700 billion bailout?!?!?!

[AR Husker Fan]

Another kudos for the Bush administration!

 

Heck this money could have been used to wage war on another country. Iraq : $600 billion to date link

I'm not an apologist, but this falls more on Clinton's head than anybody because about some dozen odd years ago, he wanted everyone to own a home, no matter what the cost might be.

Actually, no. See HERE.

That's nice, but the majority of the houses that are being foreclosed on were purchased during the Idiot from Arkansas's administration...

Again, actually, no. The majority were purchased using ARMs that came about during the Bush administration. See for example, HERE, HERE, HERE, and HERE.

 

This was all precipitated by the dot-com bust in 2001. As a result, the Fed drop rates to stave off inflation, which allowed lending institutions - with the assistance of the Bush Administration's insistence on deregulation of the lending industry - to offer for more exotic ARMs and related means of financing. It is those mortgages that are now resulting in record foreclosures, and the accumlation of "toxic" debt.

[BIGREDFAN_in_OMAHA]

Another kudos for the Bush administration!

 

Heck this money could have been used to wage war on another country. Iraq : $600 billion to date link

I'm not an apologist, but this falls more on Clinton's head than anybody because about some dozen odd years ago, he wanted everyone to own a home, no matter what the cost might be.

Actually, no. See HERE.

That's nice, but the majority of the houses that are being foreclosed on were purchased during the Idiot from Arkansas's administration...

Again, actually, no. The majority were purchased using ARMs that came about during the Bush administration. See for example, HERE, HERE, HERE, and HERE.

 

This was all precipitated by the dot-com bust in 2001. As a result, the Fed drop rates to stave off inflation, which allowed lending institutions - with the assistance of the Bush Administration's insistence on deregulation of the lending industry - to offer for more exotic ARMs and related means of financing. It is those mortgages that are now resulting in record foreclosures, and the accumlation of "toxic" debt.

The deregulation of the banking industry has roots further back to the savings and loan crisis under the Republican demi-god Ronald Reagan. McCain might remember something about this due to his involvement with the Keating Five. LINK HERE That was childs play by todays standards as it only cost the government a few billion dollars.

[SOCALHUSKER]

And by not going with the bailout, the stock market lost what amounts to $1.1 Trillion. The no voters clearly dont understand what the issues are. Unless the credit system gets a fix asap, the whole economy could implode.

 

Good, I still beleive this country would come out of a bad recession in much better shape then we will with this stupid plan.

 

I agree with NewEarth, The rich keep getting richer, The poor keep getting freebe's and us middle income, stress'n to support a family keep getting screwed.

 

By all means let's give a bunch of CEO's that pay themselves 1.5 million a year an easy way out.

You clearly do not understand what is at stake here. I would stake out all the CEOs for the F'in crows. But that isnt the point. Without some form of bail out, credit stops. Period. The entire US economy is based on credit. Without credit, no one can buy houses or cars. Companies cant buy inventory, cant make payrolls. Companies that rely on the housing industry go under. Auto manufacturers go under. A great deal of retailers go under, unemployment spikes to levels not seen since the '30s. We arnt looking at a recession, we are looking at something to rival the great depression. And with the interlocked global economies, it also will trigger a world-wide recession. The Asian markets already took a dive in response to ours.

 

Sorry dude but I’m definitely going to disagree with you and your thoughts on our current economic crisis. First of all, the reason we are in this mess to begin with is because we prop up spending and consumption by borrowing money and allowing the Fed to print money out of thin air. Instead of creating capital by saving, which is the only true way of creating it, we are under the illusion that if we print more money we are able to create more capital and become wealthier, which is completely false!! When you do either, borrowing or printing, to increase consumption, prices get driven up, the value of the dollar drops, and the result of the inflation is products that are not affordable for anyone. This crap that we need the bailout to keep the credit lines rolling is one of the biggest fallacies of this entire debacle.

 

I don’t know what businesses you are following (or running), but if a business needs a line of credit to fulfill payroll, then something is terribly wrong with the way the business is being run. Instead of being bailed out, the business needs to fail so that another with more sound policies can take its place and contribute to society instead of leeching off the taxpayers and sucking capital from the market. What we need to do is close the credit spigot, allow mismanaged businesses to fail, consumption will drop, prices will fall and products and services will be what the market deems their value to be and everything would be more affordable.

 

I’m not saying that this is an instant cure to our crisis because there will definitely be a recession and it won’t be easy, but if we let the markets work we can take our losses and rebound in a short time. If we continue to consume, spend, and intervene in the market we won’t just have a depression but in the end a total collapse of the US dollar. History is stocked with empires that have spent and borrowed their way to extinction and if we continue on the path we are going we’ll be next.