Government Bail Out / Economy

From the Community…

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  Posted by Yogurt Lover Mon Nov 17, 2008 2:39pm PST

  Please stop by my blog!

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  Posted by WilliamM Wed Nov 19, 2008 12:09am PST

  And don't forget governments. They, too, have their hands out. The mayors of Atlanta, Philadelphia and Phoenix are lobby for $200 billion to go to cities around the country. Some state governors want their cuts, too.

  Who was it who said that democracies do not survive the moment when the people realize they can vote themselves handouts from the public coffers?

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  Posted by Bailing Out America! Mon Dec 29, 2008 12:48am PST

  Bailing Out America! America is in trouble and many are saying that the economy is in it’s worst financial shape since the 1929 depression. Companies are folding; jobs are being lost; the stock market is crashing; the price for food, gas, utilities are rising at unbelievable rates; incomes don’t match expenses and people are losing their homes everywhere. Need I say more?

  Guess what? The government issues Bailouts to Wallstreet. They are helping banks and major companies where the CEO’s are grossing million and millions of dollars. So far this year, 2008, the government has issued bailouts to:

  30 Billion - Bear Stearns

  200 Billion - Fannie Mae/Freddie Mac

  85 Billion - American International Group - A.I.G.

  25 Billion - Auto Industry

  $700 Billion - Troubled Asset Relief Program / Wall Street Bailout

  Unbelievable, it’s hard to listen to the news reports. Why isn’t the government Bailing Out America and the American people?

  It doesn’t seem that the government is not going to be Bailing Out America, therefore we, the people of America will have to bail ourselves out. Read the rest by clicking on Bailing Out America and send me a comment to find out how we're working on Bailing Out America.

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  Posted by muthu r Wed Feb 4, 2009 10:20pm PST

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• 
  Posted by Thu Feb 5, 2009 9:38am PST

  “Common Sense”

  The Real Government Bail-Out Plan

  by

  Chad M. Lynn

  Take a flower for instance. Water the petals and leaves, and there will be stimulated growth in the immediate area, but the flower will not maintain the nourishment it needs to survive. If you water the flower from the base and root, that nourishment will flow up and produce a healthy flower. This is my idea, as well as the idea of most of the American public, to revive the economy.

  Actual Yr. 06-07 Estimate Yr.08

  Yearly Government Revenue $2,500,000,000,000.00 $2,500,000,000,000.00

  Individual Tax Returns Filed 2006 $130,728,360.00 $140,000,000.00

  Amount to each tax filer from 2007 $25,000.00 $25,000.00

  ($100,000 for joint filers)

  Total cost of a real bail out. $3,268,209,000,000.00 $3,500,000,000,000.00

  Give this money to the American Tax Payers and let it "Trickle Up" through the system. Imagine what you would do if you had an extra $25,000 - $50,000. Maybe pay off credit cards & autos, invest, make a large down payment on a home, & put the remainder in the bank, go out to eat and do some shopping. The small businesses, large businesses, towns, cities, states and the Federal Government would benefit very quickly. The American taxpayers and businesses would get a fresh start. Tons of money would flow into the cities and states immediately eliminating the need to cut budgetary spending on things like employment and education. The Federal Government would receive 30% or more back in the first year alone. I can’t, in my wildest dreams, comprehend how giving 85 billion to AIG helps me and all the other taxpayers out there.

  Starting the stimulus at the taxpayer level is the only way to make the current economic situation better. If the government gives money to big business and still leaves the taxpayer with mounds of debt and no liquidity the people are still not going to spend money because they don’t have any to spend. The so called bail out would only be a short lived plateau until the bottom falls out again because the citizens continue to live at or below their break even point.

  Credit has a stranglehold on the nation. Freeing up credit does nothing to help the citizens who are in debt. Credit and the lack of liquidity, within the American public and its businesses, is the driving force behind our current economic situation. Credit runs ramped through the streets and as a result we have inflated home prices, gas prices, & consumer good prices.

