Maybe the bailout is the right thing to do

Discussion in 'Economy' started by Ravi, Oct 2, 2008.

  1. Ravi
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    Ravi Diamond Member

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    Interesting article in the NYTs that explains why the bailout is really needed, and it doesn't have much to do with saving the asses on Wall Street.

    If banks don't feel comfortable loaning to each other, no one gets credit, for one. People stop buying things, businesses can't pay their employees.

    http://www.nytimes.com/2008/10/02/b...1222956540-2Det0ggd1c6+1EnmvNEvsA&oref=slogin
     
  2. DiamondDave
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    This IS more about the credit market than Wall Street...

    Still does not make it the job of the government to do this..

    People who work and succeed... who do not fuck up and buy more than they should... will still get the credit... Businesses who earn profit and do things the right way will still get the credit.... good business is good business... it is the fucked up people buying above their means and extending their credit, and the businesses doing the same, that will suffer if no bailout comes
     
  3. Ravi
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    Ravi Diamond Member

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    Did you even read the article?

    I do everything right, and yet if gone uncorrected this entire mess could hurt me just as much as it could hurt Joe Podunk that bought a McMansion...why should I suffer for things others have done?
     
  4. DiamondDave
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    Business will still do and seek out good business... if it will be profitable to extend you some credit, a business WILL indeed do it... as long as we still have a free society and economic system

    Now without government mandate to loan to losers who have no ability to actually pay back and who would never normally qualify for a loan because of the high risk and bad business evaluation... some individuals may suffer in getting loans... but.. nobody has a RIGHT to credit..

    It is not the government's place or job to do this... unless you believe in increased governmental control over your life... service to the state.
     
  5. WillowTree
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    WillowTree Diamond Member

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    It was not the right thing to do and every single Senator knows it. They said so before they voted for it. They said they did not like this bill. So why if it is so right did we the taxpayer have to pay six million dollars to toy arrow makers?
     
  6. Ravi
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    Ravi Diamond Member

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    No, but I do believe the government should correct the mistakes it has made. And as far as I can tell, this mess is directly attributable to the government's lack of regulation.

    A bank won't extend credit if it cannot get it itself.
     
  7. DiamondDave
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    No.... the mess is more directly attributed to government mandates such as CRA... bad loans... forcing banks to be required to give out loans it normally would not... and then now us bailing out those same bad loans with even more taxpayer money

    Business will ALWAYS seek out good business in a free system with a free economy... that is the nature of business.... so if credit is profitable, it would be extended by business.. the business WOULD find a way to gain the profit than can be derived
     
  8. Ravi
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    Ravi Diamond Member

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    Nope, there was no force involved. Rather there was a lack of oversight. Even if that were the truth, which it isn't, it would still be the government's responsibility to clean up it's own mess.

    Show me where this has ever worked.
     
  9. DiamondDave
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    yes.. there WAS indeed force involved... many of these loans are REQUIRED in the legislation... read again, Ravi

    Good business will always seek out good business opportunities... it is the nature of free business.. whether you wish to believe it or not, Ravi
     
  10. Ravi
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    Ravi Diamond Member

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    sigh...show me...we've done exhaustive threads on this very topic. Nowhere is it written that banks were obligated to loan out money to people that cannot pay it back.

    So it's never actually been done before, is that what you are saying? Sorry, I don't by the libertarian pipe dream. As far as I know it has never been successful.
     

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