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The case against a federal bailout (Must Read)
Chicago Tribune ^ | steve chapman

Posted on 09/25/2008 1:50:16 AM PDT by Tempest

"It would add to the liabilities of a government that is already living way beyond its means. It would give unprecedented power to a couple of officials who have proved highly fallible in trying to avert this alleged crisis. And it poses the risk of abuse and corruption because the government has no way to gauge the value of what it will buy. "

"George Kaufman, a finance professor at Loyola University Chicago, is skeptical. "The last refuge of a scoundrel regulator," he says, "is to shout 'systemic risk.' " Usually, the alarm is false. He notes that aside from interbank lending, the credit markets were functioning tolerably well at the height of the crisis. Rates on 30-year mortgages actually dropped last week."

"Not only that, the more effective it is, the more damage it will do to the free-market system. Saving companies from their bad gambles turns business into a game of "profits for me, losses for you," corroding the incentives that make capitalism so innovative and efficient. "

(Excerpt) Read more at chicagotribune.com ...


TOPICS: Business/Economy; Crime/Corruption; News/Current Events; Politics/Elections
KEYWORDS: 110th; bailout; crooks; economicpolicy; economy; financialcrisis
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You know you want to bump this thread.
1 posted on 09/25/2008 1:50:18 AM PDT by Tempest
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To: Tempest

Yes, I do.


2 posted on 09/25/2008 1:52:15 AM PDT by freeangel ( (free speech is only good until someone else doesn't like what you say))
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To: freeangel

Thank you!


3 posted on 09/25/2008 2:06:40 AM PDT by Tempest (No more bailouts. No More Fear Mongers.)
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To: Tempest

NO BAIL OUT!


4 posted on 09/25/2008 2:12:15 AM PDT by PureSolace (God save us all)
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To: Tempest

I am leaning toward NO BAILOUT. I am sick & tired of crooked Politicians and crooks getting my (our) TAX $$


5 posted on 09/25/2008 2:20:52 AM PDT by DeaconRed (MCLAIM IS BACK TO BEING MCLAIM SAY HELLO TO PRESIDENT OBAMA GOODBYE TO AMERICA)
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To: Tempest

We will be throwing good(?) money after bad. I saw a website this morning advertising refinacing - NO SSN Required. They are not learning. Or they think the American taxpayer is a source of unlimited funds.

From the NY Post:
Sponsored Links
Mortgage Rates Drop - Fed at 2%

$200,000 loan for $708/month. Free Quotes - No SSN Rqd. Save $1000s!

www.Mortgage.RefinanceFrontier.com


6 posted on 09/25/2008 2:43:23 AM PDT by NTHockey (Rules of engagement #1: Take no prisoners.)
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To: PureSolace

grow up.


7 posted on 09/25/2008 3:04:55 AM PDT by Nathan Zachary
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To: Voter#537
"I am leaning toward NO BAILOUT. I am sick & tired of crooked Politicians and crooks getting my (our) TAX $$"

Think of it as an investment. You'll be getting 11-15 trillion worth of risky credit debt for only 700 billion.

The potential payout can wipe out the need for taxes for years.

All we have to do is hire good collection agencies to make sure everyone pays. :o)

8 posted on 09/25/2008 3:14:48 AM PDT by Nathan Zachary
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To: NTHockey
"I saw a website this morning advertising refinacing - NO SSN Required"

And you think those are legit banks? Go ahead, borrow their money 33% interest. They don't need your ssn, just a list of your assets for security. They collect houses for cheap when their clients don't pay.

9 posted on 09/25/2008 3:18:19 AM PDT by Nathan Zachary
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To: Tempest

10 posted on 09/25/2008 3:19:06 AM PDT by Bobalu (Obama cannot win without the kind of people that Palin appeals to.)
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To: Bobalu

LoL! good one.