  It’s most likely true that inflation could be substantial if everyone had that kind of money and were spending it. However, if we were really worried about it we could put a ceiling on inflation rates for a 2-3 year period. This would allow money to flow through the country's circular system.

  To be more specific; Placing a ceiling on the yearly percent of inflation for specific industries and items. Take the inflation rate from the year 1985 through the year 1995. Goods and services would not be allowed inflate more than the average percent of yearly inflation at that time. As a result, this would strengthen everyone from the ground up, without worrying about companies taken advantage of the situation.

  The "Free Market Economy" would stay the same and everyone would have learned a valuable lesson.

  Freeing up credit gives the American Public the opportunity to borrow more and become deeper in debt. We can’t afford to do that. The result of more credit is more of the same, less liquidity and more debt.

  I have an accounting degree and although I don’t see myself as an economist or a financial wizard, I feel I feel that the solution resides in some basic common sense.

  I want to test my theory with your opinions. Do you think this would or would not work, and if so why?

  I also have a small rant, enjoy…

  We were conned into this debt by big business eager to make a quick buck. It’s hard to believe that with all the Ivy League Scholars and Economists out there running the show that they did not have a clue that by continuing to price gouge Middle America that there would be no consequences. Home Prices were skyrocketing so they offer ARM’s to help cover the increase in Mortgage expense. Mortgage ARM’s mature and go up a couple points resulting in a few hundred bucks a month extra. Gas goes up to almost 5$ per gallon increasing monthly expenses a few hundred more. Groceries stay the same but you get less for your buck, so they cost a bit more. While amazingly enough salaries don’t even come close to rising symmetrical to the inflation.

  I’ve spoken to many people who have never taken a single economics class, or seen the inside of a college classroom for that matter, and they saw this coming from a mile away. So either their miraculously far more intelligent than CEO’s CFO’s and top economists, or these Executives are only interested in themselves and their immediate financial gain without regard for the future or what it holds for anyone else who didn’t make their fortune in the last 10 yrs. What is also in-comprehendible is that these are the people who are receiving billions.

  If we were to take an actual democratic vote from the people on how to do this bail out, the result would be an overwhelming majority voting to start the stimulus on a tax payer level and let the money work its way back up. The problem is that 99% of the people who make the decisions for the American Public are incapable of empathy or sympathy because they have never lived a hard day in their lives. They worry about whether they will be able to upgrade the kitchen in their vacation home, not whether they will be able to put food on the table, keep their automobiles, homes, or continue to afford daycare, because it’s too expensive to live on just one income.

  Sincerely,

  Chad M. Lynn

  “Average Joe Six-pack”

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  Posted by Jennifer Sun Sep 13, 2009 8:44pm PDT

  everyone on here is so ignorant! you dont even know half the story

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  Posted by Jennifer Sun Sep 13, 2009 9:04pm PDT

  The authors own argument contradicts itself! you say that there should be no bailouts for corporations OR individuals but a few sentances later you are talking about how taxes should be equally 10% of income and "since the people below the poverty line would be hurt in larger propertion than the rich, simply offer things like food and rent subsidies, higher for people who are actualy working than those just collecting a free government check." Well guess what.... thats an individual bailout!!! Why should they get my tax money?? Because they need help from completly collapsing and causing a devestating rippling effect throughout our entire economic system?!? If you can recall right everything started with people who shoudnt have got home morgages that they couldn't afford and now look who else is involved because of the rippling effect: the auto industry, other major banks because everyone is so scared to have their money with someone else, all the shops because everyone now needs to hold onto their money so they aren't spending it, airlines because no one is traveling, etc. Have I made my point? The government NEEDED to bail out these trillion dollar corporations to save things from getting even worse, the bailouts saved everyone else's money who was invested in these corporations from completly losing everything too. Plus your proposed solution wouldn't work either because you can't just throw money at a problem and say that its now fixed, (wouldn't that be considered another bailout?)because where'd you get the money in the first place? FROM TAXPAYERS!!! Bailouts were necessary to allow the corporations to try and get back on their feet not to make their problems go away. Learn to look at both sides of the story not just your wallet

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