RSSThe Day that the $700 Billion Bail Out Package is To be Voted On … Check out this Video
How did we get to this terrible situation? A $700 billion bail out to save the economy. Financial crisis that are compared to the Great Depression do not just happen overnight. Why did politicians not do anything and not see this coming when they all knew the situation at hand?
The end result is no one likes this plan, but they feel obligated to vote for it. So to save the country from financial crisis where government was one of the culprits in the catastrophe, we are not giving them even more dominion. They could not provide proper oversight in the first place and now we trust them to do so? These are the same people who you want your healthcare to come from as well?
Who wins, who loses under proposed bailout plan?
Posted September 29, 2008 by Scared Monkeys Economy, Government, Politics, Presidential Election 2008, WTF, You Tube - VIDEO | 16 comments |
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16 Responses to “The Day that the $700 Billion Bail Out Package is To be Voted On … Check out this Video”
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With all of the finger-pointing, don’t forget that we the American people bear some complicity.
“Who, me?”
“Yes, you.”
Somehow or other we, or at least our culture, has bought into the notion that everything has a government answer. And that involves spending.
To some extent, of course, the role of a particular congressman is to represent the well-being of his district and to ‘bring home the bacon.’ That’s part and parcel of the job, and a congressman who refuses to do so on principle won’t win friends or please the unions.
But the whole process has become way out of control. How many of these subprime mortgage loans had federal guarantees behind them at some stage?
It never was explicit whether agencies like Freddie Mac and Fannie Mae had government protection; they were quasi-public. Why wasn’t the point ever made clear? Because the situation never arose, and there’s no benefit from upsetting the apple barrel.
Until things go wrong, of course. Then the finger-pointing begins.
Here’s a question I’d like to raise: why is it that the federal government should be involved in the housing business at all? Housing is mainly a local issue: if more or better housing is needed in Michigan, Alabama, Nevada, or Maine, why should the nation as a whole be concerned?
We’ve got to decide what things pertain to all the people (such as national defense, national security, and … to SOME degree, but not the grab-bag that it now is … education), and hence are the legitimate business of the federal government … and leave the rest to the states.
The corollary is … we’ve got to find other criteria for excellence in politics than just the ability to grab what you can for your state or district and for yourself. That means upsetting the power system whereby congressmen get the money for their local people, regardless of the merits or demerits of the project, in return for support and votes.
(I think the education system is rife with this: education spending takes on the mantle of a moral virtue … ‘Don’t you want the best for our children?’ … and so any kind of excess and waste is justified, even as the system becomes less and less capable.)
How do we make this change? God knows; I don’t.
#2 Richard
Thats right…God knows
GOD let Israel pick kings to rule over them self’s because they didn’t want GOD. He agree so HE could prove to them and also to the rest of the world, WE CAN’T DO IT. This is a sin full world and the king and his government may start out fine, but sometime, like now it will go south. Thats why we need Jesus to rule our hearts and for us to show love to our fellow man in all that we do.
these banks knew that they were ripping off millions of people with bad credit and low income, they knew the contracts were written in a way to confuse the buyer and disguise the massive interest rate increases that went along with the loan. They knew this type of scenario was likely, but they didn’t stop because they also knew the government would be forced to bail them out or sit back while the economy disintegrated. These banks basically held the economy hostage. It was a no lose situation for them, either the home buyers would be able to pay off the high interest loan or the government would be forced to pay it off for them.
Yet ANOTHER gigantic failure on the Bush Administration. Any future administration would have to accidentally blow up ¾’s of the United States to even compare to the damage the Bush Administration has caused
First of all, these loans were not made for the most part to the needy. These loans were offered to everyone. Really, they weren’t loans, as much as they were a leverage for the future. These loans were based on the notion that housing would continue to rise at 10% (average) and with the interest rates being approximately 4%, these buyers were inticed to take out loans with interest only payments. Buy big and pay little… that was the hook.
Problem is, the housing market became flat and as the interest rate rose, these people could not afford their payments, so they allowed their homes to go back to the bank. Soon, the housing market was flooded with foreclosures which drove the price of housing even further downward. The banks were cash poor and had all their working capital in a failing market. Question is: was it so low that they couldn’t meet the amount to cover for their deposits? If not, that’s where the insurance would have stepped in under the name of the FDIC.