11 posted on 09/25/2008 3:23:47 AM PDT by Nathan Zachary
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To: Nathan Zachary
Sorry but it won't work that way. We already have one massive PONZI SCHEME. (SOCIAL SECURITY) I think it is time to replace EVERYONE IN WASHINGTON.
EVERYONE. This meltdown may be a GODSEND
12 posted on 09/25/2008 3:28:56 AM PDT by DeaconRed (MCLAIM IS BACK TO BEING MCLAIM SAY HELLO TO PRESIDENT OBAMA GOODBYE TO AMERICA)
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To: Tempest

So, falling 30-year mortgages was a good thing last week? Right... That was due to the bond market collapsing as the 10 year bond went to 0.18% yeild in a devastating flight to safety. Yeah, that’s a real good thing. Good-bye, China. Sorry you can’t stick around to float our debt some more... Even the author admits that credit had all but collapsed.


13 posted on 09/25/2008 3:36:03 AM PDT by Freedom_Is_Not_Free
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To: Tempest
Not another dime for bailouts! This defies common sense and the constitution! Where does it end? What good does it do to give more money to the same people who blew it in the first place, under the same conditions? We're throwing good money after bad loans? I pay my mortgage. I ain't paying yours, especially if you're a deadbeat or an illegal alien!

Newt's plan is best. Cut the corporate and capital gains tax to %0, repeal the stupid rules, and let the market come up with the money! Good businesses will survive. Bad businesses will die. People who pay their bills will keep their houses. People who don't will lose them. That's the way it's supposed to work. You don't reward bad behavior and ignore good unless you want more bad and less good.

And to make it worse, why does McCain choose now to become a team player when he should be bucking Washington and sticking up for us? They released a joint statement? Are you kidding me? He could be the hero here while Obama sits on a stage in MS next to an empty chair. This is completely insane!

14 posted on 09/25/2008 3:46:51 AM PDT by athelass (Proud Mom of a Sailor & 2 Marines! Obama can debate while McCain decides and acts)
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To: Nathan Zachary

Knock knock.

Who’s there?

Health care.

Health care who?

HEALTHCARE BAILOUT!


15 posted on 09/25/2008 4:28:41 AM PDT by Rutles4Ever (Ubi Petrus, ibi ecclesia, et ubi ecclesia vita eterna!)
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To: Nathan Zachary
If it is an ‘investment’, let Warren Buffet buy it.

But, he doesn't.( He did by a pile of Goldman, and then go on to publicly support the bailout, which would increase the value of.....Goldman.)

The world is awash with money, looking for a home. 700 billion US Dollars are not what they used to be. If the Chinese and Japanese and whoever is worried about their paper, let them get together and bail it out, just like Morgan did, or the banks did Trump.

16 posted on 09/25/2008 4:32:27 AM PDT by Leisler
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To: Tempest
"Thoreau thought of their 19th Century counterparts. "If I knew for a certainty that a man was coming to my house with the conscious design of doing me good," he wrote, "I should run for my life."

Lefties love Thoreau. Strange times. I find a old lefty saying something good and the compassionate conservatives that have given us huge, liberal government are for a welfare bailout. Who would of thought it? A Bush for higher spending?

The left looks at us as victims and future serfs and slaves, and the GOP as 'little people' that need the firm, yet benevolent hand of an elite, self dealing mercantile class. Kind of like how British gentry viewed there scully cap tugging crofters.

F Washington and its supplicants.

17 posted on 09/25/2008 4:37:52 AM PDT by Leisler
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To: Freedom_Is_Not_Free

When you owe the bank a hundred grand, you owe the bank. When you owe the bank a trillion dollars, you OWN the bank.

(IS this a problem on the demand side, or the supply side?)


18 posted on 09/25/2008 4:40:48 AM PDT by Leisler
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To: Voter#537

What, you don’t think 70 TRILLion in obligations is a good thing? Come on!

/s


19 posted on 09/25/2008 4:42:58 AM PDT by Leisler
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To: Tempest

Here’s your bump.


20 posted on 09/25/2008 5:04:05 AM PDT by FreeInWV (A moose bit my sister. Then Sarah Palin shot it.)
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