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+--- Thread: $700,000,000,000 (/showthread.php?tid=3703)
$700,000,000,000 - DrRusty - 2008-09-25
Seven-Hundred BILLION Dollars. That's a lot of friggin zeroes. That's how much money American taxpayers may have to pay to keep wall street from plumetting into a bigger mess than it's already in.
The BailOut plan in a nutshell - The Government is going to use taxpayer's money to buy out companys that have made bad investment choices to keep them from going bankrupt. We can't just let the companys go under because of the huge amount of people it would effect.
I read this article a few minutes ago that I wanted to share. It gives a pretty decent explanation on how things are going to work here in the next couple of weeks.
http://www.nytimes.com/2008/09/21/business/21qanda.html?_r=1&oref=slogin
So the government is pretty much buying some of the biggest companys in America to resell them later to investors. Basically, the government is going to control the laws AND businesses now. The little people of america who aren't rich or made any mistakes are being asked to give their money to people who are rich and have made plenty of mistakes.
Is there any other way to keep these companys from going under? Perhaps putting that money into another stimulus package like before, but that money would give everyone about $3000 instead of the $600 before.
$700,000,000,000 - Allen - 2008-09-25
There wouldn't be a stimulus package to be distributed. The government needs to deficit spend in order to create this bailout plan. The idea is, in the long run, saving these companies now will better off American citizens and the rest of the world with the cost of short term deficit spending and extra taxes by American citizens.
What is more exciting is Warren Buffet stepping out to buy $5billion worth in Goldman Sach's preffered stock with a warrant that gives him the right to buy out another $5billion. If more high net-worth investors step out and act like Warren Buffet, the government won't have to spend so much and American citizens won't have to pay for it. There are plenty of rich executives and assuming these companies recover in the long run and everything normalizes, then these large sum investments which may seem foolish in the short run will be EXTREMELY profitable.
$700,000,000,000 - Katie - 2008-09-25
I just hope they fix this problem and fix it quickly. I pulled my stocks out last week and put my money elsewhere. I'm not loosing anymore money.
$700,000,000,000 - DrRusty - 2008-09-25
xkatiie Wrote:I just hope they fix this problem and fix it quickly. I pulled my stocks out last week and put my money elsewhere. I'm not loosing anymore money.
That's what a few people did here at my work with their 401k. After losing so much, they went ahead and accepted the 30% pull out fee, and put their money in more secure places.
I asked them before why they didn't just keep putting money into a savings account instead of 401k, since a savings account won't go up and down, it'll just go up (slowly). They told me that some companys (like the one I work for) will match what you put into your 401k up to 5% of your pay.
I'm going to wait about a year, when the economy stablizes some, to start building into my 401k. I'm only 19 anyways lol. I got some time to kill.
$700,000,000,000 - Devil - 2008-09-25
The funny thing about this is, who would have thought that the worst president in the history of the USA (Bush Jr.) would become the first Capitalistic Socialist President in history?
If only Karl Marx would have ever witnessed this! :')
It's kinda ironic how a lot of Americans always downtalk socialism in Europe because of the high taxes it would bring along (which is not true btw). And now the only hope for the USA in 2008 is buying these company's with tax payers money... :')
I thought Nexon was a failure... But this Republican administration crushes all records of retardedness with all their lies and failed leadership! :X
No for real... The USA needs some serious changes... Both with leadership and their whole financial/political system...
When all goes well, CEO's grab millions in their pockets claiming they're unreplacable professionals, who earn their over-the-top goldmine salary. And look where these "pro's" are now? Whining for the tax payer's money $700.000.000.000,- ... Capitalism got seriously pwned...
But yeah, that's what you get when you vote a retard as president -twice in a row- America... Let this be a wise lesson for the future...
$700,000,000,000 - VladTheLvr - 2008-09-25
By the way, remember that these are BANKS we are bailing out. Accordin to common sense, banks store a very large amount of money and hold a large amount of assests and debt. So I would not mind paying an extra three thousand dollars worth of tax because if we don't bail out banks, there will be CHAOS about property/asset/debt ownership since these banks disbanded and the DOLLAR VALUE might go down a [SIZE="6"]LITTLE[/SIZE]
I am MORE WORRIED that they make a plan that FAILS (SINCE THEY ARE DOING IT IN A RUSH) since that can cost us the money we would have put up into that plan, loss of money due to plans failure, AND THE 700,000,000,000 USD that we are supposed to fix. Oh and AIG was my insurance company
$700,000,000,000 - Katie - 2008-09-25
Devil Wrote:But yeah, that's what you get when you vote a retard as president -twice in a row- America... Let this be a wise lesson for the future...
[COLOR="Indigo"]No... this is what happens when retards vote him in.
I just hope they figure out something and figure it out quick. I'd like to NOT have to work till i'm 95. I'd like to be able to do things and experience things in my life and not have to worry about this crap. Let's hope that Bush can do something good before he leaves office. God knows this country could use some good instead of evil.[/COLOR]
$700,000,000,000 - LizaLou - 2008-09-25
Can you imagine what would happen if these banks all went under. Millions of taxpayers money goes poof! If you have over 100k in a bank it is not federally insured. I suppose we can let all the banks crash and then let the government repay everyone that lost money, up to 100k.
Does anyone have ideas on what to do rather then bashing what is being done?
I do not know enough about all of it to come up with something.
$700,000,000,000 - DrRusty - 2008-09-25
Does anyone have a list of all the companies who are getting "bailed out" with this money?
