Bank Bailout, Dumping Market, Next?

[SpecM]

But dude, it wasn't fair to restrict home ownership only to those who could afford it...

I can haz subprime loan?

[Aptyp]

I had a roommate who maxed out every credit card and then declared bankruptcy, had to pay $50 per week to pay back. I thought it BS, since he owed about 50k.

He still got a house 2 years ago, and is as happy as he can be, hasn't lost it.

[Jean]

I had a roommate who maxed out every credit card and then declared bankruptcy, had to pay $50 per week to pay back. I thought it BS, since he owed about 50k.

He still got a house 2 years ago, and is as happy as he can be, hasn't lost it.

Declared bankruptcy and had to pay $50 per week to pay back 50k? lol that would take forever.

[Charlie]

at least we agree that the situation is overblown

During great depression US was fairly isolated,

Um, no.

In terms of foreign policy, yes, they were isolationist, but the economic collapse was certainly not limited to the US. Most of Europe was wrecked, obviously due to the after effects of WWI, but the market conditions killed them too. It wasn't that other countries chose to ignore the US collapse, it's that they were wiped out as well.

-Charlie

[Charlie]

Declared bankruptcy and had to pay $50 per week to pay back 50k? lol that would take forever.

No. It's usually a "settlement" amount, probably 6-10k. Set up with installment plans.

-Charlie

[uofom3]

I heard an interesting idea the other day.

Take that 700 billion, and divide up amongst ever legal citizen of this country over the age of 18. I think that plays out to being somewhere around 230k per person. Imagine what that would do. People could pay off debt - houses/cc's/loans/student loans/car payments/etc. - and maybe even buy a house, a car, or whatever is needed. That money would be spent in the free market and market forces would help dictate where that money was going to go. I think this is really not a terrible idea. It will never happen, but imagine what you could do if the government dropped 230k into your lap. I'm sure some people would buy a ferrari, or waste it on a shitty CF hood (hell maybe even a nice one) for their e30 - but those same people would also spend money on getting out of debt, into a home, etc.

Just a thought - I haven't completely churned this over in my head yet but on the surface I like the idea.

[DarkWing6]

Ted, please tell me you are kidding.

[h0lmes]

I am an economist, and we shouldn't bail them out. I think Adam Smith, America's most famous economist would agree with me too. The free and open market cannot find a bottom with all these government capital infusions, plans, legislation, etc. The government should let it all fall down. We cannot accurately value these banks, assets, mortgages with all this artificial market supporting action

CEO's will be fired, banks will fail. American's want it, I want it. I dont want it for the sake of seeing people lose their jobs, but we all deserve to see where the market bottoms. American's may be dismayed to see their 401k's, retirements and pensions go out the window, but guess what? Whoopdee-fucking-do, when you signed your ING packet, you signed away the rights of any of that money being insured.

If financial institutions can't make any money on investments, you sure as hell won't either. You can't have your cake and eat it too.

Did you seriously just say Adam Smith was American? He was Scottish you fucking moron. This seriously brings into question anything you say about economics.

[rwh11385]

No. It's usually a "settlement" amount, probably 6-10k. Set up with installment plans.

-Charlie

Anyone ever wonder why those college credit cards start you off at 28% interest?? yeah...

[rwh11385]

I heard an interesting idea the other day.

Take that 700 billion, and divide up amongst ever legal citizen of this country over the age of 18. I think that plays out to being somewhere around 230k per person. Imagine what that would do. People could pay off debt - houses/cc's/loans/student loans/car payments/etc. - and maybe even buy a house, a car, or whatever is needed. That money would be spent in the free market and market forces would help dictate where that money was going to go. I think this is really not a terrible idea. It will never happen, but imagine what you could do if the government dropped 230k into your lap. I'm sure some people would buy a ferrari, or waste it on a shitty CF hood (hell maybe even a nice one) for their e30 - but those same people would also spend money on getting out of debt, into a home, etc.

Just a thought - I haven't completely churned this over in my head yet but on the surface I like the idea.

Fail. http://www.r3vlimited.com/board/showthread.php?t=120290

Either absolve fear by throwing money at it, or don't do anything but tell those who invested moronically tough it up and be smarter next time.

[uofom3]

Ted, please tell me you are kidding.

Why?

Look, i'm not interested in the government bailing people out. I think that if we see some more banks and wall street institutions go down - fine. It's good for me. AND, it's good for the economy in the long term IMO. It's not the governments responsibility to handle peoples fuck ups. More than one party is guilty of being dumb in the SnL crisis. These institutions that are failing had it comming through their previous actions. BUT, we have to think about what inaction would cause here.

People have a hard time accepting problems in the short term. If you leave it alone, I think we'll see a dow under 10k (and who cares, no one in the industry uses the DJIA). Hell, we could see that tomorrow. I remember when we hit DOW 10k for the first time and it was a BIG deal. You're going to have a hard time convincing people to simply "deal with it" in the short term.

We also have international pressure.

This is so multifaceted it's rediculous... but we will see. I cannot offer a simple solution to this problem. People need to agree to one of two things from my quick-thought standpoint:

1 - suck it up and deal with it. some people stepped on their dicks and they need to accept the consequences.
2 - agree that we need to do something and pass some legit legislation to reduce the fear that is currently driving the markets.

I suggest anyone who wants to know about this follow bloomber.com/cnn.com as well as watch MSNBC during the morning hours. After GWB speaks there should be virtually instant reaction once markets open for trading.

[Funkmasta]

I heard an interesting idea the other day.

Take that 700 billion, and divide up amongst ever legal citizen of this country over the age of 18. I think that plays out to being somewhere around 230k per person. Imagine what that would do. People could pay off debt - houses/cc's/loans/student loans/car payments/etc. - and maybe even buy a house, a car, or whatever is needed. That money would be spent in the free market and market forces would help dictate where that money was going to go. I think this is really not a terrible idea. It will never happen, but imagine what you could do if the government dropped 230k into your lap. I'm sure some people would buy a ferrari, or waste it on a shitty CF hood (hell maybe even a nice one) for their e30 - but those same people would also spend money on getting out of debt, into a home, etc.

Just a thought - I haven't completely churned this over in my head yet but on the surface I like the idea.

Ted, you are off a decimal or two... Try closer to $2300.

[Money$hit]

Did you seriously just say Adam Smith was American? He was Scottish you fucking moron. This seriously brings into question anything you say about economics.

Whup. He is scottish, but Wealth of Nations is the fucking economics bible.


Ill go toe to toe in economics any day with you h0mless.

[h0lmes]

Whup. He is scottish, but Wealth of Nations is the fucking economics bible.


Ill go toe to toe in economics any day with you h0mless.

Im not going to go "toe to toe" with someone that can't even form a valid statement.

[uofom3]

Fail. http://www.r3vlimited.com/board/showthread.php?t=120290

Either absolve fear by throwing money at it, or don't do anything but tell those who invested moronically tough it up and be smarter next time.

right but people in general are not capable of owning up to their mistakes. No one wants to be personally accountable for their actions.

The greed of some of the people on wall street will be their ruin, and let honest firms step up to the plate and be handled. The markets can work efficiently. People need to let the forces do what it is that they do. Period.

BUT - everyone thinks that the government must be the answer to their problems... so we're fucked either way.