Bailout being rejected, thoughts?

iVillage Member
Registered: 04-29-2003
Bailout being rejected, thoughts?
164
Mon, 09-29-2008 - 3:35pm

Hi –


 


The bailout being rejected is not a good thing, it affects EVERYONE.  Banks have no money, we have no money (generally speaking).


 


I was speaking with a co-worker that said the Democrats insisted the Parachute Clause be put into the plan otherwise they’d vote against it (keeping Exec’s from these millions of dollars) so that is why the Republican’s majority anyhow rejected it.  They are so greedy and now they have cut their nose to spite their face.


 


Thoughts everyone?


 


SP


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iVillage Member
Registered: 03-25-2007
Tue, 09-30-2008 - 10:46pm
You say that they can't do this, but apparently they just did.

Sopal

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iVillage Member
Registered: 08-20-2008
Tue, 09-30-2008 - 10:46pm

"Have you really completely missed all reports concerning this bill and who voted yea or nay. Seriously?"

Stop being condescending about an issue as important as this. I posted what the votes were this morning in the David Brooks article. Here it is again in case you -- I'll be a lot more generous to you than you were to me -- just happened to miss it.

"They did the momentarily popular thing, and if the country slides into a deep recession, they will have the time and leisure to watch public opinion shift against them.

House Republicans led the way and will get most of the blame. It has been interesting to watch them on their single-minded mission to destroy the Republican Party. Not long ago, they led an anti-immigration crusade that drove away Hispanic support. Then, too, they listened to the loudest and angriest voices in their party, oblivious to the complicated anxieties that lurk in most American minds.

Now they have once again confused talk radio with reality. If this economy slides, they will go down in history as the Smoot-Hawleys of the 21st century. With this vote, they’ve taken responsibility for this economy, and they will be held accountable. The short-term blows will fall on John McCain, the long-term stress on the existence of the G.O.P. as we know it.

I’ve spoken with several House Republicans over the past few days and most admirably believe in free-market principles. What’s sad is that they still think it’s 1984. They still think the biggest threat comes from socialism and Walter Mondale liberalism. They seem not to have noticed how global capital flows have transformed our political economy."

http://www.nytimes.com/2008/09/30/opinion/30brooks.html?hp

iVillage Member
Registered: 04-02-2008
Tue, 09-30-2008 - 10:49pm

Yes I know, the standards don't need to be changed, they are there if people lie it doesn't matter what the standards are.


iVillage Member
Registered: 08-13-2008
Tue, 09-30-2008 - 10:49pm

I'm pretty sure we aren't limiting them to 300k per year, and I'm also equally sure there are more qualified people out there who are capable of running these companies if given an opportunity.


No CEO should receive a bonus if his work for the year involved cutting staff. It might make the company more profitable, but it is not in the best interests of society. And they should not receive a bonus if the company is not profitable, or if it faces outside intervention or propping up.



Full length fiction: worlds undone

"You have no power over my body..." ~ Anne Hutchinson

iVillage Member
Registered: 08-20-2008
Tue, 09-30-2008 - 10:49pm
Under the bailout plan there would be a reverse auction and the market would determine the value of the assets, not accounting shenanigans. The way it would work is that the banks would offer to sell their shaky debt to the Treasury - lowest bidder wins. Bid too high and your stuff doesn't get bought. The market decides. If there is a panic, then we taxpayers get the debt on the cheap and it can be sold back in a few years, like in the S&L crisis. If not, the financial system gets shored up anyway.
iVillage Member
Registered: 08-20-2008
Tue, 09-30-2008 - 10:52pm

"I'm also equally sure there are more qualified people out there who are capable of running these companies if given an opportunity."

What makes you so sure? A lot of the problem here was not the banks, but the regulators. Did the banks change that much over the past 8 years? No. Did the regulators? Heck yes. You might as well blame human nature for what happens in unregulated markets where our government sets the tone for greed and lack of responsibility. It's a race to the bottom where you get wiped out if you don't go along with it or you get wiped out if you do go along with it.

iVillage Member
Registered: 08-13-2008
Tue, 09-30-2008 - 10:52pm
Sounds like the equivalent of messing with an insurance company's reserves (which is fairly easy to do) on paper. It might ease an immedate crisis, but stand back later.

Full length fiction: worlds undone

"You have no power over my body..." ~ Anne Hutchinson

iVillage Member
Registered: 08-13-2008
Tue, 09-30-2008 - 10:54pm

Think of the major companies... do you seriously believe that out of 300 million, this is all the talent we can come up with? If so, we are indeed in sorry shape.



Full length fiction: worlds undone

"You have no power over my body..." ~ Anne Hutchinson

iVillage Member
Registered: 04-02-2008
Tue, 09-30-2008 - 10:56pm

Exactly fix your financials now put it off for awhile.

iVillage Member
Registered: 08-13-2008
Tue, 09-30-2008 - 10:58pm

By the way, there have been huge changes in banking from the time we bought our first home in 1984, and it really started to go nuts in the early 2000s.


Back then, you went to a bank or credit union for a loan, there were no mortgage brokers or originators - those were loan officers at the banks. They knew the market, and they were tasked to protect the bank's assets and generate profit.


We disconnected that system by adding a sheer sales element that generated extravagant returns and inspectors that asked what you needed for a value to get the loan.


Add in bundling and that stuff - by the early 1990s, banks were selling off their loans, but it got worse and worse as the money piled up.


There are cycles in insurance and finance, and all too often people on the upswing forget there is an inevitable downswing.



Full length fiction: worlds undone

"You have no power over my body..." ~ Anne Hutchinson

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