Look. I’m not saying this bailout plan was perfect. Far from it.
But if you are a Representative who voted against it, I hope you did it for the right reasons. I hope, after careful consideration and much agonized soul-searching, knowing the immediate and possible long-term consequences to worldwide financial markets and the people who put their trust in you, you did it because you thought it was best in the long run for this country and for the American people who pay your salaries.
But I don’t want to hear even one of you say you did it because Nancy Pelosi said some things that made you mad. What is this…kindergarten? Did she also take away your lollipops?
That said…Nancy, I love ya, but maybe next time, knowing you have some I’ll-take-my-marbles-and-go-home type folks over there, you could leave out words blaming the “right-wing” before you ask them to vote on such a critical bill. Not mad at you, just saying you have to play the hand you’re dealt. And you did get some jokers.
September 29, 2008 at 8:28 pm
Personally, I think a better plan would be the following:
Give a 700 billion dollar tax rebate (that should be around 3,500 each tax payer if there are now 200 million tax payers) with the following caveat:
You must immediately deposit your money into one or more banks or financial institutions for at least 6 months before spending. You may electronically transfer any amount at anytime during this period.
The institutions will compete for their piece of the 700 billion.
Let the bad loans fail or folks like Warren Buffet may buy them at highly discounted values.
Another consideration:
Place a freeze on the paper money supply for 6 months. They (the FED) may not print up anymore money during this period.
This would be a bailout for “main street not wall street”, so the Democrats should be happy. It is also a “free market solution”, so the Republicans should be happy.
In addition, the taxpayer will not lose any money, unless they make a very bad choice or take a very high risk with their $3,500 investments over the next 6 months.
The FED did a bad thing by making interest rates artificially low.
� anyway, just a thought.
FYI – interesting take on the whole thing:
The Rescue Package Will Delay Recovery
September 29, 2008 at 8:30 pm
Hmmm…you make an interesting argument. I like that you aimed it toward both sides of the aisle. I don’t doubt that there are some good alternatives, each with its’ own pluses and minuses. Honestly…no matter what the final plan is, the devil will be in the details later on. It always is.
Thanks for adding to the discussion!
JABG
September 29, 2008 at 8:35 pm
It does kind of suck that Nancy had to get in a last few words before the vote. No one can say whether that spoiled the lovely bipartisanship for sure, but it couldn’t have helped.
Personally I would have looked for her and her majority party to take a far earlier and more aggressive leadership position than they did. Perhaps some of this mess that everyone is blaming the Republicans for getting us into (rightly, I suppose) could have been avoided.
And, in terms of my opinion of the previous response, how many more days of nearly 800 point losses in the DJIA should we tolerate before we decide whether the paltry $3500 for each taxpayer was a good idea?
Interesting ideas, but not very workable in my opinion.
September 29, 2008 at 8:44 pm
I agree that the other ideas may not be all that workable, trickyguy. But they sure are interesting. I know a lot of people are coming up with something like this since it seems so much more tangible, whether or not practical.
I’ll add another alternative: Give everyone a portion of the questionable debt, sort of like a lottery, and then let them hold the debt, without foreclosing on anyone and collecting reasonable monthly payments. Maybe in the end, we’ll save homes and make some money.
Uh…I am just kidding. But the more I look at it, it may be as workable as any of them!
JABG
September 30, 2008 at 12:36 am
Hello JABG! Thank you for the beautiful comment you left on my blog! I totally understand your passion- and you know what? While I am definitely NOT for an unrevised “Bail out” package – definitely we need solutions. I am not well informed on the course of the discussions, but echoing your hope of equanimity, balance, fairness.
I do feel alternative ideas (regardless how far fetched some may feel they are) could be worth considering. I feel there is too much “all consuming” power top heavy- and not nearly enough balance. There needs to be some parameters on this. I also don’t know why the companies that are in the most trouble can’t simply invest their own funds into the bail out – I really disagree with any bail out that involves EXEMPTING those that parlayed out the profit they already obtained, because they are “now in a crisis”. They should not be exempt from accountability either. I am hoping both sides can come together somehow.
