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Contact your Congressman and Senator. Advise them of what you expect from government.
We do not expect Socialism. We expect and want to see Free Markets. Let the Free Market system work. No bail out now or ever.
Ask them why we do not see criminal charges against the fraudulent managers of Fannie Mae and Freddie Mac. What about the oversight responsibility and fraud attributed to the Democrats?
http://www.house.gov/
http://www.senate.gov/
"We are now in the golden age of thieves. And where I come from we put thieves in jail, we don't bail them out." — Rep. Pete Visclosky, Democrat.
Because it has been publicly discussed as a bailout plan instead of a finance resuscitation plan.
I found the plan to be reasonable considering the ugly alternatives, however the efforts to explain the bill have been awful.
You hit the nail on the head. So many people are using, or have heard, the term "bailout" that they are against it at all, without even knowing what it really is intended to do.
Then you have the Anarchists (those Liberals who think the government shouldn't do anything at all: regulate, oversee, etc.)
So, they along with left wing media (NBC, CBS, ABC, MSNBC, CNN) keep everyone paranoid, and actually breed the notion of going out and making banks fail by taking your money out.
I'm an Independent who leans left, but I can't stand the crap both sides are pulling on this. Bottom line is those representatives who voted SHOULD have voted according to the desires of their constituency. And, from what I've seen (even on these boards), the majority of people were against it. Why? Because it was labeled "Bailout".
I don't know the truth to this, but I've heard this was also done in the Depression during the late 20's, early 30's. If it's true, I'd be interested to know if it worked. Last time I checked... that Depression ended.
The guy who works next to me, a younger guy (24 or 25) was ranting about the bail out.. how we should never do it. Today, he's quiet and stewing because his 401k has lost over 12%. That's irony for you. And we all laugh to make him feel stupid... let's be honest. "You asked for it... you got it!" haha
Disclaimer: this is coming from a mortgage broker who has never closed a loan that went into foreclosure. I have turned down more loans than originated because I knew they would go bad in 6 months if I did and instead put them on a savings track. I sleep every night and look myself in the mirror every day and know I have done the right thing.
(Nothing is more comforting than this)
The era of conservative Government is over, and it's ending with a bang. The new era of liberal Government will intervene with what will be an extended period of regulation and sound financial principles until we unlearn the lessons of today, and subject the citizens of the World to another painful lesson in the realm of excess and greed.
"At issue here is the oldest unresolved dilemma in economics: Are market economies "naturally" stable or do they need to be stabilized by policy? Keynes emphasized the flimsiness of the expectations on which economic activity in decentralized markets is based. The future is inherently uncertain, and therefore investor psychology is fickle.
"The practice of calmness, of immobility, of certainty and security, suddenly breaks down," Keynes wrote. "New fears and hopes will, without warning, take charge of human conduct." This is a classic description of the "herd behavior" that U.S. investor George Soros has identified as financial markets' dominant feature. It is the government's job to stabilize expectations." - Moscow Times article by Robert Skidelsky
And I'm opposed to it because it's little more than another power grab to spend us into a self defeating system regardless of which President is in charge. I'm against it because it takes away the last of our economic freedom. I'm against it because it's nearly criminal in the way it was handled and carried out both in Congress and by the Treasury. And finally, I'm against it because it's really REALLY bad economic legislation that will serve no real purpose to solve the problem which is the monetary system that is the basis of this mess. We cannot spend our way out of a system where we owe more money than we can create without hyperinflating or devaluing the currency.
We're going back to square one either way. I'd just rather do it sooner than later.
So 1000, you'd rather support the bankers who leveraged more than they should but not the homeowners. Supporting the homeowners would help both sides of the equation because both the borrower gets to keep the house and keep your property values close to where they are and provide liquidity to the loans on the books of the banks.
Man, people in this country beg for economic slavery. They beg for it.
