I don't get this bail-out talk. Can someone explain it in simple terms?

[Shine]

How the hell is the government going to afford buying up hundreds of billions of dollars in bad mortgages to take them off the books of financial institutions that otherwise might fail?

It's a total disconnect for me. Isn't the government basically broke, already?

Are they gonna print up more money?? :shrug:

[msongs]

1. i think its more like loan credits not actual cash handovers - most banks etc have lots of cash they

are just overextended if somebody demanded a pay back all at once. companies like AIG are holding companies in bad shape while their individual subsidiarieas are doing ok...IMO.

Msongs
www.msongs.com/political-shirts.htm

[atreides1]

2. Simple Terms

We the American tax payer are going to be F***ED, and left holdong the proverbial bag.

Simple enough?

[bdamomma]

3. revolution time yet?

:hide:

[thunder rising]

4. Where the US government collects money from the poor and middle class and filters it to the rich.

[RoccoR5955]

5. Arrg....In simple terms matey...

The bleedin' government be socializin' the losses on ye market, while privatizing ye profits.
The bloody bass turds be committin' Corporate Welfare.
They be good for us pirates!
Shiver me timbers!
Talk like a pirate day is today... Coincidence? Aye or nay matey.

[Locrian]

6. moneymasters

Google the "money masters" and or "wizards of money" for how this all works.

Basically the gov will borrow money from the Federal Reserve Bank. This FED is NOT a government institution. It is a private bank. The borrowing is secured by the Gov ability to collect TAXES.

So we get screwed a number of ways: the increase in money supply devalues the dollar, we get to pay INTEREST to a PRIVATE entity, and either taxes go up and/or services get cut.

So it is pretty much a defacto transfer of risk from the greedy to YOU AND ME, as well as transfer of wealth from YOU AND ME to the even more wealthy.

[guitar man]

7. It's a debt suppository

it's going right in our collective asses :(

I heard on the news this morning that the combined cost of all the bailouts is going to add up to $3600 for each man, woman and child in this country. So, with 3 of us, that's $10,800 it's going to cost my family. My question is, what do we get for our $10,800?

I would have rather had universal healthcare! :grr:

[Locrian]

9. universal healthcare

EXACTLY right! I dont want to hear a F-ING peep from any republican who says we "can't afford universal healthcare".

We can "afford" whatever we want apparently. That is if it is rich, greedy, fat-cats.

And this whine about they are "too big to fail" w.o. taking us with them. Well duuuuuhhh. So maybe we should limit and REGULATE these industries in the future?!!!

(mad as hell)

[guitar man]

11. yep

Its going to be hard to argue what we can't afford after these pork-barrel projects in Iraq and on Wall Street.

[Shine]

12. So.....for our family of 4, that's $14,400 ! I totally agree about the health care.

if this deal goes down, do you think Obama will still be able to make that happen??

[Subdivisions]

15. According to CNBC, you pay-off is a good and strong

economy that will put bread and butter on your table.

[Shine]

16. Hmmmm....methinks it is not that simple.

:eyes:

[guitar man]

18. well, I'm not holding my breath for that

The economy has never put bread on my table, I have always had to do that in spite of the economy. I graduted HS in 1982,right at the start of Reaganomics. I have worked my ass into the ground ever since and have never been able to come close to matching the standard of living my Teamster father provided. I somehow doubt this "strong" economy they are touting will ever benefit a working stiff like me.

[vanlassie]

19. Add to that YOUR cost for the War.

[guitar man]

20. yes, that too

:(

[Crabby Appleton]

8. In simple terms - NY Times - Freakenomics

http://freakonomics.blogs.nytimes.com/2008/09/18/diamond-and-kashyap-on-the-recent-financial-upheavals/?ei=5070&emc=eta1

[burythehatchet]

10. Let me explain it with a very simple analogy

Have you ever borrowed money from a credit card in order to keep making payments on that credit card?

Its the same thing.

[Locrian]

13. not exactly...

It's like your son or daughter borrowing money from a credit card in order to keep making payments on that credit card. And you get to be responsible for it!

[burythehatchet]

14. I can go along with that.

[Locrian]

17. too bad....

Too bad we just can't take their credit card away and ground them! Or throw them in jail... whatever works...