 NEW YORK - As I sit here at the end of this unbelievable week I find it impossible to write anything intelligent about what just transpired. Too much happened too fast for me to be able to process it. And I am hearing the same from many others who watch or trade the market for a living. So instead I am going to pose a series of questions that are being asked here.
Did the United States just take a huge step toward socialism? That is a dirty word here on Wall Street, but the many believe the government's historic intervention amounts to just that ... and they are not happy about. Will more rules and regulations help, or will government involvement just stifle enterprise and business growth? Many here cite Europe as the example of what NOT to do. Should taxpayers be stuck paying for Wall Street excesses? What about the bankers who made millions trading risky mortgage-related debt that has now gone belly up. Yes, some of them have now lost their jobs, but many made off with a king's ransom. Should we change the way we pay executives, maybe tie them to long-term goals rather than share price and short-term profit? Were speculators really responsible for bringing down Lehman Brothers and forcing Merrill Lynch into a shotgun wedding with Bank of America? The regulators in both Great Britain and the United States have banned short selling, but hedge funds are furious. They say they are being made scapegoats and argue the data does not bear out the accusation. They also warn the ban won't fix the problem, merely create new ones. In fact, the hedge fund industry is thinking of suing! And maybe the scariest question of all, what if this doesn't work? Many experts here in the United States say we were hours away from a run on banks that would have plunged the global economy into depression. Not recession. Depression. And not just the U.S. Make no mistake, there was panic. Money managers with years of experience were telling me they simply did not know what to do, or where to turn. That may explain why the biggest group of free market advocates are embracing the biggest government intervention since the 1930s. As I watch the bell close out this wild week on Wall Street, I detect a certain frost. The U.S. government saved the system from collapse and yes the business community is relieved. But they also understand that U.S. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke do not have magic wands, and problems remain. Do you think the plan will succeed? Would the global system be better off if the U.S. took a page from Europe and got more involved in regulating business? |
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being a European having lived in the US i find it amazing to see that the massive nationalisation of debt caused by dare devils only out for fat bonusses is taking place. And worse, the American taxpayer is going to pay for this.
The markets were holy in the US, but it seems only when they operate well. Now that it appears that banks have created so much debt that can not be recovered, the markets working has to be stopped.
It is greed that has led to this situation as well as the unlimited amount of debt America is building up.
This situation is very dangerous as China is now having all the dollars to buy the American companies that decrease in value.
After Iraq, I think this financial crisis is another blow to the American leadership in the world, and that is not good!
Americans – throw away your creditcards. If you don't have the money to buy something, don't buy it. Keep some savings, yes like these socialist Europeans do, but their financial systems are a lot more solid, they may miss the upswings like you see in the US..but they certainly would not have caused a crisis like we see today.
Fed/US governement: do not support companies that have created bad debts, you may introduce a fund to support new investments, and scrutinize them. But it shows that the system in the US itself is Bankrupt.
As a European I hope the US will recover from this – but having suffered sufficient pain to change fundamental beliefs that prevents this reckless behaviour for once and for all.
This bailout is coming from a lame duck administration which will not have to suffer any consequences whatsoever, and that is the problem as I see it.
The true question is: will wealthy stockholders and employees now realize that they will be living off of welfare for the rest of their lives and
1. Show their appreciation by being better stewards of their money and stop looking down their noses at the people who need this help to buy a loaf of bread, yet are now sharing it with them?
2. Make sure their children and grandchildren understand that if it had not been for those less fortunate sharing a crust of bread with them they would not have the proverbial pot, and therefore owe every individual in the country a huge debt of gratitude and respect for the rest of their lives.
I think not. I think they are already trying to figure out how to get around regulations and rape the country once again.
What do Rush Limbough and O'Reilly think? That's all that matters to Wall Streeter's isn't it?
Is this financial crisis limited to the US? The global population have been forced into thinking so, with all the media coverage of only the US. Most investments, even ordinary people like me know, are global. Loans, mortgages in one word credit is used internationally, so why is it that this major economic and financial crisis being advertised as a US issue. Also where does the Fed borrow its money from for these lovely bail-outs and generosity. Aren't all tax-payers globally going to pay the price and foot the bill. Can someone be fair for once, do some proper research and tell us the truth.
McCain said the fundamentals of the economy are strong .Probably he was thinking about the family Business .He want to talk about judgment? . Let’s talk about the deregulation of the market and for consequence the collapsed economy. Lets talk of the billions dollars gifted to the oil companies resulting on today price of petrol.
What the ostrich and the Republicans have in common.?
Let me guess!
Both hide their head on the sand and pretend everything is fine.
America and the world are suffering from the blunders of Bush Administration !
Am I being too simplistic here or am I wrong in assuming the following: With the bail out of every financial institution in the past week – am I correct in assuming that every man, woman, and child in America now owes somewhere between $3000 and $5000 to get us out of the scariest meltdown ever? What is the gig here? How can we possibly cut taxes in any scenario? Now if my math skills have not failed me – that means with total US DEBT sitting at around $8 Trillion – does that mean – each man, woman, and child owes around $24,000 each to wipe this debt out? There has to be a way to make this happen. What is my point? No politician can cut taxes with this – therefore they all lie. We are going to have to pay this. We cannot walk away from it. Our kids deserve better.
Bailing out Hedge Fund criminals is not Socialism. Socialism is the democratic control of the means of production. What you are experiencing is the wholesale theft of your children's future by the people who have just destroyed your country.
Good luck.
The plan might succeed for a year or two but we need to get back to the basics of what an economy should be. Money represents work, goods/services. Too much credit representing too little work will eventually crash the dollar faith system. All the vacant houses sitting there could and should be making money. Even if people where occupying these homes while paying 2% interest; it would be better than the huge glut that the greedy banks insist on. Laws are one thing morals are another. I might be wise to consult what the bible says about finance.
The Plan will work? It is difficult to tell till the full extent of the toxic sub-prime mortgage and other unsecured debts(eg credit cards) in the banking system are laid bare.
Hiding them in off-balance sheet vehicle only serve to exarcebate the problem.
Perhaps with this all-out plan being mooted by the US authorities will set up a mechanism to ensure the financial sector comes clean and declare the debts. What I dont seem to support though is blaming shortselling as blaming the messenger is not a solution. Shortsellers are just highlighting the problem and in the process punishing management and Owners for bad decision in electing to invest in subprime deals in the first place, therefore in my opinion the market is working its magic. Otherwise why they are not shortselling well structured banks run by prudent management??
