What is Digg?200 Comments
- veriix, on 09/26/2008, -1/+287Actually, if it were accurate the hoses would be connected to the house's faucets.
- LongShlong, on 09/26/2008, -14/+95That's actually kind of inaccurate... The bailout plan is holding the U.S. Citizens hostage by saying give private companies your tax dollars or the economy will fail (which it will anyhow). The only way a bank is involved is because Paulson is running ***** like its his own personal hedge fund and that a lot of banks are going down because people are doing runs on them... And furthermore, for comical relief; who puts fire hydrants in the middle of sidewalks?
- inactive, on 09/26/2008, -0/+78You will in a few months. You'll be able to get a loaf of bread with it.
- cracker42, on 09/26/2008, -2/+52Actually, the bailout plan isn't giving private companies our tax dollars. There's no "rescue plan tax", and the government certainly doesn't have 700 billion lying around. Those private companies are getting money that's created out of thin air by the Federal Reserve, which continues the trend of devaluing every dollar everyone owns (not just those you pay in taxes). So it's actually much, much worse than is implied when people say the plan uses "taxpayer dollars".
- VeraLynn, on 09/26/2008, -6/+56Touche.
- uiguy3, on 09/26/2008, -2/+44That's not comical relief. I feel worse after reading you comment.
- datagod, on 09/26/2008, -0/+24The hoses should be spraying liquid gold. I mean, seriously...who the hell has $1,000,000,000,000 lying around anyway???
- algaeturd, on 09/26/2008, -3/+26I like this one better:
http://www.blacklodges.com/fire/2008/09/27/wow/ - staffa, on 09/26/2008, -2/+24The bailout plan - simple version
There are trillions of dollars worth of mortgage back securities. They are essentially a contract of ownership containing many individual home mortgages. Every month as the home owners pay their mortgage, the owner of the security gets the money. The owner bought the security by paying some what less then term value of all the mortgages. IE, what the mortgages will pay out once every homeowner payed off their mortgage 30 years down the line. Some expectation of home owners failing to pay off the mortgage was expected and built into the price.
The problem is that the default rate is much higher then expected, it's not like crazy high, but like 2-3%, but still higher then anticipated, which means that the amount of money coming in won't offset the initial cost of the security. This wouldn't be a problem if the houses were still worth what was payed, cause the owner of the security could just resell the house to regain what he lost. However, housing prices are dropping too, so the security ends up being worth less then what he payed for.
But it is not worthless, there are still houses behind them and most people are still paying their mortgages. So the income is still coming in, they are still backed by actual houses.
The problem is no one knows what they are 'REALLY' worth and no one is buying them. Those that have them know they have lost money, they don't know how much and they wont know how much until they either come to term(30 years later) or sell them.
Because the people who are losing all the money are the same people who supply credit to averages joes like you and me to buy houses/cars and to small business to fund their start up costs and cover day to day costs during the slow season and to big business to expand. There isn't enough credit to meet demand, the rates go up. Which means more people cant afford a house, a big business cant expand and hire new people, and business goes out of business during the slow season etc. Costing jobs, lowering houses prices(no one is buying, and this also exacerbates the original problem noted above)
It becomes a vicious little circle that leads very quickly to a full on depression.
So the plan is this, the government will be a buyer of last resort for the mortgages. The big companies with lots of these securities will be able to go to the federal government and negotiate a price to sell these securities.The question is how much will the government pay. Currently for the toxic mortgages that are being bought, they are going for 22 cents on the dollar. Which I think you should note is a ***** massive loss for the owners. I wouldn't actually call it a bail out, more like the federalization of our economy and a massive raping of the formally rich banks by the federal government. If enough credit is freed up, the economy can recovery, housing will go up and the federal government could in fact make a ***** ton of money in the long run. As the securities are probably worth 80 cents on the dollar if housing stops dropping.
If housing continues dropping, then the government and thus the tax payers could lose some money, remember the 700 billion isn't Newcastle being thrown away, its being used to buy something that has some value or ultimately it is being used to buy peoples houses. Which leads to another point. The government will now own the mortgages, thus will more easily be able to renegotiate the terms to something the home owners can pay.
