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Date: 2/8/2009 7:42:00 PM
From Authorid: 64197
http://money.cnn.com/galleries/2009/news/0901/gallery.money_summit/index.html Try the above link, that may help you understand some of it...this was posted last wk....there is alot more now that they have somewhat decided on something.... cnn.com/money  |
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Date: 2/8/2009 8:01:00 PM
From Authorid: 23101
Basically the head of the Federal Reserve & everyone else in charge of our money has fallen down on the job. They're in charge of the banks: how much they can give out, how much money the US has, how much interest rates are, and they weren't paying attention when banks started giving out TOO much money to people who couldn't pay their bills. They gave out house loans & other kinds of big loans to SO many people who really couldn't afford it & now banks are in debt because people aren't paying back the money they borrowed... Thus, banks went bankrupt because they couldn't pay. An example of this would be Bank of America, and I think Washington Mutual among others. Other companies started to go under because they don't have money. The $7 billion that Congress proposed was to take TAXPAYERS money & give it out to the companies that went under so they could get back on their feet. Some people don't want this to happen because they fear that taking SO MUCH of our money to give to companies that already couldn't handle what they had would be a waste of the use of our money. They think if the company went down the first time, what is going to make them change their ways when we just give them more money? Others are for it because they think it will save the companies & boost our economy. I know that car companies, as well as several other stores, etc. have closed to cut costs or filed bankruptcy. The U.S. in so much debt right now it's not even funny. There's layoffs everywhere because companies can't afford to pay workers & don't want to go under and become bankrupt. The stimulus is something, which I think we also did during the Great Depression, where the Government sends out money to Americans and expects them to go out and spend it on big things to sort of "boost" our economy & keep the money circulating. The problem is when we recently tried this, everyone had so much to pay on their loans that they just used the money given to boost the economy to pay off their debt, and it defeated it's purpose. I guess there are several different people who could be to blame for this. I would say the head of the Federal Reserve & the people in charge of our National bank, because they're in charge of all of our money, the little banks because they gave loans to people who they KNEW couldn't afford it. Because of this it's much harder to get a loan or a credit card because we are in such hard times.  |
Date: 2/8/2009 8:32:00 PM
From Authorid: 47218
My, have you opened a can of worms! It is all very complicated, and even my understanding of it is just the barebones, but it goes something like this: starting a few years ago, there was a boom in the housing market. The federal reserve (that's our national bank that lends money to other banks) started lowering the interest rates on loans, and since it was so cheap to borrow money, people started buying houses like crazy, even buying extra houses as what is called "speculation", because the value of homes was becoming artificially inflated from all the buying (a vicious circle). In the meantime, banks got greedy and began to loan more and more money out to people who couldn't really afford the loans- high-risk loans- to people who didn't put down any sort of down payment and often with variable interest rates. A variable interest rate means that the interest that you have to pay on your loan is constantly changing (the kind of interest rate generally advise you NOT to get, but it good economic times it can make a loan affordable for a person who otherwise couldn't afford it). At the time that people borrowed the money, when the market was booming, the interest rate was low. But then the economy started to slow down, and these interest rates started to go through the roof, and suddenly you had a bunch of people who couldn't afford their mortgage, as well as lots of other people who'd bitten off more than they could chew(usually because they didn't know better). So, then all these people start to default on their mortgages, and their homes get repossessed, and with all these people no longer paying back the banks, what happens? Shortage of money! All of sudden, all these large financial institutions find themselves in a heap of financial trouble- they are going bust, and they have no money to loan out. And our economy depends on funding from these banks- you cannot create new businesses and businesses cannot grow without financing (aka money). So our economy is in big trouble- this is, in essence, part of what they believe caused the great depression: the economy came to a standstill because there wasn't enough money to go around. The original concept behind the bailout is to keep the cash from drying up- provide money to financial institutions to maintain the flow of capital. Why they are loaning money out to other tpes of businesses is a bit harder to justify. I guess the rationalization is that you prop up the economy by having fewer people lose their jobs, but at some point you have to ask- why this business, or this industry and not another? You can't save everyone, and then you wonder, should our government really be in the business of choosing who survives and who perishes? That's my take on it.  |
Date: 2/8/2009 9:00:00 PM
From Authorid: 14909
The money is still there it's just not in the hands of the banks anymore. It not like it disappeared. If it's not in the banks hands companies can't get loan to do business. Companies borrow money everyday to do business and it the banks don't have money to loan companies they can't do business and there for you have lay-offs and unemployment. It's brutal for sure. I wold like to know who is hording all that money, it has to be somewhere. Hummmmm.  |
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Date: 2/8/2009 9:29:00 PM
From Authorid: 47218