A rescue plan should therefore enforce the logic of not rescuing shareholders and their managaement for risk racketeering but rather to rescue the industry as whole, save jobs and make money for the taxpayer. I believe there is money to be made here because when all is settled house prices in US will start rising again and therefore value of some the assets caught out in the contagious sub-prime problem.
The Rescue of AIG is a case in point where the US government all but wiped out the shareholders by giving them a loan at a punitive rate of up to 10% plus a requirement to downsize. Contrast this with UK govt which dragged its feet for almost six months to resque expensively Northern Rock and if that was not enough in resquing HBOS created a Monster in the financial sector with a market share of more than 30!!
The difference in competency could not be clearer!!
I am not an expert, nor anywhere near it, on the financial markets but I worry that the world is once again following the Bush administrations pressure to do something.
We still haven't got out of the mess from the last time we were rushed into believing that the sky was falling in the middle east because of Sadam Hussein.
Now we are told that we were within days of a run on the banks so we should believe that the Bush Administration has the answers to this problem.
By the way, this problem was fully discussed in plenty of print media sources last year .... does no one in Washington read Harpers?
Why today? Was it really the short sellers? Or isn't this "emergency" actually just a nice time to "take care" of the friends of this administration before leaving office?
We would not want any of the large corporations that have benefitted from the Bush tax cuts to now have to eat their losses, would we? Would we want the Chinese and Saudis to lose any moneys they invested in the US mortgage market?
The intervention in the short term will work, but long term it won't as the underlying cause of the problem has not been tackled yet, and that is the overvalued housing market which has to see a substantial collection on the downside in order to attract new investors with the ability to sevice and pay their motgage loans.
The Plan will work? It is difficult to tell till the full extent of the toxic sub-prime mortgage and other unsecured debts(eg credit cards) in the banking system are laid bare.
Hiding them in off-balance sheet vehicle only serve to exacerbate the problem.
Perhaps with this all-out plan being discussed in US will set up a mechanism to ensure the financial sector comes clean and declare the debts. What I dont seem to support though is blaming shortselling as blaming the messenger is not a solution. Shortsellers are just highlighting the problem and in the process punishing management and Owners for bad decision therefore the market is working its magic. Otherwise why they are not shortselling well structured banks run by prudent management??
A rescue plan should therefore enforce the logic of not rescuing shareholders and their management for risk racketeering but rather to rescue the industry as whole, save jobs and make money for the taxpayer. I believe there is money to be made here because when all is settled house prices in US will start rising again and therefore value of some the assets caught out in the contagious sub-prime problem.
The Rescue of AIG is a case in point where the US government all but wiped out the shareholders by giving them a loan at a punitive rate of up to 10% plus a requirement to downsize. Contrast this with UK govt which dragged its feet for almost six months to rescue expensively Northern Rock and if that was not enough in rescuing HBOS created a Monster in the financial sector with a market share of more than 30!!
The difference in competency could not be clearer!!
Dear Ms. Lake,
You may be at a loss for words, and that is understandable. Based on the track record of Secretary Paulson as you quoted him, the government's "bold approach" would cost "hundreds of billions" of dollars, but would cost U.S. taxpayers "far less than the alternative." He noted that the government "must take further decisive action to address the root cause" of the crisis. Most of the estimates seem to center around half a trillion dollars, and the track record mentioned above makes this mean another trillion in US government debt. Where would the government get the money to buy half a trillion in debt, why by borrowing it of course.
What are the "further decisive action to address the root cause" which was excessive money creation and government borrowing? Have the Fed create more reserves (money) for the banks to borrow so they can buy the new debt. What a wonderful innovative plan! It is akin to putting nitro glycerin into a fire to blow it out. It is perhaps even more creative than attacking Iraq to punish terrorists that are in Afghanistan.
To attack the root of the problem a new currency (form of money) must be created that has actual intrinsic value. Does this imply a return to the gold standard. It is less original but more realistic as a long term solution than the proposals being made. Despite the rumors to the contrary a fractional reserve banking system can exist in parallel with the gold standard. What cannot exist is irresponsible reserve creation and undermining of the value of currency and money.
If the expansion of the money supply and the inflationary pressure are allowed to continue unchecked we can easily afford the tax bill while the 15 trillion or so of existing government debt can easily be repaid. We even have an example of how this would work in Zimbabwe. Perhaps we can even get president Mugabe to act as advisor on how to run an economy and eliminate taxes and meaningful government debt. It is clear that President Bush and Secretary Paulson need the help and are not getting it from the current Federal Reserve leadership in the person of Ben Bernanke.
Mike
In my opinion, the country's economic sitution is in deeper distress then what is being reported. Without knowing the full scope of the plan, since it is still being crafted, I think that it will turn out to be a "bandaid" for a hemmoraging US economy and global system. The US should certainly monitor/regulate business, but not take over business or invest in business (as with the AIG fix).
I am concerned that we have lost sight of the fact that the "tax payers" are a both the working people and business owners(large or small). Therefore, we are all paying for the blunders of Government and the Wall Street bailouts.
We as "tax payers" have to be careful not to panic and seriously consider government decisions that may effect our democracy and economic freedoms.
The bailout plan is just another example of greed taking the impression of recue. The government will not help the average person or business if they file bankruptcy and in fact the bush administration passed regulations a few years back making it more difficult to do so. Greed at financial levels caused this and the bailtout will say its okay to start all over and do it again. The government will take these assets and hold them and resell at a profit and the wealty will be scarffing these assets up. John Mcain is correct on the greed and corruption part and Barack is correct about helping Main Street.. No company like AIG should be so big as to be able to collaspe the world economy. As my dad would say " you're to big for your britches".
The goverment has separation of church and state and it also needs to have a hands off private vs. public funds. The question is, how does a insurance company fail without corruption and greed. They are designed not to fail. They loose and pass on higher premiums and lower deductables. The best thing to do is let it collaspse and start over when the fallout lands. This is just filling in the gap and prolonging the misery for maybe another yr. I make my bed and jave to lay in it and so should they.
How far will this bailout bring us?
In many regions of our country house prices are still not in proportion with personal income. That means the number of qualifying buyers are too low to revive the housing market. Further decline of the housing market is necessary to increase affordability. However, that means increase of delinquencies and foreclosures. I read the the total loss of the housing bubble far exceeds 1 trillion. Do we need another bailout of this magnitude in six months?
