The latest economic bail- out Plan To Fix Everything.

#1
So.. the treasury is giving about 700 billion dollars of your tax- money to the private sector - in order to save them from the problems coming up after borrowing money to people who can't pay back. And so rewarding the private sector for not making money. Which is incidentally done by raising the ceiling for the national debt to about 13 trillion.

Doesn't anyone have at least a small comment?
 

MenInTights

not a plastic bag
#2
So.. the treasury is giving about 700 billion dollars of your tax- money to the private sector - in order to save them from the problems coming up after borrowing money to people who can't pay back. And so rewarding the private sector for not making money. Which is incidentally done by raising the ceiling for the national debt to about 13 trillion.

Doesn't anyone have at least a small comment?
I honestly believe this may be the biggest thing to ever happen to the US economy. First off, the 700B is a bogus number. The real number will be at least 2 trillion. This is a bandaid for the meltdown that almost happened last week. The stock market almost opened with a 8300 Dow Jones. Major banks ran out of notes to lend last week. I read that the members of Congress came out of the meeting with Ben Bernanke visibly shaken. Bernanke is publicly calling this a dire and significant situation that may lead to a deep recession.

I don't understand it all and I have no idea where its going to end, but I do believe we've done nothing but bandaid the situation as a means of controlling the fall rather than letting it rapidly decline.
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EDIT:
here's a related headline that should just scare the life out of you:
Oil spikes $25 a barrel on anxiety over US bailout: Financial News - Yahoo! Finance

$25 increase in the price of oil in a few hours. Oil was near $100, so that's about a 25% inflation. Makes my head hurt.
 
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MenInTights

not a plastic bag
#4
If I could advise McCain, I would point out that the $700B bailout is the same amount of money that we spend every year on foreign oil. That's the opportunity here. Make a case to the American public that we can achieve energy independence and doing so would pay rich rewards including paying off this financial bailout. The ball has been teed up for McCain, or even Obama for that matter - this is the winning issue for whoever will grab it.
 

Stab-o-Matic5000

Cutting Edge in Murder
#5
First off, I love the absolute absurdity of this situation. We're trying to fix the problem that all the major banks are essentially operating off of non-existent money by giving them... non-existent money.

Second off, the one good thing about this is that both the democrats and republicans in congress are finally banding together on an issue, specifically, telling the Bush administration that they're fucking idiots if they think the American people will sit back and take it if failing companies get to take money right out of our pockets while we get absolutely nothing in return.
 

Stab-o-Matic5000

Cutting Edge in Murder
#6
I do enjoy the fact that the plan to solve the problem of banks giving out non-existent money is to give them 700 billion non-existent dollars.
 

Mirage

Administrator
Staff member
V.I.P.
#9
Interestingly enough, the Democrats are with Bush on this one, while the Republicans are fighting it. This is a good example of where John McCain will not tolerate wasteful spending of American tax dollars AND a great example of a HUGE issue that he disagrees with George W. Bush on.

Why give $700 billion of tax payer money (that will just add to the national debt)? Also, why give the CEO's severance packages? They should get hung out to dry IF the government bails them out. There are other options though and frankly they make more sense.

Buying BAD DEBT is just stupid. Loaning money would be another thing entirely. Still not great but it makes the AIG fix itself without the government having to bother with it. If nothing is done then the market will crash for a while. Some say that would be a good thing so the market can restabilize but that would also be pretty much the Great Depression 2.

I like Dave Ramsey's rant about this and his idea for how to fix it:

How We Can Clean Up A Lot of the Economic Problems

And the overview of the idea and the audio version of the rant here:

Real Debt Help - Get out of debt with Dave Ramsey's Total Money Makeover Plan.
 

MenInTights

not a plastic bag
#10
Interestingly enough, the Democrats are with Bush on this one, while the Republicans are fighting it. This is a good example of where John McCain will not tolerate wasteful spending of American tax dollars AND a great example of a HUGE issue that he disagrees with George W. Bush on.

Why give $700 billion of tax payer money (that will just add to the national debt)? Also, why give the CEO's severance packages? They should get hung out to dry IF the government bails them out. There are other options though and frankly they make more sense.

Buying BAD DEBT is just stupid. Loaning money would be another thing entirely. Still not great but it makes the AIG fix itself without the government having to bother with it. If nothing is done then the market will crash for a while. Some say that would be a good thing so the market can restabilize but that would also be pretty much the Great Depression 2.

I like Dave Ramsey's rant about this and his idea for how to fix it:

How We Can Clean Up A Lot of the Economic Problems

And the overview of the idea and the audio version of the rant here:

Real Debt Help - Get out of debt with Dave Ramsey's Total Money Makeover Plan.
Excellent read Andrew,

The Ramsey piece really cleared up some things that I didn't understand. You know we should all thank God this is an election year otherwise the bailout would have been passed days ago. I heard a Congressman (can't remember who) say that the phones are going crazy and are 100:1 AGAINST the bailout. The Republicans know if they make the wrong decision here, they won't be in power again for a generation.

Also, 2 excellent points about McCain.