If I take a dollar out of my left pocket and put it in my right pocket, I still only have a dollar. If I take a dollar out of my pocket and put in your pocket, the economy still only has one dollar - its just been transferred to you. Think about this long and hard. This is important stuff. There is still only one dollar.
Supporting the homeowners does not help anything other than keeping them in homes they could not afford at somebody elses expense. It artificially inflates the value of homes. One sector of the housing market is excluded from normal supply/demand forces. Other sectors are indirectly affected by their exclusion. An artificial price floor has been introduced. Homeowners living in a subsidized house keep their home - maybe. But what happens when they have to move? Americans move every five years.
Path forward, lenders are going to start reinforcing the old lending guidelines for all buyers. This will have an impact on the market that $700B cannot overcome. Remember, subprime junk is only 5% of the mortgage market. Property values are going to fall. For years the spread between median income and median home price was stable. It widened in the last 8 years. If is going to slip back. We cannot inject enough cash to counter this. This is not a bad thing in the long-term. In the short-term, people are going to hurt. Cold hard fact.
We cannot support the homeowners - it is mathematiclly impossible. We should not support the bankers - they made their own mess.
If I take a dollar out of my left pocket and put it in my right pocket, I still only have a dollar. If I take a dollar out of my pocket and put in your pocket, the economy still only has one dollar - its just been transferred to you. Think about this long and hard. This is important stuff. There is still only one dollar.
Between me and you, that is true. That one dollar though might help me stay in my home. But once I deposit that dollar into my bank, they have the authority, based on this legislation, to reloan that dollar plus as many other dollars that they don't have with no reserves starting Oct 1, 2008. This overturns legislation that was passed in 2006. What does that mean? It means we're doing the same thing again, only instead of a 9:1 ratio of loans:reserves, they can now just create money with no oversight. The Treasury would require oversight, but not the banks. I don't see how hyperinflation and ultimate devaluation of our currency helps either of us when the dollar is worthless.
One of my problems with the whole situation is if this bill was supposedly that important, then why not cut that amount of spending out of other gov't programs, so as to not continue to balloon the National Debt. One part of that bill says they will raise the debt ceiling to $11.3 Trillion. That is unacceptable. Cut out the other spending, and then pass this. Our military spends more money than all other militaries worldwide. Cut out some of these bloated contracts. End all gov't earmarks. Cut the spending on Welfare. Don't just issue more debt, which will lead to more inflation.
Between me and you, that is true. That one dollar though might help me stay in my home. But once I deposit that dollar into my bank, they have the authority, based on this legislation, to reloan that dollar plus as many other dollars that they don't have with no reserves starting Oct 1, 2008. This overturns legislation that was passed in 2006. What does that mean? It means we're doing the same thing again, only instead of a 9:1 ratio of loans:reserves, they can now just create money with no oversight. The Treasury would require oversight, but not the banks. I don't see how hyperinflation and ultimate devaluation of our currency helps either of us when the dollar is worthless.
I agree completey. The end result of the bailout is bad either way. The market must correct itself without intervention. Good points.
Because it has been publicly discussed as a bailout plan instead of a finance resuscitation plan.
I found the plan to be reasonable considering the ugly alternatives, however the efforts to explain the bill have been awful.
If bipartisan, a prominent Democrat and Republican should have held a press conference and explained the measure in a simple and logical way. Afterwards, they can fill in all of the details.
As it was discussed, many folks viewed it as the rich getting another helping, at the expense of everyone else. Hence, the massive public resentment.
However, I think they will soon get something similar passed.
I agree. They keep calling it the "bailout plan", which causes negative feelings by most people. If they'd call it the "economic recovery plan" it doesn't sound so bad. Most people wouldn't think it's just a bail out for a bunch of rich CEO's.
has more debt ever solved anybody's financial problem. if it is a cash flow problem why is our government spending like drunk sailors? look at the spending bills they just passed and the automaker bailout. how about they start by shifting some money around in their programs first before coming to us?
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