace it. The poor business climate is not an accident, it is the result of deregulation and outright theft. They have eaten your lunch and now they are sticking you with the tab.
How can banking be in trouble when HFC and credit card companies can charge 27 to 32 per cent on consumer debt? They should be ROLLING in cash.
The middle class is doing a disappearing act right before your eyes. Your 401k and retirement plans are spinning down the toilet. Your dollars are turning into pesos.
This hare-brained plan to "socialize" the rich is not going to do anything except postpone the problem. I laugh when I hear commentators say that we are "socializing" this problem like the Europeans. That notion is so far from the truth that it seems that we are now ignorant of what socialism is and how it works for Europeans.
In Europe, (I assume we are talking about Western Europe) socialism works for the people, not corporations, which are imaginary legal constructs, not people. Socialism means that people contribute to a common pool for the good of the people, so their citizens have health care, a living wage, a safety net. This is done because the people of the socialized nation realize that the least wealthy of their citizens is the measure of a country's greatness, not the most wealthy. Calling this bailout of Wall Street thieves "socialism" is an insult to Daniel Webster, the Europeans, and our intelligence.
My wife and I are trying to determine what the best time would be to pull our assets out and flee. We have been thinking either Canada or Mexico, but Europe is also a possibility. Maybe New Zealand. If anyone has any idea about when the best time to divest is, what to put the money into, and where the best place to move is, I would love to converse with you.
-Wexler
editor@stopdubya.com
Well, I'm already in New Zealand and that's the best place.
By some farmland and build a house.
It's rather interesting watching the U.S. in a slow-motion trainwreck. Perhaps then will our politicians, business "leaders" and citizens - though however asleep they may all be - take corrective action. Until then, I bid the U.S. a slow glider ride into irrelevance, much like all of the other empires before them ... Roman, Greek, Spanish, Portuguese, Dutch, British, Soviet. Our time is coming...
Really, stay in Kreplachistan and help fix it - armchair-fighter...
According to an Associated Press article written on Sat, September 20th:
"he draft does not specify which financial institutions would be eligible for the help, leaving open the question of whether hedge funds or pension funds could qualify. Congressional aides said that omission appeared to be by design, as the question of who could get help under the bailout is still up for negotiation.
The proposal does not require that the government receive anything from banks in return for unloading their bad assets. But it would allow the Treasury Department to designate financial institutions as "agents of the government," and mandate that they perform any "reasonable duties" that might entail.
The government could contract with private companies to manage the assets once it purchased them."
Ah, therein lies the rub. This "rescue" is being pushed through Congress as a way to privatize the financial sector or, at the least, make the financial sector "an agent of the government." Talk about making the government not only larger (sorry, Republicans, but that's what it's doing), but also making our banks a government entity...the exact same thing the National Socialist party did in Germany in the early- to mid-1930's.
To whom shall I salute, Der Fuhrer Bush, or possibly McCain? Enjoy your freedoms as they slowly evaporate...
George W. Bush wants to give $700 billion of our money away.
Shouldn't we be able to vote on it?
FREE AMERICA
REVOLUTIONARY (DIRECT) DEMOCRACY
haven't really done much of this. but basically, you just set your camera to a long exposure time, and adjust the F-stop to account for the amount of light. make sure the subject stays very still and the camera is on a tripod, or SohbetI have a feeling that some of these are done with real lights, but some must be photoshoped.
You would do it similar to the lighting tutorials, using color dodge and multiply.
chatsorry for my bad english, im french.
for those asking how was it done :
the simpliest and easiest way is not with photoshop at all !
those pictures, are real pictures, made with 2 things : a camera (reflex-digital) and lights (white, blue, red, green, as you want, since its some pretty powerfull light)
Sohbetsorry for my bad english, im french.
for those asking how was it done :
the simpliest and easiest way is not with photoshop at all !
those pictures, are real pictures, made with 2 things : a camera (reflex-digital) and lights (white, blue, red, green, as you want, since its some pretty powerfull light)
muhabbetsorry for my bad english, im french.
for those asking how was it done :
the simpliest and easiest way is not with photoshop at all !
those pictures, are real pictures, made with 2 things : a camera (reflex-digital) and lights (white, blue, red, green, as you want, since its some pretty powerfull light)
Wexler, good post...couldn't agree more. My husband and I are looking at the same options. I want to live somewhere that some Neocon IS NOT available to start a new war any ole' time they are get the urge to; I want to live somewhere that people count as much or more than profit. America has lost her way in the last twenty years as the Republicans have reduced people to nothing more than a drag on their bottom line. It is sadly pathetic. I love my country but her institutions inspire NO CONFIDENCE...from Wall Street to Main Street.
