Why not give the 700billion$ BailOut to the people?

reply to post by alienesque

---

oh but giving 700bn $ to the cartel that LOST 700BN in the first place? is going to solve a problem?

Sure, and giving a heroin addict just 1 more high will solve their addiction problem too wont it?

"Why not give the 700billion$ BailOut to the people?"


so your suggesting you take money out of peoples pockets and give it back to them as some sort of reward or help?
wow.


that's like borrowing money from your self to pay bills...

man, what's going on with this place?

You mean the greed and avarice of people who bought homes they couldn't afford? The greed and avarice of people who thought they were entitled to a home with no money down? These people are every bit as responsible for this financial debacle as the greedy lenders who lent the money just to get their own bonuses. If the lenders had renegotiated these mortgages down to non-usurious prices themselves there would be no mess, just as if people didn't believe that they could not live without owning a home at any cost there would be no mess.

Both parties' unbridled greed caused this problem and none of them deserves one penny to help them solve it.

I could not care less if financially irresponsible people or entities find themselves homeless or out of business. The bottom line is the country doesn't have the money to spend 700bn on anything important, let alone this BS.

[edit on 9/24/2008 by sc2099]

reply to post by Buck Division

---

to buck division:

No. I'm not sure where you got that idea from, but you're missing a very important part of the situation.

The lenders didn't "loose" $700,000,000,000.00. The people proposing this "bail out" aren't simply proposing that we just pay the banks back what they have lost.

The largest of the investment banks purchase packages of debt (including mortgages) from the smaller banks, whom may or may not be the bank that financed the original bank to begin with. The original lending bank never expected to wait the full 30 years or whatever the terms of the loan were, to collect their money. They planned on selling it soon after completion and they did. Now the larger investment banks, who have purcahsed the debt don't expect to wait for the full course of the loans in their purchase packets to expire either. They intend to and they do sell them to other banks, and governments. Every "owner" of the debt along the line will add their own fees to the pot, change the terms of the original loan as much as they legally can to maximize profit. The changing terms of those loans often -not always, but often- turn out to be too much for your average struggling family, just trying to keep their heads above water.

The executive committees in these large investment banks don't "create" any new product or service. They literally just buy and sell debt. And they make unholy profits doing this.

Now that more and more people cannot afford to keep the new terms of the loans -the terms that they never expected in the first place-, for the first time in modern American history, these large packets of debts are hard to sell to other investment banks. They can still sell, just not as easily as before.

That's it! That's the big mystery that they expect the public to fund for them. They expect the public to pay for them to continue to earn outrageous profits and bonuses.

Put it in another context. California, the largest state, the state with more than one eighth of the population of the entire country, finally just passed a $145,000,000,000.00 budget. That's the budget for ALL of the social programs, ALL of the schools, ALL of the prisons, ALL of the police, ALL of the state programs in the most populous, and most progressive state. For a YEAR!

And they really expect the public to literally give them almost five times that number AND to codify into law that they can spend it any way they choose, and that not congress, not the courts, nor any other public body can EVER do anything to demand it be spent in any particular way... AND to also codify into law that Paulson, or the current "owner" of the new $700b bank has immunity, and cannot be prosecuted for anything done with any of that money.

And then also remember that the Federal Reserve just finished giving away "bailouts" of 240,000,000,000.00 JUST THIS MONTH!!!


There is no value in this "bailout". I know that it sounds crazy, but many people have remarked that they will do this to perpetuate American debt, and to "keep us enslaved". I know that's not the mainstream thought process. But think about it. Think about where you get your information. Think about who owns the companies that own your newspapers and television channels, and radio stations, and so on. If you owned a newspaper, would you pay your staff to write bad press about you? Really?

The Wall Street Bailout: A 700 Billion Ton Pile Of Manure On Your Lawn

Imagine that a line of trucks was coming over to your house to dump a 700 billion pound pile of manure on your lawn. Would you be upset? Of course! You would be hopping mad! So why aren't the American people upset about this bailout? Our Congress is committing us and our children and our grandchildren to a 700 billion dollar bill for this ridiculous Wall Street bailout:

shatteredparadigm.blogspot.com...

