Your thoughts on the bailout?

Kyle · **Posted:** September 29th, 2008, 2:47 pm

Has anyone been following the bailout for American banks? I have because i own stocks and i dont want my loan to be repelled. I feel its nessercary to pass this bill because not only are banks at risk, but American homes, and retirement plans. Today the bill was voted down in the house and instantly the stock market went down 777 points,you can consider this a crash.... We are at the point of another depression, i think the only thing that saved us today was people didn't panic and sell all of there stocks.

Adbot · **Posted:** September 29th, 2008, 2:47 pm

Unbirthday · **Posted:** September 29th, 2008, 2:53 pm

I've been following it. What do you think are the top 5 most interesting facts about it?

Bogrollbloke · **Posted:** September 29th, 2008, 3:09 pm

It's amazing that the US economy may actually be going to **** more than our own, and still your guys at the top refuse to acknowledge it and do something about it, and with a country the size and power of the US it's going to cause problems worldwide, it's honestly unbelievable.

Gzpro · **Posted:** September 29th, 2008, 3:11 pm

http://www.stopthehousingbailout.com/

Socialism is never good...

Kyle · **Posted:** September 29th, 2008, 5:09 pm

Zac Glenn wrote:

I've been following it. What do you think are the top 5 most interesting facts about it?

Only 250 billion would be alloted, another 450 billion with congress and president approve.
Feds could lower interest rates
More government oversight
Feds could buy mortgages and resale them later for a profit..
The fact that it didn't approve today and the dow dropped 777 point, if they dont approve it we will be in a depression.

lupike123 · **Posted:** September 29th, 2008, 5:33 pm

i can see why they are doing it but idk if everyone is going to agree with it.. my only fear is that it is going to cause a up roar in the whole gov. system. cuz i meen u dont need another one of those lol! :roll:

Adbot · **Posted:** September 29th, 2008, 5:33 pm

Jeff · **Posted:** September 29th, 2008, 10:13 pm

Kyle, it's weird. More Republicans voted "nays" on this one than Democrats, a lot more actually. So why do you, as a Republican, support this plan?

CreepyPirate · **Posted:** September 30th, 2008, 12:39 am

It's been on the news. And for all the worry, panic and drama. I can honestly say, without a single bit of doubt in my mind that i do not give a ****.

Don't care. I feel like it's something i should be bothered about and care about but i don't. Funny that. Don't even care about the British problems right now, in fact i was rather happy about one of our banks getting in trouble cause they'd screwed up my account a few times. :lol:

Kyle · **Posted:** September 30th, 2008, 4:31 am

Jeff wrote:

Kyle, it's weird. More Republicans voted "nays" on this one than Democrats, a lot more actually. So why do you, as a Republican, support this plan?

I wish there was more security for this bill, but look how the market is going down. Something has to be done. Is this bill perfect? no but i think it will help our problems. The gop voted down this bill because there was no bailout for the American Homeowner.

http://www.bloomberg.com/apps/news?pid= ... F5.r8KmRs&refer=home

Brad · **Posted:** September 30th, 2008, 7:14 am

http://www.cnn.com/2008/POLITICS/09/29/miron.bailout/index.html

Very interesting article. I've sort of got mixed feelings about the bailout but that article swayed me somewhat.

I agree with this passage in particular:

Quote:

The obvious alternative to a bailout is letting troubled financial institutions declare bankruptcy. Bankruptcy means that shareholders typically get wiped out and the creditors own the company.

Bankruptcy does not mean the company disappears; it is just owned by someone new (as has occurred with several airlines). Bankruptcy punishes those who took excessive risks while preserving those aspects of a businesses that remain profitable.

In contrast, a bailout transfers enormous wealth from taxpayers to those who knowingly engaged in risky subprime lending. Thus, the bailout encourages companies to take large, imprudent risks and count on getting bailed out by government. This "moral hazard" generates enormous distortions in an economy's allocation of its financial resources.

GANGSTERT0ASTER · **Posted:** October 9th, 2008, 3:16 pm

personally, i dont think the bailout was necessary because if you see now, stocks are still dropping. I found it amusing that after the bailout was passed John McCain and his friends had a huge party like they just solved everyones problems

Marking22 · **Posted:** October 9th, 2008, 4:31 pm

well either way you like at it we lose money either our stocks go down and we lose money that way or ha government pays billions of dollars to save our stocks then we have to pay higher taxes

so eh either way we are messed up

Kyle · **Posted:** October 10th, 2008, 2:36 pm

GANGSTERT0ASTER wrote:

personally, i dont think the bailout was necessary because if you see now, stocks are still dropping. I found it amusing that after the bailout was passed John McCain and his friends had a huge party like they just solved everyones problems

Please show me a single article were John McCain had a party. The truth is AIG executives had a week long retreat with our money. Where was John mcCain mentioned?

http://www.foxbusiness.com/story/market ... ow--getting-bailout/

Chris · **Posted:** October 11th, 2008, 3:04 pm

The thing about the bailout bill (I notice this post is actually a couple weeks old and started before the recent passing of the new bill, but I will reply regardless), is that, according to my economics teacher who attended a presentation with a federal economic official, that many don't know what it is actually for. People think it is being handed to them to help the economy. The truth about it is: it isn't going to the US. A LOT of the US market share is held by foreign bonds. With the stocks plummeting, it was expected that many of these foreign companies would drop their bonds. The result: a loss of funds that would lead to a complete and total economic failure and a major depression. So the bailout bill was formed up to pay the foreign companies their bond investment in order to prevent them from dropping their money out of the US market.

Some might believe this is unjust to give the money to foreigners, however you must look past the little details and know what the major purpose of the bailout is. Those who formed it weren't stupid. They knew that this bill was needed for the foreign bonds rather than the internal US financing.

I give no guarantee that this is the true and full intention of the bailout, so don't flame me if you think otherwise. This is just what I was told.