Episode-61- Questions from the Audience on the 700 Billion Dollar Bail Out — 18 Comments

  1. I have a problem with any solution that does not address the underlying fundamental issues with the system that caused this in the first place.

    Fiat currency. The Federal Reserve was supposed to fix this sort of thing. Since it was created we have had a major depression and this not to mention a bunch of smaller crisis. The Federal Reserve ain’t working. Get rid of it.

    Energy. The rise in commodity prices (oil in particular) required the Fed to raise interest rates to combat inflation that locked people out of refinancing their ARMs. That began the foreclosure mess. Rising oil prices (energy in general) further exaserbated it.

  2. Chris,

    Understand my “solution” in this show is not the solution I would in act if I were say appointed as President of the United States. The complete removal of the Federal Reserve is the ideal solution to all of this nonsense. A debt free currency that doesn’t constantly loose value and is backed by some level of commodity (gold).

    However, it ain’t going to happen right now and we must accept that. My plan I mentioned is more of if they are going to do something then this makes a lot more sense.

    I personally called my Congress critter and told him that a vote for this bail out is a vote against himself on election day.

    And to be fair I need to state that my Congress Critter (Joe Barton) has stated he will vote against the bill as it is proposed. His staff person told me he is “staying open to other solutions” but will not support the current bill. Good for him!

  3. I’ve looked and can’t find it now but I thought I saw a headline where a Japanese bank was going to purchase one of the failed banks.
    Which is worse, The USA bailing out these foreign banks or the foreign banks gaining control through making these purchases? I was always told the majority rule…there are alot of houses out there that can be taken up buy foreign purchasers.

  4. Well the thing is I don’t think this is going to happen, the Japanese are pretty damn broke and if you buy up these banks now you get massive debt with them.

    In reality what may happen now is even worse. Uncle Scam steals our money, bails out the banks who are now divested of bad debt and THEN a foreign bank buys out what is left now free of the bad paper.

    Like I said today we are so screwed we probably have to do something but the current proposed bill really screws us even harder then doing nothing.

  5. Your right the federal reserve isn’t going any where any time soon. Unless of course we don’t allow them to bail em out at all and the entire system comes crashing down around their heads.

    Its highly unlikely the rebuilding would include the Fed Reserve.

    To me we need to get it over with. I have no interest in allowing the Baby Boomers to buy a little more time so that they can stick all of us with the mess 10 or 20 years from now when it will just be worse than it is today.

    Its time for the system to change. Radically. We just need to be strong enough to ensure some dictator doesn’t step in.

  6. Chris, preach on my brother! I agree with letting it come down but it is easy for me to say, I am ready and willing and able to stand the storm. For many it will be really really hard. I will feel sorry for the grasshoppers if winter finally comes but I guess that is the way of things.

    “There is a season, turn, turn, turn…….”

  7. Us Grasshoppers who’ve recently turned to the Ant side are pretty friggin’ nervous right now 😉 Well, at least I am. Hopefully I will be able to make enough changes before things get too dire. I guess it’s a fine balance between trying to do more than your able, and not doing enough.

  8. I’ve gotten into listening to talk radio again. Of the people that call in, it is a good mix of Republicans, Democrats, and Liberals, yet every single person they ask about whether they would vote for the bailout or not, EVERY ONE has said they WOULD NOT. I don’t know if it’s just a matter of talk radio listeners being more informed or if the American people just don’t want this to happen.

    They’re turning this thing into a political thing so that whoever worked on it can say “Look what I did!! Look what my party did!! We saved you!!”


  9. How dare Bush and these elitest demand that the American people pay for their bad investments!!
    Don’t try to tell me that this money is all about helping the ordinary American (who will) or already has lost their home!
    This 700 billion bail out will never reach the ordinary person.
    This bail out is an attempt by the mega rich to recoup their monies which they lost through their own greedy practices!!
    The American people can’t even afford to put a gallon of gas in their gas tanks anymore – nevermind pay increased taxes to the SOB CEO’s who collect millions in bonus’ then have the audacity to ask for help with their ‘failing’ companies.
    And what does public taxpayer money have to do with private industry?

  10. If the President pulled the American soldiers out of the war
    I am fed up too!
    And I don’t beleive a word Bush says!
    And you know what?
    Even if the whole crummy system fails..
    it will be a joy to see the rich loose everything too!
    It’s about time they pay for their greed!!

