General

[fasteddy]

Originally Posted by Walking_Target

People should not fear their government, the government should fear their people.

Someone was watching V for Vendetta on T.V. recently...

[skiddish9999]

Originally Posted by Harbinger[TG]

The banks aren't really getting a parachute. Technically golden parachutes are for upper management in any industry. The gov't is basically buying the property dirt cheap so people still have houses and we avoid another depression.

That's a good point harb...So, what they're doing is just buying the banks stocks and they own the banks?

Does that mean that they'll be making profits off these banks?

[Critical]

Yes, and yes, if a profit exists on securities based on subprime mortgages.

[Harbinger[TG]]

Originally Posted by skiddish9999

That's a good point harb...So, what they're doing is just buying the banks stocks and they own the banks?

Does that mean that they'll be making profits off these banks?

They are buying the mortgages and therefore the actual properties from the banks. Since this is not finalized I cannot say if they will take any % ownership of any banks.

Hopefully we can get some real regulations in place after this so the next set of greedy pricks doesn't abuse the system.

[skiddish9999]

Originally Posted by Harbinger[TG]

They are buying the mortgages and therefore the actual properties from the banks. Since this is not finalized I cannot say if they will take any % ownership of any banks.

Hopefully we can get some real regulations in place after this so the next set of greedy pricks doesn't abuse the system.

So, basically the goverment is buying up the properties of the families that can't afford to pay their loans? or just buying up the banks stocks?

[Harbinger[TG]]

Originally Posted by skiddish9999

So, basically the goverment is buying up the properties of the families that can't afford to pay their loans? or just buying up the banks stocks?

The properties. They are taking the mortgages from the banks so people keep their houses and the banks don't lose everything. It is actually a pretty good deal in the long run. AFAIK they will not take possession of any stocks.

I watched the entire hearing today...what an ordeal. I am amazed some of these government officials got elected. They have no clue about economics. It was mostly all pimping and posturing for their party.

While I will say that I am generally against government intervention and I prefer a free market. We have dug a hole too deep to really fix with a free market any time soon. Without crunching numbers for a few weeks I would have to say that w/o this money it could be 10 years before we stabilize the economy.

[Party]

Originally Posted by Stuffy

*Cough socialism cough*



Back,
Back,
Back in the USSR...

See, how on earth could you consider that socialism?
Bailing out corporations who gambled with other peoples and lost big time is hardly socialism, in fact it's the opposite if anything.

[fasteddy]

Luckily, we will never have another "Great Depression". A number of institutes were established so that we would not.

In an inflated housing market -- the banks were demanded to loan money to lower-income individuals, even when they knew they could not pay the bills. The bubble bursted, and now their houses aren't worth what they bought them for. Now you have angry people, defaulting on loans, and bank foreclosures and shortsales.

Too many people are living above their means.

[Christian Nelson]

Here I thought actually paying my mortgage was a good idea..

Turns out it wasn't I guess..

This is socialism, the cause, and the "cure" as well.

The cause: Community re-investment bill (banks had to make loans available to people who normally wouldn't qualify)

The cure: Government owns the banks... (State run corperations, kinda like Venezuela did with the oil industry there, or China, or Russia with thier oil undustry, no?)

Both are socialistic government meddling.

Sorry harb, I disagree that we would be screwed if they never bailed them out. Most of us are covered just fine by FDIC accounts for any savings we have. The land isn't disappearing, the physical stuff we have here in the US isn't going anywhere, the manufacturing capacity isn't gone, etc..

The big fat cats and their corperations and the investors (pensions, 401K etc.) would take a hit in the short run, but it would clear up soon enough.

This big payoff doesn't solve the underlying issue, and will only make it worse and prolong it's effect on our economy.

People need to stop saying that capitalism failed when it wasn't capitalism at all. The governmental oversight in these institutions doesn't allow for true capitalism to work.

Capitalism wouldn't have failed in this way.

Roosevelt actually prolonged the misery in the great depression with his socialistic edicts. If left well enough alone, the economy would bounce back and be just fine.

Allow banks to repo, allow them to take a loss, renegotiate terms with borrowers, etc.

don't just bail everyone out. There isn't enough money to do this everytime someone does somethign stupid.

Stupid needs to hurt.

No bailout, none, not ever..

Money is just paper, if you have skills, a mind, and tools, you have nothing to worry about.

Stay out of debt, and no one will ever own you.

And the banks never learned the lesson : If you cannot afford to give it away, you cannot afford to loan it out. They didn't have enough secure investments to back up the risky ones.

Free enterprise requires that poor judgement begets failure, and that should beget loss.

No one learns if there is no pain associated with mistakes.

[heinous]

Originally Posted by Harbinger[TG]

Because if this economy fully collapses we are screwed.

Paulson is holding the economy for ransom....

If he asked for a bailout maybe earlier, it probably wouldn't have to be 700,000,000,000....