If the government had imposed better regulations and hadn't originally lowered the Federal Bank's interest rates, we wouldn't be in this situation...
If the government did a lot of things better the we wouldn't have gotton into half the messes that we have gotton into through the course of history. I personally think that it's a moot point to quible over who fault it is now when we have to find a solution to the problem before it becomes to big to handle. We can figure out who is to blame later once we're in the clear, but for now the most prudnet course of action would be finding a reasonable solution to our problems so that we don't risk slipping into anouther Great Depression.
Well, as far as I can tell, even if the government bails everyone out, the only people who will learn are the businesses. And once we're not in a bear market anymore, (hopefully soon) they'll probably just go back to thinking that the economy will only keep growing and make more bad investments.
I doubt that even half the American people could understand the fundamental economics and chain reactions behind the current problem, so they'll continue to buy mass amounts on credit and take out loans that they can't afford.
One idea I have that might help, would be to keep loans from being shuffled around and combined. Also, the U.S. needs to back it's currency like other countries do. China is backed by U.S. bonds, and so are many South American countries. When the U.S. economy fails, there's two questions:
1.) What will we do with a worthless currency?
2.) How can the world economy expect to survive when most trade is done with the dollar.
Also, one interesting fact: All oil sales are regulated in dollars. I can foresee that standard being changed to the Euro, which will also cause another economic downfall.
All in all, as much as I would hate a quick-fix solution, we need it. Now.
Personally.. I think we need to cease ALL foreign aid policies immediately.. No more Darfur help, no Africa AIDs prevention, no Asian hurricane/tsunami relief. NOTHING. Get America back in order and consider helping then.. I know we have somewhat of an obligation to help since we have the ability, but giving all we have until we have nothing is only hurting everyone..
Personally.. I think we need to cease ALL foreign aid policies immediately..
We should do that, immediate financial crisis or not. Even without the economy on a sudden verge of collapse, America has other problems that it needs to get sorted out before it can play big brother any more.
We should do that, immediate financial crisis or not. Even without the economy on a sudden verge of collapse, America has other problems that it needs to get sorted out before it can play big brother any more.
There's no logical reason to cut off foreign aid to other countries. Foreign aid represents about 1% of the total US budget. What this money represents is an investment in the world beyond just our borders.
When we build wells to provide clean water in Africa and introduce sex ed courses there to stop the spread of HIV we're reducing the chances of a major diesiese popping up that might cause major ramifications for the rest of the world.
When we help start up economies in troubled third world countries we're decreasing their immegration to America which helps our strained social systems as well as giving them a means with which to interact with the world through trade and prosper.
When we build schools in feldgling democricies we're giving them the ability to train an educated workforce who will in turn strengthen the democratic will of those people, and give them something worth fighting for rather then against.
Foreign aid is a fantastic tool when used correctly to create allies around the world who will in turn support us when we need it through positive rather then negative means. I think there are enough people in the world who hate us, and $13 billion is well worth it just for the chance that in the future, we'll have countries willing to support us rather then attempt to tear us down.
So a CEO can piledrive a company into debt (while it sponsors sports teams for millions) and he can then walk away with tens of millions in his pocket through the government? This is why I hate State Capitalism. It is just the government promoting big business. When I say I am a Capitalist, I do not support this crap in any way.
Even if the amount of foreign aid we give isn't a large percent, its still a percent. We could use that money to do a small jump start on a company and maybe keep from having to bail them completely out.
Basically this decision to aid businesses is totally crazy. Come on, the Bush Administration has screwed up a lot of things. And now they are going to give $700,000,000,000.00 to bail people out. This IS a critical moment in the history of the U.S. if not a turning point. What they should do is lend it out with interest. If not, the government should at least take a certain percentage of the profit that the companies will make off of this.
If you ask me this looks more like an act of desperation. I just pray that this goes well, and if not then that'll be the end of everything. Like it or not businesses will still continue to act in their own interest. I'm with thelistman on this.
