Posted on 09/22/2008 9:20:26 PM PDT by Glorious Liberty
No taxpayer money should be spent on bailing out financial institutions, period.
What will taxpayers get for their money? Absolutely nothing.
The money goes to pay other folks debts. Why in the world should we do that? They aren’t our debts.
The money goes to the lenders that made bad loans. Why should we bail out lenders who made bad loans? We didn’t make bad loans. Are we supposed to reward bad judgment?
The worry is that credit will dry up, damaging the economy. If that’s the problem, perhaps we need a temporary “loan insurance” program. For a fraction of the bailout cost, loans meeting clear credit standards could be guaranteed, thus encouraging the extension of credit. This serves a productive forward-looking purpose. It has the virtue of actually addressing the problem at hand. And it rewards the banks that are still solvent, the ones with good judgment.
Let the bankrupt financial institutions fail. Let the market sort out the value of their assets. Don’t prop them up with taxpayer money.
(Excerpt) Read more at ravallicountynews.com ...
Here here!
What is this, the People's Socialist Republic of America? If someone (lender or borrower) bets they can make a transaction work and they fail, they GO BANKRUPT, like every business proposition in a free market.
To do otherwise is to:
Privatize Gains and Socialize Losses.
There is no end to that.
I oppose the bailout too, but the above statement is blatently false.
There are plenty of good arguments against the bailout that don't require making stuff up.
This subject is just so complicated it’s hard to get your arms around it. There are the bad loans made by mortgage brokers, but then mortgage backed bonds were sold based on those, and an insurer such as AIG gets socked, etc.
Just “devil’s advocate” a bit, I heard somebody say that the gov’t might make money on the deal. Because after the gov’t buys these bad mortgage loans, they will auction them off. And then the market may give the gov’t a profit. This person who said that was saying that the tight cash flow was behind last week’s meltdown, and that at the prices the gov’t is getting these loans, there is a chance of profit. Just saying.........
Where is the gov’t getting $700 billion though? We know they don’t just have $700 billion in a bank account somewhere, just waiting for Paulson to wire somebody the money.
Pretty strong words. What do we get for our money? Are we buying a new car? A vacation home? A tank of gas?
You know how Congresscritters like to shove other items in a bill? Mostly pork, etc...
Here’s an idea. Support the bailout, but under a few conditions:
1. It stays like Paulson originally proposed it
2. It comes with a capital gains tax ELIMINATION
3. Cut spending on all other programs (besides defense) by 10%
Do you want to give taxpayer money to banks that took unnecessary risks, committed fraud and debtors who took loans they knew they couldn't pay and lied on their applications? What happened to Law and Order?
That’s right, lets just have a good old fashion 25 year depression! Lets millions starve in the streets- THATS Capitolizm by golly!
Good point...I’m wondering if the Treasury will issue Treasury Bonds or Treasury Notes...Treasury will swap the Notes to each lending organization that thy are buying the mortgages from...
As for making a profit from selling the foreclosed homes, that’s kind of far fetched...it sounds nice, but won’t work in practice..There may be some writeoff...The mortgages that still are being paid will help and most likely the Govt will do everything it can to get the mortgages refinances to 30 year fixed rate loans...it will be a long term workout and eventually the banks may buy back some of the performing mortgages...
World bank, where else? That's what it's there for.
You can pick up my tab for the bailout. Thanks. It amounts to one month’s worth of work this year.
$1T Bailout / $13T GDP ~ 1 Month of Work for Everyone.
and when we get reallybroke, we can just ask the world bank to forgive our debt. After all, how many turd world countries have we allowed to have their debts forgiven over the years?
Hundreds of billions of dollars have “vanished” into the thin are around the world bank before. That’s what it’s there fore.
If we played this game of “bankers” properly, the world and everyone in it always goes broke, and the bank always ends up with all the money.
Look over your shoulder, dude, because you looked behind the curtain, and that's not allowed.
The government can't earn or "create" money.
The taxpayer will pay either through massive inflation and simultaneous devaluation (if the government just prints the money), or if the government allows nature to take its course, the amount that the same taxpayers will lose if all those businesses are allowed to fail will make the alternative make a lot of sense --- but way too late.
We live in interesting times.
A real-life lose-lose proposition.
Unless, of course, we can get restitution from the real villains. The brokers, the insiders, the CEOs. To account for several trillion dollars, there must be a whole lot of them.
Where is the money? In assets? Swiss banks? Offshore accounts? They can't make money disappear any more than the government can just print it.
Who exactly are the stockholders in all the businesses that we will allow to fail?
Has the question even been asked?
We aren't giving "taxpayers money" to banks. We are giving imaginary taxpayer debt, financed by the world bank to the lessor banks. It's not really costing you a dime.
Now that's a pleasant dream. The federal government spends $700 billion or more and it doesn't cost taxpayers a dime.
Hey, let's just have the feds give every one of us a couple of million.
Everywhere. The guy who refinanced his house with an updated and inflated assessment of it's value, who then sold it. The real estate broker who took his 7% or so off this inflated value sale price, the mortgage seller who took his commission out of the total mortage funds they person (who handed in his lie sheet to qualify for the loan. Then the company took all these bad inflated high risk loans, and sold them all (taking a cut of pure profit)to the investment companies and banks, insurance companies etc. who thought that this was a good guarantied long term investment bundle with a solid return.
“That’s right, lets just have a good old fashion 25 year depression! Lets millions starve in the streets- THATS Capitolizm by golly!”
“Let(s)? millions starve in the streets.” Idiotic statement in the least. I don’t know what your experience in a “depression” is, but I lived through the one before WWII. Nobody, and I repeat nobody reportedly “starved in the streets”..Your fear mongering won’t wash.
As someone else has posted, do we bail out everyone who has made a bad investment reguardless of their circumstances?.
Oh, by the way, why the spelling of Capitolizm? instead of Capitolism?....just what the he** is the message there?
It seems for the government to profit from the mortgages they would have to sell houses for more than the people paid for them, plus the costs of selling them. Since many of these houses sold at prices way over the market (due to overabundance of buyers who had access to easy money) and since there will now be fewer buyers, with loans tighter, I don’t see how this works. Must be missing something here.
Lots of people are hoping that the government will come to the rescue and save the financial system. We would avoid a lot of pain that way.
But, maybe we should just take the hit and focus on the recovery. Americans are strong and creative people. We’d find a way to crawl out of the mess and rebound stronger than ever.
I’ll bet most of us could survive longer without a paycheck than the folks on Wall Street!
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