No Bailout for Wall Street Billionaires Ten Reasons to Oppose the Wall Street Bailout

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    Sep 30, 2008 1:22 AM GMT
    FEEL FREE to add a few more!!!
    Ten Reasons to Oppose the Wall Street Bailout


    1. In a market economy capitalists justify their profits by the risk of losses that they take. Gamblers cannot keep their profits and pass their losses to the taxpayers. They have to take responsibility for their bad decisions.


    2. Much of the toxic (garbage) debts were based on fraudulent practices – opaque financial instruments unrelated to real assets (but which generated huge commissions). Bailing out swindlers only encourages more swindling.


    3. The US Treasury will purchase worthless paper, the private banks will retain any assets of value. We buy the lemons, they drive the Cadillacs.


    4. The chance of the Treasury recovering any value from their purchases of bad debt is near zero. The taxpayers will be stuck with paper with no buyers.


    5. The long-term effect of a bailout will be to double the public debt and undercut funding for Social Security, Medicare, Medicaid, education and public health programs while increasing the tax burden of future generations.


    6. The dollar will devalue as the government debt will decrease its attractiveness overseas, increasing the cost of imports and resulting in an inflationary spiral which will further undermine working people’s living standards.


    7. The channeling of funds to Wall Street will divert funds from getting us out of this deepening recession.


    8. The bailout will deepen the financial crisis because, according to the Director of the Congressional Budget Office, it will expose the fact that many institutions may be carrying many more ‘toxic assets’ and reveal that those institutions are not solvent. In other words, the Treasury and Congress are freeing up bad debts to insolvent institutions.


    9. The bailout is aimed at facilitating lending; but if the problem is not credit but (as the Congressional Budget Office has shown) the insolvency of the financial institutions, the solution is to create solvent financial institutions.


    10. The bailout totally ignores the financial needs of 10 million homeowners facing foreclosures; the bankruptcy of small enterprises facing a credit crunch and the loss of workers’ jobs and health plans for their families because of the recession.

    From this URL
    http://globalresearch.ca/index.php?context=va&aid=10362

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    Sep 30, 2008 4:23 AM GMT
    I'm not sympathetic to the homeowners who got the sub-prime loans and then defaulted. They deserve to be out on the street and the bank officers who approved the loans ought to be in jail.



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    Sep 30, 2008 4:30 AM GMT
    John43620 saidI'm not sympathetic to the homeowners who got the sub-prime loans and then defaulted. They deserve to be out on the street and the bank officers who approved the loans ought to be in jail.


    Is this to say you support the other 9 reasons, John?
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    Sep 30, 2008 4:35 AM GMT
    John43620 saidI'm not sympathetic to the homeowners who got the sub-prime loans and then defaulted. They deserve to be out on the street and the bank officers who approved the loans ought to be in jail.





    Now...Now...Now...These are just ORDINARY types. We need to remember that many do not have the survival skills of us Gay Boys!!


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    Sep 30, 2008 4:53 AM GMT
    does anyone know if section 8 was ever removed??? the part about no judiciary oversite??? as long as section 8 is in, there's no way they can pass a bail out. it is inconceivable that someone should be given 7$700,000,000,000 with no pressure to do right.
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    Sep 30, 2008 4:59 AM GMT
    dancerjack saiddoes anyone know if section 8 was ever removed??? the part about no judiciary oversite??? as long as section 8 is in, there's no way they can pass a bail out. it is inconceivable that someone should be given 7$700,000,000,000 with no pressure to do right.


    I do have news....a friend of mine in Colorado told me today that she heard..."this can be fixed with less than 35 Billion"....now I wonder who's being taken here....
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    Sep 30, 2008 5:00 AM GMT
    dancerjack saiddoes anyone know if section 8 was ever removed??? the part about no judiciary oversite??? as long as section 8 is in, there's no way they can pass a bail out. it is inconceivable that someone should be given 7$700,000,000,000 with no pressure to do right.


    I have no idea about that section 8. Here in SF Section 8 housing is low income, government subsidized housing, though not subsidized by much. Even now, there is about a 2000 person (5 year) wait list, and that was back in April when I called downtown to get a referral underway for a patient (refused it anyway). Times are tough for those that aren't even homeowners.

    And yes, Jack, like you I'm feeling outraged over that no oversight thing.
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    Sep 30, 2008 5:11 AM GMT
    Azstreaker said
    dancerjack saiddoes anyone know if section 8 was ever removed??? the part about no judiciary oversite??? as long as section 8 is in, there's no way they can pass a bail out. it is inconceivable that someone should be given 7$700,000,000,000 with no pressure to do right.


    I do have news....a friend of mine in Colorado told me today that she heard..."this can be fixed with less than 35 Billion"....now I wonder who's being taken here....


    Hey, AZ, do you know the source? I had heard that Paulson or someone else in the inner circle said that they arbitrarily chose the $700Bn number because it was sufficiently big enough to calm the markets.

    Otherwise, it's the oversight thing that bothers me the most. There MUST be strict guidance and accountability, regardless of the dollar figure.

    John, gotta love your compassionate conservatism. Predatory lenders didn't dupe anyone. Nope, couldn't be.
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    Sep 30, 2008 5:12 AM GMT
    PS: You don't suppose that, if people had listened to Hillary months ago, we'd be in a different place now? She called for a foreclosure moratorium. If the housing crisis is really at the root of this, wouldn't it make more sense to shore up those at-risk loans? Even Ben Stein thought that was a good idea on Larry King, tonight.
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    Sep 30, 2008 5:14 AM GMT
    It's not a bailout. This is to help the avergae person. If the feds do not bail out the banks , average people and small busineses will never be able to get loans for cars, mortgages, credit cards or personal loans. The economey will be doomed. It has to happen with but some restrictions/regulations for the greedy corporate and wall street people
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    Sep 30, 2008 5:16 AM GMT
    ruck_us said
    Azstreaker said
    dancerjack saiddoes anyone know if section 8 was ever removed??? the part about no judiciary oversite??? as long as section 8 is in, there's no way they can pass a bail out. it is inconceivable that someone should be given 7$700,000,000,000 with no pressure to do right.


