Bail out of the bailout!

September 29, 2008 at 12:36 pm (Uncategorized)

I am very proud of the brave men and women who actually did their job and represented the people who put them where they are by refusing to vote for this horrible misuse of taxpayers money.

It has to stop. If it means 5 to 10 years of financial struggles for the country than so be it. Suck it up.

Nancy Pelosi is ticked off because she stands to lose millions of dollars in stock if we, the taxpayers, don’t loan her our hard earned money.

Well Mrs. Pelosi and the rest of you evil, greedy, “lawmakers” let me say this in paraphrasing a well known Alaskan governor…
“Thanks, but no thanks on the bailout to nowhere!”

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43 Comments

  1. Pablo Honey said,

    Thanks for starting the thread Daniel. I would encourage everyone to take a look at how your representative voted and send an email to encourage them to either maintain a Nay vote or to correctly represent their constituents and vote Nay next time around as this plan is certain to be back around very soon.

    Maybe I would feel differently about this if I had millions of dollars to lose but the fact is that this plan is very bad for America. The best this will do is put a temporary fix on a growing problem, and eventually it will all fall apart. Like Daniel said this may cause the financial crisis to continue and even grow over the next few years but it is for the best.

    My only disappointment with the GOP members who voted to block this plan today is that they are claiming Nancy Pelosi’s partisan speech was the catalyst for their negative votes, instead of taking a stand for the tax payers and the good of the Country. Now we have to hear a bunch of petty fighting amongst politicians. Bleh.

  2. danielbalc said,

    The three San Diego area republican representatives, Issa, Bilbray and Hunter all opposed the bailout.

    Way to go boys!

    BTW they all represent seriously wealthy districts. Which makes me wonder. If the very rich oppose this bailout, then who is actually in favor of it?

    find out for yourself…http://latimesblogs.latimes.com/laland/

  3. danielbalc said,

    I don’t know what is going on but I think the house website has crashed…. house.gov is totally blank.

  4. danielbalc said,

    ok finally found a link for you…

    http://clerk.house.gov/evs/2008/roll674.xml

  5. Pablo Honey said,

    I saw that too, I have been trying to go to house.gov all day!

  6. danielbalc said,

    Here is a site where you can find the contact info for your representative…
    http://www.votesmart.org/index.htm

    I was able to call my representatives and thank them for their votes and their leadership on this issue. It takes less than a minute to call so I encourage everyone to do so.

  7. Pablo Honey said,

    Check out this clip of Ron Paul getting his 2 cents in on the bailout this morning. It’s only 2 minutes.

  8. danielbalc said,

    ya dr paul!

    again and again I feel so proud of my vote.

    If McCain wants to win he needs to get on the side of the voters on this issue and say, “screw wall street this is about America” and then make it clear the Dr. Paul is going to take Paulson’s job as treasury secretary.

  9. Pablo Honey said,

    Agreed. Ron Paul is all over it. We don’t need to regulate Wall Street, we need to regulate the Federal Reserve. Today the Fed decides to inject billions of dollars into global markets and needs no approval to do so. Where is the oversight?

  10. Aunt Beth said,

    Daniel,

    Thanks for the text message invite. I hope you got it to Brenton – I’m sure he’ll contribute something more meaningful to your thread than I’m capable of doing. Like many other classes I took in college, I aced Economics and managed to do so without retaining much.

    It must be sex-linked. Almost all of the men in my family (and Paul’s family) can take the ball and run with it on this subject. They understand the implications of the Federal Reserve, Wall Street, markets, and so on. I don’t.

    I understand Matthew 5:33. That verse and the one that ends with “…and He adds no sorrow to it” sum up my economic outlook. This is probably why I’m launching a white dove release business at the same time that headlines and pundits alike spout dire predictions.

    I am against the bailout on your word and on the word of so many others I know and trust. Also, Ann Coulter’s blog (see http://www.AnnCoulter.com) always makes sense. What she says makes me distrust the politicians who use “greed,” “Wall Street” and “Main Street” to discuss the crisis.