  11. I agree with Chris; we should get rid of this nonsense. Money should be backed by gold and created by Congress. The government should sell off all the land it “owns” in Utah and other south-western states to pay off the “national debt,” and then never create a national debt again.

  12. WOW! Thanks for making the situation understandable…I have a question: Which banks would be helped with the 700$ billion dollar bailout?

    I am a newly out of college graduate who was one of the few college graduates who actually got a teaching job this year during the CA budget crisis. I am telling you things are really BAD… and with all this talk about the recession it sounds like things are going to get far worse!

    I teach fourth grade in a lower socio-economic school. The other day during Social Studies I was teaching the students how everything in our state is connected farm workers, grocery stores, consumers. I then started asking the kids what their parents jobs were? To my surprise half of their parents have lost or are losing their jobs and houses.

    Also, as a new teacher I feel the pinch I can’t imagine what your average Joe is feeling… I was hired a week before school started… At the same time my husband (assistent superintendent) was the 8th person laid off of a housing developer. I feel that for people starting out their lives there is NO BREAK! I feel that it will be like this for a while. I agree with what you say try to pay off as much debt as possible… but it’s so hard when you know the saying, “The last one hired. First one fired.” Especially in education everything is about hirachy and it’s all very political. You feel as if the governement wants to continuiously hold you down and not let you move upward. It sucks to be starting out!

  13. Well, I’ve been following this bail out thing, and although the fault of this mess was created by the greedy s.o.b’s, I think the money is going into the wrong hands. Why not put the money into the hands of the public. They are the ones that are going to lose their jobs and homes. If the money were to go to the consumer to pay off their debts instead of the already rich b—-ards, they would have money to make ends meet and thus stimulate the economy. There should also be some kind of anti piracy act passed so the greedy financial institutions can’t steal our money. I have been reading about some of these institution’s tactics for collecting higher interest rates from the consumer, such as if you are late with one payment they are allowed to raise your interest rate to an ungodly figure that will take the rest of your life to pay off your loan. They are also allowed to raise your late payment fees. If these tactics were suppressed, people wouldn’t be defaulting on their mortgages. I think the answer to this problem is not to fund big business, but to put money back in the consumers pocket.

  14. So I would like to know where this 700 billion is coming from. I have read so many articles on what this is going to do (or not do as is the case). I just want to know where we are getting it from.

    Aside from that, how do they figure this will work? The reason the mortgage companies are in trouble in the first place is that the foreclosure rate is skyrocketing. So if we bail out the mortgage companies and it has any effect on our taxes, more people will go into foreclosure and we will be worse off than we are now.

  15. I don’t get it!…………If the American people people was against the “1st bailout” and then why am I only hearing on the news today that the “2nd bailout” will probably pass………doesn’t congress get it “WE DON’T WANT A GOVERNMENT BAILOUT” AND WE DON’T EVEN KNOW WHAT IS IN THIS 2ND PIECE OF CRAP PLAN!!!!!!!!!

  16. My question is this…: If WE BORROWED 70 billion dollars from China for our so called “stimulus payments”, then where in the world did we get 700 billion dollars for the bailout? Who did we borrow from this time??? We went from a world power to a world joke thanks to Bush. We can’t keep taking on every country in the world! We have too many wars being fought. We need to start taking care of business at home! We need to take care of our own people. I am so tired of rebuilding 3rd world countries who hate us anyway, and then turn on us years later! We’re not the world’s big brother! Sometimes we need to mind our own business and take care of people over here!

  17. The only way for the taxpayers to come out ahead is to STOP using credit. Pay cash,not ATM or Check cuz the FED gets a kickback (service fee) every time use pay by any method other than cash. The FED, made up of 12 banks owned by 4-5 very wealthy family’s, some of which are foreign family’s like the Rothchild’s, who own the Lloyds Bank of London, which is the most influential financial institution in the world. The Rockerfeller’s own part of the Federal Reserve as do the J.P.Morgan family and the Schroder family. And they have since it’s creation on Dec 24, 1913. They only way to stop the FatCats from getting any fatter at our expense is to stop feeding them. What are they being feed, you ask? Money…from the service fees charged by banks for check cashing, loan service fees, interest payments all go the the Federal Reserve…aka Rockerfeller,Rothchild,Morgan, Schroder families,and so on and on and on.