September 25th, 2008
02:07 AM GMT
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When my crew and I arrived on the scene at the Singapore office of AIG, we were not only struck by the number of people lining up to cancel their policies and withdraw their money but also by the remarks of the cab driver who pulled us up to the side of the building.

"Haven't you heard?" he asked us incredulously when we tried to confirm exactly what the people were waiting for. "AIG is going bankrupt!"

Now, that might not sound surprising to someone living in the United States. But we were thousands of miles away from the home turf of the American insurance giant. Granted Singaporeans have a strong interest in the financial world, but the driver got me wondering ...

How many Asian financial institutions can you name?

In the past few days, Japanese companies such as Mitsubishi UFJ and Nomura have been throwing their money into Wall Street firms - either to buy a strategic stake (Mitsubishi UFJ into Morgan Stanley) or to pick up assets (Nomura into Lehman). The belief here is that these Japanese players are building their brands and positioning themselves for greater influence in the global financial markets.

And the Japanese aren't the only ones.

Before Lehman went bust, shares of the investment bank were supported by news Korea Development Bank was gearing up to buy a massive chunk of the venerable U.S. firm.

Cash-rich governments are getting in on the action, too.

State investment arms, known as sovereign wealth funds, are buying up shares of Wall Street titans such as Merrill. Many of the governments out here have coffers filled with cash from goods sold to American consumers.

So are Asian financial firms poised to become household names?



soundoff (50 Responses)
  1. Gloria Desmarais

    Today I saw the headline "Developing Story" as George W. Bush had just addressed the topic of the troubling events of the American economy, and thereby the world economy. When he said it is in grave danger, I was immediately reminded of just more than a month ago when he insisted there was no problem. He also said not more than a few years ago that there was no reason to take global warming seriously. So my question is: how do we trust such a head of state who sticks to his opinion in the face of all current news, and then finally reverses his view when the damage is already done? It is under his leadership that both the world economy and global warming have progressed to the danger levels they are. Is there any reason at all to listen to the words of George W. Bush?

    September 25, 2008 at 2:26 am |
  2. Angel Harmon, NC

    I'm sick of our government and the big corporations making the low income families bear the burden of their constant acts of greed. This country was founded on hard work and earning what you got in this life. Not so with what is going on in our country today. Finally, greed has gone too far. There's no help for the "little people" of this country – low to middle income workers and small businesses. Why in the heck should we throw our money down for them?
    I say "NO!" Not only "NO", but "HELL NO!" Suffer and bite the bullet like you've made all of us do in the past and present. I work my butt off with 2 full time jobs just to pay my monthly bills. Why are they so huge since I'm a nurse? Because licensed nurses don't make squat! As a single mom I have to pay for 3 kids to go to college – no freebies for this household – and I have asked for help!
    So suffer! I don't care if you lose your big houses, your fancy cars, mansions and your cushy jobs! Get over it! The rest of us are tired of working to pay your freaking bills for you! AND you made sure our futures are barren since you stole our Social Security benefits right out from under us. WE ARE THE MAJORITY! And WE say NO WAY!

    September 25, 2008 at 5:37 am |
  3. Kenneth

    The fundamental principle remains the same, just as in chemistry, toxic debt has to be recycled, and who can do it better than Asian FIs? With their substantial cash reserves these banks can weather the storm and end up controlling substantial stakes in the US economy and eventually defining US foreign policy.

    September 25, 2008 at 5:37 am |
  4. John Beckwith

    The top Asian economies have been sending us far more in goods and services than we send them. The consequence of this is that they are sitting on massive amounts of dollars, but don't want our stuff since they can buy Asian goods at a more attractive price (and other reasons having to do with markets for a developing economy).

    Asian managers and CEOs and Directors have proven themselves much more competent than our Harvard/Wharton MBAs who have no idea what a company actually does. They just look at numbers provided by the bean counters for this quarter, and then get their executive haircut and go socializing.

    So when those dollars the Asians are sitting on come home to buy one of these non-competitive companies, the blue-bloods get axed and replaced by real executives. Shorter in height, but much more intelligent. This is good. Detroit soon finding out what it takes to build cars being one consequence.