The only ones I can remember off the top of my head are
Fannie Mae
Freddy Mac
AIG
The Weather Channel <<< LOL
Ford Motor Company
General Motors
Lehman Brothers (I think)
Oh and I was reading another article titled "Can BailOut Capitalism Work?" lol
$700,000,000,000 - Katie - 2008-09-25
[COLOR="Indigo"]I don't think the big 3 auto's are part of this... They are separate and I don't think it's a buy out, its just funding to help them improve themselves.
[/COLOR]
$700,000,000,000 - Corn - 2008-09-25
Yay, we are even more in dept that's growing 1 billion per day!
If it works I'm not complaining, though.
Didn't we lose 5 billionish in Iraq before, though?
$700,000,000,000 - Stereo - 2008-09-25
From what I heard the 700 billion is "just a made up number to sound really big" not some specific plan that's been created.
It's pretty ridiculous though. The people who bail out on their mortgages are just as much to blame, I guess this is how the government forces them to pay it back.
$700,000,000,000 - DrRusty - 2008-09-25
Stereo Wrote:From what I heard the 700 billion is "just a made up number to sound really big" not some specific plan that's been created.
It's pretty ridiculous though. The people who bail out on their mortgages are just as much to blame, I guess this is how the government forces them to pay it back.
It's not just the people who bail out on their mortgages who are going to pay the bill; it's everyone who pays taxes.
About the other thing here's a quote from the article I posted.
Q. The bailout program being negotiated by the Bush administration and Congressional leaders calls for the government to spend up to $700 billion to buy distressed mortgages. How did the politicians come up with that number, and could it go higher?
A. The recovery package cannot go higher than $700 billion without additional legislation. As for that figure, it lies between the optimistic estimate of $500 billion and the pessimistic guess of $1 trillion about the cost of fixing the financial mess. But the $700 billion is in addition to an $85 billion agreement on a bailout of the insurance giant American International Group, plus $29 billion in support that the government pledged in the marriage of Bear Stearns and JPMorgan Chase. On top of all that, the Congressional Budget Office says the federal bailout of the mortgage finance companies Fannie Mae and Freddie Mac could cost $25 billion.
$700,000,000,000 - Worthyness - 2008-09-25
Isn't the 700 billion to ensure the general welfare of the people (well the lesser of 2 evils type thing)?
I mean, if you were in Bush's shoes now, would you rather see many of the public fail or rather have a few fall and sustain the system?
Like a few have said before, I have not enough information to talk in-depth about this topic, but I see the 700 billion (as i said before) the lesser of 2 evils. It's just a matter of time now until we see what the decision truely does to the American Economy...
$700,000,000,000 - Sinnuendo - 2008-09-25
Worthyness Wrote:Isn't the 700 billion to ensure the general welfare of the people (well the lesser of 2 evils type thing)?
I mean, if you were in Bush's shoes now, would you rather see many of the public fail or rather have a few fall and sustain the system?
Like a few have said before, I have not enough information to talk in-depth about this topic, but I see the 700 billion (as i said before) the lesser of 2 evils. It's just a matter of time now until we see what the decision truely does to the American Economy...
So it's fair for us to shell out 700 billion to companies that nobody really even cares about?
700 BILLION. That's about $2300 per person (assuming the population is 300m), without taking into account that a large portion of that is made up of minors that can't work. And not many people can afford to just give out that much money.
I can't wait for January. Maybe then we'll actually have a president who's smart enough to not pineapple everything up.
$700,000,000,000 - Tikey - 2008-09-25
I really don't like the way the Administration is handling this. Why are they bailing out these companies that made bad decisions, taking risks with buyers money, AND giving them money on the hope that they MIGHT change their ways?
Really, I would just let them fall through, and instead use that bail money for other things that would help the economy, such as supporting companies that actually do good business and aren't retarded with their decisions.
$700,000,000,000 - DrRusty - 2008-09-25
Tikey Wrote:I really don't like the way the Administration is handling this. Why are they bailing out these companies that made bad decisions, taking risks with buyers money, AND giving them money on the hope that they MIGHT change their ways?
Really, I would just let them fall through, and instead use that bail money for other things that would help the economy, such as supporting companies that actually do good business and aren't retarded with their decisions.
heyyyyyyyy someone who's actually making sense. It's the stock market for crying out loud. Investing in it is a gamble in itself, and these guys lost.
$700,000,000,000 - xLeviathan - 2008-09-25
Tikey Wrote:I really don't like the way the Administration is handling this. Why are they bailing out these companies that made bad decisions, taking risks with buyers money, AND giving them money on the hope that they MIGHT change their ways?
Really, I would just let them fall through, and instead use that bail money for other things that would help the economy, such as supporting companies that actually do good business and aren't retarded with their decisions.
Well said, and the companies WON'T change their ways. Seems like a given, to me.
This is not our responsibility. The only negative side I see is some of the banking companies having problems.
Better get all your accounts that have over 100K split into separate banks.
^^;
$700,000,000,000 - Tikey - 2008-09-25
One thing I'm baffled on is that we've had a similiar "crisis" a few decades ago, when we had the gas shortages. The government capped the gas prices, being blinded on how it would "help the American citizens"; look as us now in the field of energy conservation compared to the rest of the techological superpowers of the world.
This just shows that the government shouldn't attempt to influence the economy of magnitudes of this size.
If this bail out goes through, it might cause us more harm than good in the future.
$700,000,000,000 - Berzerk - 2008-09-25
Yay America. We've been following this story in our History Class at school. It's sickening. x_x