This is, in my opinion, poor business practice. One should never risk one’s NEEDS, like home, food or water on what they percieve as an opportunity to beat the system. And these high- salaries for those that headed these programs, and wrote these doomed-to-failure financial instruments SHOULD be prosecuted for fraud.
But, my main concern is the aftermath. We, still, have working class citizens that can’t afford to buy a home. We have those that are displaced due to catastrophies like that of Katrina and Ike and, in my opinion, their suffering effects our security in a much broader sense. First lesson in humanity: If a man’s basic needs are not met, we have despair on our streets, in our society and in every aspect of life. It’s capitalism, at its’ finest to further victimize a person when they’re down or to use them as an excuse to line you pockets with money ear-marked to help them. It’s not socialism to help your brother, it’s loving kindness; a relatively small investment that comes from the heart. I’m not suggesting that someone get a free-ride. But, it’s time to realize that the golden parachute theory only helps those that fall… not those that have no further to fall.
Clean up our streets of the hopeless, those in shelters, those in temporary housing without a dime to their name. Not because a man is unwilling to work; but because of the bias and prejudice that keeps this man at the end of the line when it comes to work. They are the last to be hired and the first to go because they don’t fit into our perception of deserving.
Until we destroy the hatred that makes a person conceive one man as good and the other as bad, based solely on the color of his skin; and until we see those that want to help as heros rather than nigger lovers, or spick wads, or whatever they chose to call us… there is no reason to seek peace in the Middle East, nor anyplace else. for that matter; because our own house is infested with disease, rotting to the core and undivided.
We all know what McCain can do in war. He can point out our percieved enemies with precision… but what is he doing for his own people at home?
Obama touches the untouchable, reaches beyond racial lines and wants peace and prosperity for all and THAT is the kind of change we need. This nation is on the brink of a great depression and all the Foreign advisors in the world can’t make that disappear, go away, or get shot out of the sky.
.
JMHO
Poor Michael Moore put out a letter telling others to vote this down…and today his own party voted for it.. and Republicans backed down.
Wall Street is a criminal enterprise. Anyone stupid enough to have their money there deserves to lose. The US military should attack Wall Street and close its doors. I applaud the politicians for rejecting the bailout. Let all stocks go to zero. The Fed/Wall Street is completely treasonous.
btw nice video SM.. these people should resign. They have done enough damage..
Peace at any cost has not worked in the past. There is always one more man who wishes to try it as a new/novel idea.
As we now know, the bailout was voted down.
One congressman was quoted in media reports as saying that everyone knew that the bill was necessary, but nobody dared vote for it because it was so unpopular.
And, of course … they have to take off to go campaign for re-election.
Here’s how Wall Street ended the day … with the Dow suffering its biggest one-day loss EVER, according to this article:
Stocks plunge as financial bailout plan fails in House vote; Dow falls more than 735 at lows
NEW YORK (AP) — Wall Street’s worst fears came to pass Monday, when the government’s financial bailout plan failed in Congress and stocks plunged precipitously — hurtling the Dow Jones industrials down nearly 780 points in THEIR LARGEST ONE-DAY POINT DROP EVER (emphasis by Richard).
Credit markets, whose turmoil helped feed the stock market’s angst, froze up further amid the growing belief that the country is headed into a spreading credit and economic crisis.
Stunned traders on the floor of the New York Stock Exchange watched on TV screens as the House voted down the plan, and as they saw stock prices tumbling on their monitors.
The Dow told the story of the market’s despair. The blue chip index passed by far its previous record for a one-day drop, 684.81, set in the first trading day after the Sept. 11, 2001, terror attacks.
The $700 billion plan’s failure means no one knows how the financial sector hobbled by hundreds of billions of dollars in bad mortgage bets will recover. While Wall Street didn’t believe that the plan was a panacea, understanding that it would take months for its effects to be felt, most investors and analysts believed it was a start toward setting the economy right after a credit crisis that began more than a year ago and that has spread overseas.
“Clearly something needs to be done, and the market dropping 400 points in 10 minutes is telling you that,” said Chris Johnson president of Johnson Research Group. “This isn’t a market for the timid.”
The plan’s defeat came amid more reminders of how troubled the nation’s financial system is — before trading began came word that Wachovia Corp., one of the biggest banks to struggle due to rising mortgage losses, was being rescued in a buyout by Citigroup Inc.
