US Financial Bailout Plan

[drunkpirate66]

I don't pretend to know anything about the economy. I don't think anyone here really knows anything either other then a bunch of theories which may or may not be true. The economy is far to big and complex for anyone without direct knowledge of the inner workings to truly understand: unlike politics where everyone is an expert. If there is one person I trust when it comes to economics it is Warren Buffett: and that has nothing to do with is last name. He claims that what is best for everyone is a "bailout" plan. I believe him. Don't like it. Tax payers are going to pay. No matter what.

[thebeachbumm33]

Here's my advice to help raise 42 billion extra yearly to assist with the bailout...

"Why $42 billion? Because that's what our current marijuana laws cost American taxpayers each year, according to a new study by researcher Jon Gettman, Ph.D. -- $10.7 billion in direct law enforcement costs, and $31.1 billion in lost tax revenues. And that may be an underestimate, at least on the law enforcement side, since Gettman made his calculations before the FBI released its latest arrest statistics in late September. The new FBI stats show an all-time record 829,627 marijuana arrests in 2006, 43,000 more than in 2005."

http://cannazine.co.uk/cannabis-news/un ... oggle.html

[ScarletB]

I don't pretend to know anything about the economy. I don't think anyone here really knows anything either other then a bunch of theories which may or may not be true. The economy is far to big and complex for anyone without direct knowledge of the inner workings to truly understand: unlike politics where everyone is an expert. If there is one person I trust when it comes to economics it is Warren Buffett: and that has nothing to do with is last name. He claims that what is best for everyone is a "bailout" plan. I believe him. Don't like it. Tax payers are going to pay. No matter what.

I don't know that anyone doesn't think something is necessary, surely it is. But I think the fact that there were/are few, if any safeguards in this bill against this happening again in some other form and that it was going to pretty much be left in the hands of Paulson to write the checks is what killed it for Joe Main St. That and the fact that the ones who perpetrated the mess were going to get away with it. Most of the letters that Bernie read out loud acknowledged the fact that we had to do something, it was the way it was going to be done that people objected to. I think our folks in DC were quite frankly surprised that we didn't all succumb to fear and just roll over and do what they wanted, that in itself is sort of cool. People actually spoke up and ONLY because it's an election year they felt forced to listen or pay at the voting booth. I don't kid myself that ANY of them (even the ones I've voted for) took our opinions to heart and felt they needed take our concerns into account.

[drunkpirate66]

Again, don't know anything about it. I know I own two houses and they aren't going anywhere . . . I know that I will never play the stock market beyond my Roth IRA and Traditional IRA. I know that rental property is the way to go as far as long term financial planning (you can't lose! equity is the key). I know that we have to strenghten the dollar in the national market for a variety of reasons. I know that people need to stop using their credit cards for beer on a friday night which is just retarded. I know that people should stop taking out loans they can't pay back (not talking about people who have had bad luck and lost jobs . . . talking about people who make 50,000$ and take out a 400,000$ loan with no down payment). I know that I hate seeing rich people get a free ride with this "bailout" but I know nothing of the details behind it or the long term effects so I will just go with Warren Buffett's advice.

[ScarletB]

Again, don't know anything about it. I know I own two houses and they aren't going anywhere . . . I know that I will never play the stock market beyond my Roth IRA and Traditional IRA. I know that rental property is the way to go as far as long term financial planning (you can't lose! equity is the key). I know that we have to strenghten the dollar in the national market for a variety of reasons. I know that people need to stop using their credit cards for beer on a friday night which is just retarded. I know that people should stop taking out loans they can't pay back (not talking about people who have had bad luck and lost jobs . . . talking about people who make 50,000$ and take out a 400,000$ loan with no down payment). I know that I hate seeing rich people get a free ride with this "bailout" but I know nothing of the details behind it or the long term effects so I will just go with Warren Buffett's advice.

I'd say his advice is worth taking :d
I guess my point is that it's not that people don't' agree that action is needed it's just what KIND of action we're talking about.
Could not agree more on the debt thing.

[Skibo]

No matter what is done, unless our trade deficit is reduced, we will not get out of this mess. As a country we do not have the means to repay our debts. Our wealth leaves our country every day through the purchase of imports - both fuel and durable goods. This problem is bigger than banks making bad loans. The root problem is our economy is now a service economy which consumes wealth and does not generate it. Congress will eventually pass something and everyone will feel better for a couple of years but unless there is a lot more pain to come.