    September 25, 2008 at 7:52 am |
  5. Jazzpardi

    It seems the gun-toting bandits of yore have abandoned their guns and moved into banks and financial institutions,

    September 25, 2008 at 8:47 am |
  6. harish

    i don think this way the asian gaints gona waste there money in a sinking ship. you see economy does not see any emotions and in true proffesionalism this means a wastage of money an time..no way asia will not through it's money in this market especially in these banckrupt gaints ...no they will not help them becouse these are household names?

    September 25, 2008 at 8:54 am |
  7. Dan

    Angel Harmon,

    First of all, I'm not a banker. But in your invective against banks and your desire to see them fall, you are hopelssly deluding yourself. First of all, the collapse of all those big firms you so dearly hope for will have a far greater impact on you than on those 'evil greedy' bankers. Sure, they're scoundrels. But they'll keep their big homes and cars. They'll shrug their shoulders and fall back on a lifetime of wealth and wait for the market to recover, and then invest again.
    And you? And others like you, like me? You've admitted you don't have enough capital to finance yourself, let alone your three kids that need to go to college. Things will get infinitely harder for you, and me, and everyone else. That's what you seem to not understand, or are unwilling to see.
    If the economy goes under, do you believe you'll weather the storm? Or that other low-income families will be alright? Do you think it will be easier, instead of harder, for you to send your kids to college? Have you looked at enrollment levels in educational instututions during the Great Depression? I'll give you a hint- they're not as high as they are today.
    So what you're hoping and praying for is really another nail in your own coffin, as well as everyone else's. The banks need to survive, and once their survival is assured, then we can begin the process of insulating ourselves against something like this happening again. In the meantime we've got to suck it up and weather the storm, and believe we will come out of it in the end. That's as American as your paradigm of hard work. You, and others like you (and like Sarah Palin!), exhibit a dangerous fundamental misunderstanding of the way that the economy functions, and how it's temporal fluctuations affect you and me in our everyday lives.

    September 25, 2008 at 9:12 am |
  8. Vlad Kho

    I live in Russia, and I have been watching closely the news as economic crisis unfolded.

    I agree with Gloria, the whole chain of events that led to financial struggle of the whole world should be blamed to only a few people in US that have been politically inert with tough decisions that had to be made way before this turmoil has started.

    Instead of focusing on national security, and world domination, the Bush administration should've been modernazing financial regulations. They should be paying much closer attention to the fact that USA has been loosing a market share of the world economy. And if this ill political course is maintained, I am afraid the future of American people is very dim.

    This is not 1920, and the weapons are now mostly economic rather than military. The world is highly integrated, and wars are very unlikely if you dont initiate them yourself. Bush has been warning the public to watchout for those aggressive muslim weirdos. Wake up people, HE is the weirdo.

    Now he has led the whole country at monetary disposal to foreign investors, who have a rear opportunity to pick american businesses piece by piece for nothing.

    If US continues to loose its share of world economy, its political and economic influence in the world will be miniscule in a few decades, but on the other hand you will have a lot of "friends" you have made in the arab world due to agreessive foreign policies. Very unpleasant place i am sure you wouldn't want to be at.

    Now is a historical opportunity to make the right choice, and vote for change and future. Who do you vote for? McCain – with little knowledge of economics, and Palin – a schoolgirl in foreign relations?

    September 25, 2008 at 9:40 am |
  9. tokyoman

    I have lived in asia over fifteen years, I still am proud to be from America, etc. etc. but to be honest I hope the economic reigns do pass over to asia because I think theyll do a better job, asia as a whole still realizes sweet fruits come from hard work and actually producing things as opposed to swindle, money for nothing and military bullying; america isnt what it used to be on the upper tier, it has lost its agenda, and the redneck element in the lower tier better get a grip soon or face the music, the best elements of America (Obama and americans like him) better take over or you guys are screwed, and to be honest you totally deserve it. America has seriously shamed itself over the last eight years and should hang its head over the ways it treats the outside world and the innocents within its own borders. dont bitch; just fix it and move on.

    September 25, 2008 at 9:57 am |
  10. Derek

    I'm an American living in Asia.

