McCain was actually Right, The Fundementals of our Economy is Strong!

The truth to the matter is this, our economy is not made to support fiscal deviants nor is it designed to support those that are willing to make shady deals and screw over the American citizens in order to make a buck.

The reason that some businesses are in this mess is because they have made poor decisions, sold things they shouldn't have, and lended huge amounts of money to those that cannot afford to pay it back. They are paying the price for their avarice and greed. They are expecting the government and you the very same Americans that they screwed over to pay for the failed economics of their shady business practices.

Those companies that have prayed on the individual for these last twenty or so years are reaping the rewards of unfundamentaly sound business practices and terrible judgement.

The fundamental elements of our capitalist economy do not support this sort of structured robbery. It supports those businesses that have honest practices and make a profit based on sound investments with reasonable returns. However we are in this mess because those that sought to gain quick fortunes have turned a blind eye to reason and accountability and used shady deals and overextended their own personal lines of credit to the point that any serious fluctuation in the marketplace causes a chain reaction that makes the house of cards they built themselves topple.

This is what we are seeing today.

The Bush administration is quite on board with this bailout because it is a band aid to try fix a gaping wound that will not work. I'm sorry, but bailing out these institutions that have criminally done wrong against the American public, deceiving them into loans that the individual has no chance of repaying is just a recipe for disaster. They are continuing to use scare tactics in the effort to cover their own losses when the average Joe on the street will not feel too much of a pinch if these corporations fall independently.

The problem is, this bailout. This bailout will hurt the American taxpayer both in the short term and in the long term when the bill comes due.

The reason is, these corporations are living on borrowed time as it is. They have created this problem themselves, it is they that should be held accountable for the solution not every tax paying American.

Today Washington Mutual fell, and immediately was bought out by JP Morgan. The reason? Washington Mutual gave loans to those that cannot afford them and those that defaulted caused the chain reaction. Washington Mutual cannot borrow any more money because of the credit freeze going on in the finance industry, it could not meet operating costs therefore it went under.

For the last couple of years those that had bought property using an adjustable rate mortgage had been warned to refinance and turn to a fixed rate mortgage however some ignored that warning. The days of the real estate flip ended in the housing crunch and some were left with quite a few properties that they could not afford. They defaulted, those defaults moved up the ladder to those that willfully and knowingly sold people loans they could not afford.

Now these people want 700 billion dollars in order to stave off their own financial collapse.

It would be fiscally irresponsible for our government to hand over one red cent of taxpayer money to these failed corporations. This not only will not stave off the recession, the payout to these failed businesses will lengthen the recession and in fact push us into a depression the likes of which have not been seen since the 1920s.

I urge each and every American on this board to write or call their representatives and demand that no bailout be given to those that already have proven they cannot be trusted with money in the first place. The recession is going to be bad, however it won't be as bad as it would be if we allow our government to bail out these institutions and create an even larger deficit and national debt on top of the economic woes that already will be faced.

McCain was correct, the Fundamentals of Our Economy are Strong. The fundamentals of the structure of our Economy do not allow failed businesses to keep gouging the American public creating more national debt and taking down the American taxpayer along with it.

A failed business fails, the collapse of that business depends on the extent of the size of that business. If we do not bail out those on wall street. We can keep and limit the damage to the American Economy to those that invested in these corrupt businesses. It is then a civil matter in the courts against the leaders of those businesses to answer to their investors.

Yes many will loose much. Those that have investments in these failed businesses and those that have retirement accounts. However we must remember that when we invest in a business we do take a risk that the business can fail. There are no guarantees. You take a risk when you invest. Just as these businesses took a risk in investing in people and loaned money to people that could not afford to pay back loans. It is a risk.

The Fundamentals of Our Economy are Strong in this way. If they were weak then this depression would have already happened. However there are may American businesses that are doing ok even in this recession.

Corporate deregulation and the avarice and greed of those that sought to make quick millions have gotten us into this mess, the best way to stave off this economic cancer is not to feed the tumor but to cut off the tumor from the blood supply.

Let these businesses fail. In this way the impact on the economy will be limited to those that run these failed businesses and those that sought to invest in these businesses. The rest of us that have no stake in the matter are not affected.

