Anyone watching/listening to the news?

[Picky Chicky]

Quote:
So far the FDIC has managed to Manage the problem by selling unscrupulous banks such as Country Wide, Wamu,Lehman, Bear Stearns and Wachovia to credible banks like BAC, JP Morgan and Citibank at NO cost to the taxpayer.

Unfortunately (until tomorrow), I work for one of those banks that got sold to the 'credible banks'... the news was all over it they were questioning me as I was walking out the door with my box o' things. No worries, thank goodness for me I had a backup plan, but I feel real sorry for those that just got shafted.

 

[d.k]

* They won't give it to us-- They BLAME us!!!! They pushed credit/ interest/development markets to the max, and when we couldn't/wouldn't pay any more, they ran out of money to pay their gambling debts which THEY were playing with credit dollars borrowed for OTHER banks. For every dollar we paid them on their books, they got "roughly" $3O in credit to play with. . They played it largely in "off-market markets", spin-offs to the regular market, where it's not legal for them to play such risky games. Ed.clarity

 

[EweSheep]

I dont like the way the stock market and economic recession is going......looks like the freebie money we got didnt help the long ways. Is President Bush in denial about it still?

 

[Lunachick]

This is my hubby speaking, cause I know nothing when it comes to finances, I depend on his opinion as a CPA and CFP for over 30 years:



If this bail out bill is not passed, the crisis will not only affect Wall Street, but Main Street, USA, meaning all of us. There will be no $ for equity loans, car loans, student loans, credit cards may have to cut their limits, there will be no $ available for credit.

This means your local car dealer might not be able to finance inventory, retailers might not be able to finance for Christmas season, businesses might not be able to borrow for their seasonal needs, this will mean that people will be losing jobs, businesses will be going out of business, and the economy might go into another great depression.

Maybe we should talk to our congressmen, and urge them to approve a bail out package.



That was my hubby's word. I'm basically trying to learn all this stuff. :|

Hope you all have a nice evening, tomorrow is another exciting day.

 

[the1much]

i cant imagine bailing people out of THEIR troubled business with tax payers $ ,,, how many MILLIONS did the ceo's of those banks get paid,, and are still getting paid?
i got an rebuilding business , people depend on me,, when i take all the profits and stick it in MY wallet,,, you all gonna GIVE me $ so i can do it all over again?

 

[GopherBoyFarms]

we are all DOOMED

oh, wait, thats just what the voices in my head keep saying
sorry....I better go put my money under the chickens


wait, I dont have any money.

~~~~~sending young boy child out to street corner to sell eggs (we have 3 dozen in the fridge)~~~~~~~~~

 

[Lunachick]

Quote:
The thing is, there are multiple ways to do that, some of which do not in fact involve nearly as much taxpayer $$ or even any taxpayer $$ at all. The bill that just failed was not the only possible solution. The way IndyMac was seized and aggressively managed seems, for the past couple of months anyway, to have been a decent solution: figure out, one by one, which mortgages are the truly poisonous ones and which ones are crummy mortgages taken on by people who could manage their payments IF they had fixed interest rates. Note, a bank still makes money on a fixed interest rate, it just makes less. A chief executive cannot approve a fixed mortgage rate for a bank if s/he thinks s/he can get away with selling an adjustable one, as it is the executive's duty to make as much money for the bank as possible in the shortest amount of time possible--but a government regulator can make those decisions in the name of stabilizing the entire economy. So force the executives to eat crow on the nasty mortgages, forbid executive compensation over some amount for banks in such dire straits that they beg for taxpayer $$, and re-organize some crummy mortgages into fixed rates for homeowners. Cost to taxpayers == cost of coffee and donuts for Congresscritters. Heck, I'll buy the donuts myself.

Arranging for mergers or re-instating the Glass-Steagall Act that did not allow banks and insurance underwriters to merge for this exact reason in 1933 (i.e., repealing the Gramm-Leach-Bliley Act) is also a low-cost solution to the taxpayer. There are probably a lot more options out there.

I am still trying to wrap my head around how and why these businesses operate on so much credit that one hiccup in their credit flow and they can't pay the electric bill. I asked a couple of finance executives I know if the profit margins truly are so thin, even at large banks like Morgan Stanley, and they said, yeah
--the money all goes to payroll.

But time is of the essence.

 

[hatchaholic]

Here's what concerns me...We have a huge debt already. We're in the middle of a very expensive war. We are trying to bail out banks using $700 billion of taxpayers money. Our deficit just keeps mounting, but both Obama and McCain are promising tax breaks....How can we work towards balancing our budget and cut taxes, incurring more debt??

So, we don't cut taxes...we just print more money. Inflation goes thru the roof. So the banks, which we bailed out, continue to make loans to us middle class, just so we can survive....We won't be able to pay off the loans and we end up right back in this situation.

The way I see it, it's a lose-lose situation either way. But, do we keep our democracy by letting the market correct itself, or do we move towards socialism by allowing the government to become even larger???

 

[mtnhomechick]

The so called Golden Parachute clause is a red herring. The CEO of Wamu was on the job for less than a month and gets 18 million.

It's all so crooked.

But, I am soooo sorry for anyone who has lost a job. And I understand their viewpoint totally. But this is like a pyramid scheme for too many years now.

 

[d.k]

* You're missing it-- It ain't MONEY that makes the world go 'round anymore. . . It's CREDIT. Nearly every corporation lives on it and does business on it. They buy their inventories, pay their employees and their invoices with it. . . SO DOES OUR GOVERNMENT. THE 7OO BIL BAILOUT ALSO A CREDIT LOAN!!