Here are the facts about Bush and Fannie and Freddie, read and weep Liberals
Take a look if you wanbt truth. The Dem's have stopped all oversight for 10 years. I wonder why, Oh, who got the most Money?? OBAMA and DODD, Who was the head? BARNEY FRANK AND CHRIS DODD
http://gatewaypundit.blogspot.com/2008/09/bush-called-for-reform-of-fann...
How to fix problem:
money to banks in the form of subordinated debenture
While debenture in force, require recipient bank's bylaws amended to include bank monitor on executive committee and unanimous approval of committee necessary for policy or futuree bylae changes. Also clean up other bylaws to close loopholes.
Increase audit frequency and scope during debenture term.
Categorize debt to be relieved in terms of qualifying performance
Profile borrowers whose loans can be rescheduled to performing instruments (bank's projected losses on these loans would be included in debenture amount.)
Include energy speculation in prohibited short sell ban
Bank's failure to meet performance standards would trigger concversion of debenture to takeover by government
Set time limit for government to resolve or liquidate non-performing bank's assets. Don't forget executive compensation in all this.
Just a suggestion. Ham-handed bailout is a gift to financial miscreants without requiring behavioral adjustments.
Yes! Only Mother Jones gives you the facts, instead of the usual media hogwash. Return to Glass-Steagel, return to reasonable capital ratios, prevent over-leveraging etc. Meanwhile, here is my suggestion for fixing the derivative collapse, a solution I immodestly (or desperately) sent to the President, the Treasury Secretary, and all the members of the Senate Banking committee.
===========================
The president will have to assume FDR-like powers to solve the derivative collapse.
He should declare all derivatives placed outside of legally regulated markets (90% of them) null and void. These "bets" - worth $180 trillion according the U.S. Office of the Comptroller of the Currency in America alone, and up to $450 trillion worldwide - could not have been made in regulated markets, because the players had insufficient collateral.
If the parties object to the elimination of their derivative bets, they should be reminded of the penalty for fraud; it is inconceivable they did not know they were establishing positions far beyond their ability to repay.
For every buyer there is a seller, so the amounts lost would zero out and no party would gain an advantage. We would just get to reset the clock. This is as fair as things can be made, given where we are.
What is causing the panic in the markets right now is the realization that the losers have insufficient money to pay the winners. The domino effect of multiple collapses cannot be stemmed by any government, even by running the printing press overtime. The only solution is to wipe the underlying derivatives off the books and ensure these bets are never made again by creating laws to send those who make them in the future to jail.
One other thing; the ban on short-selling won't work. You're seeing that already today as investors sell the financials anyway, and buy whatever shorts still work (RFN, for example), or buy proxies like commodities, including oil, which just had its biggest gain in history - today. Ever. Gold is soaring again too, as people lose faith in the debt-denominated dollar.
Of course, this is all counter-revolutionary action and our comrades in Washington will soon raign this in as part of their broader effort to "reeducate" the masses. Fortunately, our Great Leader is the embodiment of the Will of the People. Whew!
Some people will believe anything.
"Here are the facts about Bush and Fannie and Freddie, read and weep Liberals
Take a look if you wanbt truth. The Dem's have stopped all oversight for 10 years. I wonder why, Oh, who got the most Money?? OBAMA and DODD, Who was the head? BARNEY FRANK AND CHRIS DODD
http://gatewaypundit.blogspot.com/2 008/09/bush-called-for-reform-of-fannie-mae.html"
You are an IDIOT.
And, your link is dead.
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Here's an interesting idea. If the government is buying up all the bad debt or mortgage backed securities, doesn't it make sense that the government should own the underlying property as well? That way, if the "owner" sells the property, the government and tax payers would eventually get reimbursed for the bailout.
Man, if I knew that I could take out a ridiculous loan, and then get off scott free, I would have done the same thing!
Why does all this money have to go to the banks? Why not just give it to the poor sods (like me) who owe them, or someone, all this money? That way we could pay our dues off and not give a toss whether the banks succeded or failed.