    My personal perspective has little to do with interest rates, the mortgage crisis, or Wall Street. I see a bailout mentality as likely to fail. I base this on the individuals I’ve known who’ve experienced a bailout (economic, marital, and legal). Somehow, I’ve been priviliged to meet lots and lots of people who have criminal pasts (and some with criminal presents). I can think of 6 people I know personally who are in prison right now. I’ve had relationships with more EGRs than I can count. So through the years I’ve seen folks get a bailout several times.

    I also think about a time when I really wanted a bailout and a dear friend who was counseling me and being supportive said these words. “We are where we are – so let’s deal with it.” I didn’t get a bailout and the crisis didn’t kill me either. Maybe the adage “that which doesn’t kill you, makes you stronger” is true OR MAYBE “that which doesn’t kill you, hurts really, really, really badly.” Either way – It didn’t kill me to face up to my shortcomings, learn from it, and take steps in the right direction.

    I’ve seen better results with consequences than with bailouts. I believe that consequences are inevitable and bailouts merely disguise, stretch out, or divert the consequences. If economic consequences are coming down the pipe for America I say, “Bring it on and let’s get through this season so we can learn and move on to the next.”

    I am in favor of one bailout, the biggest bailout of all time that occurred when God made Jesus who had no sin to be sin for me so I could become the righteousness of God. I highly recommend this bailout to everyone. The curren one discussed in DC doesn’t look nearly as promising.

  11. Aunt Beth said,

    sorry – that’s Matthew 6:33

  12. Brenton said,

    Thank you for directing me to visit the blog- I ❤ economic policy. Anyhow I am pretty excited that the House actually did what people wanted. I just hope this bailout deal does not get resurrected with a new name and passed next week. Contact your representative and let them know how you feel on the issue! No better way to get involved.

    I feel that opposing the bailout was the correct choice. As you pointed out Daniel, the economy will suffer in the short term, but the long term effects of the bailouts and the hyper-inflation it would impose on the dollar are far worse. Plus this whole plan and the ridiculous 700 bil. price tag attached to it were thrown together in only a few days, by the same people who created the mess in the first place. No thanks.

    I am glad that people have started listening to Ron Paul – He has been on the TV and in the news more in the past week than he ever was while running for Pres. Silly media. I hope some of his ideas make it in to whatever changes are made.
    An interesting ‘Austrian Bailout Plan’ I found –

    1. Suspend Basil II regulations (to at least 4/2/09)
    2. Cancel FDIC insurance on all demand deposits after 1/1/09.
    3. Increase FDIC premiums on short term time deposits of less than one year.
    4. Make interest earned (starting 1/1/09) on bank time deposits and non-governmental, non-agency, and non-authority bonds tax free (not demand deposits and MMMF).
    5. Convert Fannie Mae and Freddie Mac’s status from conservatorship into receivership.
    6. Convert AIG’s status from government owned to receivership.
    7. Cancel the Primary Dealer Credit Facility (PDCF) and the Term Securities Lending Facility (TSLF) at the end of the announced program (January 30, 2009).
    8. Announce that the Federal Funds rate will be allowed to “float” at market rates starting January 30, 2009.
    9. Announce that the Federal budget will be prorated beginning with the fiscal year starting 10/1/08 including all defense spending and transfer payments.
    10. Restore constitutional monetary status to gold and silver to act as an alternative medium of exchange (no capital gains taxes).
    original link – http://blog.mises.org/archives/008641.asp

    Mostly good ideas, took a little research on my part to understand everything, but I think like it.

  13. danielbalc said,

    Thanks for stopping by Brenton.

    Wow, I don’t even know what to say about the “Austrian Bailout Plan” except, “huh?”