[parrothead216]

Again, don't know anything about it. I know I own two houses and they aren't going anywhere . . . I know that I will never play the stock market beyond my Roth IRA and Traditional IRA. I know that rental property is the way to go as far as long term financial planning (you can't lose! equity is the key). I know that we have to strenghten the dollar in the national market for a variety of reasons. I know that people need to stop using their credit cards for beer on a friday night which is just retarded. I know that people should stop taking out loans they can't pay back (not talking about people who have had bad luck and lost jobs . . . talking about people who make 50,000$ and take out a 400,000$ loan with no down payment). I know that I hate seeing rich people get a free ride with this "bailout" but I know nothing of the details behind it or the long term effects so I will just go with Warren Buffett's advice.

Jon, I don't know just how much I would trust Warren's advice. Do you know how much HE has to lose, if this whole thing goes down.

Also, he just infused 5 Billion into Goldman-Sachs, but he didn't get the deal the bail-out will give US. He cherry picked the most valuable assets and left the garbage for us to buy. He was given prefered stock instead of common. BTW, Warren made a 10% profit the very next day, off this investment.

Also, just who did Paulson work for before being named the Secretary of the Treasury? Goldman Sachs!

It is interesting that Lehman Brothers was allowed to go under, but Goldman got rescued. Coincedence? I think not! Who better to make the "grandstand play" but Warren, it would instill confidence into a very unstable situation. It would NOT surprise me if Warren was asked to do this, to help stabilize the situation!! WE don't even know if it was his own money!

All I know is that the little we have in the market, is getting smaller by the minute! Oh well, who wanted to eat or have heat, when we get old!

The sad thing is that if the economy goes down, I don't care how much you have,if it isn't at least 10 million, everyone will be broke anyway!

[drunkpirate66]

Again, don't know anything about it. I know I own two houses and they aren't going anywhere . . . I know that I will never play the stock market beyond my Roth IRA and Traditional IRA. I know that rental property is the way to go as far as long term financial planning (you can't lose! equity is the key). I know that we have to strenghten the dollar in the national market for a variety of reasons. I know that people need to stop using their credit cards for beer on a friday night which is just retarded. I know that people should stop taking out loans they can't pay back (not talking about people who have had bad luck and lost jobs . . . talking about people who make 50,000$ and take out a 400,000$ loan with no down payment). I know that I hate seeing rich people get a free ride with this "bailout" but I know nothing of the details behind it or the long term effects so I will just go with Warren Buffett's advice.

Jon, I don't know just how much I would trust Warren's advice. Do you know how much HE has to lose, if this whole thing goes down.

Also, he just infused 5 Billion into Goldman-Sachs, but he didn't get the deal the bail-out will give US. He cherry picked the most valuable assets and left the garbage for us to buy. He was given prefered stock instead of common. BTW, Warren made a 10% profit the very next day, off this investment.

Also, just who did Paulson work for before being named the Secretary of the Treasury? Goldman Sachs!

It is interesting that Lehman Brothers was allowed to go under, but Goldman got rescued. Coincedence? I think not! Who better to make the "grandstand play" but Warren, it would instill confidence into a very unstable situation. It would NOT surprise me if Warren was asked to do this, to help stabilize the situation!! WE don't even know if it was his own money!

All I know is that the little we have in the market, is getting smaller by the minute! Oh well, who wanted to eat or have heat, when we get old!

The sad thing is that if the economy goes down, I don't care how much you have,if it isn't at least 10 million, everyone will be broke anyway!

I just don't know. I am sure everything you said is accurate. As far as what is best for everyone: I don't know. If a few people "win" out or "get away with something" who shouldn't while the 99.9999999 percent of the normal people "win" in the long term then so be it. I don't like it. I have no idea how the inner workings of the economy play out. I don't know Warren Buffett personally but he seems to know what is best for the United States economy as a whole in relation to the world wide market. I don't. Does he have something gain . . . . probably . . . is it still the best way to go . . . don't know; but he seems to be as good a person to listen to as anyone regarding money.

[LIPH]

So far it looks like yesterday wasn't the beginning of a financial meltdown like some people thought it would be. The market's up about 250 points this morning.

