$700 Billion Bailout: Good or Bad?

carlo@CreditReportAtlas · #1 (**permalink**) 09-29-2008, 10:28 AM

So, what do you think of the $700 Billion Bailout? Do you think it's a good idea or a bad idea?

carlo@CreditReportAtlas · #2 (**permalink**) 09-29-2008, 10:30 AM

In my opinion, I think it's a bad idea. We Americans got so spoiled of the quick fix and I think it's time for us to SACRIFICE a little bit so we can catch-up with China and India. The word and action SACRIFICE is something that most of us aren't accustomed to.

Erik · #3 (**permalink**) 09-30-2008, 02:14 PM

I can see some major pros and cons to both sides. Without taking any action, I worry about the overall stability of capital markets and without money being lent (in real estate or anywhere else), our economy has HUGE issues.

However, setting the precedent that if you're a big player in a key economic industry then you can take as much risk as you want because the feds and joe tax payer will ultimately bail you out is also a bad idea.

I don't see an easy answer to the mess and don't really get the feeling the people in charge do either.

morsolo · #4 (**permalink**) 11-08-2008, 08:04 AM

this is bad idea giving ot big guy. Why not each us citizen 21 years of age the government give $10,000 and thus costs $50 billions. These will stimulate our economy. Look in 1930, the gov3enrment cash big money and housing. That time it zoom our economy.

Greg · #5 (**permalink**) 11-14-2008, 09:25 AM

Oh I think I will finally throw out a real opinion for once on this bail out.

The bail out was a good concept. It worked in the past. This is not something new and ingenious. The feds purchased mortgage backed securities back in the 80's and in the end the government made money. But, this time I feel mixed about the implementation of the program and the effectiveness it will have. Only time will tell. It is going to help. I do not doubt that.

But...

Losses will continue to mount with most of these companies. Furthermore many of the credit lines will be cut off after multiple consecutive losses being posted quarter after quarter. Investors are already alienated and steering clear of companies posting record losses and whom do so as a result of mortgage backed securities.

You cannot chastise the plan then have no alternative solution. I am tired of seeing folks blasting the bail out and not offering a better solution.

Do I sound conservative?

#1 They needed to implement a way to insure the money would be leant back out. Taking these securities off their books would save them billions in expenses from foreclosures and collections. There is no reason this money should be used for operating expenses such as paying compensation or salaries. Mandatory placement of the funds into an account that has goverment auditor access would be ideal and mandatory reporting of all funds dispursed from the account.

#2 There should be absolutely no money given to Ford, Chrysler, or GM other than federal discount loans. These companies are near bankrupt! It is time to merge and cut operations. The demand is just non-existant right now to support all 3. I hear 25-40% decreases in sales amount all the major auto manufacturing companies. So injecting them with 35-40 billion is going to increase demand for automobiles?? I can see them merging then getting assistance. I can accept that.

#3 Do you want an alternative idea? McDonalds posted a profit. They run their business right. Maybe their executives should get 700 billion to create a consumer and commercial financing company that has no acidic, poorly managed, self created debt on their books!

There! Think about it!

morsolo · #6 (**permalink**) 11-25-2008, 08:17 AM

Instead of giving a bailout to the big guys, banks, or automakers, why not give to all U.S. CITIZENS, 21 YEARS OF AGE, $10,000 CASH. I AM SURE EVERYBODY WILL BE HAPPY AND THUS PAY THEIR CREDIT CARDS, BUY a CAR, TRAVEL, PAY TUITION,HOUSING RENT, FOOD & MEALS,AND MEDICAL BILLS FOR HUMAN BEINGS AND PETS, CLOTHING, ETC... THIS COSTS $50 BILLION. IN THE 1930'S THE YEAR OF THE DEPRESSION, U.S. GOVERMENT GAVE LOTS OF MONEY AND FREE HOUSING TO EVERBODY. I AM SENDING THIS EMAIL WITH THIS PROPOSAL TO ALL LAWMAKERS AND I NEED YOUR HELP TO DO THIS IN ORDER FOR THE LAWMAKERS TO GET THIS MESSAGE..
Big bank are always asking money and the government always rescue them since 2007 but no help given to homeowner. They keep the money themselves. Top executive receiving $1 million per month salary. Wod. plus bonuses.

carlo@CreditReportAtlas · #7 (**permalink**) 11-29-2008, 01:37 PM

Quote:

Originally Posted by morsolo

Instead of giving a bailout to the big guys, banks, or automakers, why not give to all U.S. CITIZENS, 21 YEARS OF AGE, $10,000 CASH. I AM SURE EVERYBODY WILL BE HAPPY AND THUS PAY THEIR CREDIT CARDS, BUY a CAR, TRAVEL, PAY TUITION,HOUSING RENT, FOOD & MEALS,AND MEDICAL BILLS FOR HUMAN BEINGS AND PETS, CLOTHING, ETC... THIS COSTS $50 BILLION. IN THE 1930'S THE YEAR OF THE DEPRESSION, U.S. GOVERMENT GAVE LOTS OF MONEY AND FREE HOUSING TO EVERBODY. I AM SENDING THIS EMAIL WITH THIS PROPOSAL TO ALL LAWMAKERS AND I NEED YOUR HELP TO DO THIS IN ORDER FOR THE LAWMAKERS TO GET THIS MESSAGE..
Big bank are always asking money and the government always rescue them since 2007 but no help given to homeowner. They keep the money themselves. Top executive receiving $1 million per month salary. Wod. plus bonuses.

Not a bad idea at all!

Mcarr · #8 (**permalink**) 12-02-2008, 05:52 PM

I still have to find at least 1 taxpayer in forclosure bailed out, The banks are still evicting homeowners, more than ever. They are not giving anybody a chance. The bailout really does not concern the homeowners, the money is for the banks so they can turn around and have $$ to pay lawyers to kick us out of our homes. That is why we have members of congress and the senate who are lawyers, making their profession more profitable. The only people making money in this economy are the lawyers and of course the politicians.