    The leaders and upper-management of America's businesses have sold out the entire country so they can profit on the selling. It's sad to say, but Asia is very rich, and America is allowing its rich business types to bleed it dry and escape with golden parachutes for themselves and their families.

    Asia has our money.

    September 25, 2008 at 10:32 am |
  11. Mbanda Affue

    Looking at what is happening now USA,This is the time the American people should revive the econony by voting for the money the president George W. Bush is requesting for so as to allow the country be stable. Americans should now put their heads togother,think of the present economic situation in the country and think on who to vote to become the next American president in the furth coming presidential elections between John McCain nad Barack Obama. Left to me,if the elections were to take place today I will vote for Barrack Obama for I am sure he will revive the economy. Mbanda Affue from CAMEROON
    WEST AFRICA.

    September 25, 2008 at 10:44 am |
  12. Kurt

    While I agree with Dan to a major extent in his thoughts, what are the other options that could be done. How else can the bail out money be spent or spread across a. Protecting the "Big Banks" b. Supporting the sub-prime borrowers? c. Developing a cost effective production base that will help not to send all those goods and services down to asia and other places.

    Special situations call for special actions. The bail out money is a special situation. Can the legislative and judiciary branch agree on one important thing. None of the money will go towards Golden Handshakes or similar to senior decision makers, consultants etc. If this is done just by legislative branch, than the Judiciary is going to have to take on so many cases. Better to make this part of the legislation under some kind of emergency measures to ensure that every cent that is spent from the bail out fund is used on developing a sound economy.

    The mistakes of a few (policy makers, Chief Executives etc.) are affecting all americans and globally. Ofcourse, the americans and people around the world also rode the good times. So, let us not just blame the private sector. The government failed completely as did the elected representatives to prevent this.

    September 25, 2008 at 11:06 am |
  13. Hema

    I would like to politely disagree if some one says that Bush is responsible for all the economic failures. Responsibility lies with each and every citizen. We have seen the Enron, giant GM taking a step down from the Japanese Toyota, LB, AIG....the list is growing. It is time that the Americans tighten their seat belts and work for the progress of the Nation instead of putting a blame on the President or some one else. The leaders of big organisations should build their organisations on strong fundamentals to last for long.

    How did the Toyota achive its #1 position, over night ? it was a strugle for several years, hardwork of several Toyota employees. So, please stop the blame game, cut down on your uneccessary expenses, use resources only on need based and I am sure that within no time the US economy can be rebuilt with stronger base.

    September 25, 2008 at 11:29 am |
  14. Urgo Mako

    What seems to get very little attention is that while the banks did loan recklessly, it ultimately was the "average" American consumer that shoulders the blame by purchasing houses that were clearly beyond their means, on the premise that the value of it would perpetually rise. We brought this upon ourselves, and the greed is not confined to the large corporations. Let's all look in the mirror, and not loose the sight of that.

    September 25, 2008 at 11:32 am |
  15. Susie Thomas

    Angel Harmon & "Dan",

    I agree with Angel...of course we understand that the banks can't fail. You are naive if you don't see that in her post. What she is saying is that these "stuffed shirts" should pay their dues because their businesses failed. No golden parachute, unless it is truly made of gold and they can jump off a building from 1000 feet. These guys made their bed. Lie in it, sucker. Let the banks recover, brush themselves off, learn their "greed" lesson, and move on. But the asses who got us into this mess, SCREW them. I agree, Angel. Dan, wake up. You're not as smart as you try to sound.

    September 25, 2008 at 11:48 am |
  16. J Thomas

    I live in India, but closely watching the market and economic crisis. I am of the opinion is that it is not only the mistake of the government officials as well as the loose policies in the banking sectors. The unemployment rate is increasing as the days goes. US is no longer a economic super power. It is due to the on going wars in Afghan and Iraq.The true American should stand up and tell the President that you misled us with the wrong information. This current financial crisis is your baby, you better look after it.

