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The biggest bailout evah
Sep. 19th, 2008 09:27 amI've been working the last three nights and it's been pretty darn busy. My brain is tired and I've never had an affinity for economics on the best of days. I've just seen Bush's speech (and for the first time, he did a whole speech without smirking so you know it's pretty damn serious) and Obama's speech.
First, I'm angry that big business has had free reign and in pursuit of big profits they've screwed us all over, big time. And now we have no choice but to bail them out.
Second, reading between the lines tells me that we are teetering on edge of total meltdown and another Great Depression. And they are hoping these moves are enough to avoid it, but they really aren't sure. Right now I have a ball of ice in my gut; it's not as bad as it was when I was watching the WTC towers turn into dust; it's more like the days after Katrina as we watched the people of New Orleans, helpless and confused, waiting vainly for help, all the while corpses were left to rot in the street.
"This is the federal government's most far-reaching intervention in the financial markets since the Great Depression of the 1930s.
"They did what they had to do," said Baumohl. "They were facing a Category 5 financial hurricane that really threatened the entire global financial architecture."
The downside to the plan is its enormous cost, said Baumohl, estimating that the federal bail-out of the financial markets could swell the national deficit to $1 trillion annually."
http://money.cnn.com/2008/09/19/news/economy/paulson/index.htm?postversion=2008091912
And here is where you can read Bush's speech:
http://www.whitehouse.gov/news/releases/2008/09/20080919-2.html
Of interest:
"The actions I just outlined reflect the considered judgment of Secretary Paulson, Chairman Bernanke, and Chairman Cox. We believe that this decisive government action is needed to preserve America's financial system and sustain America's overall economy. These measures will require us to put a significant amount of taxpayer dollars on the line. This action does entail risk. But we expect that this money will eventually be paid back. The vast majority of assets the government is planning to purchase have good value over time, because the vast majority of homeowners continue to pay their mortgages. And the risk of not acting would be far higher. Further stress on our financial markets would cause massive job losses, devastate retirement accounts, and further erode housing values, as well as dry up loans for new homes and cars and college tuitions. These are risks that America cannot afford to take. "
Obama gave a good speech and he does seem to have the mettle to face this; he outlined details which is an vital improvement. The snippet I saw of McCain's reaction left me furious; he's just taking the opportunity to take a swipe at Obama. Definitely not leadership material. Both Bush and Obama had very grave attitudes and stressed the importance of both parties working together on this.
I've viewed my vote in November as a way to stop McCain from making the Supreme Court even more conservative. For the first time I feel that, of the two choices we have, I will be voting FOR Obama instead of against McCain.
First, I'm angry that big business has had free reign and in pursuit of big profits they've screwed us all over, big time. And now we have no choice but to bail them out.
Second, reading between the lines tells me that we are teetering on edge of total meltdown and another Great Depression. And they are hoping these moves are enough to avoid it, but they really aren't sure. Right now I have a ball of ice in my gut; it's not as bad as it was when I was watching the WTC towers turn into dust; it's more like the days after Katrina as we watched the people of New Orleans, helpless and confused, waiting vainly for help, all the while corpses were left to rot in the street.
"This is the federal government's most far-reaching intervention in the financial markets since the Great Depression of the 1930s.
"They did what they had to do," said Baumohl. "They were facing a Category 5 financial hurricane that really threatened the entire global financial architecture."
The downside to the plan is its enormous cost, said Baumohl, estimating that the federal bail-out of the financial markets could swell the national deficit to $1 trillion annually."
http://money.cnn.com/2008/09/19/news/economy/paulson/index.htm?postversion=2008091912
And here is where you can read Bush's speech:
http://www.whitehouse.gov/news/releases/2008/09/20080919-2.html
Of interest:
"The actions I just outlined reflect the considered judgment of Secretary Paulson, Chairman Bernanke, and Chairman Cox. We believe that this decisive government action is needed to preserve America's financial system and sustain America's overall economy. These measures will require us to put a significant amount of taxpayer dollars on the line. This action does entail risk. But we expect that this money will eventually be paid back. The vast majority of assets the government is planning to purchase have good value over time, because the vast majority of homeowners continue to pay their mortgages. And the risk of not acting would be far higher. Further stress on our financial markets would cause massive job losses, devastate retirement accounts, and further erode housing values, as well as dry up loans for new homes and cars and college tuitions. These are risks that America cannot afford to take. "
Obama gave a good speech and he does seem to have the mettle to face this; he outlined details which is an vital improvement. The snippet I saw of McCain's reaction left me furious; he's just taking the opportunity to take a swipe at Obama. Definitely not leadership material. Both Bush and Obama had very grave attitudes and stressed the importance of both parties working together on this.
I've viewed my vote in November as a way to stop McCain from making the Supreme Court even more conservative. For the first time I feel that, of the two choices we have, I will be voting FOR Obama instead of against McCain.
