Now that they have their money, the crap can hit the fan.

[kentuck]

Then we can hear all the fools on the hill tell us about how bad it "would have been" if they hadn't voted for the bailout. Once again, with all good intentions I am sure, the Democrats have been played by the corporatists and the banks. They can stop sweating now. They are in control as the rest of us will be left to fend for ourselves in the severe recession ahead. Thank you very much, you fools. Good luck in finding another job. Good luck in paying your credit card bills. Good luck in buying groceries. Good luck in trying to keep your home.

[nadinbrzezinski]

1. Ok we will have a recession, perhaps even a deep one

but I'd rather have that than a depression

I should not even bother with this anymore

After all micro economics or for that matter macro, or history, are not the American people's strong suit

[kentuck]

3. Yes, it's difficult to prove a negative...

Even if we go into a depression, it would have been even worse if we did not bail out the big banks.

[nadinbrzezinski]

5. Let me try to splain something to you

the bail the big banks was also a mantra back in oh 1930, for the same reasons

This is just the FIRST in a series of bills that will come forth

During the Great depression the US spent about a Trillion... in today's dollars that is about 12 of them.

So will you also oppose all kind of measures that will have to be put in place?

[kentuck]

10. I was not against the banks getting the money...

I just happen to think it should have been filtered thru the foreclosed homeowners first. Then we could have saved the homes and the banks. As it is, these people will be on the streets, the homes will still be foreclosed and looking for the cheapest buyer - probably the same banks that we just bailed out - and everyone will be saying, why didn't we do something differently??

[nadinbrzezinski]

13. That is n the bill, not as extensive as I want it, but it is in there

Yes, read the damn thing in so many iterations I felt I was back in college

[Virginia Dare]

15. This is a good explanation as to why that's not quite a "perfect" answer

that was my belief as well for a while, but take this for what it's worth:

-snip-

Provide relief to homeowners, not Wall Street. This is the favored approach of liberals, who argue that dealing with the root problem-- families that can't make their loan payments -- is the fastest, surest, cheapest and most humane way to solve the financial crisis.

In fact, earlier this year Congress appropriated $300 billion to do just that, authorizing the Federal Housing Administration to refinance troubled mortgages if lenders agree to reduce the amount of outstanding principal and homeowners agree to share some of their future home-price appreciation with the government. In addition, the bill defeated by the House would have required the government to pursue a variety of loan-restructuring options to avoid foreclosure on any of the mortgages it acquired after it purchased troubled assets from banks.

Some have suggested that the government go further by providing direct subsidies to homeowners facing foreclosure. While that may sound like a politically attractive "trickle-up" strategy, it would be every bit as much a bailout for lenders as for homeowners. (Who do you think would end up with the money?) Moreover, one can only imagine the political backlash once those who kept up on their mortgage payments every month saw that their tax dollars were going to neighbors who had not.


http://www.washingtonpost.com/wp-dyn/content/article/2008/10/01/AR2008100103110.html?sid=ST2008100200057&s_pos=

[nadinbrzezinski]

18. We will revisit that in six to eight moths for the same reasons

we did in the 1930s

Not before, because of the election

And it is PART of the solution by the way

[Virginia Dare]

19. Agreed, it will eventually have to be done..

but this way the Federal Government will have control over them, and be able to do as they see fit, as they will own them, the money won't be going straight to the banks.

[nadinbrzezinski]

20. Xactly... and as usual

not you.. but the rest ... what are they planning to do to ensure that this legislation gets to the floor?

[girl gone mad]

9. how do you think this action will..

prevent a recession from becoming a depression?

[Virginia Dare]

11. Hopefully it will stop the avalanche of bank failures..

which was coming, that's what they're hoping.

[girl gone mad]

21. Bank failures were never the problem.

Our FDIC was handling them smoothly.

[Virginia Dare]

22. The problem was a credit crunch..

banks no longer trusted each other and wouldn't loan each other money, and were hiking up the cost to lend. As in everything financial it was more a crisis of confidence than anything. They were trying to avoid a full blown panic.

[Marrah_G]

24. Nadin-

I've concluded it's just not worth arguing over. History will show if this was a good move or a bad one.

[fasttense]

2. We'll be back in a very similar position 3 to 4 weeks from now.

Until we deal with the real economic problems we will continues on this downhill slide.

[Tierra_y_Libertad]

4. No. In 6 months they'll be telling us they were "misled".

Apparently, it's something easily accomplished.

"When politics enter . . . government, nothing resulting there from in the way of crimes and infamies is then incredible." - Mark Twain

"It could probably be shown by facts and figures that there is no distinctly native American criminal class except Congress." - Mark Twain

“The shepherd always tries to persuade the sheep that their interests and his own are the same.” - Marie Beyle

[chimpymustgo]

8. Ah, yes. Misled. Crook and liars, all.

[girl gone mad]

6. They got their helicopter.

They understand that dollars are being swallowed up like crazy by the derivatives market.

They couldn't print their way out of it, so now they are set for deflation and they will let it collapse.

[KoKo]

7. yep... n/t

[bobbolink]

12. You're right, but DUers are in the usual DU mode of attacking each other.

Think what it will be like for me, living in my car.

Do you think I will survive?

Does it matter?

[Subdivisions]

14. Not only that, the Dems passed this bill and when we collapse anyway

it will all be blamed on the Dems.

[Virginia Dare]

17. Likely we'll just now experience a "banking bubble"

and face massive inflation. Slightly better than going into a depression, although that's not a given. Either way, we're fucked, it's just to the degree that we're fucked.

Brother can you spare a dime?

[MrCoffee]

16. "Democrats have been played" my ass

It's called collusion.

[Geek_Girl]

23. The bailout passed and oil is up and the dollar is down

YaY!
:sarcasm:

[Virginia Dare]

25. The dollar is going down the crapper..

but that was going to happen with or without the Bill most likely. Wall Street will be in a downward trend, but expect some rollercoaster rides on the way down.