Money Beat

THERE'S A CRISIS IN AFGHANISTAN?PAKISTAN!!!

McCain will ask to postpone the economic Pow-Wow, so he can focus on the new crisis.

GOP Mantra: Crisis! Crisis! Crisis!

I understand totally.... We have to do this, but there are guarantees it will work. We can spend 700 Billion today and be in a deep recession next month. Or we can spend 700 Billion today and it might jump start the economy again??? MIGHT... No one knows, the top experts in this country do not know because they don't understand half of it. It is screwed up know one knows anything for sure. I do know it was Bush the Republicans who got us into this mess and I do know McCain was side by side each and every one of them.

t

Blaming Bush for this and every other problem is easy and oversimplified. Get real. The president, the banks and all of us have laws to obey.

Congress makes the laws and they have made some lax laws with loopholes. Only they can straighten out the mess by revising the easy credit debacle and put banks back into good business practices. Congress has oversight responsibilities and the Senate Finance Committee and House Banking Committee needs to be spanked and put to work.

To place the blame on one person or one administration is ridiculous and uninformed! You want to blame, start at the bottom and work your way up, from the irresponsible people who bought houses and knew they couldn't afford them, the the people pushing affirmative action demanding the banks give marginal credit, to both houses on the hill, to the recent presidents past and present. There is plenty of blame to go around, so stop with your partisan BS blaming Bush and McCain and get real. This is a crisis that affects everyone of us and needs serious attention.

BUSH: 'Our entire economy is in danger'

WHAT THE F**K... did you just wake up. this did not just happen overnight.

ABC: I have a question for Bush... where has he been for 8 years... why did he..our leader (joke)... not see this... why did he not even know our gas was up to $4 a gallon when asked a few month ago.... Is this man drunk everyday?? is this man on meds??? who is running our country??? Ask him these question. I would like to know his answers.

It was the Bush administration who put those loopholes in place so don't tell me who to blame here.

They want me to give them my tax dollars so the banks can loan it back to me at some dumb interest rate I don't think. Anyway why would we give our money to the same failures that made this mess the first time around so

Why not just give away $8000 to every people in the country and raise the damn retail price everywhere. At least everybody can benefit from the $700 billion bail out plan, not just those people who created all the mess. We are now live in a communist country!

Why not just give away $8000 to every people in the country and raise the damn retail price everywhere. At least everybody can benefit from the $700 billion bail out plan, not just those people who created all the mess. We are now live in a communist country!

I understand very well thank you. In 1999 McCain and Phil Gram pushed trough deregulation for the Bank's and the speculators on Wall Street. Bush ripped off the 2000 election and the party was on. Bush's family is in the oil bussiness, so Bush kepted the intrest rate low which made the dollar weak and oil went through the roof, it was great for Bush and Wall Street. It was free money for them. this bail out will not work, there is over 3 trillion in bad paper on Wall Street, the market will have to correct sooner or later. The next President will be a wipping boy for this mess. And the thiefs get away clean, like always.

Ex Republican

Rich folks are losing money - what will we do? Now they want Uncle Sam to bail them out!!! Uncle Sam would do better to build them a nice prison!!! LET THEM FAIL. Let's use our resources to help those in financial trouble. That would help pump $$$ into the economy. While we're at it how about the bail out for the 10 million kids in this country who have NO HEALTH CARE?

I think that the government should offere special reduced interest rates to those that are struggling or have defaulted on their home loans (2 or 3 %). The banks still make a large sum in interest. I also think they should help the middle class pay for college by offering low interest college loans so that we can all begin to invest more in our families and communities.

This is to all those people who voted for Bush knowing fully well how stupid he was, yet rationalized their decision by saying "but he'll appoint smart people"...well, this just proves - dumb people hire other dumb people. The only smart advisors that Bush had in his early years, which by the way he inherited from the Clinton administration, such as Richard Clark and Paul O'Neill, he effectively ostracized and forced their resignations. Had Bush listened to Richard Clark, 9/11 may have likely been averted. And had he listened to Paul O'Neill this latest debacle may likely have been diverted. And here we are again, with half the country willing to hire another intellectually challenged candidate in John McCain. Remember, he finished at the very bottom of his graduating class at Navy, which he never would have been able to attend had it not been for his influential father. Sound familiar?