However, not doing it(or something), well, China's emergence as the sole world power will occur 50 years earlier then I expected. - SeaSideClown, on 09/26/2008, -1/+24Saving the bank at the expense of the public....this comic says it all.
- Moonkeeper, on 09/26/2008, -2/+23This comic says more then most news articles I've read. Brilliant.
- Looshi, on 09/26/2008, -0/+18Well you don't get arrested for one.
- itstomcat, on 09/26/2008, -2/+19MIRROR (just in case):
http://img297.imageshack.us/img297/5176/wpcbe08092 ... - paulieslim, on 09/26/2008, -3/+19I have to pee
- monkeyrun, on 09/26/2008, -0/+11BTW it is not really a 700 billion plan.
This is like one of those signs in the mall "up to 50% off!".
No the plan is "starting at 700 billion" and in the really really fine print it says "up to 11 trillion". - oblique63, on 09/26/2008, -0/+11I can tell by your exclamation marks!
- windandstorm, on 09/26/2008, -1/+12For everyone else, BURN!
- LaceKing, on 09/26/2008, -0/+10Touche!
- ninjasaurus, on 09/26/2008, -0/+9Nah, you're just dumb. No worries.
- BESTenemy, on 09/26/2008, -0/+9They also listen to guns.
- Striker101, on 09/26/2008, -1/+11I'm usually too serious to bother with stuff like this, but this was good for a $700bill grin, thanx
- Shananra, on 09/26/2008, -0/+8War.
- Khast, on 09/26/2008, -2/+10I think the biggest problem with this bail out is the fact they are demanding no oversight, and basically no one is able to complain about what happens.
Personally, I think that the banks which receive a bail out, should have any and all "profits" nipped, until they repay the US taxpayer. (Anotherwords, I am saying..instead of CEOs taking home a nice fat bonus because they did so well the year before...it should go back to the taxpayers.) Another thing....I think that this bail out should be treated as a loan, rather than a handout. The banks which receive aid, should have to pay back the amount of money they receive plus interest. And the taxpayers should be the accountants. - sdellboy, on 09/26/2008, -0/+8This whole thing has the feeling of a Shakespearean Tragi-Comedy. You don't know whether to laugh or cry.
- drewedman, on 09/26/2008, -1/+8I keep the sprinklers on 24-7, Got me a Nice WET HOUSE
- terrenceisdaman, on 09/26/2008, -4/+11The water hoses should be taking water from inside the other homes
- pintomp3, on 09/26/2008, -0/+7see you at the debate mccain!
- LilRabbitFooFoo, on 09/26/2008, -2/+9I think, very simply put, we just don't believe anything Bush or any of these people say anymore.
We've been lied to about EVERYTHING for 8 years. They've used FEAR of everything to manipulate us and graft trillions of dollars into their pockets and those of their friends. So, now, at this point, they should not be surprised that the American people are tired of hearing obscenely wealthy Fat Cats cry wolf.
These bankers have pocketed these profits, either in cash, or in stock values. They need to eat these losses one way or another. That is the CAPITALIST system. You keep the PROFITS. You eat the LOSSES.
And if that means some of the people who were made millionaires by this artificial scam mortgage boom aren't millionaires after this bubble bursts...so be it. Welcome to OUR world. Yeah, the one where we are all renting where we live, conserving gasoline like it was gold, and can't afford to see a doctor.
Bankers will get no tears from me. And no bailout. - doremon313, on 09/26/2008, -0/+7I told you so, you should have bought yourself a bank instead of that stupid house
- psykiv, on 09/27/2008, -0/+7Highway - Gasoline Taxes
Protection (Police?) - Property Taxes
Social Security - Straight from your income, but not income tax per say.
Income tax - 100% goes to a privately owned bank. - BESTenemy, on 09/26/2008, -2/+9If it were up to us, the hoses would be connected to sewage lines.
- oblique63, on 09/26/2008, -0/+7leave it to politicians and business men to come up with something dirtier than a circle-jerk....
