Personally, i was against the original $700 billion bailout, then when it happened, i was like "OK i will let this one slide".
But then like, the big cheese goes all Sovi on us and is like "Let's bail out other big companies". So then i started to get pisses.
Then they bailed out the auto companies, and now i am practically S***ing myself over it.
I don't think this is going to work, you can't print money out of nowhere and expect it to solve you're problems. We are completing ditching the gold value system, which is really the only way it works.
What do you think, re we just screwing ourselves over more with all these bailouts?
If it wasnt for these bailouts the banking system would have colapsed completely and then we'd be in even more trouble. Baling out these big companies saves thousands of jobs and helps keep the economy going. They didnt print money, they used the $ from the federal reserve. Prinitng out the money would have lead to hyper inflation like in Germany in 1923, they arent that stupid.
The first 700 billion dollar bailout was necessary. Without that, the nations net worth would have dropped around 80% or so. Millions would not only have lost their jobs, but their retirements and any saved wealth.
As far as the motor industry, I'm not for it. Let them collapse, go bankrupt, and whatnot. It's not the government's job to bailout every large company that starts failing.
The government hasn't bailed out everyone though. For example Lehman Bros who it let go under, but i agree that it shouldn't save evryone otherwise there is no risk for these companies and they will just do it again.
As far as the motor industry, I'm not for it. Let them collapse, go bankrupt, and whatnot. It's not the government's job to bailout every large company that starts failing.
If we do that, then millions of people shall be without a job. I say we have to save these big companies. If we let millions of people to experience a loss of jobs then that would significantly slow down the economy.
In my Economics class, I have learned that if more and more people have jobs, then that would increase spending, and if spending increases, then that shall boost the economy.
My question is... why would we just sit down and let millions go unemployed?
My question is... why would we just sit down and let millions go unemployed?
The money the governent uses to bailout these companies is a finite resource and they cannot afford to bailout everyone. If they do they remove the risk factor involved in descisions made by companies. If each corporation knew that they would get bailed out regardless of what they did many would take more risks and stupid descisions leading to more collapses.
I think it's a good thing that they considered certain companies for a bailout because otherwise so many jobs would have been lost and the economy would be much more difficult to fix. Of course they shouldn't be bailing everybody out and companies should not rely on that as their safety.
Also, good point Woody. They don't just print money. They let the companies borrow it from the reserve. And printing money would cause even bigger problems.
I think it would be better for the auto companies to not receive a bailout and to go into chapter 11 bankruptcy. They shouldn't be given some cash and told to go on their way, or they won't change much. But if they are on the edge of closing, they will change as much as they can to stay alive, and what they need to do is change their ways, methods, close less profitable divisions, and redesign their infrastructure for profit, better car designs, and products that would be in higher demand could also be improved. The Japanese auto makers are kicking their butts right now, because the big 3 ave been lazy and stubborn in trying to push the same type of cars, when obviously the world market has changed and evolved for a demand in smaller, more efficient vehicles.
Crazy_Chris_84, I'll reply to your question when I have more time to post =P, but the gist of my answer would be, sure we're giving up a bunch of jobs right now, but what's stopping the US auto industry from asking every quarter for more money from the government? See, the US auto industry has been failing in every market (losing out mostly to Japanese cars) except the pickup truck segment. They go year after year posting losses, and then they ask for bailouts. What they need is a full on Chapter 7 (11 is too hardcore right now) restructuring of the company to focus on target markets and R&D. But more on this later.
BTW, did you adopt my quoting style by saying "Posted by X" in bold, and then the quote after. hehehe, I like it. =D
At the rate they are going eventually they will be printing it from nowhere.
Also, as was stated, this is just a quick temporary fix. Many jobs are going to be lost and wiped out eventually, and then the economy will just have to respawn by itself. I think delaying this process will just make it even worse, and we just need to accept the consequences and get it over with, in stead of delaying what is imminent.
"A person is smart. People are stupid." - Lee Jones, 1997. A white Confucius. I calls em as I sees em.
Anyways, we needed media coverage of the economy getting better. They shouldn't call it the bailout plan. They should it the "Get rich quick scam *ahem* plan". See, the news predicting we are going to have financial issues mean it's going to get worse. We hear this and we think of ourselves instead of the global issue. "I need to put my money away" or "I'm not going to buy anything" means only bad news for companies and banks. It's a domino effect. I bet falsely announcing there would be a 700 billion dollar bailout would but almost as effective as actually doing it. People freak out about every single little blemish on the face of great ol' US. We're going to have ups and downs.
