Should the government bail out banks?

iVillage Member
Registered: 03-01-2007
Should the government bail out banks?
19
Tue, 09-23-2008 - 11:16am

Watch the latest Street Talk video to see what people on the street are saying, then please share your opinions as well.


http://video.ivillage.com/player/?id=689501

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iVillage Member
Registered: 04-09-2007
Tue, 09-23-2008 - 12:43pm

Some additional opinions, specifically about trusting the administration and

iVillage Member
Registered: 05-14-2008
Tue, 09-23-2008 - 12:55pm

Heck why not--kind of a way to give back to those footing the tax bill.

I'm buying a house later this week for $87,500. It's a nice little three bedroom two bath that sold in 2006 for $179,000. Now I'm quite certain the poorly educated spanish speaking couple who bought the house had no idea what they were getting into when they signed up to purchase this overpriced home that stuck them with a payment of over $1500 a month.

But hey, the seller walked away with a tidy bundle considering they purchased the house in 2001 for $89,000. I'm sure the realtor was happy with 6% commission, and we know the mortgage broker did Ok and then there were all the other people who got paid in the process; the appraiser, termite inspector, surveyor etc....

Anyway, the new buyer who is prone to waiting for the good deal when it comes to investing, comes along and helps rid the bank of yet another poor loan and is able to keep this poor family in their home. Do they do so specifically because said family views them as angels from heaven who allow them to remain in their home at a monthly amount that is half of what they had been paying? No, although it's nice to help a family in need--especially one that appeared to have been exploited to some extent.

They did so because they recognize the value in buying a home valued at $140,000 for such a great price! If all goes well and the new "tenants" can show an ability to manage their finances they may even sell them the home eventually for it's real market value.

And all the other taxpayers of the land bail the bank out of their bad loan!

Works for me. I'm looking for some more good deals later this week as well.

iVillage Member
Registered: 08-25-2008
Tue, 09-23-2008 - 2:03pm

No.


All bail outs do is move risk from stupid people to smart people.

iVillage Member
Registered: 04-09-2007
Tue, 09-23-2008 - 3:40pm

>>>>Heck why not--kind of a way to give back to those footing the tax bill.<<<<


Hmmmm.... America, it's time to start worrying.

iVillage Member
Registered: 05-05-2008
Tue, 09-23-2008 - 3:53pm

No - it's a awfully big reward for mismanagement and absence of foresight. Not to mention that the funds don't exist...

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iVillage Member
Registered: 04-09-2007
Tue, 09-23-2008 - 4:15pm

What about the issue of credibilty?

iVillage Member
Registered: 05-14-2008
Tue, 09-23-2008 - 5:33pm

LOL! Glad my post made you mad. It makes me mad too.

What is even more mind boggling though is that anyone, after all the evidence over the years is still convinced that the government is the best place for their earnings to go, or for anyone's earnings to go--for that matter.

I supposed they've never worked in the government before and so they may still have some misplaced hope, or else they're simply in denial!

iVillage Member
Registered: 05-14-2008
Tue, 09-23-2008 - 5:37pm

>>Why are people more distrustful of government than private firms?<<

Government workers aren't held accountable. When things don't work out they simply shuffle funds, or borrow more, or raise taxes.

Private firms have incentive to do well. Else they fail. They have "skin in the game". A term I've used many times this week.

That is why a government bailout of private firms is one of the dumbest things I've ever heard of. And again, why government can't be trusted with the public's money.

iVillage Member
Registered: 03-26-2003
Tue, 09-23-2008 - 6:18pm

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Well, as private firms have proved unreliable, where do you suggest?

 


 


I disagree with you, but I'm pretty sure

iVillage Member
Registered: 04-09-2007
Tue, 09-23-2008 - 6:46pm

I guess as the daughter of parents who work for government, I see more benefits.

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