AIG Bailout feelings

[mandinga]

How do you folks feel about this $85 billion bailout of AIG?

[Just_learning]

Originally Posted by mandinga

How do you folks feel about this $85 billion bailout of AIG?

I think its necessary, but it sucks.

Its like cutting off a finger to save a hand.

[Chrome Bumper]

A few years of hyperinflation will bring the value of money down to the value of the assets it owns.

[Smoked Salmon]

I'm just wondering if this will force the Fed to re-write the lending code so that banks aren't forced to lend to people that can't afford the payments. Probably not, but a guy can always hope.

[Dullhook]

Originally Posted by mandinga

How do you folks feel about this $85 billion bailout of AIG?

It would be hard to conceive of how any hard working, responsible tax payer could be happy about this. The majority had nothing to do with the fall. That said...you gotta do what you gotta do. If foreign investors lose confidence in our markets and pull out their trillions in investments, we could quickly go from a recession to a depression. The further losses to mutual fund accounts through 401k plans and IRA's for recent retirees, and those about to retire, could be devastating. It will be interesting to see how this all plays out in the long run.

[Lurp]

It sure is pathetic when we get the same old story
Mismanagement by overpaid CEOs and upper management
Then we all pay the price and they keep their multi-million dollar jobs or retire to some foreign country on their golden parachute

[bassettmama]

Check it out, I got it from an email buddy, and thought I would share. I personally think it would work.


This is great... Anything is better than putting those who caused it- government especially plus some wall street folks - in charge of fixing their own mess. I don't know where this originated but it's good...for the left or right side -

To my fellow Americans.......I'm against the $85,000,000,000.00 bailout of AIG.Instead, I'm in favor of giving $85,000,000,000 to America ina We Deserve It Dividend.To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+. Our population is about 301,000,000 +/- counting every man, womanand child. So 200,000,000 might be a fair stab at adults 18 and up..So divide 200 million adults 18+ into $85 billon that equals $425,000.00.My plan is to give $425,000 to every person 18+ as aWe Deserve It Dividend.Of course, it would NOT be tax free.So let's assume a tax rate of 30%.Every individual 18+ has to pay $127,500.00 in taxes.That sends $25,500,000,000 right back to Uncle Sam.But it means that every adult 18+ has $297,500.00 in their pocket.A husband and wife has $595,000.00.What would you do with $297,500.00 to $595,000.00 in your family?Pay off your mortgage – housing crisis solved.Repay college loans – what a great boost to new gradsPut away money for college – it'll be thereSave in a bank – create money to loan to entrepreneurs.Buy a new car – create jobsInvest in the market – capital drives growthPay for your parent's medical insurance – health care improvesEnable Deadbeat Dads to come clean – or elseRemember this is for every adult U S Citizen 18+ including the folkswho lost their jobs at Lehman Brothers and every other companythat is cutting back. And of course, for those serving in our Armed Forces.If we're going to re-distribute wealth let's really do it...If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!As for AIG – liquidate it.Sell off its parts. Let American General go back to being American General.Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up. Here's my rationale.We deserve it and AIG doesn't.Sure it's a crazy idea that can 'never work.'But can you imagine the Coast-To-Coast Block Party!How do you spell Economic Boom?I trust my fellow adult Americans to know how to use the $85 BillionWe Deserve It Dividend more than I do the geniuses at AIG or in Washington DC.And remember, this plan only really costs $59.5 Billion because $25.5 Billion is returnedinstantly in taxes to Uncle Sam.Ahhh...I feel so much better getting that off my chest.

[Chrome Bumper]

85 billion split 200 million ways is $425 each, not $425,000. The bailout is $85 billion, not $85 trillion.

I hope your buddy isn't running the country soon.

[fishnhuntnfool]

Originally Posted by bassettmama

Check it out, I got it from an email buddy, and thought I would share. I personally think it would work.


This is great... Anything is better than putting those who caused it- government especially plus some wall street folks - in charge of fixing their own mess. I don't know where this originated but it's good...for the left or right side -

To my fellow Americans.......I'm against the $85,000,000,000.00 bailout of AIG.Instead, I'm in favor of giving $85,000,000,000 to America ina We Deserve It Dividend.To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+. Our population is about 301,000,000 +/- counting every man, womanand child. So 200,000,000 might be a fair stab at adults 18 and up..So divide 200 million adults 18+ into $85 billon that equals $425,000.00.My plan is to give $425,000 to every person 18+ as aWe Deserve It Dividend.Of course, it would NOT be tax free.So let's assume a tax rate of 30%.Every individual 18+ has to pay $127,500.00 in taxes.That sends $25,500,000,000 right back to Uncle Sam.But it means that every adult 18+ has $297,500.00 in their pocket.A husband and wife has $595,000.00.What would you do with $297,500.00 to $595,000.00 in your family?Pay off your mortgage – housing crisis solved.Repay college loans – what a great boost to new gradsPut away money for college – it'll be thereSave in a bank – create money to loan to entrepreneurs.Buy a new car – create jobsInvest in the market – capital drives growthPay for your parent's medical insurance – health care improvesEnable Deadbeat Dads to come clean – or elseRemember this is for every adult U S Citizen 18+ including the folkswho lost their jobs at Lehman Brothers and every other companythat is cutting back. And of course, for those serving in our Armed Forces.If we're going to re-distribute wealth let's really do it...If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!As for AIG – liquidate it.Sell off its parts. Let American General go back to being American General.Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up. Here's my rationale.We deserve it and AIG doesn't.Sure it's a crazy idea that can 'never work.'But can you imagine the Coast-To-Coast Block Party!How do you spell Economic Boom?I trust my fellow adult Americans to know how to use the $85 BillionWe Deserve It Dividend more than I do the geniuses at AIG or in Washington DC.And remember, this plan only really costs $59.5 Billion because $25.5 Billion is returnedinstantly in taxes to Uncle Sam.Ahhh...I feel so much better getting that off my chest.