WOW, are you people seriously blaming BUSH and MCCAIN for this freakin mess. YEP, these 2 conspired against the whole country to put us in this mess. You call them stupid men, what you are proposing would mean that they would have to be exceptionally intelligent to pull this off. How about Obama taking HUGE contributions from the top guys from Fannie and Freddie, and how about Obama buying his home with the help of a criminal. You want to talk about low lifes, lets talk about Obama! This mess was created by the greedy banks that lent money to people that couldn't afford it, the CEO's of these failing companies for bundling and trading these bad mortgages, and for the people who took these loans that they KNEW THEY COULD NOT AFFORD! So lets lay the blame where it belongs!! I don't see people who can't pay their mortgages because they ballooned saying anything on this board, why do you think that is, because they are part of this problem. I pay my mortgage and I pay my bills and now I have to suffer because people didn't live within their means, they wanted bigger better houses to keep up with the Jones'!!!!!!

I smell hyperinflation...

Hey, Don't you think Bush knew something when he handed out the measely economic stimulus money!!! Get real

i am totally against the bailout package for the simple reason that we don't know the magnitude of the exposure amount and it will be unfair to the taxpapyers. let the markets find their own bottom level and everything will be fine. it can't get worse, can it ? use the $750 billion bailout package to mail each of the taxpayers $12,000 to enable us pay for the higher cost of gas,insurance and education !!!
rest of the money will be spent on the holiday season which will have a multiplier effect on the economy.

ram

I don't see much information on understanding.
Just the hype that if there is no bailout everyone will suffer.
Learned a long time ago there is more than one solution to most problems.
The solutions offered by those who caused the problem are usually not the one to follow.

I understand all right- The only thing Bush is good at is spending spending spending. He thinks that is going to fix everything. No wonder we are going down the tubes.
I certainly didn't vote for him and I won't vote for his twin, John McShame.

NO to the bailout. No one is helping us little people pay the bills. No 700 million plus to rich cats with bad paper!

Sugar Land

don't allow the financial sector their outrageous interest!! That will stop this, or at least stem the flow, And get our jobs back here.

I am passing this on because if we have the money to bail a company out, we have the money to bail our fellow hard working Americans out as well. We constantly continue to send our jobs and money oversea's to other countries. Where is all the money we have sent to all of the other counties when they need it? I will say this, I am fortunate that I am not about to lose my house and I have a job. I am by no means wealthy or debt free. I would not turn this money down and I would reinvest it in our economy. I am not for this for the handout, but for the idea of turning our economy around. The idea of $600 helping, did not work. That money did nothing but help pay for gas and help the oil companies post a bigger profit or help people get caught up from falling behind with gas prices.

This idea sounds just crazy enough to possibly work, so naturally it won't be given serious consideration. How great is our bureaucracy!!

Hi Pals,

I'm against the $85,000,000,000.00 bailout of AIG.

Instead, I'm in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.

To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up..

So divide 200 million adults 18+ into $85 billion that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend.

Of course, it would NOT be tax free.

So let's assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes.

That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket.

A husband and wife have $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family?

Pay off your mortgage - housing crisis solved.

Repay college loans - what a great boost to new grads

Put away money for college - it'll be there

Save in a bank - create money to loan to entrepreneurs.

Buy a new car - create jobs

Invest in the market - capital drives growth

Pay for your parent's medical insurance - health care improves

Enable Deadbeat Dads to come clean - or else

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back, and of course, for those serving in our Armed Forces.

If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!

As for AIG - liquidate it.

Sell off its parts.

Let American General go back to being American General.

Sell off the real estate.

Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't.

Sure it's a crazy idea that can "never work."

But can you imagine the Coast-To-Coast Block Party!

How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion

We Deserve the Dividend more than do the geniuses at AIG or in Washington DC

And remember, The Birk plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.

Ahhh...I feel so much better getting that off my chest.

Kindest personal regards,

Birk

T. J . Birkenmeier, A Creative Guy & Citizen of the Republic

PS: Feel free to pass this along to your pals as its either good for a laugh or a tear or a very sobering thought on how to best use $85 Billion!!

According to the Tax Foundation, 135,660,228 tax returns were filed in 2006. So, if we pay $1 million to each person who filed a return, that's just under $136 million total…. a mere fraction of $700 billion. Make the payments by electronic transfer, which saves trees and helps banks. Taxpayers could then use their $1 million to pay off their mortgages, buy health insurance, send their kids to college without loans, and still have money to go shopping. Some might even add to their 401Ks or make even riskier investments on Wall Street. How's that for a plan that helps American citizens while greasing the wheels of our economy?
Crazy? Maybe. But not nearly as crazy as the "plan" to bail out Wall Street being debated on Capitol Hill.

