Financial Rescue?!

[blueguy]

I've been watching the news and really foggy about this whole financial problem. In a nutshell, can anyone cue me in as to whats going on? Sounds like the republicans are holding out on a bailout.

 

[MrJim]

Gov't trying to pass a bailout to help the rich. I've heard it described as "taxpayers cleaning up a party they weren't invited to"..

No bailout~~simply be another step toward socialism..

 

[blueguy]

Thanks Jim. Makes sense, I wonder if the rich would bail me out everytime I had a party and screwed up?!

 

[MrJim]

It's a sad business, lots of folks will lose lots of money in their 401k~I didn't have much in there but figure there won't be much left.

Basically still fallout from lending institutions lending money for people to buy houses they couldn't afford~people saw it coming; it's pathetic the way it's all "crisis" now.

 

[blueguy]

It's a sad business, lots of folks will lose lots of money in their 401k~I didn't have much in there but figure there won't be much left.

Basically still fallout from lending institutions lending money for people to buy houses they couldn't afford~people saw it coming; it's pathetic the way it's all "crisis" now.

Sheesh, what an evil mess..... sorry to here you might loose some money over this.

 

[GreenMunchkin]

It's a sad business, lots of folks will lose lots of money in their 401k~I didn't have much in there but figure there won't be much left.

Basically still fallout from lending institutions lending money for people to buy houses they couldn't afford~people saw it coming; it's pathetic the way it's all "crisis" now.

The UK is fast heading for a recession at the moment... is it just as bad in the States? Have not really been aware since Fannie Mac almost collapsed.

 

[Simon_Templar]

This goes much deeper than just a bail out for the rich. The US economy is hanging by a thread at the moment. If this situation is left alone, the entire banking industry will likely grind nearly to a halt. Banking is the grease which causes the economy to move. So at the very least you'd have a major recession. Which would (as always) hurt the middle class more than it would the rich.

Secondly, there are numerous banks including major ones, other than just those involved in this bail out which are on very shakey ground, and are in real trouble. As it stands right now the FDIC's funds are already below the minimum threshold required by regulatons due to bank failures. If a major bank goes down hard, or especially if a couple do, it could easily wipe out the FDIC's reserves, and then you'd have lots of average people who's money in the bank is simply gone.

The government is trying desperately to shore up this very shakey situation and avoid a catastrophic failure that could lead to a major recession, or even an all out depression.

This situation was caused by bad loans, by foolish speculation etc, people buying things they couldn't afford, etc. And the bill is now being plopped down on the shoulders of the responsible people who lived within their means... BUT even if this bail out doesn't go through.. its not just going to hurt the rich, or the people who took out foolish loans.. its very likely going to hurt everyone.

The problem is that a bail out like this has lots of negatives as well, and in the end it very well may be simply delaying the inevitable. Perhaps it would be better to let it go and ride out the ensuing economic earthquake, and then rebuild after.

Personally I don't think the future looks good either way.

 

[MrJim]

This goes much deeper than just a bail out for the rich. The US economy is hanging by a thread at the moment. If this situation is left alone, the entire banking industry will likely grind nearly to a halt. Banking is the grease which causes the economy to move. So at the very least you'd have a major recession. Which would (as always) hurt the middle class more than it would the rich.

Secondly, there are numerous banks including major ones, other than just those involved in this bail out which are on very shakey ground, and are in real trouble. As it stands right now the FDIC's funds are already below the minimum threshold required by regulatons due to bank failures. If a major bank goes down hard, or especially if a couple do, it could easily wipe out the FDIC's reserves, and then you'd have lots of average people who's money in the bank is simply gone.

The government is trying desperately to shore up this very shakey situation and avoid a catastrophic failure that could lead to a major recession, or even an all out depression.

This situation was caused by bad loans, by foolish speculation etc, people buying things they couldn't afford, etc. And the bill is now being plopped down on the shoulders of the responsible people who lived within their means... BUT even if this bail out doesn't go through.. its not just going to hurt the rich, or the people who took out foolish loans.. its very likely going to hurt everyone.

The problem is that a bail out like this has lots of negatives as well, and in the end it very well may be simply delaying the inevitable. Perhaps it would be better to let it go and ride out the ensuing economic earthquake, and then rebuild after.

Personally I don't think the future looks good either way.

Yup, build an ark~dig a hole, buy lots of beans and bullets

 

[blueguy]

The beans, rice, and bullets are ready to go!!

 

[Simon_Templar]

Ah good ole washington... as our national economy hangs in the balance... the Dems seize the opportunity to try and pump billions of dollars into the pockets of their allies.

The congress is trying to rush through the bail out of the major banks which are about to collapse.. to the tune of about $700 billion dollars. This money is supposed to retire bad debts that will save banks, save the economy, and save people's homes...

So.. the dems seize this opportunity to funnel 20% of the money, thats $140 BILLION to an advocacy group... note this is not a bank, and has nothing to do with the financial crisis we are facing... it is an advocacy group which is under investigation in several states for voter fraud because of its history of signing up inelligable voters and of course pushing democrat candidates.

Wow... what else can you say.

 

[NorrinRadd]

Ah good ole washington... as our national economy hangs in the balance... the Dems seize the opportunity to try and pump billions of dollars into the pockets of their allies.

Is it Paulson, the Treasury Sec., who's a Dem. with ties to the banking industry and Obie?

The congress is trying to rush through the bail out of the major banks which are about to collapse.. to the tune of about $700 billion dollars. This money is supposed to retire bad debts that will save banks, save the economy, and save people's homes...

So.. the dems seize this opportunity to funnel 20% of the money, thats $140 BILLION to an advocacy group... note this is not a bank, and has nothing to do with the financial crisis we are facing... it is an advocacy group which is under investigation in several states for voter fraud because of its history of signing up inelligable voters and of course pushing democrat candidates.

Wow... what else can you say.

You can say that the "advocacy group" is ACORN, a left-wing group with strong Obie ties.

 

[NorrinRadd]

This goes much deeper than just a bail out for the rich. The US economy is hanging by a thread at the moment. If this situation is left alone, the entire banking industry will likely grind nearly to a halt. Banking is the grease which causes the economy to move. So at the very least you'd have a major recession. Which would (as always) hurt the middle class more than it would the rich.

Thing is, not all economists agree it is really that dire.

And the disagreement does not fall neatly along partisan or ideological lines.

And there is even *less* agreement as to whether the "bail out" will work well, work at all, or make things worse.

Secondly, there are numerous banks including major ones, other than just those involved in this bail out which are on very shakey ground, and are in real trouble. As it stands right now the FDIC's funds are already below the minimum threshold required by regulatons due to bank failures. If a major bank goes down hard, or especially if a couple do, it could easily wipe out the FDIC's reserves, and then you'd have lots of average people who's money in the bank is simply gone.

More likely, the gov't would either rob money from elsewhere to restock the coffers, or else just print a bunch -- which would cause huge inflation and make *everyone's* money worth much less.

The government is trying desperately to shore up this very shakey situation and avoid a catastrophic failure that could lead to a major recession, or even an all out depression.

This situation was caused by bad loans, by foolish speculation etc, people buying things they couldn't afford, etc. And the bill is now being plopped down on the shoulders of the responsible people who lived within their means... BUT even if this bail out doesn't go through.. its not just going to hurt the rich, or the people who took out foolish loans.. its very likely going to hurt everyone.

The problem is that a bail out like this has lots of negatives as well, and in the end it very well may be simply delaying the inevitable. Perhaps it would be better to let it go and ride out the ensuing economic earthquake, and then rebuild after.

Personally I don't think the future looks good either way.

Yuh.