    That’s the biggest point of all this. The fact that everyone says, “we have to do something!” but yet they don’t have any clue what they are talking about, they created the mess. So if a group of well meaning volunteer firemen came to put out your house fire by throwing gasoline on it wouldn’t you rather just have them not help?

    of course these aren’t well meaning volunteers. They are people desperate to save their own millions of dollars of illicit gain.

    that’s the key element of this all. Investing in the stock market is risky. All the time, every time. Even if you want “safety” and go after some mutual funds, if you read the prospectus you read that there is no guarantee that your money, will ever go up and could possibly go down.

    I found some secret footage of the back room negotiations that they are going through to make this bailout work.

  14. danielbalc said,

    Obama on the bailout…

    “While I, like others, am outraged that the reign of irresponsibility on Wall Street and in Washington has created the current crisis, I also know that continued inaction in the face of the gathering storm in our financial markets would be catastrophic for our economy and our families,”

    My question to Obama is “how do you KNOW that inaction would be “catastrophic for our families”?

    McCain isn’t off the hook either…

    “I know that we have to act,” McCain told FOX News Tuesday, acknowledging that he was unable to sway enough Republicans to back the bill during his trip to Washington last week. “Even though we failed yesterday, even though I went back and was able to get more Republicans on board, or help get more Republicans on board, we will go back to this, and I will be engaged always where I think America needs engagement.”

    Why do you think America needs engagement in this way?

    The reason why McCain and Obama both are pushing so hard for this is because their campaigns are on the line. they are the ones being held over the barrel by the corporations…
    “Mr. McCain, if we don’t get this money then you don’t get any more campaign contributions from us.” Threatens BofA CEO Kenneth Lewis.

    “Mr.Obama, if we don’t get out piece then you don’t get yours” says, James Dimon Chase CEO

    (I made up those quotes but I doubt they are too far wrong).

    Given that the vast majority of America opposes the bailout…

    and for good reason, check out the powers that the treasury secretary would have according to section 8 of the proposal….

    http://www.nytimes.com/2008/09/21/business/21draftcnd.html?_r=3&oref=slogin&ref=business&pagewanted=print&oref=slogin&oref=slogin

    And all that Obama and McCain are complaining about is the level of FDIC insurance going from 100,000 to 250,000?????? Ahhhhh it’s insane!

    … shouldn’t one of the candidates step to the plate and toss out the entire thing say, “this is not good for America because it only delays the inevitable. Instead we are going to have to take our lumps now and after my first 4 years in office we will be back on the road to recovery because I will …(insert a reasonable plan here).

    If you think the US government owning over a trillion dollars of mortgages in your community and possibly your own home is a good idea then congratulations you are now officially a communist (at least half way, the other half will come when Obama gives us universal health care and all the fun stuff that comes along with it like mandatory diet restrictions and being involuntarily medicated.)

  15. Pablo Honey said,

    Wowsa. The Austrian bailout plan is a little over my head, but I’m doing my research online! For now my thoughts on the Austrian plan is “Let’s put anotha’ shrimp on the barbie!”

  16. danielbalc said,

    BTW the huge drop in the market yesterday being attributed to the failure of the bailout plan is a total lie.

    That may have had a part in it but what also has a part in it is that today is the last day of the fiscal year.

    that means all the audits are coming in and all the losses and gains are being reported. So it’s all much, much bigger than just Fannie and Freddie and the crooked investment bankers. It’s every company having to open up their books and say “look how much we’ve borrowed: 27 million. And this is how much we paid our CEO: 30 million. And for some reason we don’t have any profits for the share holders.”

    so folks dump that dirty stock and it gets attributed to…
    THE CREDIT CRUNCH! FINANCIAL CRISIS!

    um it’s a bad business that’s why I’m out.

  17. danielbalc said,

  18. danielbalc said,

    so the market dropped almost 800 on Monday, surely the slide would continue on Tuesday right?
    up 485. third highest single point day in history.

    Of course they claim it’s on “renewed talks of a rescue plan” but I don’t think that’s the case at all.

    I think it’s on people moving their money to smarter investments. People seeing prices they can afford to jump in on.