According to preliminary calculations, the Dow fell 777.68, or 6.98 percent, to 10,365.45. The decline also surpasses the 721.56-point intraday decline record also set during the first trading day after the terror attacks. Still, in percentage terms, the decline remained well below the more than 20 percent drops seen on Black Monday of October 1987 and the Depression.
Broader stock indicators also tumbled. The Standard & Poor’s 500 index declined 106.85, or 8.81 percent, to 1,106.42.
The technology-heavy Nasdaq composite index fell 199.61, or 9.14 percent, to 1,983.73.
Well, the House democrats vote down the bailout, and the DOW drops a record 700+ points. Does anyone else think this is a Democrat Party plan to have Obama come in at the last minute, “convince” the Democrats to pass the bill, save the day, and get elected President? Everyone seems to think it will pass eventually, so why else go through all these gyrations?
Meanwhile, overseas, other countries are also taking steps to bolster their banks. There was talk of at least one big German bank failing.
At least oil prices plunged, as the markets looked for a huge economic slowdown.
The good side, since everything is supposed to have a good side? I don’t imagine too many people will be going to Aruba for a while….
Just Say No: imagine, a $1-trillion dollar bailout without even a hint at wrongdoing or malfeasance. Many of the fat cats who circulate from board to board and from job to job, are also members of the Trilateral Commission and or the Bilderberg Group. When someone takes your money and steals your car, it makes an impression. When they’re committed globalists, it leaves a lasting impression. Many elected officials even belong to the cabals. When Bill Clinton eased banking restrictions, he dished out $8-billion dollars for community reinvestment loans. When the financing schemes fell through, as is their wont whenever 30-million Mexican nationals buy inflated properties and default, it left banks in the lurch. 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, where is that $8-bilion plus dollars? The Global Initiative people (code speak for car thieves) took my money; they stole my car. If you or I did half the things these people have done, we’d be serving consecutive life sentences. Let the bubble burst. Gentlemen, I want my money back: http://theseedsof9-11.com
Richard,
Here is an interesting article by an economist on CNN who says that we should let these companies go bankrupt instead of bailing them out.
http://www.cnn.com/2008/POLITICS/09/29/miron.bailout/index.html
He also points out just how far back the roots of these failures go. Sounds like there is more than enough blame to go around for all parties involved so there is no need to hang this on a political party or their candidate.
Someone else I was talking to said the government should buy the houses at foreclosure prices (let the bank’s “chips” fall where they will) and rent the properties back to the buyers. They could rent-to-own or walk away and leave the taxpayers with the property. In that senario the homebuyer is helped not the corporation.
In either of these cases it is the stockholders who are the big losers. The CEOs of these companies are smart enough not to have all their (personal) eggs in one basket – they will come out okay, and unless prosecuted for actual criminal activity, they will move on to another job. Joe average stockholder and mutual funds will be the big losers. Most average people in this country own stock in one way or another, either through their own investments or retirement accounts. Joe average stockholder = Joe average taxpayer. The same people are going to be penalized no matter how this goes.
There are so many opinions out there, and I don’t think anyone really knows what is right; we are in uncharted water…
Who got money from Freddie Mac and Fannie Mae? Did Obama???
I’ve been trying to contact my Arkansas state reps. all morning to tell them to vote against this second bail-out bill, but I can’t get through and have tried different e-mail sources. It looks bad just from the fact that they are trying to rush this second bail-out through without we the people not being given a chance to look it over. It was going to be voted on Friday, and ow it is to be voted on today, Wednesday. Bad business.
That big drop in stock sells was mainly from the “gamblers” freaking out, those that are in it for the quick buck. Those that are in it for the long haul (long term, with dividend returns) didn’t even worry, and actually probably looked for good buys on that day.
For those that have money in savings, it will disappear by this bill. What we should be doing is going after the CEO’s and burn their (expletive) and get the money back. Where did it go? It didn’t just disappear into thin air. I suspect it went into campaign funds as hush-money and in essence, to say, “We covered your (expletive) in the past, now it’s time for you to cover ours.” Capitol Hill is a den of thieves. CEO’s have in essence become the mob and gangs of the early 20th century. It’s a bad business indeed.