Hello,
For years I have seen the stock market flare up and cool down suddenly when something happens...I was wondering that if we could make a rule, that those who buy shares, like individual or investor bank , such that the shares , say, bought today should be locked and not allowed to sell for a period of time like a month or so, then this way you can prevent speculators from buying and selling at a speed that causes such terrible effect on the genuine investors interest.. Those who buy or sell small lots like a 100/200 or so can sell them whenever they want. Only keep the large quantities out of the quick buy and sell system
I know that how to keep a track of which shares were bought and how to keep it electronically locked is a huge task which can be solved if the best brains are involved
I am sure some one will think over this suggestion and push this idea forward so that the regulators make some such rule.
Thanks for letting my voice being heard.
yours
Darius Bustani
Thousands of businesses fail without government intervention. The failures are as traumatic for the owners as the bankers who did their jobs so well, they bankrupted their companies! Why did our Socialist government step in when the bankers were the ones to blame for doing their jobs like a bunch of morons?
Dang it! We ALL need to get the ball rolling FAST! Spread the word everywhere that ANYONE that votes for this SAVE THE RICH bailout plan by SOAKING THE REST OF US and robbing us of our future, our kids future, our grand kids future...ANYONE WHO VOTES FOR IT IN CONGRESS gets VOTED OUT OF OFFICE Nov 4...that's it, THEY WILL BE OUT!...ANYBODY, no exceptions. YOU have a vote. YOU will never again in your lifetime have more opportune time to use it in YOUR OWN INTEREST. Use it NOW or forever keep your mouth shut about how you are only one vote so you can't do anything about anything. Put up or shut up!
cant our loser republican government do freakin anytrhing hell dont even do it write i mean our president saying that do nothing does nothing good freakin job after 8 years i just feel like saying that if fight,fight fight, macain and lipstick i mean seriously has anyone went to googleearth.com and looked at what Alaska looks like my freakin poodle could be governer senator and the entire police dept THERES NOTHING THERE but please before you vote go to googleearth.com and just take a look at Alaska and republicans to be in office YOU HAVE TO DO SOMETHING AND JUST STARTING ANOTHER WAR ISNT ALWAYS THE ANSWER
Would the AIG bailout save Wall Street and the financial markets? I don't know. I do believe the cost of this bailout will be born mainly by the middle class. Is there another way to save the markets without harm to the middle class? Are there not other companies in similar straights? Isn't it the declining housing market that has lead to the recent bank failures? Will this help eliminate the record number of foreclosures? Is this actually the best way to improve the economy? Could this $85,000,000,000 be better spent?
What if instead, Congress immediately passed legislation to provide help to people who actually pay the mortgages? Wouldn't this create not just incentive to pay the mortgages, but also increase the ability to make the payment? I would like to see Congress consider an immediate (retroactive to the beginning of this year) bill to make the first $2000 payment per month of a primary residence mortgage 100% deductible for individuals or couples with an income limit for eligibility. This does not affect in any way the other mortgage related deductions, such as interest payment.
The amount of Adjusted Gross Income and the deduction could be similar to:
Single Married Monthly mortgage limit
<35,000 <70,000 $2000
<40,000 <80,000 $1750
<45,000 or = 85,000 >Or = $170,000 $0
However, I am less concerned with the actual income limits than with a move to drive the economy by empowering the middle class. If all these $24000 annual reductions of taxable income are assumed to be in the 25% tax bracket, then this becomes a $6,000 tax saving per individual or couple. For the same number as proposed for AIG – $85,000,000,000 divided by 6000 means this can be used by over 14 million tax payers before it costs more. Considering Fannie, Freddie, the banks and other institutions, this is much less expensive.
Can't we address the problem? People cannot afford their mortgages, demand for and values of houses are declining. Instead the current proposal addresses the symptom, which is companies who bought mortgage based securities are going broke. Solve the problem and the symptoms disappear. The assets of the companies recover, crisis averted. Due to the level of danger at the moment, a combination of top-down and bottom-up solutions may be required. However, the bottom up stops the continuing decline in the value of the mortgage papers and should drastically slow the forecolosure rate. Once this happens, the value of the assets which will be owned by the Fed will become greater and make the loss to the taxpayer lower.
Tom Strickland
NOW, WE THE TAX PAYERS ARE GIVING A BIG MONEY PRICE TO THE BIG GUYS WHO DID IT ALL WRONG......THIS IS PURE IGNORANCE AT WORK......HARD TO BELIEVE.
I t is ubsurd that when home owners were looking for som assistance or relief with there mortgages and foreclosure was around the corner thebanks were not willing to work with the US citizen taxpayer hoemowner. Now that the tables have turne the banks want the same people who were they were unwilling to work with to bail them out . I feel that the banks who created the finacial instrument that schemed people into buying a home that they had no bussiness buying in the first place will profit creating this mess and then profit again getting out of this mess. I am not sure that this wasnt there plan all along possibly some collusion or anti trust violations. All the finacial industry had to do is forgive or work with the problem homeowner mortgages and we would have avoided a good portion of this financial collapse. I feel that as part of the bail out the US government should take a share if not a large percentage of ownership just like they are doing with AIG,
This goes to show that Capitalism, like Communism, sounds good in concept but there are and always will be all too powerful and greedy mongerer's who bring forth its demise.
American people have ingrained in their society that any other form of government besides Capitalism is evil. Why is that? Is it the CEOs of major corporations who are obsessed about getting another fix telling us this, like the trickle down effect? Socialist countries like Denmark, France, Sweden love their form of government. Denmark was rated the happiest country in 2007!
I am sick of people saying socialism is bad. Especially with all that has happened the past few weeks. We seriously need to take a close look at Capitalism. We leave behind our elderly, our veterans, our less fortunate so the big wigs can squeeze out another buck.
Where is the regulation on how much money a CEO can walk away with as their companies tank at the taxpayers expense. Why is this not talked about in the news? These people need to go to trial, their assets liquidated and returned to the taxpayer bailout. Where is the justice? Why are we paying for their yachts, exclusive vacations, third homes and they get off scott free? TALK ABOUT THIS, QUESTION THIS! I, AND THE AMERICAN PEOPLE, WANT AN EXPLANATION!
I am seriously worried for this countries future.
THERE IS NO INCENTIVE TO DO AN HONEST JOB IN THIS COUNTRY--IF YOU DO A
LOUSY JOB, THE GOVERNMENT WILL BAIL YOU OUT AND MAKE YOU RICH AT THE EXPENSE OF THE TAX PAYERS.-ISN'T THIS A GREAT CONTRY.