    I do have news....a friend of mine in Colorado told me today that she heard..."this can be fixed with less than 35 Billion"....now I wonder who's being taken here....


    Hey, AZ, do you know the source? I had heard that Paulson or someone else in the inner circle said that they arbitrarily chose the $700Bn number because it was sufficiently big enough to calm the markets.

    Otherwise, it's the oversight thing that bothers me the most. There MUST be strict guidance and accountability, regardless of the dollar figure.

    John, gotta love your compassionate conservatism. Predatory lenders didn't dupe anyone. Nope, couldn't be.


    I can't remember the name exactly. I was more concerned about the 100,000.00 deal I lost...LOLL......

    In any case, I will call her and ask. I think it was some old economist who was in the Carter years. I kind of heard something similar on NPR....but not exact...I am still not over my big deal ..LOSS gosh Dam it...

    BTW...it had nothing to do with current economic issues such as getting CREDIT!!!
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    Sep 30, 2008 5:23 AM GMT
    nycusa05 saidIt's not a bailout. This is to help the avergae person. If the feds do not bail out the banks , average people and small busineses will never be able to get loans for cars, mortgages, credit cards or personal loans. The economey will be doomed. It has to happen with but some restrictions/regulations for the greedy corporate and wall street people


    I am no longer average...I was and I did not need a car loan. I survived. I drove a sharp, but paid for old babe blue Volkswagen Beetle Convertible....I paid cash. I saved my firkin pennies.

    The excess needs to be trimmed. Credit should be cut. So many can take mass transit. I did!!

    The economy will be tight...not doomed. There will always be mortgages, you will just have to qualify and really be able to pay for it.

    Doomed...was long before this bailout in any case my friend....

    I save and pay cash for everything I own!!
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    Oct 04, 2008 3:22 PM GMT
    With all due respect, this issue is not about you, or me or anyone else on RJ and how well (or badly) we have managed our finaces. It is about the world's financial system. The $700 billion dollar plan is not perfect, but it is likely far better than the alternative which is running the risk of a far more expensive deep world-wide recession. Most opponents of the plan think the $700 billion is simply money down the drain, it is not. It may not fix the problems that are now freezing the credit markets, but it is a step in the right direction.
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    Oct 04, 2008 3:31 PM GMT
    SurrealLife saidWith all due respect, this issue is not about you, or me or anyone else on RJ and how well (or badly) we have managed our finaces. It is about the world's financial system. The $700 billion dollar plan is not perfect, but it is likely far better than the alternative which is running the risk of a far more expensive deep world-wide recession. Most opponents of the plan think the $700 billion is simply money down the drain, it is not. It may not fix the problems that are now freezing the credit markets, but it is a step in the right direction.


    Yes, action was needed, but they didn't address the core issue: The foreclosure crisis and falling home values.

    I also believe that Congress should appropriate at least $500,000,000 of these bailout funds to provide immediate relief to consumers who are facing foreclosure. This fund would be used to provide these consumers with up to $5,000/ea. to forestall any immediate risk of foreclosure. Then, the federal government should pressure Freddie and Fannie (and potentially all financial institutions) to work with these consumers to restructure mortages so that consumers can keep their homes. This restructuring could also include reduced payments for the first two years of the loan without additional penalties or interest.

    In addition, Congress should immediately address the following:

    * Reform Bankruptcy Laws
    * Provide a Stimulus for Main Street
    * Make Wall Street Speculators Pay for the Bailout - No More Debt
    * Rein in the Unregulated Financial Sector


  • kaccioto

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    Oct 04, 2008 4:55 PM GMT
    This bailout will benefit me tenfold in comparison to my hockey-mom joe six pack counterparts.

    That said, you don't give a drunk another drink to kill his hangover.
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    Oct 05, 2008 3:40 PM GMT
    In addition, Congress should immediately address the following:

    * Reform Bankruptcy Laws
    * Provide a Stimulus for Main Street
    * Make Wall Street Speculators Pay for the Bailout - No More Debt
    * Rein in the Unregulated Financial Sector


    I don't disagree with any of these points (except maybe #3 which is likely unworkable), but crafting regulation and stimulus packages that make sense will take time, something that unfortunately is lacking.

    I would wonder if it is possible for some oversight to occur over the mortgage instruments that lending institutions develop. Some of the variable rate mortgages were bizarre to say the least. Basically the home had to keep going up in value for them to not become punitive.

    Also I believe the US should remove the ability to deduct mortgage interest payments from taxes. This will discipline homeowners to pay off their mortgage sooner, and help reduce the national deficit. The US maybe the only economy in the world where interest on the mortgage can be deducted from income tax.

    Overall this crisis could be a turning point for the US economy. Consumers and businesses having been taking on too much debt over the past 20 years (mortgages, credit cards, etc.). So much so that it now stands at around 350% of GDP compared to 150% of GDP in 1980. Another words Americans have been living beyond their means and will have to scale back. This process will be painful for the world's economy, but in the long run both the US and the world will likely be better off.
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    Oct 05, 2008 3:47 PM GMT
    John43620 saidI'm not sympathetic to the homeowners who got the sub-prime loans and then defaulted. They deserve to be out on the street and the bank officers who approved the loans ought to be in jail.





    Isn't it funny how Republicans always show their true colors when confronted with the problems of ordinary people?
  • swimbikerun

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    Apr 29, 2009 12:22 AM GMT
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