cnn.com — Congress has balked at the Bush administration's proposed $700 billion bailout of Wall Street. Under this plan, the Treasury would have bought the "troubled assets" of financial institutions in an attempt to avoid economic meltdown. This bailout was a terrible idea. Here's why.
Sep 29, 2008 View in Crawl 4
r3volv3rSep 30, 2008
Agreed, it's a band-aid fix that will only make things worse. However unfortunately, I think regardless, we're still locked on course for The Great Depression II. Unless we open up the voting system (open to public scrutiny to ensure ACCURATE results), and actually manage to get some good guys in office for a change. And even if that does happen, sure, the economy will get better eventually, but it'll take years. It took years for our wonderful government to F it up, and it'll take years to rebuild it.
thecoolestguyOct 1, 2008
----Any person who loses their retirement saving (loses, not sees it drop in value) will have only themselves to blame. The capital market is free, and people have the right to invest their own money any way they want. If they owned stocks in companies that falter, they made bad investments. If they wanted risk-free return, they should have bought and held US treasuries.---Bingo. Socialists live in denial.
brian0918Oct 1, 2008
No magic is required. People freely trade to mutual benefit. The magic comes when the government believes that they can have their cake and eat it too - that they can force the market into certain very specific conditions, and maintain those conditions long-term, without piling up a huge debt, devaluing the dollar, or destroying business altogether. We're going to see them succeed at bringing down the economy further with any new regulation that is added to the system. Government is not needed to maintain an economy. Government should only be in the business of upholding and protecting individual rights."People love latching onto these idealised systems"How dare people adhere to principles! Surely the better strategy is to throw principles and morals out the window, and move with the sway of the wind, voting by emotion alone, based on short-term stock market fluctuation..."but all these -isms"How about pragmatISM, which is what you are proposing..."In reality, we need to have decent checks and balances, yet still leave enough freedom for a smoothly running economy."Your faulty assumption is that any such "check and balance" could only be provided by the government, and that when provided by the government - a force-backed entity - that it is not susceptible to corruption. The recent market fluctuations are a clear sign of this corruption in action."I note that no one that I know of has of yet been prosecuted for fraud for selling these poor credit loans as AAA credit rated loan"And that is the result of government intervention into the economy. Nobody cares about going after fraud - everyone would rather have the government buy their bad assets at 100x their actual value. Rather than let these people learn from their bad decisions, government intervention is breeding more bad decisions. (It should be noted that the first bad decisions I mentioned were also the result of government intervention in the economy with the CRA modifications in the 90s.)
justiceapeOct 3, 2008
Bush, Bernanke, and Paulson do not teach economics at Harvard. That's my obvious, obvious point.
groundhogboyOct 11, 2008
Yes, the New Deal completely exacerbated the Great Depression....moron.
lilo5Oct 26, 2008
$700 billion bailout of Wall Street I'would like to have this money :)<a class="user" href="http://maszyny.brochem.pl">http://maszyny.brochem.pl</a> | <a class="user" href="http://Slowniki.europartnerlingua.pl">http://Slowniki.europartnerlingua.pl</a> | <a class="user" href="http://tlumaczenia.europartnerlingua.pl">http://tlumaczenia.europartnerlingua.pl</a>
bhar100aFeb 20, 2009
not a good reason. <a class="user" href="http://www.bahrainpropertyworld.com/bahrain-living-expats-weather-work-jobs-schools-relocating/">http://www.bahrainpropertyworld.com/bahrain-living ...</a>
ecdkey08Feb 21, 2009
Correct information about bankruptcy<a class="user" href="http://www.ecdkey.com">http://www.ecdkey.com</a>
pireeMar 8, 2009
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enkyiklMar 15, 2009
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beasiswamuApr 26, 2009
fully agree, interesting article.here's another related articles:<a class="user" href="http://digg.com/business_finance/Bagovino_Forex_Trading_System">http://digg.com/business_finance/Bagovino_Forex_Tr ...</a><a class="user" href="http://digg.com/business_finance/Forex_Power_Trading_The_River_Method_System">http://digg.com/business_finance/Forex_Power_Tradi ...</a><a class="user" href="http://digg.com/business_finance/Mouteki_Forex_Trading_System">http://digg.com/business_finance/Mouteki_Forex_Tra ...</a>
shy1980Aug 11, 2009
I think if the institution declare bankruptcy, its better rather than bailout because can save a taxpayer money. Those money can used for others purpose.<a class="user" href="http://www.mydebtconsolidationloans.info" rel="nofollow">http://www.mydebtconsolidationloans.info</a>
wallstreetgreekApr 16, 2010
Justice is served! Wall Street is NOT above the law after all! <a class="user" href="http://digg.com/politics/Wall_Street_NOT_Above_the_Law" rel="nofollow">http://digg.com/politics/Wall_Street_NOT_Above_the ...</a>Now what about Water Street?!!!!"The Greek" (WallStreetGreek.com)
joseph_pearlMar 5, 2011
Thanks for the post. It's a benefit to my practice as a Bankruptcy lawyer in Bakersfield, California.
Joseph Pearl
Bakersfield Bankruptcy Attorney
http://BankruptcyBakersfield.com
tanwishawApr 14, 2011
Understanding of economics is a must from common man to economist for a strong economy..so its important to teach economics to the young generation http://bit.ly/dKL7Sn