JUST THINK-IF McCAIN IS ELECTED, WE WILL GET MORE OF THE SAME FOR FOUR OR MAYBE EIGHT MORE YEARS.
ME–I'M GOING TO VOTE FOR OBAMA.-ITS THE ONLY WAY THIS COUNTRY CAN BE SAVED.
How about lowering mortgage rates for those who bought homes they could afford and have faithfully paid their monthly bills? We're the ones who'll end up paying for the mess who "over bought" to keep up with the "Jones'". Are we ALWAYS to be screwed for doing the right thing?
Riddle me this....Instead of giving 700 billion dollars to the corporations, instead....instead...
Why not give the 303,824,640, people in America, ( well subtract all of congress...) give the working people a million dollars a piece...heck, lets say two million apiece...that only comes up to 607,649,280 million...still cheaper than that of 700 billion...to help the people who already make millions....
With that said, there would be stipulations on the receivership of the money... pay off all debts..i.e. mortgage, car note, payoff all delinquent bills..with the money left over....they are require to invest in some sort of IRA, stock market, retirement fund...some time of investment with in, a certain amount of time...
Is that so hard? Government takes enough money for themselves..why not for once, give some of it back.. Credit crisis solved..people go back to paying taxes...
By the way...my numbers came from https://www.cia.gov/library/publications/the-world-factbook/print/us.html
2007 publication.
Riddle me this….Instead of giving 700 billion dollars to the corporations, instead….instead…
Why not give the 303,824,640, people in America, ( well subtract all of congress…) give the working people a million dollars a piece…heck, lets say two million apiece…that only comes up to 607,649,280 million…still cheaper than that of 700 billion…instead of helping the people who already make millions….
With that said, there would be stipulations on the receivership of the money… pay off all debts..i.e. mortgage, car note, payoff all delinquent bills..with the money left over….they are required to invest in some sort of IRA, stock market, retirement fund…some type of investment with in, a certain amount of time…
Is that so hard? Government takes enough money for themselves..why not for once, give some of it back.. Credit crisis solved..people go back to paying taxes…
This is not socialism, this is TAX and SPEND buy the REPUBLICANS for the SOCIAL BENEFIT OF THE RICH.
I agree with Paul. ANY MEMBER OF CONGRESS THAT VOTES FOR THE BAILOUT SHOULD BE VOTED OUT OF OFFICE ON NOVEMBER 4th
Being just an ordinary working citizen and observing what is lately going on, is just mesmerizing.. is half of the world greedy and half ignorant?
Is the USA becoming over-civilized and is on the verge of bringing itself down like Romans did? Or is the innovation and invention sometimes going beyond any code of conduct and becomes a pure fraud?
Regulations? Socialism? How about just stop manipulation of accounting records, stop the corruption and the greed of all fat cats when in power. This subprime business was just a plain fraud – is anyone going to be actually responsible for that or we will continue to call it “free market economy” and subsidize it by taxpayers money?
Some actions should not be legal.. simple as that.
The banks should be in the banking business and look after their clients and stop speculating and gambling. Otherwise move some of them to the Las Vegas strip..
Figures don't lie, but liars can figure. Vote em all out, I say, and start clean. The math is astounding!!! They must have missed the day that math was taught in their school.
Isnt it funny how the treasury scammer and his buddies all said months ago everything was contained and good. they waited it out for months. Now that they see their own investments in giant firms slowly being diminished they want the big bailout. I am so pised that the american people have not done what glen beck and others are reporting we need to do. It is so obvious that this protects the richest of the rich investments. They say. WE NEED TO ACT NOW. BULcrap. let the firesell begin that is when the oppurtunities for real americans will happen, instead these worthless pigmees are robing the conservative american of oppurtunity to work to build a great america, now its henry and ben taking care of their buddies on wall street who dont work but sit behind desks and pull strings. I WOULD LIKE TO ASK EVERYONE THAT HAS A VOTE INCLUDING GOOD OLD HENRY AND BEN BERNAKE HOW MUCH THEY STAND TO LOSE IF THE COMPANIES JUST FOLDED. Then you would see their vote is only in their best interest. this just blows my mind that this is happening to 95% of the rest of us. BUL sht and get the pitch forks, where do we go to make our voices heard./??????????????????????????????????????????????????????????????
I was always told in business or anything else to be patient and wait if its a good idea it will still be a good idea later. I CALL UPON MY ELECTED OFFICIALS IN UTAH AND AMERICA TO WAIT AND LET THE DEBATES HAPPEN. NO BAILOUT NO BAILOUT. I dont expect my business that is down 90 % to be bailed out, do you? if yes then you are a welfare case waiting to happen
wall st. and the stock market is a living, breath bear or bull. It is dead wrong to start messing with either–from harsh experience I've discovered it unwise to mess a determined bull or a scared bear. Maybe dumb metaphors but - stay the hell away from my money and let the weak die.
wes (above) nice try , but according to my calculator that is only a little over two THOUSAND dollars apiece. not enough to pay off MY bills. maybe its time to learn chinese.
Listen I live in Canada. A country for which many americans might use the term socialist. there are regulations to keep things in check, protection for the average joe. You may know and anyone who has visited Canada or has known someone who has, we live exactly the same as americans! We have the same freedoms, same television and on and on. There is know real distinguishable difference. We are prosperous successful etc. In the U.S. people have been conditioned to believe that regulating business and such means that there will be a camera in every corner of every room. It is a holdover paranoia from the cold war, thrust upon americans by americans who stand to gain from no regulation. Look into history and see who were the biggest supporters of the federal reserve system and you will find a list of bankers. Even Woodrow Wilson later lamented putting the federal reserve act in place.
More regulation is not the answer, it is what got us here in the first place. We have not had free market capitalism in the US in decades. The Federal Reserve banks need to be opened up and audited. Congress needs to do its job and oversee the money supply and creation. Spending like there is no tomorrow needs to stop. Capital Gains taxes need to disappear, now! We are broke, and the only thing to do is to liquidate the assets and start over. It would be much less painful overall and shorter in the long run if we would do that.
The bailout is a disaster and wholly unnecessary. It will only benefit the big corporate fat cats, and the taxpayer gets shafted.
The average person given the opportunity will exploit a situation if they feel they can get away with it. Greed is a human trait...an evil trait. The character one must have to be a CEO is that to an nth degree. They use their position to exert their ego, enrich themselves, set up their family and friends and to hell with the grunts. After all, most people only care what is good for themselves and their kids. The welfare of other peoples' children don't matter.
