What do you think about all these bail outs and take overs?
By lilwonders
@lilwonders456 (8214)
United States
September 16, 2008 10:18pm CST
Ok I am back. I could not take it. I need my fix. just bear with me, I am starting back at zero and do not even have copy and paste rights yet. Man this sucks.
Well with the news today about AIG I have been doing some major thinking. Fannie Mae, freddie Mac, and 11 banks have had to have bail outs. Now the government is stepping in and giving AIG an $85 Billion Loan. That is Billion with a B guys. Who is fitting the bill on all these ball outs? YOU and ME. Where is this money coming from.... well with the way the ecomony is now, we are probly borrowing more money from China to do it.. but who is going to pay that loan off with interest? Once again, the wonder tax payers. Do we really need to be bailing these people out? No one is bailing out the people who are loosing their homes. But their tax dollars are now bailing out the companies that that wrote the bad loans or invested in them. Does that sound right? Companies made bad decisions, got greedy, now they are paying the price. Why oh why should we have to bail them out for that? Is anyone going to bail you out if you make a bad decision? Nope. So why should we all have to bail them out. What do you think? Our ecomony is already in major trouble, we are in deep debt as a country, and now we are digging even deeper in debt with these bail out.
2 people like this
5 responses
@xParanoiax (6987)
• United States
17 Sep 08
You're right. It sucks, we shouldn't be doing it, we're putting together some rope and looking for a tree to hang ourselves with, at this point.
There's no good reason for doing this. None. It's misplaced loyalty, mostly I guess.
There is no such thing as "too big to fail" -- anyone can fail, no matter how rich and powerful they are. But if you use the little guy to prop up the big guys, then you've decided that no one can take a life raft and you all must go down with the ship!
1 person likes this
@lilwonders456 (8214)
• United States
17 Sep 08
I say they got themselves into this mess, so they need to get themselves out of it and leave our money alone.
1 person likes this
@zydecokitten (451)
• United States
17 Sep 08
When you have up to $100,000 in a bank it is insured and prorotected by... AIG. If that company would be allowed to go bankrupt non of your money would be insured if your bank went through the same process and fell apart. Therefore the goverment decided to protect them by offering them a loan. If this had not happened, the money that people had in their banks, including foreign investments would have been pulled from the banks. Do you have an idea of the implication of that on the economy and this country??
So in this specific case it was important that something happen to save AIG. People who have more than $100,000 split their monies among more than one bank.
@lilwonders456 (8214)
• United States
17 Sep 08
Actually the money in banks is insured by the federal government up to a certain limit. So it would not have caused ordinary people to loose anything. The feds have stepped in a saved 11 banks this year already. The banks I can understand. AIG or the mortgage companies.....I say let them go. They made the bad decision to invest in the risky mortgages. They knew the risks and they still decided to do it. So now that they made a bad investment they want everyone to bail them out. Well if you made a bad investment who is going to bail you out? NO ONE. So why should our tax dollars be used to bail out a bad business move. They are not the only insurance company. Other companies can come in and take their place. And hopefully they learned a lesson from AIG falling. Us bailing them out just tells them....hey we can do whatever bone head investement we want reguardless of risk and if we loose our butts on it, the government will just bail us out. Which means we will be bailing out a lot of companies and often. They will see us as a safety net. Is that how you want your tax dollars used?
1 person likes this
@mehale (2200)
• United States
18 Sep 08
You said it! I really do not think that the government should be bailing them out. I suppose that they believe they are helping a failing economy when they do so, but they are really only digging deeper into debt. If they want to bail something out, then why don't they put those funds toward our national debt, instead? That would make more sense! I don't like it, but for the time being I can't do too much to stop them. I can and will complain, though!
@sirnose (2436)
• United States
18 Sep 08
I just wonder who will want to be bail out next by us tax payers...it seems like every day someone else is asking the government to bail them out of their financial troubles...I only wish that i could ask uncle sam to help me out of my finanical woes...that would be really great not a whole lot like these companies are asking just enough to live comfortable...
...
...
@spalladino (17891)
• United States
18 Sep 08
Good to see you and your avatar back on the board, lilwonders.
No, it doesn't sound right or fair but I agree with the poster who mentioned the pension plans. The fallout of wiping out those funds would have had a domino effect on our economy that we would not be able to rebound from. The Stock Market would go into a tailspin due to investor panic and a bunch of other nasty stuff would happen that I haven't thought of yet. We're already headed for a recession...housing starts are down, foreclosures are up, unemployment is rising. Letting AIG fail would have given this country's economy a big shove over the edge. I'm not sure that this is any better but I guess time will tell.
No, it doesn't sound right or fair but I agree with the poster who mentioned the pension plans. The fallout of wiping out those funds would have had a domino effect on our economy that we would not be able to rebound from. The Stock Market would go into a tailspin due to investor panic and a bunch of other nasty stuff would happen that I haven't thought of yet. We're already headed for a recession...housing starts are down, foreclosures are up, unemployment is rising. Letting AIG fail would have given this country's economy a big shove over the edge. I'm not sure that this is any better but I guess time will tell.