Sep
Do you think it's a good/bad thing?
What do you think will happen to the economy?
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Any thoughts/comments welcome
Answer:
I have four points:
1. Why should the common hardworking honest taxpayers have to pay the bill for bailing out companies/banks whose people running them made such bad decisions??? Their decisions were based on greed, not sound financial decisions. The heads of these companies, who walked away with millions, should be held accountable and hit with fines for their wrongdoings.
2. Where do you draw the line on bailouts? What about others out there not making it? Potentially small mom and pop shops to possibly companies like GM alike. The bailout seems to be a major contradiction to the free market system. We don't even get to vote on it. Sounds like socialism to me.
3. Regarding the people who invested money in those not-so-safe instruments (such as mutual funds, and others) in return for higher returns, those people were advised going in their safety of principal was not guaranteed. Those types of investments offer higher returns but also have higher risk of loss of principal due to normal market fluctuations. This should not be a surprise to anyone. To minimize the risk of losing principal, treasury bills or certificates of deposits with FDIC insurance coverage is a better investment option - but the tradeoff is lower returns.
4. Re the housing market: Those “bad loans” should NOT have been made to unqualified home buyers in the first place. People need to live within their means. Home prices should be granted to bottom out naturally, then they’ll recover thru the normal free market system. Recovery will be quicker and healthier as opposed to the devastating effects of artificially pumping in $700 billion to an already sick economy. Under the bailout plan, the dollar will become nearly worthless, we'll see widespread corruption and be smothered by bureaucracy like we've never seen before.
We should all write our reps in Congress to protest the bailout.
Answer:
Thanks Much!!! Report Abuse
Answer:
Bad. These companies have been robbing Peter to pay Paul for years. The top executives receive big over inflated pay for nothing. These company's survive by lying and cheating everyone who invests in the company.
They spend small fortunes on record-keeping tricks to make it look as thought they’re making money, pay out dividends to stock holders when they’re not even paying the bills. There are thousands of 401K plans that are gone and it won't be known for years, until the people retire and need the money, if we don't shut down this type of scam now. Each one of the top people should be jailed for fraud as well. It might make the next batch think twice before they do the same stuff.
Answer:
Wachovia loaned half million dollars to my ex landlord at 11.25% interest on a property worth $100 K less. He defaulted, the bank got commissions, the property, and now they get a bail out for that mess? What a load of crap.
Answer:
Nothing more than to bailout the crooked C.E.O.'S who got everyone into this mess to begin with while as usual the Middle & Lower Class will be footing the bill.
Answer:
It is a bad thing. We should not reward poor business practices. Banks made bad loans. That’s their problem.
Answer:
Bad Idea. very bad. yikes terrible idea
Answer:
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