currently, there is a plan to buy up the bad debt from major financial institutions. everything from bonds, securities, to even credit card debt.
what does that man to the consumer?
nothing. you still have to pay. all it means is the financial institutions will be free of deliquent loan payments and investment instruments that are literly not worth the paper they are written on.
then they will propose some regulations to keep the crooks who made the bad loans and worthless investment instruments from doing it again.
there are three or four major points of contention with the bill.
1. first and foremost it goes against everything this country stands for. a free market economy. with rewards somes risk. it says if you make a bad risk and losse, uncle sam will ponie up YOUR tax dollars to take care of it.
2. not enough oversight. the bill leaves ONE person in charge of oversight for 700 BILLION dollars of YOUR tax money. boy is he going go have a bunch of lobbiest buddies once that is done.
3. no penalties for the executives who drovbe their bussiness in the ground. they want to give them a free pass. the repubs AND dems are in an uproar over this in a rare show of pipartisenship.
4. the dems are trying to attach earmarks to it in the form of trying to give the people SOMETHING for their money. in the form of creating jobs, more tax breaks and other middle income government give aways.
in a RARE showing of bipartisan ship on capitol hill, both the dems and the repubs are howling like stuck pigs. newt gingrich even going as far as saying mccain should publically stand opposed to this autrocity.
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now, why its necessary.
1.its not the banks money that will be lost when they go bellie up.
its your money. your CDs, your money market accounts, your bank notes, your savings accounts. its your money.
and the banks that survive will be scared crapless, and regulated to the point they cant loan you a staple without getting government approval. loans will dry up for homes, autos, small bussinesses and a hoste of other things bringing the entire economy to a grinding halt.
2. in addition to loosing some of YOUR money, tens of thousands of people will be out of jobs in the financial sector. this will trickle down to home building, contractors, the auto industry etc etc etc potentially driving the country into not just a recession, but mabe a full blown depression.
so, you loose with this bill, you loose without this bill. capitol hill just thinks you loose less with this bill.
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as for me, i say......LET IT FALL. the market has been trying to make a correction since the tech stock bust in 2000. by lowering inrterest rates the feds avoided it AT THAT TIME by flooding the market with BORROWED money.
this bail out of its approved WILL NOT FIX the economy. it will only buy us a little time becuause the economy is still stuffed to the gills with artifical money gained from that flood of BORROWED money over the last 6 years.
it will try to fall again, probably in less than a few years.
LET IT FALL and spend that 700 billion dollars for job programs AFTER the fall and other social servies to get people back on theri feet.