Comments on: Financial Crisis and $700 Billion Bailout: Various Thoughts from Various Places

By: miranda

miranda — Sun, 18 Jan 2009 02:05:31 +0000

Personally, David, I agree that the focus should be on individuals and smaller businesses. The “trickle down” policies that have been followed for 25 years haven’t worked. Instead of bailing the big guys and waiting for it to filter to us, they should approach it “bottom up” and give help directly to the middle class that actually supports the nation’s economy.

By: David Dzidzikashvili

David Dzidzikashvili — Sat, 17 Jan 2009 15:08:46 +0000

It’s a quite difficult decision for any politician choosing between more bailout packages or letting the free market economic principles take care of the failed businesses, whether it is the financial institutions or automakers. The main focus should be defending the interests of middle-class Americans and creating a stable economic system that will guarantee long-term stability and sustainability. But here we also can face more challenges, since right now the Washington politicians are talking about the second large bailout package. If we bailout financial institutions and other industries again, when are they going to ask for the third bailout package? Or fourth? Maybe this is a time to let free market economy work rather than keep bailing out large, failed corporations? After all, it is the small and medium size businesses that create vast majority of middle-class jobs in America, not the large corporations. Maybe the government is better off to replace banks in lending practices and directly give loan packages with low interest rates to small and medium size businesses? That might work better and have a direct, immediate impact on economy and the middle-class America…

By: Forex News Online » China Announces Its Own Economic Stimulus Package

Forex News Online » China Announces Its Own Economic Stimulus Package — Wed, 12 Nov 2008 11:19:50 +0000

[...] it will inject $586 billion into its own economy.This is the largest stimulus package to date (the $700 billion bailout, apparently, doesn’t count as "stimulus"; it is seen as "rescue"), [...]

By: China Announces Its Own Economic Stimulus Package : Experiences of a Forex Trader

Mon, 10 Nov 2008 16:00:39 +0000

[...] is the largest stimulus package to date (the 0 billion bailout, apparently, doesn’t count as "stimulus"; it is seen as "rescue"), [...]

By: Chinese Economic Stimulus Boosts Stock Market - Money & Investing - Banks.com

Mon, 10 Nov 2008 14:55:38 +0000

[...] China expects to spend over the next two years on economic stimulus. (It should be noted that the $700 billion bailout passed in the U.S. does not *count* as stimulus money. It is considered rescue money. Which, in [...]

By: Can You Really Afford to Buy a Home Right Now? - Mortgage Rate News

Can You Really Afford to Buy a Home Right Now? - Mortgage Rate News — Thu, 25 Sep 2008 15:52:29 +0000

[...] the news of the economy, and with (an almost certain to be passed) $700 billion bailout in the works, many people are rethinking the idea of home ownership. This is a good thing. Before [...]

By: miranda

miranda — Tue, 23 Sep 2008 21:28:52 +0000

Thanks, Scott! I agree that it is hard to see millionaires bailed out while Main Street gets the shaft. It’s like that story of how the secretary has more taxable income than her boss, because he knows the loopholes. The middle class routinely gets the shaft.

Of course, there were all sorts of regs after the Depression, meant to keep this sort of thing from happening again. And with deregulation, instead of seeing business policing itself through the “free market” we have instead seen new ways of making a lot of money in risky ways for a few people, while socializing the risk so that the rest of us pay.

By: Scott @ The Passive Dad

Scott @ The Passive Dad — Tue, 23 Sep 2008 21:25:07 +0000

I would also add that whatever bailout occurs will not sit well with many Americans. I recall the backlash with Enron and Worldcom and how lavish the CEO’s lived in excess. Well, the same occurs on Wall St. and it’s going to frustrating to watch taxpayer money help out millionaires.
Also, if we get ourselves into a financial disaster, we have to file bankruptcy with no government bailout. The common taxpayer is too small to bailout, while the large Fortune 500 companies are exempt. It will be interesting to see how this changes our government and financial regulation.

By: miranda

miranda — Tue, 23 Sep 2008 19:09:39 +0000

Thanks for sharing your thoughts, Brian! It does seem quite unfair to parrot a line about “free market” and “trickle down” for years and years and then bail out the banks and their executives at a cost to everyone else.

I actually really like a solution posited by BloggingStocks (http://www.bloggingstocks.com/2008/09/23/an-alternative-to-the-banking-bailout-bail-out-homeowners/): Let homeowners refinance through the government, and then the government gets equity in those homes — as well as the option to sell the bad debt. Then the bad loans get off the banks’ books, the government stands to actually make money, and homeowners get out of trouble.

All of this without giving all-out handouts or waiting for the system to completely collapse and take everyone down with it.

By: Pinyo

Pinyo — Tue, 23 Sep 2008 18:07:14 +0000

Thank you for including my article. I am still waiting to see how this will all work itself out.