To reply to the thread. No. The media is screwing us. For once, Gov. > Med.
See, the news predicting we are going to have financial issues mean it's going to get worse. We hear this and we think of ourselves instead of the global issue. "I need to put my money away" or "I'm not going to buy anything" means only bad news for companies and banks.
I seriously doubt it's the fault of the media. People hear what is being reported and get rightly freaked. Should the media cover up the financial crises so people are shocked and sidelined when they lose their job? Sure it's going up and down but at this moment it's down. Nobody is spending money because nobody has money to spend. It's too bad that companies are doing bad but with rising food prices when it comes down to junk and food or useless crap and rent, people are going to either hoard their money or spend it wisely.
How many people are employed by the car companies? How many towns in America are defendant on some kind of automobile factory? Not giving the auto makers the bailout money does not punish the CEOs or the owners. It punishes the blue collar workers who live paycheck to paycheck. Sure lets give it to this financial organization so their CEO can spend 300K on a vacation. Lets not give it to Blank Auto company that employs literally tens of thousands of real people. I'm sure those people, now laid off, will be happy their taxes didn't go to some bailout.
I seriously doubt it's the fault of the media. People hear what is being reported and get rightly freaked. Should the media cover up the financial crises so people are shocked and sidelined when they lose their job? Sure it's going up and down but at this moment it's down. Nobody is spending money because nobody has money to spend.
That's irrelevant on a level. I didn't blame it on the media. I argued that the media worsens it. And if you mean that, doubt as you wish, but there is no way it motivates people to spend. Nothing stays neutral so the process of elimination says its producing a negative effect. Also, we do have the money to spend. You say you don't but you do. It's a chain effect. Don't spend money, you'll need to save up more due to the stick up the butt of the economy. You're just pushing it up some more to help yourself. This all supports Lee Jones. A white Confucius of his time indeed.
Sure it's going up and down but at this moment it's down.
Don't impose. I wasn't saying it was going up.
Also, kris, what are you imposing on your last paragraph? You seem to be going both ways. Are you pro on The Big 3 bailout or not?
yes the American government is hurting the citizens more with this bailout. For one if the banks are having trouble how can they pay back a lone? Second of all the government is going to raise taxes for poor people and middle class not the wealthy. 3rd of all the more paper money we print the less value it'll have so if we keep printing 1's for their greedy little hands a 1 will equal about .50 cents.
How many people are employed by the car companies? How many towns in America are defendant on some kind of automobile factory? Not giving the auto makers the bailout money does not punish the CEOs or the owners. It punishes the blue collar workers who live paycheck to paycheck. Sure lets give it to this financial organization so their CEO can spend 300K on a vacation. Lets not give it to Blank Auto company that employs literally tens of thousands of real people. I'm sure those people, now laid off, will be happy their taxes didn't go to some bailout.
I'm not quite understanding your tone and point of view here. When I read it I feel like you're comment is sarcastic in the beginning, but serious at the end. Yeah, sorry, don't know how to interpret this one.
Obviously, you say that the owners and CEOs should be punished. I agree that upper management should definitely take the brunt of the blame, but the owners? You know who owns the Big 3? People like you and me. Almost anyone who has a balanced and diversified stock portfolio. Mutual fund investors. Lots of people own a stake in the Big 3, but I don't see why they need to be affected even more than they already have been, financially that is.
And sure, the workers are the one's with the short end of the stick here. They're losing out because of bad management and structure of these companies. Is that their fault? No. Are they going to suffer? Yes. That's just life though, as sorry as it is.
I'm still against all these bailouts. Let them go broke. Let them fire all their workers. WHAT ARE YOU TALKING ABOUT CRAZJAYZ!?! Yeah, you heard me, fire all of them. Why? Theses are blue collar worker we are talking about. They will always find blue collar jobs. If the Big 3 were out, they would probably be working for defense contractors, or even upstart US auto companies. As sorry as I am to say it, they are known as human capital, and they are expendable. Now, if one (or all) of the Big 3 are able to pull their game together, then they can start rehiring these workers, minus unions, with fair benefits. As I said, filing for Chapter 7 bankruptcy is a must.
