OK, so over and over I'm hearing that we have no choice but to pass the bailout plan to save our economy or it will be depression part 2. Why, rather than buying bad debt, can we not pass a 700 billion credit bill rather than a bailout bill. Rather than straddling the taxpayer with the toxic debt these companies took on with their eyes on sky high profits, why don't we procure the funding necessary from John Q Public to lend to small business etc... to ease the credit market and allow the institutions that created this mess to drown in their own bad decisions. Every "smart" finance guy in here is trumpeting that there is no way to stave off a depression if we don't rescue these nitwits because the credit market is too constrained and is only going to get worse. How about we lend the fiscally sound money out and the taxpayers can collect the interest rather than get stuck with devalued garbage. The institutions who wrote this bad paper need to eat it, not us. If we need a credit bailout, then lets get that instead of buying devalued/worthless paper to bail out those who gambled and lost.
Why Can't We Create a Credit Fund?
- Thread starter NaughtyGeek
- Start date
You want to be fiscally responsible for the irresponsible lending practices of corporate America? I don't think there should be ANY bailout, but I'm surely willing to concede it may be necessary and I just don't "get it." However, if a bailout is needed, address the problem in a manner which helps those who need it without rewarding those who screwed the pooch in the first place.
I'll take irresponsible and horribly managed corporations over a government run business any day. I believe the latter is called "Communism."
Correct me if I'm wrong but I think you'd need a lot more than $700 billion and the other banks would still be failing leaving one bank left that isn't big enough
So, you believe in the American taxpayer taking it on the chin and are willing to float irresponsible corporate entities until they turn a profit again? I believe that's called Fascism.
SP33Demon
Lifer
- Jun 22, 2001
- 27,928
- 142
- 106
And I'll take a flash-in-the-pan Socialistic bill over fiscal Cronyism any day. We're already the United States of France, why not finalize the deal with a bill that will help the people vs corporate thieves in collusion? PS: The euro will rebound faster than the dollar, can you guess why?
Yes, the USPS is communism. It loses a billion a month. But it does bring value in that it is "always there" even if UPS/Fedex fail. I guess that is the billion/month premium we pay to have a guaranteed postal service.
Thump553
Lifer
- Jun 2, 2000
- 12,837
- 2,621
- 136
JS80: You do realise that the postal service is the second oldest US federal service originating in 1775 and that Vladmir Lenin, the founder of communism, wasn't even born until nearly a century later (1870)? Are you saying the USA was communist more than a century before communism was even invented? Or perhaps your personal definition of communism is maybe a tad too overbroad.
On the main topic, a federally operated commercial lending bank could burn through $700B in days to no good effect. It would be an absolute travesty.
On the main topic, a federally operated commercial lending bank could burn through $700B in days to no good effect. It would be an absolute travesty.
Let's go with my personal definition of communism is maybe a tad too overbroad. But AT would suck without hyperbole wouldn't it?
On the main topic, the plan Paulson wants is to cut out the cancer, i.e. remove the assets completely from the balance sheets. He?s basically taking that ?extra step? and thinking ahead. Because issuing preferred shares as Roubini suggests or even low interest loans will not solve the problem of liquidity and confidence.
Lemon law
Lifer
- Nov 6, 2005
- 20,984
- 3
- 0
The premise of this thread makes some sense, the following responses make no sense.
But maybe we have this whole government bail out plan ass backwards.
What we had is a set of absolute financial idiots, who with a combination of greed and stupidity, made a bunch of bad home loans, and now that the defaults have tanked home values, they have created a huge black hole of lost value. And ANY PLAN NOW BASED ON MAKING THESE FINANCIAL IDIOTS WHOLE by rewarding them, IS STUPID STUPID STUPID. The problem is that we have trusted these same financial idiots with a pile of sound money, and now we discover these same financial have backed their unsound housing loans with other wise sound investments such as bank deposits, social security funds, 401-k funds, and the list goes on.
So any financial bail out plan must be based on two things.
1. Driving the money changers out of the temple starting with Paulson. Then a complete restructuring of whom can use other people's money to fund their financial buccaneering, with the mantra being, throw all the current rascals out. They blew it and now they must go. And if anyone in future wishes to speculate, make sure they do it with their own money, not publically held money.
2. The lost money home loans is and remains lost money, let the market set the current value, and any government bail out should be limited to making sure the sound money is backed, and soon in the future is yanked forever from the speculation of crooks and idiots. Since most banks are sound, keep them operating, but the damn lot need to tighten their collective belts. No more super CEO pay, they are a service industry unable to create wealth, and hence must operate efficiently.
But maybe we have this whole government bail out plan ass backwards.
What we had is a set of absolute financial idiots, who with a combination of greed and stupidity, made a bunch of bad home loans, and now that the defaults have tanked home values, they have created a huge black hole of lost value. And ANY PLAN NOW BASED ON MAKING THESE FINANCIAL IDIOTS WHOLE by rewarding them, IS STUPID STUPID STUPID. The problem is that we have trusted these same financial idiots with a pile of sound money, and now we discover these same financial have backed their unsound housing loans with other wise sound investments such as bank deposits, social security funds, 401-k funds, and the list goes on.
So any financial bail out plan must be based on two things.
1. Driving the money changers out of the temple starting with Paulson. Then a complete restructuring of whom can use other people's money to fund their financial buccaneering, with the mantra being, throw all the current rascals out. They blew it and now they must go. And if anyone in future wishes to speculate, make sure they do it with their own money, not publically held money.
2. The lost money home loans is and remains lost money, let the market set the current value, and any government bail out should be limited to making sure the sound money is backed, and soon in the future is yanked forever from the speculation of crooks and idiots. Since most banks are sound, keep them operating, but the damn lot need to tighten their collective belts. No more super CEO pay, they are a service industry unable to create wealth, and hence must operate efficiently.
Yea, the USPS was losing a billion a month and had lazy ass workers with expensive ass healthcare and pension plans when Ben Franklin was around. :roll:
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