The "Bailout" bill fails, stock market crashes

**0wnd1zzl3d** · Posted: Mon Sep 29, 2008 10:30 pm Post subject:

This bill needed to pass. People are only against it because they think the money is just going to go to the already rich CEOs of companies.

Here's a brief overview of how it works:

When you get a mortgage or loan, the bank bundles them together and literally sells gigantic packages of them to other companies, as investments. This is actually the primary way a bank makes money off of your loan. So they basically say, "Here's 5 billion in loans and mortgages" and investment banks and so on bid on the packages. When housing prices fell, nobody wanted to purchase these bundles anymore, since they were unprofitable and "toxic". Since nobody was buying them, the banks that owned the mortgages and loans no longer had their primary source of income, and began to go bankrupt. What the $700 billion would have done is to simply have bought these mortgage and loan bundles from the banks, basically doing what should've been done but wasn't. The banks make money once again, and in the long run, these "bundles" will become profitable, returning the money spent on it ($700 billion) to the government, and then back to you, if not even more than you payed extra.

It's more that the government is investing in something.

It's almost the same as to what FDR did to stop the Great Depression. The government purchased homes and p[properties, driving the prices back up, and saving the economy. The US needs the same thing right now. It's worked before, and it will (more like would've) work(ed) again.

You would get the money back, and probably then some.
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**sunshine** · Joined: 03 Oct 2006 Posts: 1945

**0wnd1zzl3d** · Posted: Mon Sep 29, 2008 10:44 pm Post subject:

**rkcr** · Joined: 05 Feb 2007 Posts: 2518 Location: Minneapolis

**Metalteeth** · Joined: 24 Feb 2007 Posts: 1131 Location: Columbus, OH

I really don't have a fully clear opinion on this.

On one hand, if the entire banking system were to collapse, we are all screwed. So something needed to be done.

On the other hand, companies that engage in risky behavior and lose should not be rewarded with government money. That violates the capitalism principle that this administration SUPPOSEDLY supports.

However, I was happy at the push to limit CEO pay, get stocks from the companies, and allow Congressional oversight. That bill, the one voted on, I probably would have passed.

And seriously...this is not that much money to the government, with what is being spent on Iraq every month.
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**damienblack** · Joined: 05 Feb 2006 Posts: 263 Location: Hudson MA

**CorpusCollosum** · Joined: 28 Nov 2007 Posts: 1823 Location: San Francisco

**1337guitarist** · Joined: 20 Jun 2006 Posts: 160

YES!!! THE BILL DIDN'T PASS!!! If it would've passed, we would've basically been saying that these companies can continue practicing that way because eventually the government will bail them out. It is not the government's job to bail out companies like these.

**iimeanyii** · Joined: 24 Feb 2008 Posts: 837 Location: St.Gergorge, Ut

I just heard about the drop and was going to make this thread when I got on. I am not too sure about whether or not this bill should of passed because, well lets face it I am no expert, but I do think that they need to do something about the economy and this is a start.
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**RHYNO91118** · Joined: 08 Jan 2008 Posts: 194 Location: Rockford, MI

One of the main reasons it didn't pass is because the fucktard CEO's that fucked up their businesses in the first place, who took millions of millions of dollars off the top of their companies, are trying to walk away from this bail out with millions to BILLIONS in their pocket.
Congress said fuck you CEO's, so the CEO's said fuck you economy, I'm already rich.

Consequently, if our economy goes into a Great Depression II, it will cause China to inevitably go into a depression as well, we will most likely pull out of Afganistan and Iraq, shit will hit the fan again there. Not to mention that most of the rest of the worlds super powers will crash as well, seeing how influential America has been on the worlds economy.

This will all end up with another Red Scare, as Russia will reform into the USSR and become the Communist Soviet's again, and take over the world.

The end. But seriously aside from the Russia part (which if it happens I am a genius), the majority of that stuff is basically true to my understanding.... or maybe I'm just crazy.
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**0wnd1zzl3d** · Posted: Mon Sep 29, 2008 11:06 pm Post subject:

**dps2002** · Posted: Mon Sep 29, 2008 11:11 pm Post subject:

How much blame needs to go towards the banks who knowingly lent out money to people that possibly could not pay back their loans, under the guise of "adjustable-rate mortgages"?

**krisdaschwab912** · Joined: 24 Jan 2007 Posts: 6567 Location: UW-Eau Claire

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