Originally posted by Money$hift
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The Economy Part II
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Originally posted by DarkWing6 View PostYou're half way there...why not let people pay for their mistakes? If the business, person, whoever does something and gets in over their head why should my or your tax dollars go to pay for their house? Government bailouts elimiate risk by using our tax dollars to elimate those risks. Whether it is the risk of offering lowns to people that cant pay it or taking out a loan you cannot pay, my tax dollars are not designed for that.
Let the companies collapse, investors will come in and buy them out, everyone will not lose their houses like everyone thinks, maybe our country will begin to have somewhat of a work ethic again, ?????, PROFIT!
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Originally posted by Aptyp View PostYou misunderstood me. I don't mean bail out only people who owe money. I mean split that bail out among all tax payers. I pay taxes, you pay taxes, therefor people like us would receive a cut. People who haven't kept a job or payed taxes (maybe 1-2 year limit), wouldn't. I would gladly use that money on a house.
It's not like the government actually has the cash to bail these companies out until they print it.sigpic
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Originally posted by Aptyp View Postby the way, am I the only person who thinks that government should bail out people and not businesses? If they split all that money to tax payers, we could be in good hands as a country. Most people pay off they mortgage, and pay back the government loan in raised individual tax. Bad idea? Let companies collapse, and buy them out, not bail them out.
The banks and money lenders control the money supply in this economy. The government physically prints more money just to replace worn out bills, not to increase the money supply. The banks increase the money supply by lending. Bailing out the "little guy" does nothing towards shoring up the economy (which again is backed by nothing but confidence). If these big financial institutions fail, all of whom lend tons of money, then the entire economy takes a huge hit and we slide back into a great depression the likes of which you have never, ever seen before. That is why the Fed and the Government is stepping in to shore up these foolish and irresponsible institutions. It is just one of the problems with fiat money. The worst part about this is that the government now has even more control over the money supply than ever before through these institutions. Put that control into the wrong hands, and we have a real problem. That probably won't happen, but it is a real risk.
The second worst thing is that the government will use this problem to implement regulatory conditions of the market. This whole problem was caused by government regulations in the first place. What we need to do is enact laws that make certain practices illegal and then punish those who break these laws. Instead, I am sure we will tell companies what they have to do (regulatory) as opposed to telling them what they can't do (law). The former is always bad and the latter is at least somewhat acceptable.
The example here is that the government says that you have to make x% of loans to people below certain limits of income (so it is equal for everybody). This is stupid and wrong as it forces banks to make more and more loans to people who are high risk and can't afford the loans. So, what we have done is forced banks to make bad loans by regulatory action. The law says you can't deny a loan for a bigoted reason. However, you should be able to deny a loan because of unacceptable financial risk. That isn't racism. It is good business and protects us all.
(It is not just the above that caused these problems. There are many reasons not the least of which was greed within these financial institutions. Bad people will find a way to do bad things.)1987 E30 325is
1999 E46 323i
RIP 1994 E32 740iL
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Originally posted by atomic View PostHell it still must be a good economy since I am throwing cash at both of my e30's like I have a fistfull of Benjamin's at a strip club with no end in sight...
:pimp:tasty
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