These derby like positions have to stop. It promotes selfish greedy behaviour. Salary, bonuses, or other monetary incentives tied to the price of a company's stock must end. The CEO should get a realistic salary for the position...and that's it.
What is the outcome when the wealth these people attain is never enough and they want more? What is the end game? Well...the meltdown is the end...but wait...it isn't really is it...if the Fed has its way.
The Wall Street elite, who fund the campaigns of the politicians will be given a clean slate and freshly printed new "money" to help them keep playing the game and increase their already obnoxious amount of wealth. If that isn't evil, I don't know what is.
If you want to put money in the economy, let suppliment the gas prices, so people can afford their homes and the everyday prices of thing gas and food and utilities will go down. That is what caused all of this to begin with. Gas prices went up poeple could not afford thier homes anymore because it took to much to survivie on utilities and fuel for our cars and food. Put the money in the gas companies not bailout the mortgage companies, then your foreclosures will stop...
PAY IT BACKWARDS
How is it all of these corporate leaders of these failed institutions will still reap the benefits of what has proven to be ill gotten gains? From this taxpayers perspective taking 50% of the assets earned over the last 5 years from the top 25 officers of each of these failed institutions and apply it to this absurd debt they are clearly responsible for creating is more then just, it's generous to a fault.
What are the company’s ideas’s for getting back on their feet with our money? Purchase products they own?
Why isn’t the government bailing out homeowners? Bailing out people that cannot afford insurance? It’s our money isn’t it? Why not help us (the rightful owners of that money) and let the people bail out the companies.
If nobody can afford what these companies have to offer, then how will they make money?
My suggestion; End the war, get those troops (with their money) back in the U.S, lower gas prices, stop spending billions in Iraq, lower mortgage interest rates, give the people a bail out, and then maybe, we the people can afford to purchase these company’s services which will get them out of debt.
Today listening to the Senate hearings, I closed my eyes and thought Secretary Paulson’s voice sounds just like the Godfather. Isn’t it ironic that he is playing that part in this economic apocalyptic movie we’re all watching?
hello,first of all the ball out will not work and here's why....whats the foundation of the economy?..JOBS...if people don't have jobs they don't have money ..PERIOD...when jobs are sent over seas for the past 10-15 years it will catch up to the economy,sure prices are cheaper but all that cheapness has caught up to us now..we are using credit to pay just for basic things and then some people got drunk on credit(i was one of them)but thank fully my company finally took off. i think the 700 billion should go towards developing the jobs that where once here and create new ones. Don't just give it away in stimulus or to greedy wall street...how did the great depression stop,,,goverment putting people back to work.. make loans for college cheeper and easier to get....i have a bone to pick with these goverment backed loan lenders for college loans,,,they lie ,,im still waiting to see my .2 percent reduction on automatice withdrawl.....but put that money towards jobs instead of fat cats of the bush administration...
Why am I seeing no information about why this fiasco occurred in the first place?
I was just about ready to blame the Republicans – when I just saw an article that actually shows the Democrats at fault. Apparently in April 2005 – the senate banking commitee attempted to pass legislation to control Fannie Mae and Freddie Mac – from what I understood the legislation would limit the number & types of loans that these 2 institutions would initiate. (By the way, Freddie and Fannie already had accounting anomalies on their books by 2005.) In 2005, Greenspan told congress if the legislation was not passed – the US economy would be in jeopardy.
The Republicans apparently voted yes on the initiative; while the democrats (along with Chris Dodd) voted against the legislation – meaning that it never got to the full senate. WIthout the legistlation Fannie Mae and Freddie Mac got out of control – and the idea of these loans backed by the US government sent a message to other financial institutions that they (Freddie and Fannie) would government back bad loans... Hence banks started to be much less careful on lending & now we are in this situation.
I'm really angry right now, because I'm about to lose my job over this big lie... This makes me sick!
Now go and report the stuff that's true, and stop leaving us in the dark!
Here's what I sent my Senator and Congressman:
Sir,
As a taxpayer, military member and seriously concerned AMERICAN, I want you to know how outraged I am that this ELECTED government, charged with safegaurding American values, business and the American way of life have played so loosely with our future for years. This problem has been seen and ignored by paid professionals for years. Now the solution is to STEAL from the American people to pay for crooked decisions made by corporations, Wall Street, Republicans AND Democrats, and other irresponsible Americans who feel entitled to own a house they clearly can't afford? Well sir, I can say if you VOTE for this rediculous BAILOUT, you can count on losing my vote next election. This is AMERICA! Not a socialist China. The people who made bad decisions personal and professional need to pay the price while those Americans who continue to make responsible decisions will have greater opportunity and the fortitude to make better business decisions for themselves ending ultimately in a stronger America. If you want a strong American future then you need to stop STEALING from those who actually care enough about the country to act responsibly. Again. Vote for this rediculous Bailout and you've lost my vote and I wouldn't expect to win your next election if I was you.
Very Respectfully,
An upset American
September 24, 2008
Dear Sirs:
I have developed an alternative proposal to the Paulson Plan. The advantages of my plan are:
1) The same liquidity for the financial system can be created with less risk to the United States citizens.
2) The Paulson Plan is a limited top down solution; my Plan is both a top down and a bottom up plan (proposal #2)
3) My plan creates a method of making the illiquid mortgages marketable again (proposal #3).
4) My Plan is more politically acceptable to the public.
5) My system includes a way to make our financial system work as it is designed to work.
The problems with the U.S. Economy are real and affects everyone and most every citizen living in the free world, but some do not believe this and a delay will make the situation worse than it already is.
In the last 6 months we have seen well respected corporations fail or be taken over due to a lack of liquidity in the U.S. financial system. From Bear Stearns to Lehman Bros., Indymac, Fannie Mae, Freddie Mac, AIG, & even the takeover of Merrill Lynch; this domino effect must be stopped and the current Paulson Plan is a reasonable step in that direction, but we can do better. As a private citizen I realize any plan is limited and will need to address more issues than I can determine, but I think it can add greatly to the Paulson Plan or at least to the debate.
Thanks you for your consideration and time reviewing my plan.
Sincerely,
__________________
Richard Royall
The Richard Royall Economic Recovery Plan for September 2008 (draft-1)
PROPOSAL # 1:
a. Suggestion: The Paulson Plan should be modified to accept only bad mortgage credit instruments at this time, not all bad credit.
