700 Billion is too much
Submitted by fresnoise on Thu, 09/25/2008 - 08:57.
What is 700 billion?
I know what a million is. I kind of know what a billion is, but I can't quite understand what 700 billion is. Except to say that 1000 billion is a trillion and the GDP of the US is approximately 13 trillion annually.
http://en.wikipedia.org/wiki/United_States
The Bush administration wants a huge chunk of our national GDP to bail out Wall Street. But, it was the "free market" and "deregulation" philosophy of the Republicans that got us into this mess. But now the free market needs help from the government to bail them out. The same government that they railed against who needed to get out of the way to create a business-friendly atmosphere.
So, with a Republican congress and White House in total control for six years (2000-2006) they passed, over the objections of the Democrats these laws deregulating banking. And now it has brought a financial crisis similar to the Great Depression of 1929.
The last time public confidence in government was this low was the Nixon administration:
http://www.gallup.com/poll/110458/Trust-Government-Remains-Low.aspx
Bush has governed through fear and in a crisis he always wants a really big decision made quickly without debate, with no oversight and with enormous cost.
I still think there should be
big reform when it comes to this issue. I heard the term no more Golden Parachute though, that's a start.
I'm not sure I understand completely, but right now do I understand that the Fed will own mortgages? This might be the only thing that sounds good about this ordeal to me.
A 300k mortgage might look like this at 6% interest over 30 years.
Your monthly payment will be: $1,798.65
Total Interest Paid Over Life of Loan:
(Assuming No Pre-Payment) $347,514.57
Average Monthly Interest:
(Assuming No Pre-Payment) $965.32
50/50 Point: April, 2027
End Point: September, 2038
Approaching this from the business standpoint, this is the angle the Fed needs to take, turn 700 Billion into 1.4 Trillion. This I can accept.
This is based on the understanding that the Fed will own mortgages, though. So I could be way off here.
Diablo
It's all about trust
My initial reaction, and most everyone in the public was a resounding NO to the 700 billion dollar bailout. But, since I have heard Pelosi, Reid, Feinstein, Frank and others in leadership in the House and Senate explain it, the bailout is relatively small compared to the financial holocaust that could happen if we let these major financial institutions fail. Financial institutions that our system and the whole world is based upon. They explain that if we do nothing and let them fail it will hit main street with a devastating ferocity in 2-4 weeks.
It's all about trust. And I am going to trust the leadership of the Congress on this one. They know more than I do.
It's interesting that the resistance to the bailout comes from the far left, such as Rep. Lynn Woolsey of Santa Rosa CA and the far right, such as Rep. Louie Gohmert of Longview TX.
http://woolsey.house.gov/
http://gohmert.house.gov/
I say no
for a few reasons.
The largest reason is because those greedy people got themselves into this situation taking advantage. This is what they get, and somehow one has the feeling they knew someone had their back the whole time as well.
I don't know the whole story and probably not too many people do. But from what I understand.....fix the system, let them sink.
Diablo
Where will the $700 billion come from?
Correct me if I'm wrong, but isn't the $700 billion dollars going to simply be printed out of thin air by the (privately-owned corporation otherwise known as the Federal Reserve Bank?
And won't this flood of dollars then lower the value of the existing money supply and, thus, drive inflation through the roof?
Again, how will this help the little gal and guy?
300 Million
that 700 Billion could buy every USA citizen (300 Million) one new Tata Nano Car and a few tanks of gas for it.
http://en.wikipedia.org/wiki/Tata_Nano
With all the Wall Street bailouts combined 1 trillion or so, every American could have the best Health Care Insurance Possible for a year or more.
I will now 'suspend' my comments. LOL
Post new comment