Bailout Prevents Great Depression 2.0

Efficient market

We are suffering from Keynesian that was taught in high school economic class which Bernanke is a student to. Government intervention has been proven by so many free market models to fail. The economic growth that the US has been experiencing since the Great Depression was artificially inflated through the use of debt. The debt is now coming to term with credit causing a calamity in eventual collapse of the economy. The growing of debt is the key cause for Japanese economy to contract for the past 10 years. The interest rate went down to zero. America is heading toward this direction. We need to get back to fundamental of the free market and remove government intervention to ensure the free market is freely engaged to promote growth, otherwise, we will experience a very lasting economic slum eventually creating riots and social unrest which may lead the country toward socialism.

lskjs of AK @ Sep 26, 2008 03:51:13 AM

THIS JUST SUCKS

THIS IS WHY I DO NOT INVOLVE MYSELF WITHTHE STOCK MARKET

STACY of CA @ Sep 25, 2008 23:11:55 PM

THIS JUST SUCKS

THIS IS WHY I DO NOT INVOLVE MYSELF WITHTHE STOCK MARKET

STACY of CA @ Sep 25, 2008 23:11:52 PM

the bailout

Anyone who voted for Bush, has this on their conscience. Shame on you. Don't stick us again with your poor judgment!

Sara Rosenquist of NC @ Sep 25, 2008 13:02:21 PM

Einstein

As Albert once said, problems are not solved at the same level of awareness that created them. The Congress, Paulson, and all his buddies are not going to fire themselves, and no one around power has a clue, most certainly including McBama.

The democracy is out of control.

james wilson of NV @ Sep 25, 2008 00:55:06 AM

What a crock . . .

of @ Sep 24, 2008 18:57:01 PM

$700B to buy "toxic" paper. At what price? Paulson says at market price. But there is no market now. So the treasury sets an offering price at, say, an 80% discount of par, as has been discussed. But this will do little to bolster most banks equity. And if banks do sell their worst securities, we taxpayers are assured of loss. Not a great proposition. Newt had some good alternatives. Here is another one. Why not simply give banks a similar deal to what Paulson gave AIG: lend capital against convertible debentures at a decent rate and let the individual banks clean up their own servicing mess. This way you don't need to set or negotiate prices or create a costly Resolution Trust. And this leaves the clean-up job where it belongs. In the end, we may take over some banks (and some investors may be chagrined) but it will be far less costly to us taxpayers than buying and sitting with non-accruing securities.

Bernard Wain of CT @ Sep 24, 2008 13:53:14 PM

Time Will Tell

Anyways if we let the market do its way, then we have a BIG PROBLEM

Ashwin of PA @ Sep 24, 2008 05:59:42 AM