Only Ron Paul told us that we were headed towards economic disaster. He predicted this a decade ago. In the republican debates he told of an impending collapse and was laughed at. At the same time, Bernanke, Bush, Paulson, and the rest of the dopes said the economy was great. At this point only Ron Paul should be trusted with our money. This is also in light of the fact that Paulson was the former head of Goldman which is in trouble, and 55 members of congress get most of their money from Goldman. Buffet also invested 5 billion in Goldman thinking congress would pass this thing so our taxpayer dollars can make him some money. Again only Ron Paul deserves our love.

This is sort of related to all this mess,
in this months working mother magazine on page 138 is one of their 100 Best Companies for women to work for in 2008.
What a laugh - Fannie Mae!! says the women top earners in the company is 39%, the execs - 648 in the company. There are still stories of poor woman and how they don't get as much pay as men., but the % of women in higher positions is much higher than it was just 20 years ago. I thought women would make it a better world, I have heard again and again where I work that women care more about people HUH! have women made it a better world?

Ron Paul predicted the fall of Fannie and Freddie in 2003. Surely the clairvoyant one should replace Bush right away.

I think that this bail out is wrong, the average American paying there taxes can be hard without a job. So raising the taxes to those who can't pay there taxes on time and the goverment penalizing them for not being able to pay there taxes is wrong.And once again we pay for it, just to bailout out a company. If my buisness need help nobody is helping me out. they need to penalize there self, after all there were awhere of this promblem these type of thing just don't pop up over night. its just not far for the American people to always taking the heat for the goverments mistakes, if we don't pay are billon time or if we print bad paper we go to jail, the goverment need to be helping out us first like all the victoms in the huracane area who pay there bill and taxes, also helping out the small buisness owners like myself.

Of the people blaming Bush, I wonder what percentage have ever borrowed money that they knew perfectly well they couldn't pay back. I'd wager at least 50%, thought it's probably closer to 75%. I'd also wager that 100% of those people don't have the integrity to accept responsibility for having even the tiniest role in all of this, since it's a lot easier to blame someone with a higher profile. Whatever helps you sleep at night, I suppose. Should Barack Obama manage to corner enough of the Flying Rainbow Unicorn vote to win in November, though, I think those people will be in for a very rude awakening.

Dave - I have not borrowed money that I couldn't pay back. Then again I support Ron paul....go figure. I agree Obama does not have a clue, and unfortunately he has a vested interest in this bailout since Goldman is a huge donor of his. Then again Goldman also contributes to McCain, and McCain doesn't mind more wars. Ron Paul doesn't accept special interest money, therefore Ron Paul can tell us the truth. How refreshing indeed!

I don't know if most people really understand the crisis or what caused it. I know it was many many factors and greed is certainly one of them. People are mostly uneducated about the economy. Most of us would rather be entertained and spend money than take time to study and consider our decisions more carefully. Do we really understand short-term decisions and their long term effects? Is it always the fault of a president? I am a college educated middle class struggling citizen. My husband and I lost our entire equity that we built up over 30 years to sell our home at less than we purchased it for...that was not in our plan. We noticed our last loan was sold over and over in less than 6 months. We paid interest on top of interest. The loan itself seemed complex and we eventually lost the battle and got out with only our shirts. I had school loans we are still paying on. We only used credit for emergencies and we had a couple. It seems even with all our efforts and though our incomes have increased our bills have as well. We are cutting back more and more. What is going to happen to our retirement in our 401Ks as a result of this crisis? If we are struggling this much ... what about people who have even less? We feel we are overburdened. Lots of people get free money and services; politicians waste so much money and regular working people are wondering what is happening to our economy. I am reading much about it and there are so many conflicting views it is hard to sort it out.

Ordinary Taxpayer, you may want to check your math. 1 million times 136 million is not 136 million, it's 136 TRILLION.

Business can't stay in business without customers for its products or services. When you maximize profits by cutting the purchase ability of your customer base, your business WILL fail.
You can inject a cash infusion at the top, but without a cash infusion at the bottom, you still have no customer base. And there is nothing to suggest that those at the top recognize this. So, who do you want to give a cash infusion? Those at the top or the customers at the bottom? Your answer likely depends upon whether you're an owner or a customer.

