
If the initial analysis of the U.S. Treasury's $700 billion bailout plan is any indicator of public sentiment, it looks like the people may be way ahead of their public officials -- or public officials are way behind -- depending on your perspective.
There's a sense that the people who will pay for the potential bailout/intervention -- typical citizens -- aren't getting enough in return. These critics say the U.S. taxpayer should get an equity stake as collateral for the loans they may make to various banks/companies, and that the taxpayer should also share in the profits, should they occur.
Further, some question why the taxpayer is being used to bailout the very institutions that were factors in the start and growth of the financial crisis in the first place.
Still others argue why the U.S. Treasury is clamoring to secure hundreds of billions of taxpayer money to prop-up financial institutions and isn't doing more to help homeowners refinance their mortgages to lower rates, and in the process prevent foreclosures that were a major factor in the development (and continuation) of the financial crisis.
And others are wondering why CEO/executive salary caps can not be put in place. If a CEO or an executive doesn't want to participate in the bailout program for fear of not getting a large payout or golden parachute, even though it's in the public interest to do so, why should it be in the public interest to grant his/her company a loan?
U.S. Treasury Secretary Henry Paulson argues that the bailout must be large -- $700 billion large -- and passed quickly to avoid a financial system catastrophe and keep credit markets functioning.
And as Congress began to critically review the bailout plan, the dollar has dropped some, overnight interest rates have risen, and the stock market has meandered.
But here's some news for the Bush Administration: prior to the bailout plan, dollar was dropping, overnight interest rates were rising, and the stock market was not exactly confusing anyone with the 'Roaring 20s' bull market.
Keeping in mind that Congress is not likely to approve a policy the public does not support, it makes sense to find out what U.S. taxpayers / readers think.
In your view, what should the U.S. Congress do with the $700 billion bail-out plan? Should Congress:
a) Change it -- The U.S. taxpayer must get collateral or equity for the loans being offered.
b) Defeat it -- It's a lousy plan and no U.S. taxpayer money should be spent on it.
c) Approve it -- It's the best the U.S. taxpayer is going to do.
d) None of the above/something else.
**
Let us know what you think.
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Reader Comments (Page 6 of 6)
9-25-2008 @ 7:13PM
Warren O'Leary said...
These unconstitutional, racist, anti-American political parties should take this problem that they collectively created and stick it " where the sun don't shine "; these commie genocidal idiots.
9-25-2008 @ 7:56PM
alice said...
Let them fail. Let them file bankruptcy. Let us all suffer depression. So what? It is a normal cycle of any economy. Let those who started this mess suffer, Investigate them for fraud and make them pay. Why will the taxpayers bail them out. Nobody bails me out if I file for bancruptcy. Nobody gets me millions to retire. I do not make millions. Is it a case of the poor bailing out the rich? Absurd. What nonsense !!
People are suffering financially already. And we are asked to bail out the government?
How dare Paulson and Bernanke think of this scheme. I have a hunch Paulson will benefit from all of this bail out.
So I say investigate all of them for fraud.
Let these institutions fail and suffer. They caused the country and the world this mess. Do not use taxpayer money without paying it back. I will not trust the government to pay me back unless I am given an equity via a tax credit for every part of the bail-out money according or prorated to the tax I am paying.
First, congress should cut taxes to the bone. Extend the Bush tax cut. No tax on capital gains, no tax on interest or dividends, No death tax, No AMT.
Second credit the taxpayer with a share of these "bankrupt" companies, on their tax return as a tax credit. Tax credit calculated as percentage of taxes paid as long as the taxpayer is paying taxes. No tax year Limit.
This way taxpayer is surely getting paid back
Third, Form a Finance Committee to oversee this bail-out program. Put Buffett, Bloomberg and Mitt Romney in there. This will assure the Americans that there will be no chance for anyone to enrich themselves. More transparency. We would like to know where every dime went.
Fourth, Cut the golden parachutes and salaries across the board.
Fifth, Kneel down and pray every night that foreigners will not pull-out their money out of the USA. If this happens, it is worse than a nuclear war or a second 9-11.
9-27-2008 @ 7:49AM
Rich said...
Congress should vote NO! on the bailout plan. The bailout will eventually require hundreds or even thousands of times the proposed amount. Liquidating bad paper is the first step needed for recovery. Besides, in the new economy, we won't need at least half of the banks we currently have. Also, Congress should demand Bernacke and Paulson be removed from office. A list of qualified economic experts not connected to the failed companies and failed govenrment regulators should be submitted to the President for consideration as replacements. The list should only contain the names of people with a history of integrity. Finally, there needs to be an investigation whether the financial collapse was engineered by the Bush administration. The banking failure seems to follow a similar pattern of Whitehouse plans and schemes.