Don't be fooled by Washington's lip service. Don't be fooled by the Federal Reserve Chairman's dire warnings. These are political tactics, this is a message of fear. This isn't the message of free enterprise, this isn't the message of risk and return. This is the largest scam that the United States has ever seen come down the pipeline. This is the largest Nigerian Scam ever to hit the American people.

Yes we are headed for deep recession. We have been headed for it for a while thanks to those that have put personal profit ahead of fiscal responsibility. (This does include homeowners that took out loans they could not afford)

Let us not compound the problem by making our already taxed economy endure a debt that future generations themselves cannot afford. The business of government is business and this bailout plan is not sound business. The Fundamentals of our Economic system will not stand for even more good money thrown down a toilet. The fundamentals of our economy will rebound after the tidal wave of economic uncertainty has subsided. The fundamentals of our economy are indeed strong because the fundamentals of our economy do not allow a failed business to keep going past the point that they have failed.

This is why McCain is correct when he said The fundamentals of our economy is strong.

Cut the artery that is feeding the tumor and the tumor will shrink. It takes time to heal but the tumor will indeed shrink and eventually be less malignant. This is the failed economic industry.

Yes banks will fall. Those banks that utilised unsound business practices and shady sub-prime loan deals will fail. However the people that have money in accounts at those banks will not loose a dime as evident with the failure of Washington Mutual, the people that hold accounts at Washington Mutual now are customers of JP-Morgan. The money they have in those accounts is still there. The people that will suffer is the shareholders of WaMu.

This is risk. That is the name of the game in investment. You know "Past performance not indicative of future results" "Please read and consider carefully before investing"

The same goes with those that are failing on home mortgages. It is NOT MY FAULT you are failing to pay your mortgage. You had the paperwork in front of you, you are ultimately responsible for that mortgage you signed. If you fail to meet those mortgage payments you will default on that mortgage and they will foreclose on your home. This was an investment, it was an investment by the bank to you. They were investing in the future returns YOU promised them.

Why should our government and ultimately ME pay for these peoples errors in judgement?

This is why the Fundamentals of our economy is strong. The true reason this is a factual statement by McCain is that because YOU fail does not necessarily mean that I will have to pay the consequences for YOUR failure. I should not have to pay for your failure. I should not have to bail you out. None of this mess is my fault, I have no loans of any sort.

I couldn't agree more

I haven't posted for days because I have not wanted to comment.

There is alot here that shoud and deservedly affects Some large greedy corporations but it should not affect the bulk of us

Looking through stats on where most Americans are employed I do not see a need for a massive loss of jobs, our fundamental resources, food, water, power are all intact. The jon base of the poor should be alomsot entirely intact.

There should be no bailout, little of this should affect the avergage person. (or at least it doesn't have to)

Good post stared and flagged

The rest of us that have no stake in the matter are not affected.

This is eactly as it is and should be, I have been an entrepreneur my whole life, just over a year ago, I lost everything, to Mistakeas I made... Thats the GAME, I had to rebuild and am almost entirely back... after a year of having to go from 0 again... literally

You want to play high stakes games you need to be prepared to take the big losses if they come too

I wouldn't bail them out.




[edit on 26-9-2008 by mopusvindictus]

It just blows my mind that they would use this fear to sucker the American public out of billions of dollars like this. This is the largest Nigerian scam that has ever been portrayed on the American taxpayer EVER.

I hope that our legislature actually listens to the public for once on this and does not bail out these failed companies for their own criminal and neglectful business practices.

Star and Flag

I hope McCain holds to his guns as he said that he is against the bailout.

Ron Paul has said that we are sure to go into a some form of economic downturn but it will be wall street who suffers most if they DO NOT get the 700 Billion and if they do get the 700 Billion the American tax payer will suffer most.

Well one thing that people forget is, that our economy survive on credit, credit is what has caused the mess we are in and is causing right now the freeze on the markets.

Everybody needs credit to operate from big businesses to small businesses, nobody have cash to go and spend hundred of thousands of dollars in one transaction.

That is the way it is.

Even our nation can not function without borrowing from other nations, is all about credit.