Actually, if you look at the details, it is not a giveaway. Of course Joe Public is not interested in the fine print when it comes to politics. That is why we are in this mess today. We all bitch about government but most common opinion is based on a very superficial version of what actually happens. What happens is a shell game where the rich and powerful make you think something so they can manipulate the rules. This has already happened. It is too late. It will never change. Next year it will be something else. Perhaps a different scam. Likely a bailout will be a scam for some of them too.
Bush, other than the fact that he thinks the government should DO SOMETHING is not going to be the instrument of this, it will be congress who seals the fate. Much of what is in negotiation now covers what penalties and rules there will be regarding the bailout funds. To attempt some measure of accountability. What a novel concept.
All the "wall streeters" have pocketed their money. They have nothing to lose either way. It is only about saving the portfolios and 401ks of Joe Retiree, who was led down the path by the evil finance crooks (who successfully lobbied both parties - and stripped finance regulations). If we were not trying to "extend home ownership to the less fortunate" this would not have happened. Of course the wall streeters made money on every transaction then sold the paper in deregulated funds to retirees. Screw them I suppose. Oh well. Mr. Wall Street is not holding the bag, no, its Joe Average stockholder. Not Mr. Smart Finance guru. He has already shifted into commodities and foreign currency.
All of the cheap credit is no different than kids running up their credit card bills before they have any hope of employment to pay them off. This is a disease too many Americans have, and we have been teaching our children the same thing.
If this country does not do anything regarding a bailout, the "evil wall streeters" will simply make even more money. All of those bailout assets will be picked up for pennies off the backs of the 401k and retirement people. There will be a massive credit crunch and many more business failures.
Of course the people losing their homes deserve that. Likely they should not have gotten any kind of loan to begin with. Probably they don't give shit because it is worth less than they owe. Hopefully their credit is trashed enough so they can't do it again. But even then they are no worse than they were for the most part. Or how about all of those real estate speculators?
Do you like this idea of no bailout? It is not bad. It certainly seems fair. Just keep in mind that you too are going to go for a ride down the tubes. I don't know what you do for work, but if its not something really important and critical you might be looking for a new job. Or if you actually have been responsible for planning for your retirement. Well, probably you are really the loser here. You should have just spent the money. Now its gone. You are going to be either working or poor in your old age. Some moderately wealthy people can still retire and perhaps live a more frugal life on a lot less. They will have less money to put into the economy and will depend more on government services from your tax contributions. They will not be buying stuff from people to make jobs for them either.
Meanwhile, the "evil wall streeters" will watch everything ride down the slope and they will pick it up at the bottom. You will watch them cash in when it makes a recovery and they will smile when you will buy in at the top. Perhaps when you finally catch on (perhaps when your disposable income some day makes it possible to invest). If you are lucky you will have mediocre returns while they sell high and set up a repeat performance.
Just be careful what you wish for. It is WAY more complicated than you know. No bailout? You either have no financial assets or you may have really deep pockets.
I am not saying this bailout thing is good either. It would probably be a better lesson for people to learn the hard way. I am just saying it is not that simple.
Either way you are going to hurt. Hard to tell which punch to take.
If this country does not do anything regarding a bailout, the "evil wall streeters" will simply make even more money. All of those bailout assets will be picked up for pennies off the backs of the 401k and retirement people. There will be a massive credit crunch and many more business failures.
Of course the people losing their homes deserve that. Likely they should not have gotten any kind of loan to begin with. Probably they don't give shit because it is worth less than they owe. Hopefully their credit is trashed enough so they can't do it again. But even then they are no worse than they were for the most part. Or how about all of those real estate speculators?
Do you like this idea of no bailout? It is not bad. It certainly seems fair. Just keep in mind that you too are going to go for a ride down the tubes. I don't know what you do for work, but if its not something really important and critical you might be looking for a new job. Or if you actually have been responsible for planning for your retirement. Well, probably you are really the loser here. You should have just spent the money. Now its gone. You are going to be either working or poor in your old age. Some moderately wealthy people can still retire and perhaps live a more frugal life on a lot less. They will have less money to put into the economy and will depend more on government services from your tax contributions. They will not be buying stuff from people to make jobs for them either.
Meanwhile, the "evil wall streeters" will watch everything ride down the slope and they will pick it up at the bottom. You will watch them cash in when it makes a recovery and they will smile when you will buy in at the top. Perhaps when you finally catch on (perhaps when your disposable income some day makes it possible to invest). If you are lucky you will have mediocre returns while they sell high and set up a repeat performance.
Just be careful what you wish for. It is WAY more complicated than you know. No bailout? You either have no financial assets or you may have really deep pockets.
I am not saying this bailout thing is good either. It would probably be a better lesson for people to learn the hard way. I am just saying it is not that simple.
Either way you are going to hurt. Hard to tell which punch to take.
I can support the argument that every 20 or 50 years people need a hard lesson on how to not spend money they don't have.
I just wish we could teach people to run the government that way.