- algaeturd, on 09/26/2008, -1/+7Quit being so retarded. That's the PAULSON PLAN illustrated, pure and simple. A plan from YOUR republican president and his administration.
White is black, black is white, up is down and down is the new up.
You've been watching your republican 'leaders' closely, I see.
Anytime you see something you don't like, just attribute it falsely to the other party.
GREAT way to solve issues during a time when we're on the brink.
Der, der, der, der.... - JMaj, on 09/26/2008, -0/+6I'm sad!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
- kingmanic, on 09/26/2008, -0/+6Basically they take 700 billion dollars, and they loan/give it it to the people who ***** us in the first place.
They take that money and buy mortgage securities from the investments banks. The decisions can't be reviewed or audited and there isn't any transparency. It's thought of as a loan because it's theoretically going to be sold and put back into public coffers once the securities are worth something. However as proposed by paulson and supported by Bush it would mean the tax payers drag out the most worthless 700 billion from the securities market. Which of course will help bring stability at the cost of ***** every American in the ass without lube with a chainsaw.
Even wihtout the bailout, the bottom will be hit and we'll progress from there as real estate values reach "normal" levels (20%-40% drop). The bailout just ensures the ones taking a hit from the whole speculative market bubble will be the tax payers and not the people who took the stupid risks.
PS. It also has aspects which removes more regulations from the banks and gives more powers to the fed and banking committees. Basically it's both a cash and power grab riding on the idea that Americans are too stupid to notice. - Hetman, on 09/26/2008, -0/+6Well we do have an infastructer, an army, public education and welfare. I only use one of those but hey whatever. I am just angry about the bail out. And that is only going to increase my tax burden in the end.
- neio, on 09/27/2008, -0/+6America only has 305 people living in it?
- Ibox, on 09/27/2008, -0/+5really?
- matrim2217, on 09/26/2008, -2/+7Finally some cold hard facts about this mysterious bailout plan.
- beesaretasty, on 09/26/2008, -0/+5More like throwing citizen's wallets on the fire to smother the flames.
- algaeturd, on 09/26/2008, -0/+5QUICK! On the fire! On the fire! Pick one!
- jessehadden, on 09/27/2008, -0/+5Perks? We pay taxes out of fear of the consequences of non-payment, period.
- maximoo2, on 09/26/2008, -1/+6My favorite part about the bailout is Section 8. That's where it says all the funds in the hands of the Paulson are immune to any oversight, review, or court challenge forever.
Why did they put that in there? Not really surprised the mainstream media hasn't talked about it much, but still. - LenBaird, on 09/26/2008, -0/+5You get the pleasure of paying interest on the national debt to a private bank. All other stuff gets paid for by the 500 other taxes we pay.
- algaeturd, on 09/26/2008, -0/+5Actually, that's the main discussion going down within the media. That's what the democrats have stepped in to change. They were sent a 3-page power grab and they returned a 5-page version of a negotiation. They asked for constant oversight in every aspect, transparency as to exactly where the money is going and caps for salaries of wall street CEOs. I'm not suggesting theirs is a good plan, that's the plan they sent back. That was the first issue addressed however...the power grab. It got shot down and Bush conceded with the first version that didn't pass. It won't hold...the Section 8 thing. They came in shooting for the moon hoping people would panic and agree to anything (ala post 9/11) but cooler heads prevailed. Let's hope they continue to prevail. The market will hold as long as progress is being made and progress will only be made if they have a fair plan for Americans that doesn't force us to pay for the mistake of the rich, few elite.
- Rikkochet, on 09/26/2008, -0/+5@murrdpirate: True in a way if you look at the domestic situation only.
But the bailout also raises the economy of every other country in the world (that doesn't use the US dollar) by 700 billion dollars. If it just comes out of taxes then the US dollar still carries the same value internationally. - insanebrain, on 09/26/2008, -1/+6This "'morage crisis"' is the biggest money laundering scheme ever.
- Darkaged, on 09/26/2008, -1/+6My dog just died!
- BESTenemy, on 09/26/2008, -1/+6"Talk sense to a fool and he calls you foolish."
- Euripides -
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