Tuesday, September 30, 2008

A Question on the Bailout

Just out of curiosity -- do you think Congress should vote to pass the $700B bailout? I have my own opinion on this and apparently there is a great deal of disagreement among the constituents and elected officials. What do you think? If you think yes, why and if you think no, why?

This has is a totally non-election related, non-partisan question.


Steve Malley said...

If you're gonna have a major fat-cats-stole-everything-and-now-they-want-more meltdown, I can't think of a better time to have it than the month before a major election.

I'm glad to see that the initial plan tanked. I'll be happier still if the average struggling homeowner gets a little help instead of the standard corporate welfare package (which usually includes a nice Happy Ending for the chief thieves...).

Un-American, I know.

Julie Layne said...

Ha, you and me, the eternal bipartisan night owls up worrying over the bailout while the rest of the world sleeps. (Probably the politicians, too.)

I just blogged on this over at my personal blog (not my writing one) a few minutes ago. Pretty much asked the same question, although I linked to a couple of opinions sent my way during the day today. They both make a modicum of sense, and they have totally opposing solutions.

I. have. no. clue.

steve said...

I'll trust Obama's judgment and say yes. From what I understand, the banks and money men are in a panic, having bought pigs in a poke, and now are afraid that maybe those pigs are just large rats.

From what I understand, maybe 3 percent of houses in the U.S. are in foreclosure or are threatened with foreclosure. Things are worse in Detroit, Las Vegas, Miami, and such places, but in fact, the panic is simply typical of money men. Unfortunately, they can wreck the economy by refusing to lend to each other.

Because the money men are threatening to hold their breath until the economy turns blue, one would like to call their bluff. But the way markets work, or don't work, we'd be hurting ourselves. Better to buy the debt and then sell it back in a few years, while restoring the kind of regulatory system that will prevent this kind of thing in the future.

Charles Gramlich said...

On a moral level, no I don't think it should pass. On a level that says let's keep the economy going I think some version of it, probably should pass, and almost certainly will before it's over.

Lisa said...

Steve M, In the time since I posted this (less than 24 hours), I think I am getting more comfortable with the idea that this will/maybe has to pass, but only because I think it's finally being written in a way that will provide us the most protection. The signs are also clear that the impact is starting to hit real people too.

In principle, I oppose it. If we're going to sanction socialism, I'd just as soon get something out of it -- like universal healthcare.

Julie, You know I am sure the two of us could solve many problems if given enough time :) I read those links and they helped some. Each day, more information comes out that helps in understanding this better I think. As long as the new President has the power to change whatever they do now, I think I'm ok with it.

Steve W, That's the sad part, isn't it? The market could fix this on its own if it had the will, but why bother when you know you're going to get a handout?

Charles, I'm with you.

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