Comment: The heart of the problem is the mortgage credit situation, not to say that other types of credit are a not problem, just to say this started with mortgage credit and the solution must start there. That is not to say other credit problems do not exist and they also must be dealt with in some way and I will address present proposals to aid in correcting all these problems. No solution can fix (save) everyone, but we can put our financial systems in working order quickly and in an orderly manner. Our system is the best system if we allow it to work and have adequate safeguards and checks & balances.
b. Suggestion: The United States government should offer to make loans to the financial institutions that own these debts and take these debt instruments as collateral, based on the current market value. The United States government should not buy these unmarketable debt instruments or take stock ownership in the companies that own these debts. With the recent failures of financial institutions, the stock holders lost almost all of their investment while the debt holders got a total return of principle. The benefit of this action is the same as the Paulson Plan. They are:
i. The financial institutions that own these debts can get immediate cash (liquidity), although not as much as they may get under the Paulson Plan, but it is easier to provide more funds than to take away funds. Although I will admit that providing more funds at a later date may present problems. The benefit here is that by creating some liquidity in the system with less exposure to the United States government, the government will have more funds to take other actions that can get our financial systems working again, while seeing if this approach is working thus buying time to fine tune the approach. This plan does not get these bad assets off the books of the financial institutions and this is both good and bad. Bad for the moment but as we see in proposal #3 once these assets become marketable again the balance sheets of these companies can be once again fairly valued!
ii. This approach is more politically acceptable to the public. The government is making a loan vs buying part of these companies. This achieves the goal while reducing the political problems which for Conservatives is ‘the government buying companies is at least socialism if not communism’ and for Liberals this is ‘a bail out of business that played a part in creating the problem while the working man is left out’!
Comment: Advantages are the United States government takes on less risk while putting much needed liquidity into our financial system. The result is that less than the full 700 billion dollars is used all in one place.
2) PROPOSAL # 2: In the past, taxpayers were allowed to take interest paid as an itemized deduction. Bring back the interest paid deduction as a tax deduction for individual taxpayers, but do not require a taxpayer to itemize to take the deduction. Have a cap of perhaps a maximum deduction of $20,000.00. The deduction can be phased out after ten years with the benefits decreasing in years six to ten year. By again providing this deduction to all taxpayers:
a.) taxpayers who need help the most will get help.
b.) more money will be put back into lenders hands to be lent back out thus creating more liquidity at the bottom of the lending cycle that will flow all the way through the lending system, making the system work as designed. THE BEST SOLUTION IS TO MAKE THE SYSTEM WORK!!!
c.) additionally or as another option, a tax credit for interest paid of say 5% that must be used to pay down the principle on the loans. This would help individuals get out of debt, as well as the financial institutions and provide more liquidity in the financial system at a faster rate. People without debt would benefit from the stronger economy; the government would use fewer funds in the bail out of financial institutions, a stronger stock market, less job losses, etc.
3) PROPOSAL # 3: This debt can be made marketable again or determined to have no value. This could be done by creating a rating system much like corporate bonds (AAA, A, BB, C, etc). A government agency and/or several large companies working together can take large numbers of these loans and repackage them in the following manner. Take all the mortgages from one financial institutions look at the credit score rating of each individual mortgage owner and group all the mortgages in groups in 25 or 50 credit point spreads (i.e. 800 to 850, 650 to 675, etc.). This should create more marketable financial instruments. With this rating these ‘rated’ mortgages should be marketable and each financial institution can choose to keep or sell these now ‘rated’ mortgages. The rating agency or companies should be paid for doing the rating and disallowed from owning or trading in these “RATED MORTGAGES” to prevent any conflicts of interest. If this is done by private companies the government should be paid part of the fee to aid in the recovery of our financial systems. Other criteria could be added such as ‘never missed a payment’. So there could be 700 to 725 never missed a payment & never late rated mortgage and a 700 to 725 late with 1 or 2 payment during the last 2 years. Of course this will create some valuable mortgages and some worthless mortgages, but they will have a value and can be traded. Who would not want to own mortgages for homes where the owners have a credit score 800 to 850 that have never missed a payment (sound like AAA to me)! Of course there are the less than 400 credit scores with 3 month past due that may have little or no value, but by grouping these all together the rest of the mortgages can be made marketable. There are problems these rating are just a point in time, and may need to be re-rated or with luck and large enough packages re-rating will not be necessary. Another problem is that this may lead to the rich with higher credit scores will get a better interest rate on their mortgage than middle and lower income homeowners with lower credit scores. This moral hazard can be dealt with using tax credits or as a justification for higher taxes on the rich. The great thing is middle income households with good credit will do well under this system. Further it should be noted that middle and lower income households are refused loans or given loans in smaller amounts due to their credit scores.
4) PROPOSAL # 4: Other types of debt can be addressed using similar methods, once the mortgages crisis is addressed.
5) Foreign central banks, the World Bank, Sovereign funds, Asian and Middle Eastern investors and foreign governments should be solicited for their participation and help. Many of these entities have an interest in solving this financial crisis and therefore need to help to resolve the crisis.
Hopefully Investors will feel safer and that they can trade stocks & bonds as in the past, citizens can trust in the safety of their savings, IRA’s, 401k’s and banks can start lending again. Then our government can write some laws that provide adequate safeguards and checks & balances, but are not so burdensome as to hinder the normal and proper operations of our financial systems.
Paulson and his front man Bush have been crying wolf for so long, no one is really sure they are telling the truth. And the situation is so complex, it well may be that no one without an insider view could ever understand this. AND NO ACCOUNTABILITY AND OVERSIGHT??? So, just like people who were fast shuffled into their flawed mortgages, facts are flowing fast and easy and then the American People are being show the signature sheet with a pen, and a finger pointing to the signature line. Seems to me like a tire patch kit we are being sold for $700. YAH, my tire is flat, guess I'll sign.....? Not on your life.
It is unconstitutional for government to even entertain the idea of forcing the public to bail out large private, corporations who go under due to their own irresponsibility.
My firm and other law firms lost 60% of our income when the real estate bubble burst... the feds didn't meet to discuss bailing us out. We didn't get checks to help smooth us over... only tax bills.
Is this a capitalist or socialist America? We have to stop PRIVATIZING PROFITS and SOCIALIZING LOSSES.
When the executives received fat bonuses, did they send any of it to regular Americans? When millions of people lost their homes –due to poor decisions and/or unfortunate circumstances like job loss, health problems,etc.– did Bear Stears, Lehmans, and other financial giants step in to rescue homeowners from their bad decisions or misfortunes? Did they help regular Americans who defaulted on their loans? No, they sat, watched, foreclosed and repossessed. So, why should we step in to help them now.