K - I love when Ron Paul in the debates talked of the inflationary tax. A hidden means of transfering wealth from the poor and middle class to the wealthy and well connected. Look at the CPI, M3, value of the dollar over time, and it will become very clear that inflation has been rampant over the last 3 decades due to policies of the Federal Reserve. Let's face it the corporate elite and bankers have made a ton since the breakdown of Bretton-Woods and it is coming to and end. We are broke beyond belief in both household debt and national debt.

Ordinary taxpayer said---According to the Tax Foundation, 135,660,228 tax returns were filed in 2006. So, if we pay $1 million to each person who filed a return, that's just under $136 million total---Please check your math. It would take just under $136 million total to give 135,660,228 taxpayers $1 each.

Bush is not the only person to blame here. samhiguchi is right on target. No matter if you are blue or red, we need to get together to save our economy. And no matter who wins the election, we will get some needed change. We can't continue on like we are.

laura harty- Are you seriously saying the government should lower people's interest rates, the very same people who took mortgages they KNEW they couldn't afford. They should lower their interest rate to a rate lower than most Americans who are paying their mortgages on time. We should give these people a break when they put themselves in that situation? I don't think so!!! I believe these mortgages should be rewritten, but they should be written at a rate that is within reason, like 7 or 8%.

Seems to me we need a massive contraction of the economy to liquidate debt and junk assets. Everything is way overpriced to boot. This bailout is a way to keep the inflated economy going a bit longer and keep prices elevated above where the free market would put them, but it only prolongs the inevitable. Huh, Ron Paul was correct in his assertions. Everything he said is bearing fruit so to speak.

I think that we are in desperate times that call for despwerate measures, so lets get congress together and do the right thing. lets quiet the nqysayers and pass the bail out, and while your at it confiscate the millions of dollars the execs took on the way out. How can they robus of our monies.Since when do you get paid for stealing from the company/

lEE tIKALSKY - The naysayers are the majority of this country.

To all those people who are still saying "don't use my tax money to bail out fatcat CEOs!!"..

...clearly, you didn't read the article. I don't like the idea either, but to say that this is a bailout of the "super-rich, money-and-power-hungry corporate CEOs" is INCREDIBLY short-sighted. This is a bailout of EVERYTHING and EVERYONE. To all those who say let them fail - do you realize that your retirement is invested in these companies, and the companies that they loan money to and do business with?? Duh!! Would you be willing to see your 401k, 403b, IRA reduced to NOTHING? People still really don't realize what's at stake...

Look, I think it stinks as much as the next guy - but, we are where we are and there's little point now talking about who's fault (dem or rep) it is. This is the problem we're in, and this is our best chance to solve it. For all those who want to "wait and see and let the market find it's own bottom", would you risk all your investments and retirement on that??

I don't like it either: My retirement is partially tied to them, and I still say let them fail.

If Congress had listened to John McCain three years ago when they were discussing regulation reform, we would not be in the situation we are today.

abcblogger - John McCain has no clue. The only one that does is Ron Paul who warned of all this even when Bernanke, Paulson and company said everything was great.

Ron Paul is a loooooser..... always has been.

If you don't understand why you're better off by paying $700 billion for bad investments, then according to Betsy Stark, it's because you're stupid. It's like the circulatory system or something. Look people, don't question this. Just fork over the money to the mafia and be quiet. Pay for the bank's bad investments and pay for the interest on the loan, and let the bank profit from the good investments. Vote for the same two parties again and again or you'll "waste your vote".

abcblogger
I believe you are a loser. Remember Ron Paul said we were headed for a crash when Bernanke and Paulson said everything was great. Essentially that mean Ron Paul = Clairvoyant, Bernanke and Paulson = Incompetent or Liers, Abcblogger = Loser.

People need to stop drinking the Obama kool-aid here. This is a bipartisan screw of average Americans.

In 2003, Barney Frank (DEMOCRAT) opposed increased regulation saying, "These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis. The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."

On July 11, 2008, Chris Dodd (DEMOCRAT) said, "This is not a time to be panicking about [Fannie May and Freddie Mac]. These are viable, strong institutions."

Guess what industries are their biggest campaign contributors?

I got a few friends, lawyers, doctors, who will be walking away from their homes because the value of their homes is now much less than what they paid eight years back.

They don't see any protection or government on their side. So they're walking away and letting the mortgage company and government eat it.