9-27-2008 @ 6:33PM
arthur lee davis said...
Remember The Song " Take This Job And S---- It. LIKEWISE !!!!!!!
9-27-2008 @ 11:19PM
abel said...
step 1/go to Ft Knox ... step 2/ go get 300-400 metric tons of gold... step3/ sell it to the Arabs and to the middle east and India:... problem solved with out dipping into taxpayers money Solution nuber 2), print more paper dollar and with in 3years 1US dollar will be equal to 1 Japanese yen...
9-30-2008 @ 6:24PM
GB said...
Let the two foxes, Paulson and Bernanke, guard the chickens? Ridiculous! Extremely wealthy individuals, in the government who are orchestrating this bailout scheme, don't have a clue of what the middle class taxpaying American goes through on a day-to-day basis, let alone in a crisis.
9-29-2008 @ 6:53PM
Kathi said...
My thoughts on this is, that it all started when gas prices started rising and rising some more. People have to drive to work, some further than others. Gas prices force them to quit and seek employment closer to home. If they are lucky enough to find employment, it may be a serious cut in pay, yet they are still employed. With the high cost of fuel came higher grocery and utility bills. What are you going to do??? Cut back on payments of course.I thank God my vehicles are older, bought and paid for. My house will be paid off in a year. But what about those with house payments, car loans that at the time of purchase...they COULD AFFORD it. To me this has been a snowball effect that needs to end somehow, someway but not at our expense. Not all of us have lived beyond our means.
9-30-2008 @ 6:33PM
Lyn said...
Give 700 billion borrowed dollars to crooks, thieves and liars to save their behinds from the mess they created? What a great idea! Not!!! We, the taxpayers, can barely pay the interest on the trillions of dollars this administration has already borrowed to pay for wars and enrich the elite. What happened to the billion $ in cash sent to Iraq to 'smooth the way' after 'Shock and Awe?' What about blatant cronyism such as Halliburton, Inc., with their no-bid contracts. Pols have been stealing from Social Security and other entitlement funds for years for questionable purposes and with no oversight. And Bush thought it would be a great idea to invest those taxpayer funds in the stock market! More than 600,000 jobs lost...I could go on for pages, but it would be a waste of time, because people feel their voices aren't heard. Everyone should take note of the fact that the bailout failed because of the 50 to 1 response of the people against it. Our voices can be heard if only we will make the effort. Help save the country, write in Ron Paul for President, or at the very least vote for a Democrat. Most of them at least have a conscience,
10-01-2008 @ 11:36AM
G said...
Defeat it! scrap it! Do anything but 'bail out' the greedy SOB's that got us here.
The so-called 'bailout' is nothing more than corporate welfare for those who exhibited the worst possible greed and corruption. Throwing money - our money - at the problem is what allowed this situation to get to this point in the first place and throwing more money at it won't fix it.
The pressure to lend to those who were the bad risks and the lack of consequences made an attractive honey pot for the greedy.
The lure of easy money, lax rules, non-existent oversight, and accounting 'standards' that make it all too easy to manipulate a corporation's financial picture are some of the problems that put us here.
Bailing out the ones who are responsible for this at the expense of the rest of America is wrong! Using American tax money to prop organizations - which in many cases are not much more than fronts for foreign governments - is wrong!
This whole 'bailout' is a smoke and mirrors money grab that promises to sap the life out of the heart of American enterprise - the small businesses and manufacturing plants that still manage to stay productive without all these 'creative' financing schemes.
While what happens in the stock market does have a great impact on how and what Americans can do with their finances, a collapse of these giants would probably be more healthy than propping them up and shifting the costs ot the future. Let them fail or survive on their own. If I have to put off my retirement (which until recently looked to be only a few years away) because the value in my accounts has diminished, then so be it. I have no problem working a few more years if it means that some greedy CEO doesn't get his/her fat severance or change of control payout.
10-03-2008 @ 10:35AM
Teresa Grant said...
None of the above,
I think they should bail out everyone who filed a Tax Return in 2007 with a Real Stimulus check. Like around $200,000. Uncle Sam would get his share first, people could pay the mortgage, or pay it off. They would buy cars, pay for school, pay off debt, start new businesses, the hurricane victims could rebuild or relocate, it would create jobs, folks could pay off medical bills, our children would have clothes and food, our seniors could afford their meds, some would come off welfare. And banks, retailers, everyone would be snowed under with business.
It would instantly infuse our economy. If this wouldn't work, then someone tell me WHY.
Why do we, the working American public, whe wheels of this economy always have to pay for someone else's blunders. Why did we have to pay for clean-up for the Exxon Valdez spill (among other things also privately owned), why didn't Exxon have to pay for that?
The LOVE of money is the root of all evil.