Except if you actually do the math, it's only $425... Bail 'em out, and pay me back next year at a 33% rate reduction of my taxes.

[JustCallMeDave]

[bassettmama]

No problem, IF the math were right then, it would be great. But since it isn't I agree, it wouldn't help that much. I'll have to contact my email buddy and have her look at the numbers. I just didn't look and do my math(stupid of me).LOL What a dork!!!

bassetmama

[Twitchs_Tackle]

Had Congress bet the whole basket of eggs on the Beaver game...
Property in Vegas would be 'dirt' cheap, bail-outs would be covered, and next years ecomonic stimulus checks would seriously stimulate....

[Chrome Bumper]

Hey maybe we can get hours on the Corporate jets or something, I may want to visit some warmer climes once the rain sets in.

[bassettmama]

Originally Posted by Lurp

It sure is pathetic when we get the same old story
Mismanagement by overpaid CEOs and upper management
Then we all pay the price and they keep their multi-million dollar jobs or retire to some foreign country on their golden parachute

We the tax payers are always the ones that have to bailout the companies with the high paid CEOs.

[mandinga]

well...how do we feel now since the bailout did NOT get passed?



good?
Bad?


Scared?

Broke?

[24 on/ 48 off]

Indifferent.

[fish_on]

Originally Posted by Smoked Salmon

I'm just wondering if this will force the Fed to re-write the lending code so that banks aren't forced to lend to people that can't afford the payments. Probably not, but a guy can always hope.

BINGO the root of this whole problem. There were already some congressional leaders TODAY after the bail out failed, who were praising this bad policy and wanting to see more of it for her "constituents". Just wait until they start trying to sell us the whole one world currency concept.

[RogueFishr]

Originally Posted by Smoked Salmon

I'm just wondering if this will force the Fed to re-write the lending code so that banks aren't forced to lend to people that can't afford the payments. Probably not, but a guy can always hope.

Do people really think this? The banks were not "forced" into lending to anyone. Banks wrote loans they could sell on thew secondary market (Wall Street). Banks were makign money (everyone was). If Wall Street was buying, banks were writing it. The guidelines got crazier and crazier. They were making huge discount points and fees. Everyone was making money and no one was complaining. But, banks were NOT forced into anything.

RF

[fish_on]

Originally Posted by RogueFishr

Do people really think this? The banks were not "forced" into lending to anyone. Banks wrote loans they could sell on thew secondary market (Wall Street). Banks were makign money (everyone was). If Wall Street was buying, banks were writing it. The guidelines got crazier and crazier. They were making huge discount points and fees. Everyone was making money and no one was complaining. But, banks were NOT forced into anything.

RF

Yep! This all goes back to the Community Reinvestment Act of 1977 and all it's changes since.

In early 1993 President Bill Clinton ordered new regulations for the CRA which would increase access to mortgage credit for inner city and distressed rural communities.

Then G.W made a few changes in 2002 and 2005 that added to the situation and the CRA still charged along. Now today we are paying for the uncontrolled practice of lending, borrowing, and spending the governments and public have been doing.

Here is more info http://en.wikipedia.org/wiki/Community_Reinvestment_Act

[fishingls]

Great article in the current Newsweek as to how AIG got in trouble. Basically it was insuring loans against them going bad.

One of the problems we are having for lenders is people's lack of integrity, we have lots of markets where people are walking away from the houses because they are worth less than when they bought. In many instances goverment regulation forced some lenders into making loans that shouldn't have. See the Newsweek article.

[RogueFishr]

Originally Posted by fishingls

One of the problems we are having for lenders is people's lack of integrity, we have lots of markets where people are walking away from the houses because they are worth less than when they bought.

I agree. But, when do you cut loose of a bad investment? If your house is worth 1/3 less than you paid for it 18 months ago, and no bottom in sight yet, how long do you want to keep it? I know a guy in this situation. He is current on his payment, but can rent the EXACT same house, 3 doors down on the same street, for $800 a month less than his house payment is. He was a first time buyer, and bought in at a bad time.

While I am not advocating it, I can see his reasoning. The foreclosure on his credit is a non issue. That can be dealt with. Looking at this house as an investment, when do you cut your losses? In my line of work (if you want to call it that), I deal with this every day. There comes a time to weigh your situation out and decide if it is worth holding or folding.


RF

[Smoked Salmon]

Originally Posted by RogueFishr

Do people really think this? The banks were not "forced" into lending to anyone.

Yeah? Maybe not, but the rules were changed, and banks had to lower the bar in order to not be liable for discriminatory lending practices. This meant they had to accept some rather unorthodox things as income, including child support payments, alimony, and other things of finite length. That may be all well and good if you are getting a 15 year fixed, and your kids are 2 and 4, and you aren't going to re-marry, but it isn't fiscally responsible to count on that income for debt repayment.

But the rules said that banks had to allow it, and some people took them up on it. I would classify that as lending to people without the means to repay.

[fishingls]

Think about this http://ca.youtube.com/watch?v=fiXwZI_YqHY