Why are we loaning companies 4 and 5 times as much money as there worth; Why not just purchase them

Why are we loaning companies 4 and 5 times as much money as there worth; Why not just purchase them at the price there worth.

I mean seriously even idiots in government at some point would have to wonder why they are given companies bailouts to that are more than 10x the value of the company if you tried to buy it on the stock market and are thinking in their heads f'it why not just buy the company either publicly or through "other methods" and set them up like Amtrak or Post Office at least they make a tiny profit.


I understand how the economy is here and they way things are supposed to work but sometimes you have to say f it.

[edit on 13-3-2009 by jatsc]

Because we are so desperate to preserve our beloved and apparently best version of capitalism in the world...

We have two options, intertwine it with elements of socialism and make it more stable or completely crash it, as we are doing it now, and start again.

We'll see what's gonna happen

If they buy them then they are still buying a company that will fold and will need more money at that point to then fix it. The real questions you should be asking are:

1: We don't we just let them fold if they are not a sustainable business model and haven't been for some times. ( economists say they don't really know what would happen if we let them fold)

2: How many times over are we paying for the same toxic assets? We pay the people with the companies that insured the bad loans and then they pay the banks. We also give money to the bad banks though because they made bad loans and those banks pay the insurance company. Now we are talking about bailing out other companies because they took stock in the companies that had bad loans who will the benefit from the other companies already getting the money who will then fix hopefully and go up in price and make that same company who invested and got money, more money...... wow what a cycle....

reply to post by 5thElement


I understand what your saying if we let it crash were just setting it up so that the same thing can happen in our great grandchildren or great great grandchildrens time; either way its a lose/lose battle

reply to post by whoshotJR


I'm not just talking about the banks but the car companies too, we could force them to do some good for the money like make build buses and trains for the transportation systems around the country make school buses, cars for city & state governments and military vehicles for the federal government

For the banks its probably a loss cause but for the car companies the government could get atleast a couple fleets of vehicles before the collapse

[edit on 13-3-2009 by jatsc]

How DARE you question what Bernanke is doing. You're not suppose to ask that kind of question. If you do, you're antisemetic.

reply to post by jatsc


Here read this link It is funny but it has the source linked at the bottom.

Now after you read this tell me if you want these people running our banks and car companies.