Further, from a public policy standpoint, the lesson that WALL STREET and corporations learn from this is – get paid irrespective of means, take unnecessary risks to maximize profits, defraud consumers by underwriting irresponsible and high-risk loans, sell the bad mortgage securities to other companies, line executives' pockets with fat bonuses, lay off regular middle-class workers as needed, and when the shit hits the fan, just call the Feds to write us a fat check. Don't worry we can still keep our bonuses. The people will cover it.
REMEMBER THE WORD UNCONSTITUTIONAL.
I just saw on CNN an employee of CNN that was covering the Financial Crisis. His comments on how much debt the US increases every minute show me he does not know ANYTHING he is talking about. How about getting some people that know the size of the economy and deft financing! Please. I am SO TIRED of this Emotional Recession. How about shutting up until you have something positive to say?
Where does the $700 Billion come from? Is it borrowed from other countries or are we just printing more money? After all we
are supposedly borrowing from China to conduct the war in Iraq..Thanks, Sandy Callan, Laurinburg, NC
As we observe the financial conflict in the US- let me call it this way – here in Europe, we are very much tempted to ask if America played the game "CashFlow" a bit too well.
ENRON WRIT LARGE – THE CURRENT FINANCIAL CRISIS
As George Bush seeks massive public money to resuscitate the very heart of American private capital, I am reminded of the view of Gore Vidal, who has long argued that the United States is not a functioning democracy but a country ruled by a small corporate oligarchy that ruthlessly controls vast wealth and, increasingly, the mass media in the United States. The evidence of the past twenty years regrettably supports such a proposition. The current financial crisis emanating from the collapse of investment and mortgage institutions derives from the same managerial hubris and failure of regulatory and corporate governance that was evident in the bankruptcy of Enron several years ago and the Savings and Loan collapse a decade earlier (largely caused by the Garn-St. Germain Depository Institutions Act). The latter cost US taxpayers $125 billion (paid by the U.S. government) and drove America into recession in the early 1990’s. The comparisons between all three of these crises are startling and the American Republican Party has been largely responsible for each of them.
Under the Presidency of Ronald Regan proper regulatory controls of financial institutions were all but abandoned in the interests of ‘free market’ economics. Regan had infamously declared that Government hadn’t just failed to deal with the problem, it was the problem. But it was left to government to sort out the Savings and Loan debacle. Through the 1990’s the George Bush(s) (Senior.and Junior) and their family and business friends were part of a ‘golden circle’ while the latter, as Governor of Texas, and later, as US President, colluded with Ken Lay, Chairman of Enron to prevent proper investigation of that company, its associated investment banks, auditors and legal advisors by a Senate Sub-Committee. Subsequent FBI investigations, following Enron’s collapse, revealed widespread and systemic collusion between companies operating in different economic sectors.
The 9/11 attacks and subsequent diplomatic and military actions by the USA distracted attention from the scandal implicit in Republican involvement with Enron and allowed another Republican administration to enrich its supporters (American Vice President, Dick Cheney and his golden circle at Halliburton, an energy company like Enron, through contracts awarded to that company in Iraq). Indeed the scale of governmental corruption and misrule during the past two Republican administrations has become so bad that it has even prompted John Dean, the former White House Counsel to Richard Nixon, to painstaking document the malaise.
It is now clear that these events were not, and are not, financial aberrations but are systemic in American corporate culture and practice and its links to politics. Nothing could illustrate this more than the fact that US Secretary of the Treasury, Henry Paulson, who is now proposing that the ordinary taxpayers of America pay for this gross corporate and political mismanagement .was Chairman and Chief Executive Officer of Goldman Sacks, one of the very companies forced to adopt commercial regulation as it faced collapse in the financial catastrophe facing the US and global credit markets.
Not since the Great Depression have the stakes in an American Presidential election been so high. One can only hope that Gore Vidal is wrong and that the prospect of yet another Republican administration, through the election of John McCain and his ‘Guns and Crosses’ running mate Sarah Palin (a real Manchurian Candidate), is not being seriously contemplated by the American electorate.
If there are 305 million people in the US, then take 100 million away from this for children and minorities who do not pay taxes.
The US is going to give 750B bailout, this costs the tax payer $3658 per person. So how is this going to be recovered without raising taxes? How is this going to benefit the people ?
the situation is quite a bit more complex than just injecting 700 billion usd into a failed fianacial system . what caused this? who caused it ? whomever caused it should take the consequences. Do the banks accept or help customers when they default. Why should the customers have to pay the bill cover the banks irresponsability. If the bail out does not resolve the problem,
The american govt (people ) will have spent 700 billion for no reason? what happens when the next crisis hits , will it also be bailed out? if we beleive this is the end of the crisis and nothing else is going to happen , are we all stupid! isn't this more of a temporary cover up?
No one saw this coming !! Personally , the 700 billion will not bail out anyone , in fact it will carry future problems ahead , which could be a lot worse .
I would like to know why we never explored a straight across the board intrest reduction to FIXED 3% for the mortgages in trouble and maybe all those who would like to participate. The banks should refinance at that rate(cost free) take a loss and call it good. The homeowners who everyone seem to say are the most importamt would be saved, their homes affordable, recovery could begin. Banks need to take some responsibility for thier lending practices, I feel blackmailed with the speed of this bill, we need to explore other options. This option would be far less and address the sector needing actual help.
Every law maker in USA knew what was brewing. They did not do anything when it was a tiny spot on the skin. But now it has become cancer. Now the only treatment is to take it out and to make sure that it does not come back. Therefore, a proper after care has to be followed.
So they need to get out of this blame culture and honestly work together to sort out the mess they created.
They can blame the whole world now but they should know that you cann't see yourself even a smallest dust particle in your own eyes because it is too close so you have to ask someone else to look into your eye. I hope they get the message. Good Luck.
II think buying toxic assets is one small side of the story. How would guaranteeing or buying housing loans ensure that home owners will resume their payments? The other more important side is those consumers who will borrow, Is there enough qualified consumers’ base to borrow in order to revive the banking system? Or banks are going to lend unqualified consumers once again? Aren’t markets saturated enough? And how can the bailout plan help in improving unemployment rate which is an important pillar in improving spending and credit?
The media also need to take a break, they are causing consumer panic. The free makets need to run their course,reporters all have to much interest in market profits. We need to hear from MAIN STREET.
