The American Bail-out plan

Wow, such a pickle. What a mess we've gotten ourselves into.

You're not kidding...

I think if we bail out, it's only going to prolong the collapse. It's like adding a gallon of gas to an empty tank to get to a fuel station 100 miles away. Here's another video I found regarding this bailout.

YouTube - Go Viral: STOP THE BAILOUT OR.... DEPRESSION?

Well I think this would shorten the budget for the next term right? And that might mean if Obama is elected, he would stay away from foreign affairs and the spending and focus on America, then the citizens would appreciate Obama.

The republicans never really both to handle wall street properly and does Obama have the experience to.

You are entirely right Justin.

There are going to be business cycles always, but the looser the monetary policy the central bank takes, the bigger the waves. Right now, congress is trying to put a fire out that the government started by doing the same thing that started it in the first place.

Whoa. Latest news!




Looks like we're not going to patch it right now. Another video I found that pertains to this:
YouTube - 10-14-08 - Galactic Federation Predicts Fall of Illuminati

I fear that all those phonecalls were the result of rather emotional and economically ignorant thinking, fueled by partisan politics and late night comics.
As commercial lines of credit dry up, businesses will find it difficult to finance trade and fabrication, and this will result in serious consequences to their employees which will have a ripple effect throughout the economy within a relatively short period.
Of course, if nothing is done by the time this happens, it will be five times more difficult to resurrect the economy.
The final bill that our wonderful lower house rejected was probably the best that could be fashioned quickly enough to do some good. Oversight was strengthened, executive overpayments were curtailed, and the funds were staged in a reasonable manner; and since the government was going to hold the deeds as security, when these increased above present value, it could have turned a nice profit so Congress could build more bridges to nowhere and fund all their local pet projects and buy their re-election.

This bill was the product of myopia and would not have resurrect the economy or eased the chances of this. There is simply way too much non-productive spending within financial markets (ie a bubble) that needs to stop. The government cannot continue to guarantee poor spending and poor investment without continuing to leverage the economy to dangerous levels.

If we want to fix this situation, we let the economy return to the correct level, not the artificial ones we created with 1% interest rates and government guarantees.

I do not know enough about economics to really get to the heart of all this and in such my opinion is probably very weak. A tv discussion on this topic made a few comments of interest to me.

1) The Asian economy has been rather effective at withstanding these troubles. Why? Because of a cultural tendency to be spendthrift and in being so have vast reserves of real cash rather than borrowed riches. What ever the outcome of this situation in the USofA, I do hope that the lessen of saving money is learnt.

2) This crisis does not happen overnight. Why did the governement not step in earlier (Does it not have the authority too?) In Australia the government would of initiated and supported takeovers and mergers so that this major situation would of been at the most a minor situation.

I do like the comment made by Mr Fight the Power "If we want to fix this situation, we let the economy return to the correct level, not the artificial ones we created with 1% interest rates and government guarantees." Well done!

Well, 700billion?

Naaa...

Most people dont know the real problem is, if anyone has seen the new's they would hear alot of people saying "The real problem is" followed by some "BS" thats not the real problem...

Here is an example, ( And an A,B,C,D,E,F formula)

Bank (A) loan's money to person (B), bank (A) charges intrest on the loan to person (B), person (B) dosnt pay the loan back, and the intrest sacks up, well bank (A) see's that there is no way to collect the money or earn a profit, so that bank sell's that contract to company (C) to try to cover the amount of money that bank (A) loaned to person (B) minus the intrest. Yet company (C) gose around and buy's all these's contract's for loan's that the bank's or loaner's feel that cant be collected, now company (C) has spent alot of money to buy them, yet company (C) took out a loan from bank/company (D) to buy them, yet company (C) cant collect, so company (C) , and then bank/company (D) cant be paid back, and the intrest make's the amount that company (C) needs to pay back get higher and higher. So stock in company (C) fall's, stock in bank/company (D) falls, stock in bank (A) falls, stock in companys/bank's (E) fall since they deal with bank/company (D) and (C), and therefore that's what has made the whole so called 700billion charge...

As you can see, it's not the farmer's or middle class people that have made this problem, the problem started when people didnt pay there laon's off, and the major problem started when people buy those toxic loan's/contract's and think that they can collect... the third problem start's when those people take out LOANS to buy those toxic loan's/contract's....

So those are the three area's that need reform on how collection and loan practice's are carried out.

This is why the masses of the nation dont want there tax money to be used for a bail out.

"I never took out a loan and not pay it, nor did I buy a bunch of toxic loan's and used money from a loan to do it, and then not pay the person that I took the loan out from... So why should I be made to pay somthing that I had no involement in?"

So that's what the tax payer's think...

And there is no real problem, only the bank's and company's an people that own stock's and invested into those bank's and companys and speculator's that where involed in with the crook's will get hurt.

Stock market lost alot of point's, yet all those point's where lost from the company's that where invovled in the set up.

It's an old mehtod of manipulation of stocks, banks, lenders, crediters, morg's, and companies.

So all a person would need to do is pay a company a few billion to take out a big loan or alot of large one's from bank's and companys that you would want to lose alot of money, and then buy all the toxic morg's, contract's, and loan's from all the banks and companie's and then sit on them, then the bank's that the company used to take loan's out from, fall.

Yet that would only effect the banks and stocks of them.

To get the full effect of what people are faced with now, take's mass amounts of manipulation of all sectors.

Its easy to find the people that intended to do such, since they will be gaining mass amount of profit from it.

Yet there are only two way's this mess could have happend, intentionaly or it was just a fluke of ignorance...

And these people are way to smart to have this been a case of ignorance...

So it seem's like a smart one in the litter is trying to kill off the rest of the kittens. (Best way is to make it look like it was a case of ignorance and laspes in judgement)

:detective:Gusse it just wants more milk from the people of the world.

Do you deflate a bubble by filling it with more hot air?

No but you can relieve its pressure.

Yes,
but only by letting out the air: IE by getting rid of those filling it with more hot air.

(Thank's For The Mend)

It seem's like it's just a big bank war...

Its just how things works, since every company wants to grow and grow, it comes to a point where they cannot grow anymore because of other companies, therefore the logical solution to that problem is to take over the other companies business by any means.

A great example is the comercial airline business where meany of the companies have been bought out by other companys, and now there is a short list of main steam comercial airline companies.

It seems like its just a matter of time before all forms of business and companies go down such a path.

And it seems like the head of major gaint banks are going to take advantage of the fall of competiting banks.

Its hard to say which companies will become the victors in the bank war and grow to sizes beyond "major" and "gaint".

Yet it is clear, that they cannot hold an monopoly so therefore at one point such a growth cap will be attacked, for such a company to expand its growth past the allowed limites of national law, yet before that the competition must be eaten or beaten, and it seems that in the past few months meany global banks have just got beaten and lost in the game of monopoly, and now are seeking tax money to soften there defeat...yet the outcome will still be the same, that they will lose there companies to the bigger fishes

What this bail-out plan has really done well is to expose the financial analysts, politicians, and business/economics pundits as being very pro-big business. The same people who have continually touted the free market as God in a capitalist society were able to instantly turn around and support this interventionist bailout plan as being entirely good and necessary for the economy. Now the treasury has $700b at its disposal, and the corporations who were so heavily leveraged (at their own risk) in the housing market are coming out clear and free.

It used to be that these companies thrive and then perish in the free market, according to their decisions. Now we allow them to thrive, and refuse to allow them to perish. The free market works by rewarding those who take good risks, but also by punishing those who take bad risks. This bailout might make it easier for us in the next few years, but in my opinion it's not the type of policy we should resort to.