I say "no way" to the bail out!

This whole country revolves around credit. Tough for every business to start paying up front for inventory. But a lot of americans have no credit, so they have to pay everything up front. Why can't businesses do the same? Maybe this would eliminate a lot of bankruptcies. Just a thought.
 
VEGASRIDER said:
This whole country revolves around credit. Tough for every business to start paying up front for inventory. But a lot of americans have no credit, so they have to pay everything up front. Why can't businesses do the same? Maybe this would eliminate a lot of bankruptcies. Just a thought.
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Many beleive that extending credit is a good thing because it speeds up economic growth. Credit allows businesses to spend more money (artificial) allowing them to grow and make more money (real). Most companies balance sheets will carry a percentage of real capital to back up their credit risks. When credit gets scarce they must increase this capital reserve. This often means curtailing spending and possibly cutting jobs which will slow the economic growth.

Also since our economy does function mainly on credit it gives the government a measure of control with credit rates. Before the widespread use of credit they had a similar control but it was physically printing money which may or may not have been too slow of a reaction.

So while extending less or no credit to companies would result in less bankruptcies it would slow the economy by limiting the money supply. I'm not advocating either. In fact I think because of the rise in credit, not just the mortgage markets, has artificially inflated our economy across the board and that an economic slow down would be beneficial.

I have no figures to back this up so lets use round numbers just as an example. Lets say the US economy is $100.00. Now how do you feel if $75.00 is backed by real capital and $25 is extended credit and if it were reversed?

That is why this situation frightens me so much because I think the US has artifically inflated its economy by extending too much credit across the board. The mortgage situation could easily move into other credit markets and because we are so tied to credit right now if too many cards are kicked out then the house tumbles.
 
people are getting too fearful and its because of the stupid people who are out there spreading panic who should be slapped. SPEND MONEY! if you dont spend money then your making our economy worse off. dont panic.
 
GodSpeedLuc said:
people are getting too fearful and its because of the stupid people who are out there spreading panic who should be slapped. SPEND MONEY! if you dont spend money then your making our economy worse off. dont panic.
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Just don't spend money you don't have. That's what got us into this mess. :)

Credit... bah. I live my life in the black. It's a wonderful feeling. My credit card company pays ME to use their card. I got a cash-back card and I pay it off in full every month. So far they've sent me $500 in cash back checks and I haven't spent a penny in interest. :Flip:

-TK
 
TKarrade said:
Just don't spend money you don't have. That's what got us into this mess. :)

Credit... bah. I live my life in the black. It's a wonderful feeling. My credit card company pays ME to use their card. I got a cash-back card and I pay it off in full every month. So far they've sent me $500 in cash back checks and I haven't spent a penny in interest. :Flip:

-TK
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thats true. i forgot to mention that little detail but hopefully that's obvious for most of us especially now! lol.

and what company is that?!
 
GodSpeedLuc said:
thats true. i forgot to mention that little detail but hopefully that's obvious for most of us especially now! lol.

and what company is that?!
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Chase Freedom. 1% cash back on regular purchases... 3% on gas, groceries and vehicle expenses.

Save up $200 cash back and they send you a check for $250. $50 free money on stuff I'd buy anyway. I pretty much buy everything with my card. At the current rate, every 6 months or so I cash out another check. 1% isn't a whole lot, but it adds up if you use it for everything you buy. ;) You just have to be smart about it and make sure to always pay it off, and never spend more than you can afford to pay.

-TK
 
Well well well, over 900 points up today thanks to the bail outs. For those of you that have been day trading last week...:rockon: I'm very anxious to see what happens tomorrow when the banks open, typically we see a drop after trading like this but maybe not.
 
Cuba said:
Well well well, over 900 points up today thanks to the bail outs. For those of you that have been day trading last week...:rockon: I'm very anxious to see what happens tomorrow when the banks open, typically we see a drop after trading like this but maybe not.
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I'm all for the 700 billion dollar bailout. Look, you have to realize: these brave men and women working as CEO's and high powered brokers, etc., have HUGE mansion, yacht, drug, vacation, etc., expenses. Yacht payments ALONE can be murder on a budget. These people need big time salaries. WHY DO YOU THINK CEO'S GET SUCH MULTI-MILLION DOLLAR GOLDEN PARACHUTES?. These investment firms have upper echelon, cream-of-the-crop personnel. Most of them won't work for under $100,000.00 per year. Folks, this is an expensive operation. CEO's deserve your support!
 
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Tailgate said:
I'm all for the 700 billion dollar bailout. Look, you have to realize: these brave men and women working as CEO's and high powered brokers, etc., have HUGE mansion, yacht, drug, vacation, etc., expenses. Yacht payments ALONE can be murder on a budget. These people need big time salaries. WHY DO YOU THINK CEO'S GET SUCH MULTI-MILLION DOLLAR GOLDEN PARACHUTES?. These investment firms have upper echelon, cream-of-the-crop personnel. Most of them won't work for under $100,000.00 per year. Folks, this is an expensive operation. CEO's deserve your support!
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Actually I was thinking more in terms of the millions of older Americans that watched their retirement plans disappear last week, the credit worthy small businesses being refused for loans purely for lack of liquidity, the layoffs of American workers coming as a result of this mess, the creditworthy homebuyers incapable of getting a mortgage, and the worldwide impact this has had on the credit industry. I know how difficult it must be to have been so uninformed and incorrect in the matter, this is why we have experts like Paulson coming up with a plan and not Joe Blow, and why both presidential candidates so strongly supported this necessary rescue plan. It's going to be a long road but we are starting to see a bottom to the crisis as a result of worldwide government intervention.
 
I was looking at a 47% loss in my retirement savings at the opening bell monday. At the closing bell I was only looking at 30% loss. I for one hope the bailout continues to have this effect.
 
Cuba, I have read many of your posts on this matter and it prompts me to ask you a fundamental question with no ill will and due respect: Who do you feel benefits the most from our economic design, laws, structure and legislation. Would it be Corporate America(Big business) OR middle working class America(the majority of our country's population in the way of workforce)

When I say most - I mean where is the majority of our country's money and resources funneled to by our economic structure. Is it going to We the People or an elite group of wealthy individuals
 
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