This was posted on Cogressional Roll Call yesterday . . .
I hear there was a memo circulating about the trading floors yesterday, which indicated this proposed bail out of Wall Street is necessary to save Main Street folks like McDonald's franchisees so they might afford new coffee machines and such, to compete with Starbucks, and upgrade their breakfast menus. This sad, transparent excuse for justifying bailing out financial institutions is a disgrace! I, the taxpaying constituent, WILL NOT APPROVE funding for such nonsense. If McDonald's, using the example put forth, can't afford to compete, IT IS NOT THE US GOVERNMENT'S--i.e., MY--PROBLEM!
These entities now in trouble are responsible, as well as the Bush Administration, for this debacle. The greed and cronyism over the past 8 years remains unprescedented. Pres. Bush's favorite Republican base of "the have's and the have more's" CAN PAY ALL THEY WANT, FROM THEIR OWN PERSONAL POCKETS, to rectify the many financial problems we now face. However, you will not use me or my tax dollars to save those who have already profited at my expense. Not for those whom this administration would clearly be pleased to see reap continued gargantuan profits, maintaining their nouveau riche, most profitable status quo, rather than face their own restructuring or demise. You guys just want to print more PESOS? Don't think so... Bear Stearns, Morgan Stanley, Lehman, Merrill, the many traditional banks and brokerage houses, but; the LENDERS who took advantage of unsuspecting home buyers with INCOMPREHENSIBLY UNFAIR LOAN 'PRODUCTS', INSTITUTED FOR BUILDERS--NOT PURCHASERS--to move their inventory, will need to correct their own errors. GREED IS NOT GOOD!
We bailed Bear Stearns, to no visible positive outcome. We are bailing AIG, which will likely produce the same result. When & where, and at what dollar figure does this stop? Most every firm holding bad loans, took advantage of the opportunity to dump their bad paper onto Freddie and Fannie (i.e., taxpayers), having been given plenty of time to ditch, profitably, just prior to the Federal bail out of both GSE's. AND, what about the $9M I've heard the FRE or FNM CEO wants to walk with? Executive compensation is yet another major problem. Reward these people for a job well-done? I think not.
Yet, as of 9.22 alone, enough cash exists for stock buy-backs for (AP, Dow Jones News and others reported) Compass Group; CPI Plastics CEO boosting holdings to 600k shares; LBO Capital's letter of intent with iMobile; Flagstone to repurchase 5M shares; Sims acquires Weinert Recycling; Triquent Semi-Conductors buys, by exercise, 17,500 shares; Brookfield buying GMAC; GAP buying Athleta for $150M cash; EDF bids for BGY.LN; and, the ImClone buyout offer. M & A is alive and thriving. Shoring up ownership for the future is clearly paramount. BUT, Paulson, Bernanke, and this Administration tries to sell America on a desperately necessary $700B urgent bail out? The transactions cited herein are only what I had time to note tonight, most of them announced just TODAY. Since Bear Stearns, there have been NUMEROUS STOCK REPURCHASES made on Wall Street, predominately by banks and Wall Street firms. Where did they get the money to buy back their own stock? Don't tell me there is no cash. IF they had to borrow anything to buy back their own stocks, there was cheap money for them to access. The low interest rates go to corporate America, lowered for them by their Fed Friends. With so much emphasis on saving Wall Street firms and banks, there is nothing available for homeowners--not because it isn't there. It's because they want and/or claim they need that cash for themselves. Bailing out Wall Street will not produce loans for people qualified, needing and wanting to purchase homes. This is a case of greed wanting to hold on to profits, and continuing to accrue more, at taxpayer expense.
Either way, we are in trouble, but tossing money at Wall Street has proven one thing only, thus far: They are using it to make more money for themselves, lining their pockets; NOT for making funding available to homeowners with mortages--current or delinquent--or those wanting to acquire homes.
Rest assured, I will not be alone protesting on the D.C. Mall, if and when this sham goes to a vote in its current proposed state. Free markets--are you all so out of touch you have forgotten the basic economics of supply & demand, lazzais faire capital markets? GREED created this massive problem and the GREEDY MUST REPAIR THEMSELVES OR SUFFER THEIR OWN LOSSES AND/OR DEMISE!
*
This is an addition, just for you...