WE need time, and what about our Secretary, of Treasury does't anyone find it strange he got out of Goldmans just in time to save it, I believe the coruption could be still in play. We must proceed with caution.
We are on our way to a socialistic society. Let's stop all aid to all countries and concentrate on fixing our own! WAKE UP AMERICA!
This bailout is being rushed for a reason, No one will beable to react quik enough to see the real agenda. The American people no longer have a foothold in today's political realm. We can call our congressman all day long but believe me, we will be ignored.
The powers that be include both Presidential candidates,they have taken contributions from all parties included in bailout plan.
Give homeowners a 3% FIXED interest rate, cost free. Banks need to take the reduction in interest rates in order to stabilize the market and HELP Americans stay in their homes. I keep hearing that this is what is important, if so why would't this work, it would cost tax payers less money and we would be helping ourselves which will help our country.
If Americans could save their homes and AFFORD them, they would begin to spend money in the free market again. All of the 2nd mortgages should have never been given to consumers so I believe they banks will need to shoulder that burden, they enjoyed the profits now they should fell the loss of profits.
ofcourse no one like the idea of bailing Wall street. yet the consequeces of doing nothig is rather grave. Both Democrats and Republicans will decide the faith of this plan. For me I think that it is essential to concentrate on who will be a better leader to lead us out of this dire situation. We have just 40 days to decide. I can't believe that G.Bush has won the presidency not one but twice. Don't forget that he was chosen and we have to accept the conseqences
As a Canadian I look at this bailout and I keep thinking about New Orleans and Galveston and all that storm damage south. and travailing in NOLA I saw very nice friendly people and saw the birth place of Blues and Rock and Jazz and the History of it all. As a nabber and as one I am concerned for them in the south and if the Feds can give a $700,000,000,000.00 bailout why can't they do the same for the storm damaged south and help the people that are loosing there homes by storms and mortgage foreclosures. It seems like the Feds are doing the same thing as some 3rd world countries. I just think its a shame that the dreams of so many are being shot down and the rich are being saved by this bailout. I just don't see why CNN does not see or talk about this in justus. I am just a caring nabber! Keefe Haryett
Dose any one see the two that caused this mess… boarders were opened to all immigrants so now we have illegal aliens taking jobs from American for $6 an hour and Americans losing their $20-30 an hour jobs and getting laid off because people are hiring cheep labor…. Hah… I wonder what happens when we have fewer jobs. Use some of the money to ship, bus, fly the illegal immigrants back… and we will see the economy pick up… as far as immigration is concerned why we don’t do the same thins as the Europeans do. Don’t people come in and visit unless they have assets and nice paying jobs that way we know they wont be taking our $6 an hour jobs. If they are coming to visit family members, let’s hold their family responsible for their welfare. That means if they stay illegally then they the family member should pay a $20,000.00 fine and get deported even if they are citizens… the other cause bankruptcy laws changed… lets go back to the way things were and create harsh punishments for abusers.. Like a 40 year jail time and we won’t see it get abused…
Why are the bank CEO’s not going to jail? The bailout comes to over $2,000.00 per person in the US. If I stole $2000.00 from a single individual I would go to jail and congress would care less. Granted the US financial system needs to be secured but someone needs to be held responsible. That would be the bank CEOs!
Mike Anderson
Who will be taking care of many people like me and my family whom are struggling with a ARM mortgage and trying to keep afloat.
when I approached my bank(Wachovia) asking them to help me with refinancing my ARM which they have made over $40,000 extra interest off of and in process of this meltdown all my $200,000 equity is gone.
They looked at my credit score 7.25 and never called me back even though I tried to reach Nikki(their representative) who I originally spoke to 8 weeks ago.
It seems that they do not want to help anyone who is trying to stay afloat, so what is this no sense helping them with my tax money.
The solution will be to get all the people ARM mortgages to its original price when the loans were signed off, make them fix 5 years 5.5 % interest only with 3 year increments of 1 point increase as long as they are own the house. No prepayment penalties. 3 point of the selling price profit goes to the banks if people sell their houses.
Keep us in out houses, take our equity, but make the payments fair, so we can pay until we get this economy going again.
I hope this make sense to someone. Banks make money using our money. It is only fair to have them work for us when we need them.
Consider it a ship, reach or poor does not matter. we need to help eachother to get through this, so the big boys need to realize they better consider help people to stay afloat, otherwise they will go under with us.
HELP, HELP those of us who are still trying to hold on with our teeth. We will be the next wave of run away trains heating the market, if you do not stop our problems NOW.
Sorry to take your time, but if and only if we open our eyes and close the hole where the dam is leaking from, before we fix the villages below.
The main problem they say, is the bottom falling out of the housing market in the US. Baloney. The main problem is the rampant and unchecked selling and reselling and re-reselling of assets, hedge funds and hedge funds on hedge funds. All of this is money generation with no basis in real value or work, all pure and unadulterated capitalism for capitalism's sake, money for money's sake and nothing else. This is the real problem and a very dangerous road, for when the bottom falls out of the hedge funds, real work and real value is threatened while the executives get richer. This is the problem that needs to be fixed, limiting the ability of capitalists to sell, resell and re-resell assets. If not checked, this will lead to an economy that has no basis in value, only an idea, and when the idea fails, the bubble bursts. No need to save these capitalists – they have sawed off the branch they are sitting on. Let them fall! Those with real value will not be hurt, only those with paper value with no basis in reality will be hurt.
This bailout is nothing more than a last ditch effort by the Bush adminintration to reward their friends on wall street for their support over the last 8 years. Mr. Paulson should be incarserated for yelling financial armageddon "fire" in a theatre. They have succeded in frightening the population of sheep into believing that the world is about to end as we know it. Their media maching is in full gear in order to convince the frightened masses into going along with their agends. There have been alternative plans put foward by credible people which have been totally ignored because they are will not allow the Bush agenda to go foward the way the administration would like. Let the markets hold their breath till the election and put the bailout up via a referendum. If the markets crash and burn before then it will prove that the bailout would not have worked anyway. Threatening us with financial armageddon is nothing more than a Nazi gestabo tactic invented by Hering Gobels. This is exactly what they did in order to get the US into the Iraq war which by the way did not find any WMDs. It is time for the population of the US to show some backbone and incist the cowards in congress do the will of their constituents. This financial crisis has been contrived and compounded by a few top executives within the banking industry whom have put themselves and their greed before the country. They would rather sink the ship if they cannot have their way. The party is over.
Excuse, not in that section.....