Fed Bailout Rejected, Now What's Going To Happen?

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  winteroak09/30/08 Report as spam
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  RE: Fed Bailout Rejected, Now What's Going To Happen?

  bailout was obviously a poor idea, you cannot spoon feed corporates who cannot look after themselves. They pay fancy salaries to their talentless managers & ceo's & if this is what they stand for they better close down & go fishing, period!

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  WELPLEON09/30/08 Report as spam
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  RE: Fed Bailout Rejected, Now What's Going To Happen?

  I believe the top management team at companies who accept bailout funds should have their salaries slashed by 50 percent until the money is repaid. Bankrupcy laws should be changed with a similar provision and any executive who chooses to leave a failing company would not be entitled to any severenc package. It may not solve bad management, but it would inflict some pain. Better than we have now.

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  rlamie09/30/08 Report as spam
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  RE: Fed Bailout Rejected, Now What's Going To Happen?

  If voters were angry, they knee-jerked in a way that will hit them right in their own face. The bailout plan was not pretty. But it was something. Now the crisis is worse. What's at stake goes beyond the salaries of fat cat CEO's. Congress members wanted to save their own jobs, but unless a rescue plan is implemented soon, hard-working American's will be out of work. If we didn't want to pass the rescue plan to punish Wall Street and CEO's -- we really wound up punishing ourselves.

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  jcinquiry09/30/08 Report as spam
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  RE: Fed Bailout Rejected, Now What's Going To Happen?

  The government cannot afford to buy worthless paper. Why can't they use the model of Sweden in the 1990s. In Sweden, bank shareholders were wiped out when the government took ownership - meaning they bought the stock, not the liabilities. Then later they sold the stock to pay back the taxpayers. It should be no different here, unless we don't mind letting all the rich people who created this mess off the hook, and picking up the tab for it.

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  mr197209/30/08 Report as spam
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  RE: Fed Bailout Rejected, Now What's Going To Happen?

  1. These managers thought they were economic samurai warriors. They deserved their high salaries and perks because they were talented. I have no problem with this as long as they stay committed to their economic Darwinism. A bail out is basically an admittance that capitalism doesn't work. Let the market shake out the losers. Who ever is left standing will be the strong.
  2. Public money should not be used to bail out private wealthy people. Work hard, get rewarded and take the bad with the good. Why should my money go to prop up failure? If the economy goes into depression then may be as a society the American (and world) people will find a better way of doing business. Anything else is just tyranny with a fancy label. A small group gets everything with out working for it. Horray for oligarchy!*sarcasm*

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  msalvatini09/30/08 Report as spam
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  RE: Fed Bailout Rejected, Now What's Going To Happen?

  As the late George Carlin would say "I love entropy!"
  reader mr1972 is close to on the money. The lending industry has had so many regulations passed that allow it to destroy creditors who make mistakes, miss a payment,and in anyway interfere with their ability to make the maximum amount of money on their lending. Now the shoe's on the other foot and the taxpayers/creditors are supposed to bail these monkeys out. I vote for financial Darwinism.
  And for those of you saying last time it took a world war to get us out of it, remember, we already have a war, several in fact, and WW2 accelerated the recovery which was happening albeit slowly.
  
  reader rlamie, the unemployment is coming regardless of the bailout plan. When your house takes ~50% of your income, you're not going to have much to spend elsewhere, and the companies manufacturing those other items are going to downsize. The unemployment issue will in turn increase defaults; foreclosures; etc. It's not meltdown or not, it's rate of the melting.
  The fundamental issue is that houses are way over valued as an asset. As in industry, you've got to write down your inventory to what it's really worth. Lenders do all the time when you borrow; what's the value of the asset used a collateral? When companies overvalue their inventory, they have to write it down, which in turn affects their profits and performance. Lenders have to do the same. Those with assets appropriately valued will not have a problem, those that don't are in deep trouble. You don't need another lender (the USA taxpayer) to make up the difference, since the difference is fiction. If it was you, the lender would assess your asset value. No one is going to lend you $40 for a $5 item and my point of view is my taxes and government are not in the business of covering that fictional spread.
  Quietly, congress has passed a 35 billion bail out for the auto industry this month for them to modernize their plants and make fuel efficient cars! I grew up believing companies plan for obsolescence and market changes. If they didn't they failed. Happens to small business every day and in history many large ones too. How many household brands have simply ceased to exist because they simply were badly managed.
  It will be painful to trim off all these dead, diseased and decaying branches. The tree will be healthier for it, and we'll get these companies and their management, and the politicians who support this scheme out of the business gene pool.
  I consult to companies in this this and other sectors. The top of the pyramid for the most part isn't a brain trust; just like inside the beltway!!!

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  murphy47909/30/08 Report as spam
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  RE: Fed Bailout Rejected, Now What's Going To Happen?

  Let's look at what is making most Americans angry. The majority of them are hard working responsible people. They pay their bills and attempt to work within a budget in a world where they don't control the costs of services. They are tired of the US Govt rescuing failed businesses. Business is a risk. We are stupid for living in a credit driven economy to begin with. The average American has no recourse if they over extend themselves or fail miseralby except to file bancrupty. Why are megacorporations allowed to operate with a different set of rules? It's time for a shake up and maybe it is time to stop bailing out companies that have been operating to fatten their bottom line at the expense of the American people.

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  janice@...09/30/08 Report as spam
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  RE: Fed Bailout Rejected, Now What's Going To Happen?

  Why not let each of the lenders who made the bad loans just file for bankruptcy? That way the creditors will have to deal with the losses rather than taxpayers in general. Taxpayers did not incurr the debt or allow the risks so they should not be held accountable for it. Yes, stockholders of the individual companies will loose their investment but that's all part of taking the chance in buying the stock in the first place. We, as taxpayers, have no business bailing out any company from under the bad debt they allowed.
  Just my two-cents worth....

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  Gardentools09/30/08 Report as spam
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  RE: Fed Bailout Rejected, Now What's Going To Happen?

  If the equivalent amount of time and resources spent over the last two years on the presidential nominations, were applied to entrepreneurial activities, retooling, reeducation and developing new markets/products, there might not be this crisis..... eh

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  securelink10/01/08 Report as spam
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  RE: Fed Bailout Rejected, Now What's Going To Happen?

  Democrats beware. You wanted congress to extend credit to bad risks and now the Republican Admisistration is trying to clean up your mess.