    September 25, 2008 at 11:55 am |
  17. Angel Lou

    I agree with Gloria on Bush. But the point is: you guys out there in the U.S. elected such a guy! So the question is: when could the American people start to vote on the basis of intelligence, vision and foresight, not on personality and charm!!! You guys elected Bush because you felt he was someone you could drink a beer with... Is that what a president is supposed to do - drinking beer with you?

    Now the same drama is playing up with Palin. She is said to be "likeable" to many Americans. But you are not electing an American Idol. Not even the most productive Mom - for that Angelina Jolie is even more qualified to be VP.

    Enough is enough. Please smart up, Americans. Your country is at a grave turning point. Choose the party that can handle economics and international relations!

    September 25, 2008 at 12:04 pm |
  18. Ken M

    As far as competition with Asia, we had better get our acts together in the U.S. (and the free world). I am reminded of the former world power, Britain, about 1885, when its people began to realize that they were being out-competed by the United States and Germany, and yet had enough wealth and empire to continue to plug along with the old system. Their empire and escapades into foreign lands (one of them being Iraq) continued to cost the country (but not necessarily individuals with huge investments the military served to protect) dragged them down, and in part led them into a devastating World War I.

    We in the U.S. continue to borrow more than we save (current national debt is 10 trillion, vs. 1 trillion in 1980), stonewall on major debts coming due (Social Security and Medicare), and don't look at our political-economic systems to see that they need serious reform. Instead our voters in a handful of states decide the election of our top two leaders based on imagery and "feeling good" about the candidates, instead of voting for responsible people.

    Americans tend to be optimistic to the point of being sanguine, but it is obvious that finally more of them are thinking significant, positive changes are in order.

    September 25, 2008 at 1:43 pm |
  19. Sandra Coffin

    It looks like the low income taxpayer is going to suffer again. As a taxpayer I would like to add my view on the Financial Crisis. If my tax money is going to help pay for the crisis I would much rather it be what I owed not someone elses debt. My suggestion would be.....
    There are over 300 million people in America, if every "Taxpayer" were to receive 1 million dollars which would be TAXED. That money would be used to pay off mortgages, healthcare, taxes and stimulate the economy. This would BENEFIT every Taxpayer in the country and put the tax dollars back into the Banks, Healthcare, Medicare, Social Security System, Stock Market (investments) and all businesses.

    Now doesn't that sound like a better idea verses a 800 billion dollar debt?????????????????

    September 25, 2008 at 3:43 pm |
  20. CHUGANI NELSON

    THE PRESENT ECONOMIC CRISIS IN UNITED STATE IS NOT ONLY IN THE UNITED STATE ALONE BUT IN MANY OTHER COUNTRIES OF THE GLOBE ALSO FACING SIMILAR CRISIS .
    ANY PARTICULAR PRESIDENTOR ANY SPECIFIC BODY IS NOT TO BE BLAMED FOR THIS CURRENT SITUATION ,AS ANY WOSE MAN SAID,"YOU SHOULD BLAME YOURSELF FOR ANY HAPPENING".
    THE WEAKNESS OF US ECONOMY SINCE LAST FEW YEARS HAS RESULTED A POSITIVE BENEFIT FOR MANY GOVERNMENTS OUT OF UNITED STATE, PRIVATE CORPORATES AND PERSONS GLOBALLY,AND NOW ,WHEN THE TIME IS LITTLE HARD WITH ,THEN THE WHOLE WORLD IS CRYING,WHICH IS UNFAIR.

    September 25, 2008 at 4:35 pm |
  21. J from DC

    Time for CNN to educate the public on the difference between real news, and bias commentary. Fox is reporting any real news, that makes Obama look bad, along with their bias commentary. That is bias and selective news reporting. Can CNN, please take on fox, so I can stop hearing their bias talking points at work. Please Anderson keep them honest. Please discredit their spin. Because, if Fox is good reporting, then we are all doomed to suffer more of it. Force their sponsors and Executives to shy away from their right winged stance, by embarrassing them before the eyes of the public with real powerful news reporting. Bombard us with facts, and the information that matters, that is not sensationalized. Get in the public education business. Show us why creditable new is more important than sleazing stories that boost ratings. This is a competition between real new and sleaze. CNN PLEASE Win!

