How will this government be able to afford a $700 billion bailout?
Will taxes have to go up? Who will get hit the worst, people or businesses?
Best Answer
204 points
Future1investor answered 2 years ago …
The real life fact is...the Federal Reserve and the U.S. Treasury has manipulated everything that it possibly can at the expense of the Taxpayer while making a few very rich in the process.
From monetizing the debt., to printing more money, to lowering interest rates to encourage more consumer debt., to socializing these bailouts, to charging for services which used to be free, to reducing benefits, cutting social programs, and eventually tapping into your retirement accounts.
The war in Iraq which we all now despise for ever happening, is completely funded on loans from outside the U.S.A.
The country has allowed the financial system to put us into a situation that will be very long and hard to bail ourselves out of. And no we can NOT afford it. We are literally MAXED OUT!!!
Unfortunately circumstances will not ease anytime soon. With the massive population of baby-boomers retiring, and still a good portion forced to remain in the workforce to earn a subsistance living; every resource will be pushed to the limit.
It will take many years to emerge back into a clean bill of health. We as a country have got to stop a few corporate sectors from controlling the government and entrepreneurial businesses. We must become more creative in our inventions which will propel our society into a more efficient and productive one.
We've got to get back to our innovative nature without the heavy hand and rich pocketbooks of the lobbyists who work for big business. Theses groups suppress our progress as a nation in order to maintain the status quo and ensure money for the few at the expense of the public. And at the expense of the U.S.A. loosing ground to other countries who are out-pacing us with the advance use of alternative energies and innovations.
For an excellent review of the situation from experts, please visit the many videos, articles, and discussions at http://www.marketedu.com
Answers
632 points
Creezy answered 2 years ago …
Easy! With our tax dollars! Now doesn't that make you feel all warm and fuzzy inside?
Obviously this is something that has to be done -- the alternatives would be far worse. But I really hate the feeling that my taxes might go up, that our budget deficit will get larger and these banks won't be penalized at all for their behavior.
basically...this really sucks.
But don't worry, this country can afford it....for now.
204 points
Future1investor answered 2 years ago …
The real life fact is...the Federal Reserve and the U.S. Treasury has manipulated everything that it possibly can at the expense of the Taxpayer while making a few very rich in the process.
From monetizing the debt., to printing more money, to lowering interest rates to encourage more consumer debt., to socializing these bailouts, to charging for services which used to be free, to reducing benefits, cutting social programs, and eventually tapping into your retirement accounts.
The war in Iraq which we all now despise for ever happening, is completely funded on loans from outside the U.S.A.
The country has allowed the financial system to put us into a situation that will be very long and hard to bail ourselves out of. And no we can NOT afford it. We are literally MAXED OUT!!!
Unfortunately circumstances will not ease anytime soon. With the massive population of baby-boomers retiring, and still a good portion forced to remain in the workforce to earn a subsistance living; every resource will be pushed to the limit.
It will take many years to emerge back into a clean bill of health. We as a country have got to stop a few corporate sectors from controlling the government and entrepreneurial businesses. We must become more creative in our inventions which will propel our society into a more efficient and productive one.
We've got to get back to our innovative nature without the heavy hand and rich pocketbooks of the lobbyists who work for big business. Theses groups suppress our progress as a nation in order to maintain the status quo and ensure money for the few at the expense of the public. And at the expense of the U.S.A. loosing ground to other countries who are out-pacing us with the advance use of alternative energies and innovations.
For an excellent review of the situation from experts, please visit the many videos, articles, and discussions at http://www.marketedu.com
249 points
engcomp answered 2 years ago …
Future1investor, you have hit the nail on the head.
You must read http://www.newsforreal.com/written.html
All that has happened was predicted in 1991.
991 points
rvilmur answered 2 years ago …
The Federal Reserve has the power to create new dollars whenever they want. More dollars in circulation will lower the value of the dollar versus other currencies and precious metals. The net result will be more inflation making all U. S. citizens poorer.
Since there was a severe crisis of confidence, it has to be done. A run on all banks would not be pretty. The financial system would be frozen without this move. The government may be able to make money on this deal if they can buy the bad paper at a low enough price and then resell it later for what it will really be worth once housing prices stabilize in 1 to 2 years.
Another problem here is the house and senate trying to put together a bill that will micro-manage the whole process. We all know that the government can't manage anything. Too much delay in putting together a complex bill will negate the few positive effects of the situation.
2083 points
alanj answered 2 years ago …
The US taxpayer are the ones who are paying for it. Are taxes going to have to go up? Let's hope not. That would make the situation even worse. Possibly pushing us into a recession or even a depression. If you raises taxes on businesses in hard times they will in turn cut expenses and that would include jobs. If they raise prices during hard times no one will buy their products will in turn will result in job loss. Both people and businesses will be hurt equally. Because, businesses need people to buy their products to create economic growth. Jobs are created by businesses. Raising taxes is bad for growth. And raising taxes on people will leave less for them to spend. Also, bad for growth.
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