The basic problem with any bailout plan is that it rewards recklessness and punishes the financially prudent. If a "homeowner" has obtained a mortgage they can't afford or a bank has lent money to a entity that can't afford the repayments, or a fund has purchased "paper" that has no value then why should I be responsible, bearing in mind that the Trillions that will be used to bail them out has to come from somewhere. More importantly give me one one reason why they simply won't do exactly the same thing again, it's a Zero risk proposition, and exactly what true Republicans (party of personal responsibility) should be up in arms against
It's about time you guys took this on. The recipes and such are fun, but there's serious shit going on out there that needs addressing. This bailout needs to be tough and punitive for the "big boys." They had a grand time fleecing us all, they must pay. And Paulson (to whom Bush wants to give a blank check) surely should have seen it coming.
Hemingway reportedly said when asked how his bankruptcy happened, "Well, gradually, and then suddenly."
Do not forget: One week ago today, on October 15, McCain told us the economy was "sound." Sure, now....
PS I was a bankruptcy lawyer for 25 years. This isn't so darn complicated as our leaders would have us believe.
OK, I'm relatively intelligent and I've even had a handful of graduate level economics classes. The one thing I haven't heard in all of this? A compelling and logical argument as to why this nation is actually facing total financial meltdown.
Yes, I know that's what Paulson and the Fed are CLAIMING is days away. I just haven't actually seen the argument laid out in any sort of comprehensive way. And I'd certainly welcome any links that are likely to convince me.
Because frankly I'm unconvinced. So some big investment banks go tits up. Yes, thousands lose their jobs and lots of managers lose their houses in the Hamptons. But how does that kill off the economy?
The one thing I have seen compellingly argued is that there is an unprecedented massive global pool of money sloshing around out there looking for returns. And that demand for returns is, in part, what led to this mess in the first place. If you have not listened to the NPR podcast on the global pool of money then go do it now.
In any event, killing off the investment banks doesn't change the fact that there is still an enormous pool of money out there looking for returns. And it doesn't change the fact that there are millions of businesses out there looking for capital. All it does is wipe out the major middlemen.
Seriously, I can't imagine in this day and age, with the world wired as it is, that capital won't find its way to legitimate investments eventually.
So let the economy sort itself out. The short-term adjustment is bound to be less costly than the long-term costs of a trillion dollar bailout. My guess as to what a non-bailout world would look like is that we would see big foreign investment funds snap up the American investment banks at pennies on the dollar and life would go on more or less as normal. Tell me how I"m wrong.
Um, hate to break it to you. Chris Dodd didn't "stare down" Henry Paulson. He played right into his fucking hands.
The Dems are fools if they allow ANY bill to go forward until after the election on this.
This is, and will be, an EXTREMELY unpopular bill. It doesn't matter if it is a perfect Democratic bill (i.e. cutting executive pay, giving the government a stake in the company, with oversight, and reforms). It will still be an unpopular bill. It will also be used as a blunt instrument by every challenger running against an opponent STUPID enough to vote for it.
If Paulson's proposal was a pile of shit, then Dodd's proposal is a pile of shit, on artisan bread, with a nice Dijon style mustard.
Passing any sort of a bailout plan before the election is suicide. Let Congress's session close, let the Senators and Congresscritters go run for reelection, and then take a serious look at this on November 5.
There's no reason to hurry for President 19%, and every reason to delay.
baba: most homeowners should be baild out...fuck the banks, but save teh homeowners..look they screwd up, they listend ot conventional wisdom...buy a house...who cares if you can't affored it, get into this gimmick ARM and in 5 years see it for a profit....this was pushed for eyars...and now they are punished for beleiveing respected advisors.
we need to punishe the banks and the financial pundents..not the homeowners that got conned
@ moonglum
NO NO NO NO NO.
If you're too stupid to know you can't afford a house, sorry, that's life.
If you can't afford a car, you ride the bus until you save up enough money to buy a card. You don't go screaming that everybody should pay for your car so you can drive to your drug dealer's house, now do you?
Same concept, if you can't afford a house, then you RENT while you save up. WHY should I have to pay for MY house and YOURS too!?
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