TRY THIS: YOU WANT TO STIMULATE WALL STREET? GIVE US THE $700B--EVERY TAXPAYER. WE CAN STIMULATE THE HECK OUT OF THIS ECONOMY BUT, STILL WHERE WILL YOUR BAD PAPER GO? GOD FORBID YOU JUST WRITE IT OFF, DEAD, GONE; OR, WE SHOULD BE ABLE TO PURCHASE A FORECLOSED HOME AT THE "ECONOMICALLY-APPROPRIATE" PRICE! NOPE. THAT'S NOT PART OF YOUR PLAN, IS IT? PRESERVATION OF WEALTH. I GET IT. AND YOU CALLED THOSE WHO WANTED REASONABLE HEALTH CARE FOR EVERY AMERICAN, "SOCIALISTS"!
SHAME, SHAME, SHAME ON YOU!
M.L. Hondros
Houston
The New World Order agenda is right on track. Since its inception in 1913 , the Federal Reserve owned by 13 internatioinal banking families has continued to print more and more fiat money ( now with absolutely no backing) . The are now even afraid to report how much money they print. Federal politicians are glad for the infusion of seemingly unlimited capital which reduces the real buying power of our wages and savings. Under the Bush Administration this disregard for fiscal responsibility is rampant.
The recent housing bubble is a direct result of the Federal Reserve manipulating interest rates down to 1% which as they were well aware , would fuel wild speculation, greed, and a subsequent collapse which they now want the taxpayers to stand good for. Look who is buying up the failed investment bank assets at pennies on the dollar. It is Corporations owned by the 13 banking families who own the Federal Reserve. ( Most people , including many bankers are unaware that the Federal Reserve is a private bank consortium ). The connection to our Federal Government in name only ) Check your history--- Baron Rothchild -- the richest member of the families supplied false information through his spies to the Brittish stock market about Waterloo and bought up the British stocks for pennies on the dollar and has essentially controlled their market since. Now history repeats itself and it is now our turn. ABSOLUTELY BRILLIANT----CONGRATULATIONS ILLUMINATTI-YOUR FEDERAL RESERVE IS SERVING YOU WELL ---- If you doubt these statements, I challenge you to read the 600 page master work by Griffin entitled " The Creature From Jekyll Island " . The events of the entire 20th century are detailed with names, dates and beneficiaries. It will make you sick, but it will forever open your eyes to the scam now being perpetrated against us.
i think that this bailout is only gonna hurt us in the long run and we shuldnt have it cuz it will only [deleted] up our economy more
1) Government needs at least 90% ownership of any company bailed out (though new Stock Issue of 9*Existing-Shares), and a Congressional Committee (with access to many financial/economic experts) should have complete oversight control over the overall operations of the firm.
2) Mortgage Assets should be handled by the firm, with interest rate agreements revised to allow existing home owners the ability to pay off debt under initial interest rates (at time of mortgage); allowing the Government to at least reaquire the original principle amount with some amount of payment to cover (at least) inflation.
3) Fed might consider the drastic move of temporarily lowering Required Reserve Requirements to ensure banks have more available cash on hand.
4) New rules and regulations for the entire banking industry needs to be created (limiting the way Derivatives are written in order to allow easier assessment of their true value and risk, as well as ensuring the components of the derivatives can be easily separated out for individual handling).
4) New temporary Tax Subsidies for small (local) banks (with special emphesis on new banks) in order to reduce the monopolization of the financial industry by the few remaining large institutions.
5) New Legal Protections for the small local banks to ensure continued independent viability in the face of competition from powerfull large institutions; again to prevent monopolization of the industry.
It wouldn't work: Why?
SIMPLE. It's a CONFLICT OF INTEREST for the government to "regulate" what you own. No PHD required to see that.
It does seem like this thing may pass which is going to make this recession even longer. My expectation is that the next 5-10yrs will be ones with high inflation and little growth. I too am looking to move to another country that is more fiscally responsible but it isn't easy to get up and leave. However, I don't have enough money to hedge against all of the inflation that will happen after the printing presses go full speed. How is Australia now?
By 2002 the mainstream business media were SHRIEKING that meltdown was imminent in the mortgage market.
There’s no excuse for allowing the collapse of the U.S. economy to happen.
No amnesty, no pardons.
