Do you think the Government is doing the right thing by bailing out the banks? Why or why not?
Answers
105 points
joshperi answered 2 months ago …
While an argument over the details would be endless, it is clear that if the US government was not prepared to take unprecedented steps in response to this crisis the US would be in danger of entering a depression. Maybe even a great depression.
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BoxCar answered 2 months ago …
This "Mother of all Bailouts" is a symptom of a more sinister historical phenomenon-
Solar Mortality Theory predicts major socio-economic upheaval occurs @ 2007.5
Did it? Read <www.genocideorigins.blogspot.com>& realize the Roller Coaster ride
has just started- we ain't seen nothing yet. Root Cause of all of this event is US and
our Reproduction Rights, that as long as we go on freely over replicating our species
we will see economic upheaval every 3 generations like CLOCKWORK, 1860s then
1930s and NOW and only viable solution on a finite planet is Reproduction Rights.
105 points
joshperi answered 2 months ago …
Hold what stocks you have. Exercise extreme caution about buying and selling. Act only when you are reasonably certain of an outcome. If you have cash, It may pay to wait a few weeks, buying now is a rational decision, but be careful.
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ProphetPhil answered 2 months ago …
Absolutely our Government is doing the right thing THE WRONG WAY.
So far, a GRAND Economic Depression has been put off. The cost will be a return to the Stagflation of the 1970's until mid- 1985.
Our Government is acting like predators, instead of facilitators. The Government is taking too large a cut of equity AND WORSE, like any good predator, er business, commanding a high rate of interest on the bridge loans. Ha ha, looks like MARX was correct about capitalism moving to communism only in an American way. Our Government becoming a major conglomerate of businesses via the taxing power of government to buy up assets and equities at bargain basement prices.
Wayne, has it very correct about;
" lenders were loaning money to whoever wanted to buy a home. CREDIT SCORE, INCOME, and ASSETS [ = CREDITWORTHYNESS] became irrelevant terms as brokers and local lenders rushed to issue new mortgages."
The other major cause was Premium Mortgage Insurance refusing to pay claims on foreclosures. They would find errors in appraisals as justification, per their contracts with mortgage holders, to void the insurance and return the premium.
Title 12,
Banks and Banking,
Chapter 11- The Federal Reserve System,
says CREDITWORTHNIESS is to be the main basis for loan repayment, NOT value of the Real Estate.
The Premium Mortgage Insurance (PMI) Corp.,
AND
Appraisers ALSO contributed to illicit activity of the Government and of the Financial Industry
It would be best to e-mail our Senators and Reps. Demanding an inquiry as to How and Why the Regulations of Title 12 Banks and Banking, Chapter 11- The Federal Reserve System FAILED US. One could also demand penalties that are retroactive. Penalties, civil AND criminal for those that were negligent in their duty to follow these regulations OR enforce these regulations.
I do not think we need NEW Regualtions, and more, better, effective enforcement of the current ones.
105 points
lsaloga answered 2 months ago …
It looks like a desperation move - a "hail mary"play. What will it look like when it passes Congress? Is it the right move? Only time will tell.
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299 points
thinker70 answered 2 months ago …
Coming on the heels of Wayne's editotial explaining the steps that led to the current fiasco the question of whether the government is doing the right thing is rather interesting! It can be ARGUED, (as many have) that the GOVERNMENT really had no other choice, however putting the bill for highly paid executives malfeasance with no recriminations to them on the backs of already overburdened tax payers is little short of CRIMINAL in itself! THEY should be held accountable and suffer the losses their STUPID, if not criminal decisions, led too like a row of falling dominoes!
I would of answered the question of where this started a little different than Wayne, even though in the immediate aftermath his expanation was thorough and accurate. in actual fact it STARTED with the passing of the Federal Reserve Act of 1913 and it has been a Ponzi scheme from the start! Simply PRINTING more FIAT currency is simply stacking the deck for an even bigger blowup in future! When the MASSES finally catch on to the CON game that has been played on them and begin piling into REAL MONEY (gold and silver) the financial landscape will change on such a massive scale it will make the 1980-1 top in gold seem tame by comparison.
You can only patch up an inherently fraudulent system with "chewing gum and baling wire" for so long BEFORE the system totally breaks down and MUST be replaced with a fundamentally SOUND and HONEST system that RETAINS purchasing power so savings and investments can not be blown away by wealthy scumbags STEALING the hard earned savings of the average working man. Printing numbers on paper and calling it MONEY is a FRAUD of the highest order, they are nothing more than an IOU as in "I owe you nothing", they have ZERO tangible value and the more of them that are printed the LESSER the purchasing power of those that already exist. The governments actions are HUGELY inflationary and will lead as yet unforseen consequences that will not be pretty!
117 points
seyobnats answered 2 months ago …
First, all the executives who perpetrated tis Ponzi scheme on the country MUST be held accountable and be forced to disgorge their personal il-gotten gains to the taxpayer including the bonuses they they voted each other as directors scraching each other's backs. The courts were reasonably successful in recouping much of the stolen Enron money. They must allso reliquish their "Golden Parachutes."
Next Those who are in foreclosure must be given written down 30-year mortgages that THEY CAN PAY!
373 points
dustbusterz answered 2 months ago …
My answer to this question is who really knows if its the right thing. I feel that after everything they have done in the past, they came to a point where ,they have only 1 card left to play.
I feel only time will tell us if it was right or wrong. I do have to put in my 2 cents on how I feel about it.I am madder than hell. Mad because banks are supposed to know better but didn't learn from their past mistakes. Mad because our Government was elected by the people to work in their best interests and they failed us miserably .And to add salt to the wounds of investors, we will all pay for this for years(perhaps centuries to come).
And one more thing, to show how wonderful our government really is, while we're all suffering and worrying about whats to come next, they quietly pass a law behind our backs that steals one of our few remaining rights here. they can now take your lap top computers (when boarding a plane) and they don't even need a reason to do it. They can keep this lap top for an indefinite period of time.Can we all say illegal search and seizure? well that law is out the window. I think first time someone gets their computer confiscated at the Airport, they should take this one to court and fight like hell. Well thats our Government for ya . How much more will they try with the new president in place?
2703 points
MNSL answered 2 months ago …
Actually speaking government should not bailout these banks.
However, It has become necessary to do this at this juncture to prevent collapse of world financial system
Even if bailout pass or not we can not prevent collapse of commodity market and property market now. Some assets will have to revaluate to get correct value in the next 02 years. This trend will help some sectors, industries and companies in the future. Eventually it will happen sooner than later.
There is a possibility some banks and hedge funds exposure to commodity will burst in the next 12 months. As a result of this some banks will becomes leaders and they will act with social responsibility in the future. In addition they will manage funds without speculating and they will discourage investments when they develop into bubbles. I think investors should withdraw their money from bubble banks and insurance giants now before it becomes too late.
164 points
jrj90620 answered 2 months ago …
I don't think any politician wants to be in office while the Titanic sinks.Better to do something/anything to keep it afloat,awhile longer, until the next guy takes over.
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