  19. Brenton said,

    My favorite new economic term –

    Dead Cat Bounce

    This is where a particular stock (or the entire market) has a large drop, then a sudden turn-around and partial rise, followed by a continued drop- Because even a dead cat will bounce if dropped from a great enough height. Some are saying thats what has happened today, I hope that is not the case, but it will take a few weeks (if not months or quarters) to see what is really happeneing in the market

  20. Pablo Honey said,

    Hey bloggers out there, I wanted to take a second to share a fun website with you, and it’s relevant to our ongoing money discussion. A couple months ago I joined a website called UpDown.com A free site where you manage a virtual 1 million dollar stock portfolio. It work identically to any stock trading site, even charging virtual commission on your trades, but it is all free. It is a lot of fun to see how much you would make or lose with that kind of money.

    I joined in July and had been hovering right around my starting value of 1 million for a couple months until the last few days of September hit my portfolio very hard. I finished September down 10% since I started. Not to worry though, as today’s trading alone has improved my portfolio 34.5% (310,794.84) and counting! If these prices hold through the end of the day I will be up over 20% since the start. Who says the market is struggling!? I fully expect to see these prices fall so I will be unloading quite a bit of my stock at the end of the day.

    Anyways the whole point of this was to introduce you guys to the site and see if anyone would like to join. If so let me know on here or my email pbalcombe at gmail dot com and I will refer you. Referring you will let us keep track of how the other performs and also you can win money or prizes or something, I don’t know the details. Let me know!

  21. Brenton said,

    Hey Paul – I would be interested to try my hand in the market. Refer me please

    brentonparks@hotmail.com

  22. Anthony said,

    how about a sports market????

    http://www.protrade.com

  23. danielbalc said,

    Well the bunch of loser senators passed a bailout bill claiming it was new and improved but the biggest difference I see is that it upped the ante from 700 billion to 800 billion.

    As far as I could tell the house.gov site was only partially in operation this morning so I strongly urge you to find representative and tell them to vote No on the bailout. You’ll probably have to call them since the email feature seemed to be malfunctioning.

    Duncan Hunter’s # 202 255 5672

    The fear mongering that I am hearing from BOTH presidential candidates is inexcusable. They are shouting fire in a movie theater.

    Here’s the joke of this bill. One of the “sweeteners” added was 8 billion of aid for those hit by natural disasters.

    That means they honestly believe wallstreet’s problems are 100xs worse than the problems of those in Texas after hurricane Ike.

    ????

    no, no, no.

    Let wall street bail itself out.

    But what about all those people who “lost their homes”.

    I’m not insensitive to them, I know many. But you know what they are doing right now? Living! They have jobs. Yeah, they have to rent now, and they have credit issues, but they are still doing just fine.

  24. danielbalc said,

    You know what other crazy thing I’m seeing a lot of?

    Falling fast food prices.

    especially at the places that are just above drive through and yet below having waiters…

    places like…
    Pick up stix
    Rubios
    Subway
    Quiznos

    They are having to offer more “specials” because all their customers who used to come in and just pay with a credit card, are now saying, “wait a second, I’m paying how much?”

    I’ve long complained about star bucks and the artificial price inflating they were doing, not that it was their fault but that people were stupid enough to believe $4 for a coffee drink is reasonable. Well they only believed that because it was on their credit card. Now they are cutting back and now these companies are forced to cut their profit margin in order to make some sales.

    That’s the kind of catastrophe that this Bill is designed to avert.

  25. Pablo Honey said,

    You are absolutely right on this Daniel. Don’t be fooled by the politician’s schemes! They are trying to add “sweeteners” in the form of bogus tax cuts and Federal aid. This is no different than a credit card company offering you an introductory offer to get you to sign up for a card that is going to screw you big time.