[chippewa]

Overseas markets look to be down quite a bit today.

Funny how last week this bailout (excuse me, "rescue") needed to be done yesterday, but now they'll get back to the issue on Thursday. I know there's a religious holiday in the middle of the week, don't cry wolf and not spend every waking hour in your office.

BTW, some guy in San Diego already has WarrenBuffettNews.com. Thought we might have the first spinoff from BN.

[Skibo]

So far it looks like yesterday wasn't the beginning of a financial meltdown like some people thought it would be. The market's up about 250 points this morning.

Booooo. I was hoping for another slip so I could pick up a couple of bargains.

[Skibo]

Capitalism Fails

Funny the spin on the AM shows was with this Failure of the US Banks the price of oil could fall to $20 per barrel.

[12vmanRick]

I agree with Flyboy. Rick, if it was your goal to illustrate for the rest of us you and Coulter share similar thoughts then you've proven the point. But in fairness she wrote the article and deserves credit.

the cut and paste was to show a different view, not that I don't agree with it and have read it in MANY other places. I should have posted the link, my oversight.

Anyone saying the statement above is racially motivated is just plain ignorant.

[parrothead216]

Overseas markets look to be down quite a bit today.

Funny how last week this bailout (excuse me, "rescue") needed to be done yesterday, but now they'll get back to the issue on Thursday. I know there's a religious holiday in the middle of the week, don't cry wolf and not spend every waking hour in your office.

BTW, some guy in San Diego already has WarrenBuffettNews.com. Thought we might have the first spinoff from BN.

I heard one of the commentators question this very thing.

What we might be seeing is the market shaking out some of the volatility. The longer this situation goes without a major meltdown, the more people stop running scared!

What we saw yesterday after the "PLAN" didn't pass, was people thinking the sky was falling and they were going to save what little they had left. It actually may be fortuitous that there is a Religious Holiday today. It sends the message to people that this thing isn't in danger of immediate collapse or they would have stayed to work on this issue.

Today, people are looking for bargains. But it can't be for the faint of heart or the people who need this money to secure there near future.

Fortunately or unfortunately, with the world economies so interelated, if we go down, it is real problems for everyone.

Just remember, DON'T PANIC. That will for sure make things worse.

[parrothead216]

Again, don't know anything about it. I know I own two houses and they aren't going anywhere . . . I know that I will never play the stock market beyond my Roth IRA and Traditional IRA. I know that rental property is the way to go as far as long term financial planning (you can't lose! equity is the key). I know that we have to strenghten the dollar in the national market for a variety of reasons. I know that people need to stop using their credit cards for beer on a friday night which is just retarded. I know that people should stop taking out loans they can't pay back (not talking about people who have had bad luck and lost jobs . . . talking about people who make 50,000$ and take out a 400,000$ loan with no down payment). I know that I hate seeing rich people get a free ride with this "bailout" but I know nothing of the details behind it or the long term effects so I will just go with Warren Buffett's advice.

Jon, I don't know just how much I would trust Warren's advice. Do you know how much HE has to lose, if this whole thing goes down.

Also, he just infused 5 Billion into Goldman-Sachs, but he didn't get the deal the bail-out will give US. He cherry picked the most valuable assets and left the garbage for us to buy. He was given prefered stock instead of common. BTW, Warren made a 10% profit the very next day, off this investment.

Also, just who did Paulson work for before being named the Secretary of the Treasury? Goldman Sachs!

It is interesting that Lehman Brothers was allowed to go under, but Goldman got rescued. Coincedence? I think not! Who better to make the "grandstand play" but Warren, it would instill confidence into a very unstable situation. It would NOT surprise me if Warren was asked to do this, to help stabilize the situation!! WE don't even know if it was his own money!

All I know is that the little we have in the market, is getting smaller by the minute! Oh well, who wanted to eat or have heat, when we get old!

The sad thing is that if the economy goes down, I don't care how much you have,if it isn't at least 10 million, everyone will be broke anyway!

I just don't know. I am sure everything you said is accurate. As far as what is best for everyone: I don't know. If a few people "win" out or "get away with something" who shouldn't while the 99.9999999 percent of the normal people "win" in the long term then so be it. I don't like it. I have no idea how the inner workings of the economy play out. I don't know Warren Buffett personally but he seems to know what is best for the United States economy as a whole in relation to the world wide market. I don't. Does he have something gain . . . . probably . . . is it still the best way to go . . . don't know; but he seems to be as good a person to listen to as anyone regarding money.

