Bailout Fails -- Dow Plunges

[Raspyrock]

http://www.washingtonpost.com/wp-dyn/content/article/2008/09/29/AR2008092900623.html?hpid=topnews

http://bigcharts.marketwatch.com/

We'll all be planting gardens next year.

[Tony Cartmill]

Boy, Right-wing radio Rush, Glenn Beck and others were pushing this morning to call your rep and reject this thing...Then Pelosi pulls her perfect-timing smackdown on the GOP, BEFORE THE VOTE, like the Dems had nothing to do with the current crisis...

And our IRA accounts drop 10% in a couple of days...

[BEATNUT]

As someone in the Finance world i'm glad the Bailout failed in the legislation.

Does anyone realize what that does to us, the Taxpayers? Let the greedy CEOs of these giant companies fall on their fat asses.

At least now we will have a better understanding of what the market is really doing instead of everyone fudging the numbers and getting fat off the people. This a now a 'true barometer' of where we stand fiscally. A bailout will be run by the Government until that time when these companies can buy the Government out. So we will save some money with the bailout but the money will be a wash once we pay for their errors.

No one paid attention to IndyMac which pretty much started all this. Basically all these mortgage companies were guilty of underwriting Bad Loans to people who would get hundreds of thousands of dollars from their equity, but had no means of paying it back.

All this money injected into the economy made it soar and things were good. But whatever goes up must come down, and that's what happened.

Once it came time to pay the piper the people who took out these loans couldn't afford them once their money was gone.

So now thousands upon thousands of these people are in foreclosure. Third party lenders no longer want to give us money. So inflation happens because no one is pumping money into the economy, no one can afford their mortgage payments, credit cards have high interest rates of up to 27%- 30% and people can't even make their minimum payments.

The price of gas is up so high people aren't going on vacations and pumping money into tourism, which accounts for millions of dollars of the economy.

It's a mess. Just thought you might like to know i'm not all just good looks!

[Bessieboo]

Here is a link to see how the votes were cast.

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

[angelina]

and here's a link for what should be Franklin Raines' new home

http://www.federalprison.com/federalprison/html/A%20Fed%20Prison%20Facility%20Info.html

John

[Muzza]

So far 1/2 million dollars has been wiped off the New Zealand Govt pension fund for us because so much was invested in USA companies. Now I can't afford to get old and retire!!!

The world outside of the States was really hoping this legislation went through as its crippling us!!!

Muzza

[darlene]

I have no doubt that some kind of legislation *will* go through, when it's a decent bill that incorporates oversight and some kind of common sense.

The Democrats have been absolutely disgusting in their efforts to try and demonize McCain and Bush, even Sarah Palin. They would be thrilled for McCain to be somehow incapacitated and are literally trying to get Sarah Palin to drop out.

This goes so far beyond mean-spiritedness, I've totally lost respect for all of them. If someone sneezes and it sounds like even a legitimate, factual statement about Obama or Biden, they SCREAM! But they think it's fine to declare open season on McCain and the Republicans. What creeps.

Nancy Pelosi is a vacant idiot. She thinks she's God and can do anything she wants without penalty. How dare she lecture the Republicans?

How dare the Dems think that Republicans would accept a $700 billion dollar package with a scandalous provision for ACORN to get 10% of the package with no accountability whatsoever?! They're truly nuts!

What I would like to know is WHO put ACORN in there to begin with? It's nothing more than a radical group from the 60s. I would bet Mr. Obama had EVERYTHING to do with putting it in there. Another giveaway built on the backs of the

American taxpayers.

The Democrats want to go in there and pass some socialist project that only THEY can administer.

No thank you. I say I'm glad it failed.

And Harry Reid, Pelosi and Obama et al can't have it both ways. McCain went to try to work on the thing to put it in some decent form and pass it with the Republicans and they told him to GET OUT OF TOWN and LEAVE! Then they said he did nothing to help with the legislation! What liars!

I think the Democrats are running so scared that they aren't thinking logically. Why scared? Because their little schemes and financial scandals are being exposed one by one.

Hmmm, what's gonna happen next?

--D

[James]

There's a reason I've submitted to the teachings of THE DARLENE-LAMA..

[darlene]

Ah, James, you're so cute!

--D

[BEATNUT]

There will be a bailout plan and it will be passed, as long as the taxpayers (you and me) don't have to foot the bill for the assholes on Wall St.