    Fortunately for most the readers of this blog, you live in California, one of the few states where you are able to recall certain government officials. I encourage you to call or email Senators Barbara Boxer (202) 224-3553 email form and Diane Feinstein (202) 224-3841 email form and inform them that you will participate in a campaign to recall them from office if this bill passes. Want details on how to recall a Senator? Here ya go.

    Please don’t take this lightly people. I am kind of disturbed by the apparent lack of interest on this topic. Do some research and find out for yourself if you believe this bailout is the right choice for this country, and then take action!

  26. danielbalc said,

    While I appreciate the passion I don’t think there’s a snowballs chance in santee (on a day like today) of ever being able to recall those two psychos.

    At this point the best hope we have to get them out of office is for this bill to pass and then when it hits the fan (and it certainly will) hopefully every senator who voted for it gets booted from office. Ironically that would include the two moron presidential candidates.

    We cannot afford this bill. It is only going to exacerbate the coming collapse of the economy.

    I’m convinced that the senators and congressmen voting for it are simply trying to get a boost in the market before they pull out everything they got. They don’t care about the country. John McCain should be held the most accountable for this because he claimed to be about “country first”. He has to have some advisers and experts who can give him a suitable alternative to present as his own. One that actually works and that would restore the system. My bet is that presently he has a whole plan written up and collecting dust. MAYBE, just maybe, if congress does the right thing and rejects this bailout he will at least present it, all the while knowing it will not pass, because the partisan democrats would never pass a bill presented by the republican candidate just weeks before the election. But the presentation of it would be enough to launch him into the presidency with a strong surge of support from the conservatives in this country.

    But right now his fear of alienating is keeping him from doing the right thing. That’s not country first.

    Obama on the other hand has no such plan because his economic advisers are the former executives of Fannie and Freddie. They don’t have any clue how to rescue the economy. Their solution is to tax the rich more and give to the poor things they don’t earn, don’t deserve and can’t afford… like home mortgages!!!!!

    It doesn’t work.

  27. danielbalc said,

    I have to be honest. I’m kind of bothered by the fact that only Paul and I are talking about this. It leads me to believe that many of my readers are in fact in favor of the bailout.

    If that’s you, please, let your voice be heard.
    Lets open this up to dialogue so I can at least try to better understand your faith in the government “fixing” this “problem”.

  28. danielbalc said,

    If you have never listened to or even heard of Dave Ramsey please take my advice and start paying attention to him.

    He hosts a radio show that airs locally (San Diego) on Sundays on 760 AM. He’s an author and has terrific books that teach you how to live debt free.

    He was interviewed in Christianity today last Friday…
    http://www.christianitytoday.com/ct/2008/septemberweb-only/139-51.0.html

    This is his solution on his website and it’s fantastic…

    http://www.daveramsey.com/etc/fed_bailout/3_steps_to_change_the_nations_future_10928.htmlc?ictid=sml

  29. danielbalc said,

    Since you wont bother reading the links here is the “common sense plan” that we should all be sending to our representatives and senators.

    Years of bad decisions and stupid mistakes have created an economic nightmare in this country, but $700 billion in new debt is not the answer. As a tax-paying American citizen, I will not support any congressperson who votes to implement such a policy. Instead, I submit the following three steps:

    Common Sense Plan.

    I. INSURANCE

    A. Insure the subprime bonds/mortgages with an underlying FHA-type insurance. Government-insured and backed loans would have an instant market all over the world, creating immediate and needed liquidity.

    B. In order for a company to accept the government-backed insurance, they must do two things:

    1. Rewrite any mortgage that is more than three months delinquent to a 6% fixed-rate mortgage.
    a. Roll all back payments with no late fees or legal costs into the balance. This brings homeowners current and allows them a chance to keep their homes.
    b. Cancel all prepayment penalties to encourage refinancing or the sale of the property to pay off the bad loan. In the event of foreclosure or short sale, the borrower will not be held liable for any deficit balance. FHA does this now, and that encourages mortgage companies to go the extra mile while
    working with the borrower—again limiting foreclosures and ruined lives.