    September 25, 2008 at 6:23 pm |
  22. lakshman Dalpadado

    Sandra Coffin

    How many tax payers are there in the USA? Say at least 100 million – to pay every tax payer one million dollars the treasury will require 100 trillion dollars! How is the US government going to find that kind of money when they cannot even raise 1 trillion?

    September 25, 2008 at 6:29 pm |
  23. Carol Oliver

    In my view this bailout is only the end of the beginning....not the beginnning of the end.

    Wellington
    New Zealand

    September 25, 2008 at 7:28 pm |
  24. wendi

    I think every bodies mortgage rate should drop to 3 percent and I mean everybody. The banks would still make money not as much and people could afford to put money back in the economy. I also think companies that send their bussiness to other countries had to pay us taxpayers money that would stop but you take our jobs and then still expect us to buy the products and give you money.

    September 25, 2008 at 8:00 pm |
  25. KONI

    It is always interesting the way the tax payer is left holding the baby. I am dissappointed , but also resigned. It is also sad that there is such financial upheaval , and the price will be paid by all, including those who have lost so much already

    September 26, 2008 at 5:50 am |
  26. Richard

    Rather than a wholesale bailout of devalued asetts why can't our leadership come up with some more creative solutions? How about special purpose bonds that reward taxapyers and foreign investors with incentives. Set aside one trillion but traunch it out over a specific period of time, say 2 years with draw downs when specific goals are acheived. Throwing money at the problem without safeguards will only create a bigger problem. This problem is centered in greed and we are all responsible for it's existence and should be jointly responsible for the solution. With few new homes being built inventory will have to shrink, thus increasing the value of the existinbg homes. As prices and values increase, the troubled portfolios become more valuable. As those are sold or repackaged the gains could be redristibuted to cover the a good portion of the cost of the bailout. This can work itself out with a dose of rational thought and some creative thnking. It's easy for the opponents to say it won't work but I hear little about what we can do to make it work. The message that leadership HAS to put out today is that they are going to move ahead with a proposal today, the details of the proposal will have to be ironed out over the next few weeks. The whole World is waiting to see how the US handles this and it is important for all Americans to understand that we are under an economic microscope.

    September 26, 2008 at 1:08 pm |
  27. Rahul

    This crisis is the result of selling and buying stuff whose risks, and as a result pricing, we do not understand. The mispricing of risk went on knowingly and now when these banks are going down the FED steps in to bail them out. What kind of message are we sending to these guys – "reckless behavior is no problem, we are there to back you up". These bankers made their millions in any case. So why save them?
    Even if you do save them now by putting in $700 billion, who is going to pay for this bailout eventually? It is the guy who is already having trouble meeting the mortgage payments. Eventually this bailout will come back as a tax or as inflation! And it is going to hit the common American the hardest.
    The economy will eventually clean itself up – the question is if we are going to increase the actual cost for ourselves.

    September 26, 2008 at 1:16 pm |
  28. ALECO -----NOKOMIS,FL

    LOOKS LIKE A GOOD TIME FOR CHINA TO BUY AMERICA--THEY COULD BUY US OUT FOR ONE PENNY ON THE DOLLAR.-MAYBE EVEN LESS IF McCAIN WERE ELECTED.

    September 26, 2008 at 3:06 pm |
  29. Dan T.

    What is everyone's take on regular savings & loan banks in the USA?
    My wife and I live in Thailand, but have our larger sum saved in a California banking institution, preferably the Union Bank of Ca.
    Does any one know the true situation of these institutions? Do they all teeter on the edge of colapse in these uncertain times? We hear people are drawing their monnies out or opening other accounts that equal 100,00 or less to be insured fully.
    I need straight answers form someone who has seen what banks are doing, and the real thoughts of regular people in this same area of thought.
    E-mail truepathdan@hotmail.com

    September 26, 2008 at 10:53 pm |
  30. Galt

    I would rather deal with the effects of an economic downturn than subsidize the greedy, foolish and dishonest.

    No bailouts for Wall Street; no bailouts for Main Street; no bailouts, period.