Pursue the Bush administration beyond January 20 until they are brought to justice.
FREE AMERICA
REVOLUTIONARY (DIRECT) DEMOCRACY
who cares, were [deleted]ed no matter what
Wow, some of you people just amaze me. Both parties (i.e. Democrats and Republicans), the banks, and the people who thought they were getting some great deal are ALL RESPONSIBLE! I say both parties because who's been in charge all this time? None of the branches of our government can turn something into law without the other branches; these two corrupt parties have colluded with one another for ages. All we're seeing now is the reality of patricians vs. plebs, and the American people are on the wrong-end of that stick.
As others have said before, instead of pumping this bailout money into the "economy" (whatever the hell that actually means), send out a check for $500,000 to each taxpaying member of the USA. We the people know exactly what to do with this cash.
This Problem must be traced. There is a paper trail that even a Blind man could see And the truth most be brought into the light And mark my words OBAMA is in it from the very start!!!!!!!!!!
In case you didn't notice... Obama and the empty suit democrats voted for the same bail-out. What is it with people who blame the worlds trouble on a president... Don't you understand the process. Ask Jim Mcdermott whom I can't stand. They have done nothing either. At least who does what he believes. BOB BARR... Please save us from more GVT.. As long as we keep voting for one or the other in this two party system , we will get what we deserve. Really wealthy politicians and more Goverment involvment... and I am as Guilty as the next guy.
Your House and Senate allready did. What great skills they show. Donkey and elephants with thier hands in the same cookie jar... YOUR POCKET.... MMMM sure is tasty.
"As others have said before, instead of pumping this bailout money into the "economy" (whatever the hell that actually means), send out a check for $500,000 to each taxpaying member of the USA. We the people know exactly what to do with this cash." Well put Brian
Why not give the money to the people that it belongs to. The hard working Americans. Let them pay off their own mortgages buy new cars new houses with cash ect. Then a real boost to the economey in all aspects. This way the people that pay the taxes would benefit also not just the BS institutes that caused all the crap in the first place.
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..It isn't designed to work for the people, anymore than NAFTA - where you ship your jobs overseas and then import everything.....IT CAN NOT WORK -.- IT IS A 100% DRAIN ON THE ECONOMY -.- MONEY GOES OUT NOTHING COMES IN
Washington needs to be in PRISON starting with Polosi and Barney Frankes, CEO's and atleast half of Congress..maybe ALL of THEM IDIOTS. Who Knows? If Obama is elected no one will ever know? The Washington WASH by the Washington CROOKS.
Why not take the question to a 5th grader and ask them how they would like to bail us out? After all, they are going to have to pay it back. I had one child tell me "give everyone who isn't a millionaire a million dollars"
I did a few quick calculations on the 5th graders comment and here is what I came up with: there is a little over 300 million people in the USA today. If each one was given a million dollars to do with as they want it would immediately stimulate spending, new cars, pay off mortgages, pay taxes, and it would stimulate business and cost us less than 555million that they want to spend.
the money that bush wants to use in the gov. bailout is basically loans comming from china. should we really accept this money and fall more into debt and have china gain more U.S. Debt and advenually own us, or do we wait it out until we slowly stablize again?
2,333 dollor a citizen is about how much each person would benifit if the 700 billion dollars was to be spread out among america. as you can see today car sales, and other sale are droping dramatically and if a bailout was to be issued it would only make things worse. because after those companys run out of the bailout money they are going to be in the same spot they are right now. atleast thats what i understand from my 12th grade Modern Problems class
Why not legalize Pot? Tax it about 30% and it will take care of itself. Of course up to a limit of maybe 1 oz. People are doing it anyway. SO WHY NOT?
If the government has 700 billion dollars to give. Here is a great option. If every tax paying citizen over 18 years old was given 200 thousand dollars. With the government getting 25% tax. They would get part of the money back right away. This money would go back to the economy with people paying off debts such as mortgages that are behind. Helping finacial institutions. Having money to buy automobiles, wich would help the automobile industry. And all around spending to other companys that are also hurting for business.
The current plan the government has only bails out banks. How is this suppose to help people to spend money to get the economy back on track.
Check out www.bailmeoutbecause.com and submitt a short video on why you deserve a bail out like the CFO's in Detroit!
I agree with you and invite you to visit and comment on the plan presented at www.flattaxrebate.com
