Thursday, September 25, 2008

So, let's help the rich be rich and the poor be even MORE poor. Shall we?

This bailout business is going to do exactly that. WTF guys? If anything in life as far as money is concerned wasn't fair enough, then this takes the entire cake! So we are supposed to help this causes when they are the ones that get themselves into this mess to begin with. I see. So that is how it is supposed to be now, eh? I can hear it now. "It's the right thing to do. God would want it this way. We are supposed to come to the aide of bigwig companies when they screw up, even though we don't know if we will even EAT the next week. Our kids too." GMAFB. Excerpts from Time Magazine: 7 Questions About the $700 Million Dollar Bailout
1. Will it really cost $700 billion? The dollar estimate of this bailout is just that — an estimate...Think of it as that bubble that slides up or down inside a level: it keeps moving, and where it ends up depends on who's talking...By seeking $700 billion — roughly akin to the cost of the Iraq war (so far)... 2. How long will the money last? The Bush Administration is proposing that the government's mortgage purchases be spread out over two years... 3. Is this kind of bailout unprecedented? The current financial Hail Mary is much different from Washington's late 1980s rescue of the nation's savings and loans institutions. This time, the Federal Government wants only to carve out and buy poorly performing mortgages and securities, not the institutions that issued them, which had already gone under (or were on their way) when the Resolution Trust Corporation took them over... 4. How will the Federal Government know what price to pay for the mortgages it buys? It won't. Even on Wall Street, no one knows how much the mortgage securities are worth. The government will hire experts to determine their value, but because so many are "sliced and diced" concoctions — made up of pieces of literally thousands of mortgages created and peddled and pushed together by Wall Street... 5. What happens if the cost tops $700 billion? If more money is required, additional legislation would have to be approved. The odds of that happening depend on whether or not the bailout stabilizes the housing market — the better the U.S. economy, the smaller the bailout will cost taxpayers... 6. Will all of the federal wheeling and dealing come with transparency and oversight? Maybe. The bailout is being undertaken by the U.S. Treasury, which means it can't be hidden away or done "off the books" in an effort to minimize its apparent scope... 7. Do the Wall Street executives get to keep their bonuses? The Bush Administration says it needs to encourage executives to get their cooperation, and that clamping down on their pay would only hurt their willingness to get on board...

1 comment:

|s|h|a|r|o|n| said...

$2333.33 is what it is going to cost every man, woman, and child in this country to pay for this "bailout".

So CEOs and white collar workers will still have their jobs and their fat bonuses, but my family will be over $20k deeper in debt.

Thanks Shrub. Makes me really freaking glad I didn't vote for you.