    2. Cancel ALL golden parachutes of EXISTING and FUTURE CEOs and executive team members as long as the company holds these government-insured bonds/mortgages. This keeps underperforming executives from being paid when they don’t do their jobs.

    C. This backstop will cost less than $50 billion—a small fraction of the current proposal.

    II. MARK TO MARKET

    A. Remove mark to market accounting rules for two years on only subprime Tier III bonds/mortgages. This keeps companies from being forced to artificially mark down bonds/mortgages below the value of the underlying mortgages and real estate.

    B. This move creates patience in the market and has an immediate stabilizing effect on failing and ailing banks—and it costs the taxpayer nothing.

    III. CAPITAL GAINS TAX

    A. Remove the capital gains tax completely. Investors will flood the real estate and stock market in search of tax-free profits, creating tremendous—and immediate—liquidity in the markets. Again, this costs the taxpayer nothing.

    B. This move will be seen as a lightning rod politically because many will say it is helping the rich. The truth is the rich will benefit, but it will be their money that stimulates the economy. This will enable all Americans to have more stable jobs and retirement investments that go up instead of down. This is not a time for envy, and it’s not a time for politics. It’s time for all of us, as Americans, to
    stand up, speak out, and fix this mess.

  30. Pablo Honey said,

    Great link Daniel. While I am sure that plan is not a fix-all. It is at least a much better starting point with a significantly lower negative impact on the tax-payers, and most importantly does not put more liability into the hands of the government than is necessary.

  31. Matt said,

    Right about now I don’t have alot of faith in the American government.

    It is clear to any thinking individual that this plan is terrible and will cause a whole lot of long term damage to the country. These congressmen don’t need me to tell them why this plan won’t work.

    Those that actually care about the people they serve and have a spine will vote no and those that only care about themselves and their money will vote yes and nothing I say or do will change that fact.

    We all understand that there will be short term consequences for voting this bill down. The economy will get alot worse before it gets better. Some of us will lose our jobs, some of us will see our standard of living go down, etc..

    We also all understand that the long term future of this country will be so much better if we let this market correction run its course and stop trying to put a band aid on a severed limb.

    Sacrifice now for a better future. Its a hard pill to swallow but one we must if this country is going to thrive in the future.

    Lets just hope enough of our representatives are on the same page.

  32. danielbalc said,

    It took me a little over an hour to get through the swamped house web site but I finally e-mailed congressman Hunter. In addition to the above text I also told him how proud I am of his service to our region and the country over the years and begged him to use whatever influence he has to urge Senator McCain to adopt THIS plan rather than the ultra flawed super bailout.

  33. itsasecret2u said,

    The only reason I don’t comment is because the economy of the country is one of those things that I’m convinced I could never understand. Like insurance. When I was a teenager, insurance (health, car, whatever) was this confusing, complicated thing that my mom always took care of. I finally realized that it isn’t that confusing, once I became accustomed to dealing with it. The governmental economy is probably the same. But I still feel sort of stupid about it.

    However, my intuition alone tells me this bailout is a bad, bad idea. But perhaps that’s because I have nothing to lose. My house/credit cards are already gone, my husband’s job is secure, I have nothing invested in the stock market… People who support this bill are probably very afraid of losing one or more of those things.

  34. danielbalc said,

    People who support this bill are probably very afraid of losing one or more of those things.

    Who really supports it?
    not the economists… http://www.foxnews.com/story/0,2933,431645,00.html

    It’s been characterized by House minority leader John Boehner as “a crap sandwich”

    http://www.cbsnews.com/stories/2008/09/28/politics/politico/thecrypt/main4484035.shtml

    and he STILL voted for it. (Kinda how I feel about McCain)

    But he does have a choice. Lawmakers do NOT have to do anything. It is not a part of their job description to try to throw life preservers to wall street.

    It’s all a fear frenzy. Does something have to be done? Maybe, maybe not. One thing is for sure.. It is wayyyyy too rushed to make me think there isn’t a hidden agenda here.