    September 27, 2008 at 9:12 pm |
  31. Darwin

    Do we all need to stand still for just a moment, take a deep breath and actually concentrate on what is the true cause of todays situation?
    I think we do, but I bet you will all start with the words, banks, derivatives, mis management, sculdugery, greed, incompetance, etc, etc.

    I propose we all go a little deeper, because, after all, this is all peripheral. It is, in escense, a by-product of the way we live and what we deem to be our priorities. Mankind, so it believes, or has worked out, is here, in this universe, to progress, to discover, occasionaly tempered by the act of procreation. Do we know why we do these things? Not really. What we do know is that there is a prize at the end.
    Men need a prize for their act of procreation, an incentive. Mother nature, in her knowledge that she had not created a perfect animal decided that the 'prize' would take the form of an orgasm. Self indulgent pleasure.

    This is by no means a critisism. I do indeed believe that she has handled the situation rather well – she has ensured that the success of mankind, in the short term, is assured. It is essential that man , whether in the field of science or industry, has this deep, almost hidden (not often admitted to) desire to achieve self satisfaction. This can be in the form of either tangible assets or just plain ol' self satisfaction. This is truly the impulse that will, should mankind still be around, ensure his existence in millions of years to come when far greater dangers will need to be contemplated.

    However, a little ingredient has somehow managed to wiggle it's way into the equation to speed things up a little. It's like a potent spice that when added in small quantities rather benefits the dish in question. But beware, this spice is infinately more potent than the strongest of curry powders. And what name does this spice go by?

    CREDIT.

    Mankind needs to re-define it's priorities, by this I don't suggest that we should live in the shadow of fear in the knowledge that this planet, and indeed this entire solar system, won't be around in approximately two to three billion years time. Neigh, what I am suggesting is that man should have no other priority other than human advancement without the need of that 'prize'. It has been suggested that man, in it's current state of evolutionary intelligence is not capable of this – it has also been suggested that that time will come. When it does it shal be given the name of utopia. But please don't anybody hold their breath, we are tens of thousands of years away from such an event, but we do need to get the ball rolling; after all, we are all a little cleverer than we were fifty thousand years ago.

    I would like to go on but , I think I'm even beginning to bore myself with this as much as you. Perhaps more than boredom it is fear; for I too am one of 'those' that relishes in self indulgence and just love provoking those endorphines – at least four times a week by the last count.

    September 28, 2008 at 9:22 am |
  32. junaid

    As it was said, McCain is an old man, and has Sarah Palin, the Alaskan governor, as his Vice President-to-be. Now, do we really want an old man, who may not be president long enough to do anything due to health issues caused be his age as the President of one of the leading countries in the world? and then, do we really want an Alaskan govenor (as Alaska is a fair distance from the US) who is also a right-wing maniac to be President, a woman who called all her converted female voters pitbulls with lipstick, shes lucky they have an IQ of <100. McCain doesnt contribute enough to the debate about the $700 billion revival scheme and then postpones the debate between him and Obama. If anything, I would say McCain is the liar and the coward, because when it comes to a time when he is needed most he just hides and acts like he is doing something, instead of actually supporting the scheme (like Obama) and doing something to help, because as Obama said, the American public deserves to hear from their Presidents-to-be at a time like this, because it is crisis' like these that will need to be solved, and if McCain or Obama cant handle it, then they are not fit for the Presidency, and from what we have seen, it can easily be said the Obama can handle this job, but McCain just cant cut it.

    September 28, 2008 at 12:37 pm |
  33. John

    What happen to US right now has happened here back in 1997, thanks to greedy bankers and eager investors (businessmen)borrowing US dollars. So banks, financial companies, companies went under, now the Asian are wiser ?! Not showing off and spend money not yet earn ?!
    Started in 2007, the subprime loans is also the works of greedy bankers and eager borrower ( home buyer), and with the help of foreign banks buying up mortgages. The first two parties are primarily too be blamed for causing people dreams to be shuttered. Don't blame the gas price( happened before), don't blame the war(happened all along the century). If you want to blame people for this mess, blame the greedy bankers, the greedy financial planners, the greedy investment bankers, the greedy real estate developers, and the home buyers ( who should have known better to buy more than they can afford). During these good time, the regulatory agencies must be a sleep or busy attending free dinners and parties offered by the mortgage and financial companies. You have yourself to be blamed.

