I am sure that everyone has heard about the $700 Billion bailout plan for institutions that are suffering due to the bad mortgages. From what I have read, I gather that our government is going to purchase the bad debt at a reduced price and then sell the debt off to the highest bidder to recoup some of the taxpayer money that they are injecting into the system. Now, I am not an economics guru, but it sounds to me like the government is going to turn all of the people that have defaulted on loans over to collection agencies.
If they don't do this, the general feeling is that the credit market will tighten further and companies and businesses depending on credit will go out of business making the problem much worse than it already is.
I am absolutely furious about this. We may be at a point where there is no other choice, but this still makes me pretty angry. What bothers me most about this plan is:
1) Taxpayers are cleaning up the mess created by people overextending their credit.
2) The people running a lot of these large companies are probably personally wealthy and will still be wealthy while the average Joe is footing the bill.
3) Without a major change in leadership at these companies, which is apparently not going to be attached to this spending bill, we are giving the same boneheads that put us in this mess in the first place a chance to put us into another mess later.
Here is an AP story about the bailout plan.
What does everyone else think about this? Please feel free to comment and correct me if you think I am wrong to feel the way I do, particularly if you have more economic experience than I do.
If they don't do this, the general feeling is that the credit market will tighten further and companies and businesses depending on credit will go out of business making the problem much worse than it already is.
I am absolutely furious about this. We may be at a point where there is no other choice, but this still makes me pretty angry. What bothers me most about this plan is:
1) Taxpayers are cleaning up the mess created by people overextending their credit.
2) The people running a lot of these large companies are probably personally wealthy and will still be wealthy while the average Joe is footing the bill.
3) Without a major change in leadership at these companies, which is apparently not going to be attached to this spending bill, we are giving the same boneheads that put us in this mess in the first place a chance to put us into another mess later.
Here is an AP story about the bailout plan.
What does everyone else think about this? Please feel free to comment and correct me if you think I am wrong to feel the way I do, particularly if you have more economic experience than I do.
2 comments:
The difference is, a credit agency takes over the delinquent account and guarantees the debt holder a percentage of what is recovered. In the case of the proposed bailout, the government will reimburse the debt holder first, then attempt to get somebody else, to buy the debt, at a greatly reduced price.
This is a big money loser and the end result is that the loss is shifted from large investment banks, to you.
This does not sound like anything I want to be involved in.
Here is the show stopper for me, and thank glub the House voted it down.
Last year I had $22K in capital losses. I could only deduct $3K of them then, and I get to carry forward these losses for the future.
Congress has the gall to steal $700 billion from taxpayers like me who NEVER get a bailout.
Liquidate the debts. Let stronger banks survive. There will be losers and winners. It's part of capitalism. What congress proposed was fascism.
beebs
Still dink on Command at Sea quals
Post a Comment