    850 billion dollar bills should not be thrown together in less than 1 week.

    and as for losing investments, that is a very real possibility. But one that you knew of when you invested in stocks.

    losing homes on the other hand is not realistic. You can only lose your home if you had some tricked out ARM and if that’s the case you probably already lost it (but lets face it you didn’t really deserve it to begin with).

  35. itsasecret2u said,

    losing homes on the other hand is not realistic. You can only lose your home if you had some tricked out ARM and if that’s the case you probably already lost it (but lets face it you didn’t really deserve it to begin with).

    What I don’t understand is how housing prices got so high to begin with. That is what drove people to feel trapped into trying to buy houses with tricked-out ARMS or HELOCs as their second mortgages (my case) or whatever. 8 years ago we could have easily afforded the house we lost with a normal P&I loan based on my husband’s salary. In fact, we could have afforded my parents’ signifcantly larger, nicer house in RB based on his salary alone. So what the heck happened? Why did homes suddenly become so unaffordable? The only reason we bought a house with such ridiculous loans (interest-only, which is better than the neg-am loan my sister has!) is because that was the only way we could buy ANYTHING larger than a 1-bedroom condo (which is a little tight when you have kids). We weren’t trying to get something we didn’t “deserve.” We certainly didn’t go mansion-shopping in Carmel Valley, or something.

  36. itsasecret2u said,

    Who really supports it?

    Congresspeople, apparently….

  37. danielbalc said,

    Regarding whether or not folks “deserved” the mortgages they recieved I hope it wasn’t taken as an insult to those who had those mortgages (many of my friends and family).

    When I say that you didn’t deserve it I mean you should not have been able to get a mortgage without 15-20% down. (not easy when the price for a 3 bedroom is over 400K)

    I agree that the home prices skyrocketed way beyond reasonability and it surely did seem hopeless. I got the information for myself on how to get an ARM and what I could do to get into a home.

    But thankfully I didn’t get into it. I surely could have, but the timing just wasn’t right. I consider myself fortunate for that.

    Again though, none of you deserved these and it was the mortgage companies job to say, “sorry you guys can’t afford this” instead of “lets see how we can make it happen” (AKA let’s see how we can steal your money).

    SIDE NOTE this is why a bailout is a bad idea because it fails to punish the bad mortgage companies and removes form them the burden they should bear.

    This all goes back to the Clinton administration and the corrupt Fannie and Freddie saying “give away the mortgages regardless of ability to ever pay it back.”

    SIDE NOTE this is why we need some type of government interention because government does indeed have some fault in all this.

    That was wrong, that was where it all came crashing down. It should have never been able to happen but it did, and this is what comes of it.

    I have become a big fan of dave ramsey and his radio show and books and how he promotes the ability for families to live “debt free”.

    It is possible. But it is harmful to the American economy growing astronomically. That doesn’t mean that it’s bad in the long run, but it does mean slow and steady growth instead of crazy skyrocketing growth.

    daveramsey.com

  38. itsasecret2u said,

    I just hope this silly thing doesn’t pass. For my kids’ and their kids’ sakes, anyway. Ugh. I remember growing up my dad told me that the dollar used to be backed by gold and that made so much sense to me. I couldn’t understand why we ever stopped doing that… Now you don’t even need paper money. You can buy everything with “credit.” It’s such a bizarre system.

  39. danielbalc said,

    oh well it passed.

    “American’s changed their mind” congress said.

    bull crap.

    Most Americans didn’t want this and now we’re stuck with it.

    I’m disgusted.

    BTW the second was worse than the first as it had hundreds of billions of pork earmarks all over it.

    McCain just lost the election

  40. danielbalc said,

    The global economy wasn’t stabilized by the bailout and neither has the stock market so far… (below 10k for the first time in 4 years).

    what happened?

    If financial experts weren’t willing to invest in these 700 billion dollars worth of crap mortgages then why would they expect the U government to be making a good investment?