I'd guess it's probably mostly sitting in the bank accounts of a bunch of really, really rich people who profitted off of the boom. In the meantime, because of the speculation, we built way more stuff than we need- particularly houses- so we have to sit and wait for the demand to catch up to the supply before people start buying things again and our economy once again grows. |
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Date: 2/9/2009 6:14:00 AM
From Authorid: 2030
The whole thing in my opinion is a rip off of the taxpayer, a reward for mismanagement and a huge power grab by our politicians that is going to affect you, me and everyone for years to come. The additional bailouts pretty much did just that, helped balance the books for many financial institutions teetering on insolvency. The money went to cover interest and payments to creditors. They aren't hoarding any of it, they are making payments to American and international institutions they owed money to. The bailout wasn't to make consumer loans, it was to save the banks so that perhaps they could make individual and business loans again. So far they have but only to cutomers with high credit ratings. Which they should have been doing in the first place or they wouldn't be in trouble now. This next boondoggle, the stimulus is the real hign end theft and we are the victims. The supposed plan is for the government to hand out money and create programs to create jobs and kickstart consumer spending. The amount changes daily but at last count the ambitious plan to create 3 million jobs would cost in the neigborhood of $300,000 per job. Typical government ineptitude, but it also give the government huge power and craetes thousands of pork barrel projects that allow politicians to pay back and buy more votes. But guess what? There is no free money, every dime the government spends comes out of Americans pockets. And they will never ever recoup $300,000 from each of those people who may or may not get jobs. It's welfare, it's theivery, it's vote buying, it's more power being taken away from the private sector and given to the government.  |
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Date: 2/9/2009 6:23:00 AM
From Authorid: 2030
Want a real stimulous? Create a program in two parts: #1. Anyone who buys a home in the next 24 months and stays in it at least 5 years gets a $20,000 tax credit. Not a return but a credit that can be taken off their tax bill until the 20K is used up. #2. Any employer that creates a job with health benifits, fills the position with someone currently unemployed. Then keeps that position for at least 2 years gets a $20,000 business tax credit. At the point 3 Million jobs are created the program phases out. Upside. The home buying and building business gets an imediate shot in the arm. 3,000,000 jobs are created, 3,000,000 people get health care. No tax dollars get spent doing this, the decrease in revenue is offset by the overall boost to the economy. Downside, The politicians don't get to control the money, they don't get to steal any of it, and they don't get to decide who gets it. |
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Date: 2/9/2009 6:24:00 AM
From Authorid: 2030
^^^The above idea actually came from a man named Dave Ramsey, Check him out at Dave Ramsey.com. He's a financial consultant and radio host. |
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Date: 2/9/2009 6:36:00 AM
From Authorid: 51876
Everybodies Right and Everybodies wrong.I'm just flipping a coin with two heads. That seems the way politics goes most of the time anyway. just kidding. Bailout=Banks and Automakers Stimulus= create jobs in energy, fund state public works and fund government assistance for the unemployed. That's as basic as it gets.Hope it helps.  |
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Date: 2/9/2009 6:38:00 AM
From Authorid: 51876
Recovery=bailout and stimulus. |
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Date: 2/10/2009 6:55:00 AM
From Authorid: 11240
President Obama believes that the only way for the economy to recover is for the government to create jobs. His first news conference last night clearly indicated that stimulating an aura of reliance and dependence on the government is his charge in presiding over the country. The bailout is directed at the upper echelon of the economic spectrum in order that those in that stratosphere can be spared the drudgery of government reliance when the time comes in which the rest of us are forced to become government dependents. JMHO God Bless.  |
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Date: 2/10/2009 11:32:00 AM
From Authorid: 47218
The way I look at it is we- the taxpayers- are making an investment in our economy, which will presumably pay off at some point when the economy starts to grow. The key here, put simply, is to put the money where it will stimulate the most growth and revenue over the long term. Is that what we are currently doing? Or are we just handing money to whoever has the most pull with the people currently in power? I am very, very dubious. It seems to me that we should be foremost looking for industries where there is major growth opportunity and then encouraging them to grow. If people lose jobs with automakers, they will find new jobs in these types of places. |
Date: 2/10/2009 12:32:00 PM
From Authorid: 64498
We are heading toward socialism and its gonna be bad  |
Date: 2/10/2009 6:31:00 PM
From Authorid: 23101
I think it's very important that even though many people have given you a lot of information about the bailout, the state of our economy, etc. that you should still continue to watch the news (but watch out for bias), read the newspaper, etc. so you can fully understand what's going on & can form opinions and views for yourself on what's going on  |
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Date: 2/10/2009 8:56:00 PM
From Authorid: 47218
What I hope you're getting from this, Jess, is that there is some controversy surrounding these measures, as well there should be, because there is an UNFATHOMABLE amount of money being doled out here by our government. We're talking trillions of dollars. You ought to be concerned that it's going to good use. |
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25481 Category:(Discussion) Created:(2/8/2009 7:36:00 PM)