    September 29, 2008 at 4:50 pm |
  34. Peter Nixon Sydney

    The US needs its government to buy the mortgages to free up liquidity which is at the heart of a functioning economy and therefore society. Australia and all the other countries in the world are also suffering from the fear gripping the US economy. Nothing spreads faster than fear. Yet the US package is sold as a bail out and as a sop to the bankers on Wall Street. For the US government to buy mortgages at really low prices could well turn out to be a great long term investment for US taxpayers. Where are the White House spin doctors now when they are really needed to paint the package not only as a short term rescue plan but also a long term oportunity?

    September 29, 2008 at 8:25 pm |
  35. Debbie

    Interesting interview between Zakaria and Chinese Premier Wen. The Premier stated the fundamentals of his economy were based on American Adam Smith's books. Aparently we are not smart or honest enough to use our own American resources to keep a sound economy. It takes a communist Chinese leader to tell us his key is truly our own.

    September 30, 2008 at 1:57 pm |
  36. Peter

    Uhm...Adam Smith is British. ... is debbie from Utah?

    October 1, 2008 at 3:43 pm |
  37. Coolspree

    Why does the USA have such a large debt which is now crashing threatening the whole economy via the domino effect? Very simple – Americans live beyond thier means.

    1. About 43% of US families spend more than they earn each year.
    2. Average households carry some $8,000 in credit card debt.
    3. Personal bankruptcies have doubled in the past decade.
    4. Those who do save, save only 7% from net earned on average.

    My fellow Americans – buy only when you can afford it. Cut your credit cards and only buy on credit when you have enough cash in your bank account to cover three months bills.

    October 1, 2008 at 8:22 pm |
  38. Bart

    I've read a number of times that this money should be paid out to all American taxpayers to 'stimulate the economy and pay off debts'. Good grief where do you think the money comes from? In essence what you are suggesting is that everyone be given money that your children will work their lives paying off so that you can go back to your high rolling ways. The economy needs an adjustment, you either deal with it now, or pass it on to the next generation. It's that ignorance and selfishness that created the problem to begin with, in all levels of society.

    Rather than coming up with other ways to spend money you don't have, look at reducing spending, like stop blowing up people in other parts of the world. It's bankrupting you and pissing everyone else off.

    And why does Bush bother speaking? Is there anyone under the delusion that this guy understands anything about the economy?

    October 1, 2008 at 9:46 pm |
  39. Wes Tanner

    The Government has lost it...again! Here is a fine example of your voted officials disregarding their constituents. The majority of the population does not want to spend 7B on a bail-out that will not work. I predicted this happening five years ago. In the late 90’s, I saw the opportunity for enhancing my 401K by investing 100% in real estate. I made money. I noticed 18 months ago that the market for real estate was leveling off and the tendency for dropping was all in place, based on my insight with my lowly BS in Business and Economics. I move all my stock into a “safe haven”. Sure enough, bang, it happened. I had moved in 2003 from New York to South Carolina and was shocked to see the housing prices. I still own my house in New York, and was looking to buy in South Carolina. I predicted that in five years, the market drop would provide the opportunity to buy real estate, and sure enough, we purchased real estate for 1/3 of the costs in 2008. Almost exactly to the date of my own prediction. This bailout is eerily in line with this analogy:

    Greed is essentially an addiction. The drug of choice here is money. They only way to cure an addiction is to interdict and have the addict hit bottom. At this point the rebuilding begins. During the crisis, you do not condone or provide the drug to the addict. It is the addict’s problem, and it needs to be faced solely by them. In essence, this bailout is simply providing an addict the drug of choice, not providing the cure necessary to prevent re-occurrence of the same addiction.