    The people that put there money in the market all know that all that happened was the US dollar just made itself that much weaker.

    They also know that Barak Obama is going to be president a few short months and that he has promised to raise their taxes. They are looking for smarter, safer investments and know that the US market with it’s trillions of dollars (plus 1 more after just 1 week of fear mongering) of deficit is not the place for them.

  41. danielbalc said,

    It’s been 2 market days since our congress completely denied the will of the people and what kind of positives have we seen?

    None. We’ve in fact seen the exact opposite of anything positive. We’ve seen the dow tank over 800 points in just 2 days.

    How much more could it have tanked without the trillion dollar bailout?

    Did you know that Dianne Feinstein (one of our two psychotic senators) said she received 91,000 calls and emails about the bailout and that 85,000 of them emphatically pleaded with her to vote No on it?

    93% of her constituents with clearly enough knowledge to be interested in and passionate about this bill said NO!

    and why did she vote yes?

    “There is a great deal of confusion out there” and these people “don’t understand” the situation.

    85,000 Californians are too stupid but her and Boxer and the rest of the idiot Senate and House (a grand total of 338 + one president Bush) that voted for this bill, know better?

    85,000 to 339

    And that’s just California!

    I know it’s just 1 month before the elections but I think there needs to be a total congressional overhaul. Every single individual who voted for this bailout needs to be replaced as a clear signal that the people of the united states demand fiscal responsibility!

  42. danielbalc said,

    One year ago today the Dow was the highest it had ever been (14,164).
    Today it ended at 8,579.

    What has changed in the past 365 days?

    sure you could go with the housing collapse, but that started sliding downward in August of 2005. It was clear on October 9th 2007 that nothing was going to stop the housing market from getting better any time soon and yet the dow STILL hit it’s highest point ever on that day.

    The Bailout is the biggest watershed moment between 14,164 and 8579. In fact before the bailout was ever brought up the dow was around 11,000. Obviously they claim the bailout was necessary, but I have a hard time believing the investors were actually fearing fear itself more than anything else. But who can blame them with the number the president, the presidential candidates and Pelosi were putting on?

    One thing that is clearly different from a year ago is the likelihood of Barak Obama being president. And I simply can’t escape the fact that a promise to increase capital gains tax would cause me get out of the market as well.

  43. danielbalc said,

    Supreme Dictator Paulson gave a speech today.

    During this speech he made it clear that the original plan of the bailout would not be followed but instead they would take the 700 billion and put it into banks rather than into buying distressed mortgages. mmmm really?

    I determined that the most timely, effective step to improve credit market conditions was to strengthen bank balance sheets quickly through direct purchases of equity in banks,”

    “It was clear to me by the time the bill was signed … we needed to act quickly and forcefully, and that purchasing troubled assets — our initial focus — would take time to implement and would not be sufficient given the severity of the problem,”

    Notice how he says “I determined” and “It was clear to me”. This guy has pulled off the biggest thievery in world history.

    As I watched part of his speech I noticed he would pause every now and then to take a drink of water from a 1 liter bottle of Dasani. This is probably my biggest pet peeve. the waste of bottled water. First of all water being sold for more than the price of gasoline is a joke in and of itself, but when i see a half empty bottle of water lying around with no owner in sight I want to scream. Not only did you waste money in buying that stupid plastic container but you didn’t even bother to finish it.
    I would bet 700 billion dollars the Paulson didn’t finish his 1 liter bottle during his speech and then i would parlay that bet into saying he probably didn’t carry it along with him in the streets of Washington DC. Instead he probably drank about ounces and then the janitors came in and threw the bottle away. What’s wrong with having a glass of tap water????

    This guy has charge of 700 billion of our dollars and I just watched him throw away 2 dollars for what essentially would cost a fraction of a penny!

    If he’s willing to spend 2 dollars for what could be done for a single penny think about what is going to happen with this bailout.

    WE ARE SCREWED!

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