Bailout Prevents Great Depression 2.0

Not our problem?

Hardly. This is in every way our problem. Albeit not our fault, we must face the consequences of the past decades' error and splurges. Those who were the least responsible, those who saved and didn't plunge the housing market and the rest of the economy into extreme debt, and saved, now find their savings worth little to nothing.

of @ Sep 28, 2008 11:01:16 AM

Please, Do Not Feed The Bears:

When Bill Clinton eased banking restrictions, he dished out $8-billion dollars for "community reinvestment loans.” The money just evaporated. When the “creative financing” schemes fell through, as is their wont whenever 30-million Mexican nationals buy inflated properties and default, it left banks in the lurch. Never mind that the aforementioned demographic is the new face of the Democratic Party; the mortgages morphed into “toxic” instruments. Hillary Clinton counted on the loan giveaways to buy votes. Interestingly enough, had Hillary secured the nomination; she, instead of Barack Obama would preside over the bailout. So, why should Americans perpetuate the housing bubble? Because it’s a scam! And, this is its well-timed exit strategy. Where is that $8-bilion plus dollars? The Trilateral Commission and the Bilderbergers took my money; they even stole my car; now they’re coming after you. The bubble is the New World Order, let it burst: http://theseedsof9-11.com

Peggy McGilligan of VA @ Sep 28, 2008 00:17:58 AM

Bailout is mandatory

This started a couple years ago when College smarts Bernanke continued to raise the FED rate. What did they think would happen? The Bad loans were guaranteed to fail as the interest rate went from 1% under Greenspan and then continued up by Bernanke up to 6.25% before the Collapse started to happen. The Sup prime loans went up at approx 4% per 1% move of the FED.

Whats done is done. We need to rein in the runaways before they go over the cliff, by then it would be too late.

The 700 Billion will be buying a lot of equity that is suspect now, but has value. The tax payer can sit on them and as they are tranferred to normal markets our exposure will dwindle down to the mere 600 Billion the executives will have squandered that off, patting themselves on the back. They will have big parties in Switzerland. Other than that, hey samosamo.

John Daly of FL @ Sep 27, 2008 23:10:35 PM

Depression

WE have had depressions in this country for several hundred years, the great depression of the late 1800s cleaned my Great-Great Grandfather out. He lost several savings and loans and the Great Bend Kansas Newspaper, he moved to Kansas City and started over. We don't seems to learn from our mistakes and here we are again about to have another depression regardless with what the fat cats in Congress try to do. I am for term liments, 4 years and no more. Good Luck America, hope you are out of debt.

Bill Hoisington of FL @ Sep 27, 2008 21:47:02 PM

During the next decade whilst we are all experiencing the human failings of the capitalist system, we have to create new political and economic systems. This is more important today than the 1930s as we are this time moving towards a brick wall, the depletion of the world's natural resources to preserve the human experience itself. But, we must also make sure, that these new systems are devised by 'independent' thinkers and not by either government or global corporate business. This is the most important thing that we must learn for without ‘independent’ thought, we are left with vested interests one way or another. For otherwise, we shall not get another chance after this time to preserve human life.

Dr David Hill

World Innovation Foundation (WIFC)

Bern, Switzerland

dr david hill @ Sep 27, 2008 18:37:32 PM

IS THIS RUSHED BAIL OUT REALLY NECESSARY ???

Like millions of Americans, I am really skeptical about this whole 750 Billion bail out. And, I'm especially skeptical about the RUSH to spend the 750 Billion dollars of tax payers money ... which does not allow independent economists the time to properly investigate and evaluate this plan. In addition, Bush and the Democrats seem to be united on this bail out. My guess is that Bush wants to pay back big money Wall Street people, who helped him over the years ... and, since the Democrats expect to rule both houses and, possibly the White House ... they are salivating at the chance to control spending the 750 Billion. In spite of all the rhetoric about careful spending and oversight, the Democrats have already allocated 20% of this huge sum to fund crooked liberal programs, like Acorn. If we simply print Billions for bail outs, even if the market returns, inflation will make our currency virtually worthless.

P.S. Did anyone ask Alan Greenspan what he thinks???

Howard of CA @ Sep 27, 2008 18:03:25 PM

The reality of the bailout.

I believe "bailout" comes from a nautical term, literally bailing water out of a sinking ship. More often than not, bailouts don't address the hole that's letting the water in.

To give the very people who created this problem a blank check (with no oversight) to fix this problem by doing the same things they did to create this problem is the definition of insanity. It's hard to follow, I know.

The only thing we've learned from history is that we don't learn from history. The government is making the exact same mistakes that led up to the depression. Namely, keeping interest rate artificially low and prices artificially high.

We need to take that $700 billion and invest it in clean energy programs here, much like the public works programs that got this country out of the Great Depression. That will stimulate our economy while removing our foreign oil dependency. That will also be less money we send to foreign countries and more we keep in our own economy.

No matter what, we are headed for tough times. History tells us that less interference will allow us to recover 10 times quicker.

Don Crossland of AZ @ Sep 26, 2008 18:41:34 PM

Make lemonade out of lemons

Why don't we use good ol' American ingenuity to design that( low oil) (oil free )car and inrastructure which tells the creepy terrorists that the party is over.

700 billion each year! --Back into making america about business

once more!!! Even if it costs 700 billion to design it.

We would still be ahead of the curve!!

JANET of GA @ Sep 26, 2008 13:29:15 PM