Jon and I don't claim to know the inner workings of what is going on , either. But, I do know that people are trying to communicate that this is a SERIOUS situation, without instilling panic. Panic would cause a run on the banks and people pulling all there money out of the market. Not good for anyone.

As for the big shots winning and the excutives leaving with a bundle, that has already happened. It is always the worker or the little guy who takes it on the chin.

The people on the street and in the mortage industry have been getting rich on this whole fiasco for years. My sister has a friend from when she worked in banking, who made 250K last year as a mortage broker and that is in Ohio, one of the most economically challeged states around. Imagine what these people were taking home in the areas of the country that were booming.

I take NO credit for this idea. I heard it today on "The View".

If people can't make their house payments today because the rate adjusted up on the ARM or because of a rise in interest rates, why don't the Banks just reduce the interest rates back to what they were paying before? That way, they don't forclose on another home the Bank doesn't need, they get to stay in the house and continue to make payments, they Bank get a better cash flow and maybe this mess would start to turn around. It is an interesting question. Better some money then no money.

It may not be the whole solution, but maybe a piece of the puzzle. Here might be another piece.

I also like the idea that Obama/ Mc Cain and others have had about increasing the coverage of the FDIC to $250,000.00. That would make people with a fair amount of money in Banks , much less nervous about Bank failures.

All in all, we haven't gone over the cliff, yet! Maybe with some sanity and time, we won't!

Goodluck to all and just "Breathe IN , Breathe OUT, and Relax a bit.

[LIPH]

I also like the idea that Obama/ Mc Cain and others have had about increasing the coverage of the FDIC to $250,000.00. That would make people with a fair amount of money in Banks , much less nervous about Bank failures.

Anybody who has $250,000 in free cash isn't going to put it in a bank for 2% interest. Raising the FDIC insurance limit is a cosmetic move, at best.

[parrothead216]

I also like the idea that Obama/ Mc Cain and others have had about increasing the coverage of the FDIC to $250,000.00. That would make people with a fair amount of money in Banks , much less nervous about Bank failures.

Anybody who has $250,000 in free cash isn't going to put it in a bank for 2% interest. Raising the FDIC insurance limit is a cosmetic move, at best.

Larry you may be right, but at this time we need people to calm down, If telling that their money in the Banks will be safe, is a means to that end.

Give me cosmetic!

I don't know what Banks in NYC are paying on 250K, but here in Ohio, you can get at least a 5% return. Maybe more! Heck I can put 50K in and get 5%!

If you are nearing retirement, say within the next 10 years, your money should never be anywhere that your principle is at risk and higher FDIC insurance will, make it even more attractive.

We hope your day is going well.

[Skibo]

I also like the idea that Obama/ Mc Cain and others have had about increasing the coverage of the FDIC to $250,000.00. That would make people with a fair amount of money in Banks , much less nervous about Bank failures.

Anybody who has $250,000 in free cash isn't going to put it in a bank for 2% interest. Raising the FDIC insurance limit is a cosmetic move, at best.

Anyone that has more than $100K in a single bank in a single account has more money than brains. I know the FDIC limit is $100k and would never put myself at risk by having a deposit in a bank that isn't covered. There isn't a law that states your money needs to be in one bank.

That said there are businesses that would exceed that limit. Raising the limit would help them but do little for Mr. and Mrs. Mainstreet. Since the $100k limit has been in place for decades, it probably should be increased to account for inflation.

[TropicalTroubador]

All I know is that my 401K looks more like a $2.95-K...

[bumper]

So far it looks like yesterday wasn't the beginning of a financial meltdown like some people thought it would be. The market's up about 250 points this morning.

Booooo. I was hoping for another slip so I could pick up a couple of bargains.

Today was short covering, wee bit of a short squeeze...so bold were the shorts yesterday they felt no need to cover.......take that as a shot across the bow as we move toward Thursday. Don't be surprised if the rescue plan fails to garner enough votes. Folks are ticked off and tired of bailing out the haves....and most representatives do not want this lead balloon tied to their legacy.