September 30, 2008 at 12:51 am
The reason companies can’t invest their “own” money is actually two reasons.
First, the huge erosion of value in the mortgage securities has tanked stock prices broadly across fnancial firms — leaving them precious little to even meet operating expenses, let alone pay down bad debt.
Second, normally firms would rely on credit to get out of similar binds. There’s just no credit to be had now because of the crisis.
Hey, as much as people hate the cause of the crisis, doesn’t mean it’s not something that needs to be fixed right now. I am pissed at hell at the prospect of having to loan $700B to a bunch of overpaid jerks whose greed (and lack of government oversight) got us into this.
But we have to do it or risk worldwide financial collapse. Don’t even think it’s just the prospect of a “few banks failing”.
September 30, 2008 at 12:25 pm
I love it when good minds come together…as with comments like these. So often the real solution is somewhere between the cracks, but right now the cracks are so deep, I think we are in heavy triage mode. Let’s stabiliize the patient first and then we can all fight like heck for what’s needed. Maybe this time, more people will listen.
Thanks trickyguy. You ae so right…it’s not just about a few banks failing. They already have and some were biggies. We are at a point where the pain could be long and deep if we don’t act now! Do you have a blog by the way? I’d love to stop by and read it.
And Sibyllae! How nice to have you drop by. Glad you not only appreciate the passion, but echo it in your own very thoughtful blog. I’ve been enjoying it immensely and am equally passionate about creativity of all kinds. You are now linked here too. Thanks for the comment. Yes…I too would like a better plan. But for now, I just hope we agree on something (kind of agree to agree) and leave room to improve and tighten later.
JABG
October 1, 2008 at 12:04 am
Agreed. Good insight from TrickyGuy. The one thing that scares me some is that this whole scenario feels like Deja Vu – and I can’t help but question the agenda… after all— in the economic model it is proven that two things make money for controlling interests – and in laymans terms that would be: WAR and also DEPRESSION. With the little I know of these 2 basic principles- the environment feels all the more uncomfortable.
I am off to your next post on Palin. I haven’t kept up on the news at all. I needed to “raise it up” as they say. (Of course you totally understand why — passion again!)
October 1, 2008 at 10:39 am
Understand your well-founded skepticism. I think we all can’t help wondering a little. But sometimes, even the boy who cried wolf comes up against a real wolf. And since the economy is not an issue that traditionally helps Republicans, this one may very wel be real. My gut tells me it is real for all of us, but will there be profits made by greedy opportunists? I can’t imagine that won’t happen. But then again, it always does. Meanwhile, I worry about the rest of us and am pretty darn certain that something – no many things – needs to be done. This bill is just a first step. But let’s hope our memories are not short.
Thanks for the comment Sib. You add a lot to the discussion. And I understnad the passion all too well.
JABG
October 1, 2008 at 5:40 pm
I concur, JABG! It was a silly blame-game… and Pelosi should be thanked rather than blamed, for all the time, energy, and effort that she put into a plan that would salvage the economy.
And thank you for your added feedback on my blog, regarding the bailout. I do agree with you 100% that we need some kind of bailout proposal, or else the credit markets will likely freeze, and the domino effect can be devastating. I wasn’t for the bailout until I really looked into our financial situation, and it is indeed critical.
October 1, 2008 at 10:10 pm
Thanks culturepress. Always enjoy your comments and your blog.
JABG
October 5, 2008 at 1:37 am
JABG:
My blog is at http://trickyguy.wordpress.com/.
And, oh yeah, this stuff is scary.
October 5, 2008 at 12:01 pm
Thanks for the link, trickyguy. I see you’re new to WordPress, so in case you’d like to have your blog link show up as a live link to your name whenever you visit places, just go to your Dashboard, click on Users, click on your blog name, and scroll down to Website. If you enter the URL there and save, from now on people will know where you are!
Good luck with your blog.
JABG