Economists: Pass bailout bill with an equity stake for U.S. taxpayers

I agree an "equity stake" should be realized but equally and possibly more importantly there should be an investigation as to how the sub-prime loan and credit situation arose, who is responsible (yes some Congressional people are at fault here too) and then penalties for corporate management (Freddie and Fannie), bonus money returned, and for the guilty serious penalties. There is plenty of blame to go around both sides of the asile.

By the time that bailout plan finalizes, that $&*%* is going to hit my @$$ stone cold and I am gonna cry that I'm dry broke, cause all kinds of new special taxes are going to come into play


www.ShawnDrewry.com

The ideal would be to inject cash for preferred stock and warrants. Leave the (toxic) assets on the books of the present owners to work them out.

The equity position of the government should be enough to control the boards (of directors) and replace executives as needed.

I am a voice of dissent. Additional bail outs will solve nothing. I agree that we (our government) should try to stabilize markets, however they have been in too little, too late mode. The problems have been evident for at least 9 months and totally ignored.
It is now too late for bail outs to have much lasting effect. Here is what they are trying to correct:
The Housing crash - the signs that this catastrophe would happen have been all over, especially in very public advertising regarding how simple it was to obtain financing. It was a recipe for a large part of this market to be essentially renters. Since renter has no equity they can easily just walk away. All the while, the move was toward more luxury and higher prices which in turn inflated the entire market to unrealistic levels.
Wall St.'s credit problems - they are 90% the result of the free and easy money pumped into housing.
It is simply a case of greed begets more greed. Why should the taxpayer support this?
The increase in the price of oil - It has been with us for more than 9 months and the same for the majority of the world. We are a nation that depends on imports and inflation is already present. Currently, it is somewhat stable, but it will return early in 2009.
Job losses - they have been extensive, both here and in the U.K. If people are not working - they consume less, just common sense. This area will only get worse as any bail out money would only reach the top echelon.
The only real fix here is too raise rates and force the price of oil back down, as it is the key. Whatever the case, this is going to take a long time to rectify and the bulk of the hard working public is sure to bear the cost.
That being the case why bail out those that created the mess? It is a no win situation - the end result is the same no matter which path is chosen.

We oppose all bailouts of private business period. If this crashes the economy so be it. Amercans need reminded that the Republicans brought us the first Great Depression and what it was like. Clinton left them a balanced budget and a 559 billion dollar surplus. See http://en.wikipedia.org/wiki/Bill_Clinton

Republicans have always destroyed or tried to destroy our economy since 1929. Why? Their position of little or no regulation of business. Business, unless strongly regulated, destroys itself. Profit and greed and fraud are king absent regulation.

The best way to free up the credit markets is for the Republicans to stop deficit spending and thus borrowing money on a credit card to operate this nation. Each dollar the government does not borrow because it has a balanced budget is a dollar people and businesses can borrow. But Republicans do not believe in balanced budgets and have never had one since 1929, the result being any loan money you need is already committed to their government so it can give tax breaks to multi-millionaires. We say let the system collapse. If people did not want that they would not have voted Republican in 2000 and 2004. Grant the wish of the people for collapse

Please do not bail out the companies, PLEASE don't. My entire investment statagey depends on many of these companies going belly up so the stronger companies I'm invested in can reap the benefits. NO BAILOUT, more money for the smart.

This bail out wouldn't be a problem if congress had passed the housing bill that McCain sponsored in 2005 . This bill addressed both Fanny May and Freddie Mac. The Dems blocked the bill. ( problem may have been solved)

Anybody adult that thinks the bail out bill will benefit directly or indirectly the people who will be paying for it are the same people that still want to beleive in Santa Claus and the Tooth Fary.

It's a big budget con job period, orchestrated and pitched by the special interest of Washington's finest. Wake the F*** up people.

The wall street folks are sitting back right now with their fingers crossed praying their BOY Paulson can pull off their next big pay day. Loads of worthless assets will be transferred to the US for better than market price, then the same WS fat heads will quitely cherry pick them back for less than they were unloaded after of course the risk is assessed and reduced thanks to the US tax peeps. The defaults will be left on the tax payers books to absorb.

The deal is done. The senate and congress are putting on a nice little show for their constituents.

The market would correct itself in time givin the chance.

Pass or don't pass this thing is far from unwinding. The financial pain has just began.

The whole $700 B would be wiser spent on the US getting independant from foreign energy sources. I am not talking about domestic drilling either. We know you domestic oil fat heads are beating the drum to get the OK for that short range big pay day Clean domestic energy only would be a start.

Has anyone looked at the cash reserves of big oil lately? Makes $700B look like chump change.

Has anyone dared say where the US is getting it's liquidity? Income tax dollars? Yea right, it's just a good excuse to get in the US tax payers pocket at moment.

Only one place - more foreign investment.

Good Luck America we are going to need it.

The massive bailout finally gives the awakening (not sure on acceptance) by the administration on how we got this hole so deep the American Economy Recession. At first, I thought it was just me but it looks like everyone else is having the same nightmares. Thus gave our new published book a hit lately, "How do u integrate success in a small business: with ISBN No. 978=14348-07595 published lulu.com where we are now preparing another additional 20,000 copies for public consumption.

Some of the posts here are looking to blame someone or a political side. Its true we need to look at what went wrong and use it as a lessons learned, however, we need to focus on preventing this from happening again.

We also need to get both parties working together and to once again work for the American citizen. They work for us the taxpayers.

Virtually everywhere I have turned in the local community, virtually all the commentary as rendered by we working plebs or those of an equally intelligent and fairminded disposition state and categorically state without any doubt or perplexity, that what has been allowed to happen is a disgusting and a pound of flesh should be exacted where appropriate, and that, for those who have heard of this having been done in Sweden, that more than equity stake is the way to go so that in time, if a recovery is obtained, the TAXPAYER profits, doesn't just 'break-even' and 'recoup most of his losses'. What jerks our representatives seem to be not to engage the market on the terms that any mercantilist proprietor would when making a deal...? The taxpayer should somehow profit when assets are sold back onto the market, down the line.
***
What is so embittering is that, in the beginning of its term, the GWB- rubberstamp government mired us in two or three dubious war campaigns on spurious or fabricated evidence, then introduced cowardice as justification for rolling back many aspects and protections of the Constitution, unleashed an unregulated prurience of market and war-profiteering to further bankrupt us, and now this--all with such an absolutely perfect sense of timing a choreographer couldn't have arranged any ballet better...Sorry didn't mean to rant...Call your congressman and air your views--it is making a difference, even if you think it's too late...sorry again I'm just a workin-class slob. America has sunk to such a crappy nadir of apathy and ignorance...We are being held to ransom.

Why should we bail out these so-called business who have high paid CEO, CFO, and their own shareholders? They profitted off their inflated, un-regulated, greedy business practices. So why am i the taxpayer going to give more money to them to practice their un-ethical business values??? NO!!! They robbed from the public...so let them sink. Just like any small business...if you don't know how to run your business, your business goes belly-up. OH...but they (politicians) don't want their special interest friends to go down the tube, because it may take them with it. That is the REAL reason for this bailout. NOT, to assist the economy. If that was the case...give it that huge sum to the taxpayers. The banks will get it after all. I have bills to pay, food to buy, expenses to pay, and maybe even a shopping spree. Guess where all that money will end up at? YUP, at the bank. So, why would I want to bail out a company itself, when you know their is no such thing as "trickle down" economics. In business, it is greed, and profits are to pay for the people on the top, and their expensive CEO's who inactuality, don't know how to run a business.