Have you see their retirement packages? It's 20, 30, 40 million. Do you really think they give a crap if you have a retirement? Try taking it away from them and put them on a level playing field. They sure as hell don't want to pay for the bailout either.

[Paulie Mississippi]

If they cared about your retirement, they'd have cared about your PRE-retirement and not have stood idly by... or been a party to... shipping hundreds of thousands... millions... of American jobs overseas to be performed by children and those so poor that the few cents an hour wage is a step up for them...

The bailout plan, whatever one they come up with, will in the long run end up costing the Taxpayer the total dollar value plus... I guarantee it... these sleazy bastages that have robbed us and their own companies of untold billions of dollars will find a way... a loophole... or just cut themselves another fat check and run...

The best plan I've heard is still the "take the bailout money and divide it among the American people" plan... I guarantee you that if we all got an extra quarter million dollars to play with, we'd stimulate the economy... we'd pay our mortgages... we'd buy new cars and build houses to create jobs... we'd send our kids to college or pay off our credit cards and taxes... we'd be more than willing... BAIL OUT THE PEOPLE, not Wall Street!!!

[Billy]

Hey, I like that bail out the people plan. At a quarter of a millon I would pay off my mortgage and would still have a bunch left over!!!

[AnneG]

I'd check the math on that bailout plan.

[BEATNUT]

Hey Paulie, did you get this email to?

I'm against the $85,000,000,000.00 bailout of AIG. Instead, I'm in favor of giving $85,000,000,000 to America in a 'We Deserve It Dividend.'

To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+. Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up..

So divide 200 million adults 18+ into $85 billon that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend.

Of course, it would NOT be tax free.

So let's assume a tax rate of 30%. Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam. But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has $595,000.00.

What would you do with $ 297,500.00 to $595,000.00 in your family?

Pay off your mortgage - housing crisis solved.

Repay college loans - what a great boost to new grads

Put away money for college - it'll be there

Save in a bank - create money to loan to entrepreneurs.

Buy a new car - create jobs

Invest in the market - capital drives growth

Pay for your parent's medical insurance - health care improves

Enable Deadbeat Dads to come clean - or else

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.

If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ( 'vote buy' ) economic incentive that is being proposed by one of our candidates for President. If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!

As for AIG - liquidate it.

Sell off its parts.

Let American General go back to being American General.

Sell off the real estate.

Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't.

Sure it's a crazy idea that can 'never work.'

But can you imagine the Coast-To-Coast Block Party!

How do you spell 'Economic Boom?'

I trust my fellow adult Americans to know how to use the $85 Billion

We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC .

And remember, The Birk plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.

[Leff'tHome]

Um... I'm no economic genius but the unfortunate fallacy in your equation is not factoring inflation into the above scenario. Damn. I wish it WOULD work.

[Tony Cartmill]

And the "Hey let's see if we can double this Gub-ment gift at the local casino!" factor would come into play...

Alot of Americans are stupid with money, just like Congress and Bush.

[Leff'tHome]

[Raspyrock]

Even if no bailout/rescue package passes, then the FED will keep providing lines of credit (liquidity) to the major banks -- likely w/ no basis or backing, thereby (printing money) causing inflation.

One sort of medicine or the other.

[Paulie Mississippi]

Yep, that's the email... and a hell of a plan... as long as the government is just gonna print more money, which is basically what they'll do with the bailout... I trust me and you to drive the economy in ways that will benefit the American people more than I do the fat-cats on Wall Street who have already proven they can't be trusted with money...

[Doug]

:rolleyes:

Wow, I just LOVE these "common wisdom via email" things. One thing you can always count on? They're WRONG.

Okay, gang - time to get your calculators out.

$85,000,000,000.00.....

divided by 200,000,000 people....

Equals $425.00, not $425,000.00

Also, the figure for the bailout is $850 Billion, not $85 Billion. But it doesn't matter - that's still only $4,250.00 per adult citizen. A nice bit of pocket change, but hardly enough to solve all our financial problems. Won't even START to pay off my mortgage.

We're all getting screwed, but "every man for himself" is no way out.

[Tony Cartmill]

That's it! I'm teaching my 2 year old how to shoot the family AK47!

[mellie]

This is an interesting editorial . Are we ready for a new monetary system?