Do you agree with the House's vote?
Do you think they were right in not approving the bailout?
Best Answer
216 points
jrj90620 answered one year ago …
If you're a Democrat or Republican then you believe in big govt so you should be supporting all govt bail outs.If you're in the minority,such as a Libertarian or otherwise support free enterprise,honesty and capitalism then you can't support these actions.
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3943 points
MNSL answered one year ago …
In a way, we cannot blame them and they are right.
Those market players especially top investment banks, some banks, fund mangers and other types of funds through out the world also should take responsibility for the present mess.
They speculated excessively and put all types of assets into bubble Now finally everything plummeting one by one.
Best thing that we can do is we should stay away from above types of players to prevent these types of chaos in the future. Definitely, they will not have their market share at least for the next 05 years through out the world. Now some are losing their positions as fund managers worldwide. This is a good trend.
Investments including superannuation funds should be handover to institutions with social responsibility in the future.
Even if bailout passes, still some top investments banks and hedge funds, exposure to commodity are more vulnerable now.
Now savors, investors willing to do business with well-managed local, regional and second tier banks instead of global investment banks and insurance giants. This also a good move to safe guard their savings, funds and investment. My personal opinion is even we must not think about putting our money with these giants now. If they have more business interest in other non-productive areas instead of cores businesses we must completely avoid those types of banks now.
204 points
helpme answered one year ago …
Yes and no. First NO. As long as this "crisis" continues, it favors Obama. Why did 92 of his supporters vote NO when he says he wants it passed quickly? It's political. He wants the public to see gloom and doom until the election. If he is elected, the crisis will be solved on Nov. 4. If is settled before the election, McCain gets the credit and Obama loses.
Yes because we don't need the taxpayer saddled with all this worthless debt. And we don't need the people that created the mess to solve it. Every Congressman involved should stand aside (of course they won't) and let the Constitution decide how it should be done (no economic czars [Paulison]).
Is this response too political?
989 points
rvilmur answered one year ago …
The house vote was a very bad decision and will cost the taxpayers dearly. It was all political posturing to save the voters a big pile of money. But the congress really blew it since the government could have made a lot of money over time on the deal.
The problem is that the bad debt has zero value if there are no bidders for it. Accounting rules then force the holders to value it at zero which forces many of the weaker holders into bankruptcy. The debt will not stay at zero forever as the forclosure and housing crisis will work out over time. By starting to bid for some of the debt the government would raise the price from zero and this would encourage others with large piles of money to see some value and compete with the government thus raising the bids. In the end the bad paper may be worth 75 cents on the dollar which is one great bargain if you can buy it for 25 cents on the dollar.
It is all perception and referring to the plan as a buy out for the fat cats was absolutely wrong. It is a stabilization plan and the fat cats are still going to take a bath on the bad paper they hold.
450 points
SallyG answered one year ago …
I agreed with the vote and called my representative to tell him so (after calling hime before the vote to encourage him to vote against it). I followed up by calling and E-mailing my senators to tell them also how I felt and encourage them to vote down. Now that I believe the Senate has approved it, is it a done deal? Or do they have to resolve House and Senate versions, and can we influence our elected representatives? This is so big it needs time to do right, not push through something quickly and face more serious consequences later. I have seen a number of economists warning that there is no "quick fix" for the economy, and that raising the limit on FDIC insurance will just make people feel good until the crisis returns.
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freo answered one year ago …
Absolutely NO! But then again, even if it were not passed, the Fed would still have the same ol power to dilute the dollar. One way or the other, 700 bn is probably peanuts compared with what the "monster" really needs to keep on breathing. Looking forward to seeing how it all comes crashing down. Mind you, with very little pleasure, in fact, none at all.
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