    The Market has to fail, the giants that created this problem need to fail, and be assured that there are individuals and other institutions ready to jump in and provide what is needed to prop up these failing organizations. Of course, there will be an economic fall-out, and the market correction will hurt us all, but it is the only sane way to cure this problem. No matter what happens, the American people will see no benefit from the current trend to spend 7B on this issue. Scare tactics used by this administration of no money for loans to buy a car or purchase a home are ridiculous. The American dream still exists and is more resilient than ever. The only benefactors of this bail out are the greedy, and those who have no vested interest in the proposed monies that will be stolen from vested Americans wallets.

    October 3, 2008 at 1:36 pm |
  40. Girish

    It appears Americans have achieved for themselves, what Bin Laden wanted for so many years.His saintly smile should have converted to a hearty laugh by now.But then there was no need of all the recruiting, training and flying human missiles onto hapless towers.

    Plain and simple.The American culture encourages and preaches over indulgence for its citizens.The Government put in place systems and institutions like Freddie and Fannie who made a game out of it.
    Everyone , the Govt, Banks , the rich and the low income groups, loved and played the game.
    The game was fundamentally flawed.Some intelligent people, like Warren Buffet warned,but no one was in a mood to listen.As money and credit flowed, everyone believed they will have more of it.

    However, i believe this not the 'End of the America' or the World.It's time to move on quickly, another American virtue.
    Good luck in the effort.

    And for the rest of the world, ignore the mistakes at your own peril.

    The Darwin's theory looks interesting.

    October 3, 2008 at 3:32 pm |
  41. darla nordstrom

    We all know that if this bill ($700billion) is past then the credit card companies will follow.. Why doesn't the government give every tax paying American a credit card with a $250k balance to go out and spend in 30 days???? This way people can pay some bills and spend, spend,, spend... This will surley put us back on track...

    October 3, 2008 at 4:26 pm |
  42. darla nordstrom

    also, if our banking system got themselvs into this mess with greed let them suffer, fall and shut there doors, as we all have to do when we mess up...

    October 3, 2008 at 4:28 pm |
  43. Steve

    Minutes after the approval of the "bailout fiasco" by the house I personally feel disgusted and let down. I literally have a sickening sinking feeling in the pit of my stomach. The majority of the American people have just been screwed.

    October 3, 2008 at 6:31 pm |
  44. James

    I find it very interesting that the bailout was not favored very highly among American's unless you are Dem Senate and House members. Isn't it interesting that the media including CNN tried to sell the idea to a society that did not want the bill? Maybe it is the same old politics where the government doesn't listen to the people. Wow the markets fall after the bailout...what a surprise...not!!!

    October 4, 2008 at 12:00 am |
  45. Andrew Dsilva

    I think Nancy Pelosi is the cause of all the turmoil in the markets. If the bailout plan was passed the first time things would have been better. I think I will change my vote to Republican.

    October 4, 2008 at 3:18 am |
  46. Billy

    I have to agree with so many other Americans who say NO to the bail out. Why are we as the little guys always paying for the mistakes of the altra rich and the poor. I wish for once a politican would do what's right and pad their pockets with kick backs for their pals. I am refering to the wealthy person and companies. Is anyone out there for the people anymore. If I was not so committed to the UNITED STATES, I

    October 7, 2008 at 8:25 pm |
  47. Andreas

    "I have to agree with so many other Americans who say NO to the bail out. Why are we as the little guys always paying for the mistakes of the altra rich and the poor"

    Ironically, with bank stocks at today's levels, the bailout may well turn out to be very profitable for the US government (and yes, the tax payer) in the long run.

    Having said that, any move that puts more power in the hands of a government that already has far too much worries me. Do you think they'll give up that power once the crisis is over? I give you one guess....

    October 12, 2008 at 11:47 am |
  48. darla nordstrom

    If Obama gets in office, the U.S. is in for a SCARRY ride. Don't figure that so many people are asleep on this issue. As for the $700.billion, THIS Just doens't make sence that the goverment gave the funds to the institutions that caused this big mess, and to think of all the funds that are going into the wrong places with the dividends and parties, these people are shamless..If they gave the money to the tax payers with 30 days to spend it in a specail credit card, then the people would of paid off there morgage, credit cards and went out to spend the funds, bringing the economy back up faster and in more fun.. just wait untill the credit card companies go down next, then what??

    November 1, 2008 at 4:25 pm |

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