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-Co ast 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.

Ahhh...I feel so much better getting that off my chest.

Kindest personal regards,

Birk

T. J. Birkenmeier, A Creative Guy & Citizen of the Republic

PS: Feel free to pass this along to your pals as it’s either good for a laugh
or a tear or a very sobering thought on how to best use $85 Billion!!

Maths are hard, but come on. It's $425.00.

Oops, there goes a plan.

Stick with what you know, m'kay?

Why don't they just make more money from paper, that way it never runs out. Give everyone some money but make sure they spend the amount by force and contract which will turn the engine of the economy back on.

Feel free to correct me if I am wrong here, but I believe that the reason this would not work is that it would defuse the money too much. The money has to be used to buy up the paper on these bad loans that is preventing the banks from lending to each other. So the whole loans have to be purchased, not simply giving folks money to make a payment or two on each one, or we’ll be right back in the same boat in another month. So they either have to buy the loan from the bank, or pay for the persons house. Since it is not fair to buy a bunch of people houses on the rest of our tax dollars, they have to purchase the actual loans themselves or the paper that backs up those loans (however that works). If they spread that money out amongst us all, since most of us are not in trouble with our loans, that money would not go to the actual source of the problem.
Anyway I hope that makes sense.

During the course of this week we have learned that this money isn't about saving Wall Street or Main Street, it's about saving "CHOW" Mein Street.

This pile of TOXIC PAPER isn't even held by US banks, it's foreign investors who are mad that they didn't get a good deal. China and Russia being the biggest investors.

Why do we need the money? To buy back the TOXIC PAPER from these investors so they will LEND US MORE MONEY.

WTF? The government is lying to us, stealing from us and all to make sure that they can put us even further in debt???

Once they buy the TOXIC PAPER they will borrow more money from foreign investors!!!

This is a bottomless pit of malfeasance

I can sum up the answer in one sentence for you.
The same people giving away the 700 billion are some of the ones collecting it through back channels, therefore they don't give it to us, because then they would be taking money our of their own pockets.

You defanitly have a valid point. But it may need a bit of tweeking.

When this whole 700 billioin buck bailout (700bbb) was first mentioned, I just shook my head, because I knew that 'we the people' wouldnt see a dime of it.

So I said to my wife-- why not help out these failing mortgages for a fraction of the cost.

Look at these very loosly based numbers.

Over 1 million in forclosure.

Take an estimated 10k - 20k owed per home to get it out of forclosure.

Now multiply.

Answer-- 10-20 billion.... far cry better than 700billion.

Now, how would this help?? Well first, people need to STOP blaming homeowners for this mortgage crisis. I had my own company (new home construction). I made plenty of money. Gas prices went up. The cost of EVERYTHING went up. People couldnt afford there mortgages living off the same income, but spending double on everything. So people quit spending as much. Economy felt it. Housing market felt it. I fell out of a job, and that sent my mortgage into forclosure. Most of the forclosures are NOT a result of lazy bums getting a morgage they couldnt afford. They in fact could when they got it. Anyhow, there are a slew of reasons for the mortgage crisis.

So, instead of just giving people a check, and HOPE that they pay back there mortgage debt, write the check to the mortgage company for the amount needed to bring the mortgage current, plus one month. Give others who are NOT behind, but need an extra buck, a tax break.

Heres what would happen-- The banks holding these failing mortgage notes would get there money. It would ease the pocket book for those who need it. Then they can pay off other debt, and maybe buy a few extra presents for there kids at christmas/birthdays. Now you have more money being injected into the 'system'. The economy would respond on a very positive note. Prices on everyday items would drop back down, saving EVERYONE money.

I know this wouldnt fix EVERYTHING, but it sure would put things back in the right direction.

I dont recall what channel I was watching yesterday, but someone actually brought this up on some news station. I was refreshed to here I wasnt the only one thinking this way.