Paulson has come up with a free market plan that has the best chance of not costing a 10 year recession like happened in Japan in the 90’s and even possibly making a profit for the tax payers like the RTC - the guy is smart and doing his best.
If this is not done - forget your 401k, your credit card and ever getting a car loan - this is a real problem caused by those inside the beltway fiddling while the USA burned - Paulson is doing his best to save your bacon!
I understand perfectly that Wall Street has invested poorly, leveraged insanely, received payouts that far exceed their performance and that now they are looking to the American taxpayer to fix their greedy errors.
Paulson has come up with a plan which on its face is a complete coup and he is looking to have unlimited power without oversight or review by any body including Congress or the courts.
Opinions my certainly differ, but giving unlimited power over US Treasury funds to an appointed individual with no oversight or ability to review is national suicide.
There are other solutions and other ideas. Have you not seen the letter from vast numbers of economists who feel that THIS proposed legislation is in error? Have you not researched the other solutions that have been advanced? At least look at Fedupusa.com before you accept the word of a corrupt financier.
I have five times as much in cash (US and foreign) as I have in a 401k
I have two credit cards. Balances - $0.
I always buy used cars and pay cash.
I'm the kind of person that no one ever needs to bail out
Capisce?
But...I will admit there is a lot going on right now that I don't understand. And no one seems to be willing to go into a decent explanation. I've thought about calling the financial adviser, but I don't know if I'll still get decent advice? I understand that risky mortgages, bundled into other investment vehicles and sold to investors has moved some banks from moderate risk, to under capitalized risk?
So...the government is trying to tell me $700 billion of these instruments exist? Wow. That seems to be a lot more than I ever realized. How did they come up with that number, which we all know is going to grow into over a trillion. If there is any kind of bailout, shouldn't it be in regards to the core vehicle. I mean the real estate still exists, no? After that the gamblers on Wall Street should lose. I know I invested fully understanding things were not FDIC insured and may lose value. Like I said there is much of this I do not understand. The amount is just part of it.
Second, congress wasn't asleep at the switch. The Bush Administration has tried over a dozen times to get congress to address this looming issue. He was actively rebutted at every attempt.
Third, after all this bailout hoopla is signed into law, we the people need to demand a hard evaluation and reworking of the legislation that created this problem in the first place. And that means some people can't afford homes and will live in rent their whole lives. Affordable housing needs to change from homeownership to having a safe secure place to live, be it a house/condo/apartment. Affordable housing should mean the mortgage is given to those who can afford it. The whole system that got us here needs to change.
Lastly, the President talked about this being a credit issue and repeated the phrase credit market. Fine, it has to do with credit...but what does that mean to you or me who doesn't use credit or uses it modestly?
“If this is not done - forget your 401k, your credit card and ever getting a car loan - this is a real problem caused by those inside the beltway fiddling while the USA burned - Paulson is doing his best to save your bacon! “
I stand to lose thousands if this doesn’t go through. But if it does go through, the ‘crash’ will still eventually happen because we are how many trillion more in debt?
I could be wrong, I’ll concede that. Don’t bet your life on it. Why did Paulson wait ‘til the bacon was burning before attempted to turn down the stove? I don’t trust the very same people to fix this mess that sanctioned it.
“No generation has a right to contract debts greater than can be paid off during the course of its own existence.” - George Washington to James Madison 1789.
Too bad. The corrupt fat cats, and those in D.C. responsible for overseeing and regulating their buddies on Wall Street will have to do what they tell the little people to do.
Pull themselves up by their bootstraps, and don't expect any government bailouts.
“I don’t think you people understand this problem - wall street without proper regulation went to the casino, bet big, and lost; the only problem is they did it with OUR financial system because CONGRESS was asleep at the switch.
Paulson has come up with a free market plan that has the best chance of not costing a 10 year recession like happened in Japan in the 90’s and even possibly making a profit for the tax payers like the RTC - the guy is smart and doing his best.
If this is not done - forget your 401k, your credit card and ever getting a car loan - this is a real problem caused by those inside the beltway fiddling while the USA burned - Paulson is doing his best to save your bacon!”
Bernanke believes it was a grave mistake for the Fed to have allowed banks to fail in ‘29.
He thinks that is why a cyclical recession became a 10 yr. depression.
His priority is prevent bank failure so the same vicious cycle will not occur again.