WE do understand we stupid taxpayers that the banks have spent billions lobbying congress to deregulate the industry. These regulations are the very one that could have prevented this situation. The leaders of these institutions misreported assets and gains to win lucrative remunerations further weakening the industry. The industry further preyed on the consumer with the philosophy of pay day lenders and the greed typical of their craft. The congressmen who were supposed to protect us were in the pocket of the industry, hurting instead of helping. Now when their greed and mismanagement have put them in an untenable position they was their prey to help them by asking for socialism on a scale unimagined by many socialistic and communist countries. No what we do not understand is how a legislative body asleep at the wheel now wants us to drive into the abyss.

WE do understand, we stupid taxpayers, that the banks have spent billions lobbying congress to deregulate the industry. These regulations are the very ones that could have prevented this situation. The leaders of these institutions misreported assets and gains to win lucrative remunerations, further weakening the industry. The industry further preyed on the consumer with the philosophy of pay day lenders and the greed typical of their craft. The congressmen who were supposed to protect us were in the pocket of the industry, hurting instead of helping. Now when their greed and mismanagement have put them in an untenable position they want their prey to help them by asking for socialism on a scale unimagined by many socialistic and communist countries. No, what we do not understand is how a legislative body asleep at the wheel now wants us to drive into the abyss.

The so called experts have a vested interest in the bailout. If the bailout fails to pass their employers will not forgive. If the banks had spent fewer billions changing their business in the short term they would not need help now. If they need help now they will need help for a long time because this is just the tip. They went from greed greed greed to need need need. They are not even asking with humility they are demanding and arrogant. They are demanding we do this. I say no, but I am one person. NO. No now and NO forever. If the system fails do not blame the victim. Even 700 billion will not resolve this. When this is over and every taxpayer is doubled over with the burden of this event the same fat cats will be building larger estates enjoying all the luxuries that we afford them. If we go down we go together.

What would happen if people all over the world would stop complaining,put away anger and blame and PRAY!!! This world has never belonged to us and no one is in charge but the one that created it. When will we humans finally realize that nothing outside of ourselves can ever fulfil what we are missing on the inside.WAKE UP!!! All these things must fail before it can get better.Shame on all of us for putting our trust in man.We were never told to trust man because they are only human. America, this is only the beginning. It is going to get a whole lot worse than this,no matter who the president is. ALL of our confidence has been in our jobs,our money, our this and that. When the hurricanes and tornadoes and mudslides take away all that we have worked all our lives for ,what president will you blame then? Who will you say is in charge? You had better start now to break the dependency on the government.I don't care who is in office, you and I better remember: "Our father who art in heaven..... When you are whole on the inside, you know these things are going to happen but it is o.k. please let us be kind to each other, spread love and hang on!!! MUCH PEACE.

Joe your math leaves a lot to be desired.

If this is a catastrophe, the headlines should be filled with stories about businesses not being able to get credit. So far I have heard little instances where some risky ventures were denied. But nothing about fortune 500 companies. WHY HAVE WE NOT HEARD FROM ACTUAL BANKS & CREDIT UNIONS AND BUSINESSES?

Listen to the late Aaron Russo. This "crisis" has been engineered.

http://michaelfury.wordpress.com/2008/09/24/as-wall-street-is-transformed-a-reminder-from-aaron-russo/

I, like a lot of Americans who were hit harder, earlier, don't have a mortgage to worry about, nor savings, nor retirement to lose. The rest of you are just catching up to us. This bailout is a hoax, the crisis was already here. It is now starting to effect the fat cats and they are the ones panicing. Why must we preserve the elite at our expense?

And to finish up that last paraghaph cats will sleep with dogs ,Aids and sars or the illuminte wil get you the planet will heat up and burn off your skin and then cool off and frezze your bones. Then Planet x will wipe out our oxgen but not before the poles switch and drown us and or the taliban or Al quide will get you.Yes we have heard it all were al GOING to Die

Being a divorced single parent for 18 years I worked and lived within my means. Bought used everything. Never even tried to take out a loan because I always went by the rule of thirds. One third wages for rent, one third utilities and last third food clothes other neccessities. My understanding of this bailout crisis is there was too many not living within their means(including government) Who borrowed more then they could afford to pay back (for numerous reasons) then bad paper (defaulted loans and mortgages) kept being re-entered into the financial system via bundles (some good some bad) which were then compounded losses? Which caused stricter guides where less were able to borrow and also left too little to loan out to big guys? Less business deals stocks go down. So tax payers have to bailout financials ( to clear their plates) so they can loan to qualified big guys once again. Then stocks go up and everything trickles back to the bottom little guy. Do I have it right yet? Still does not make sense. Does not work. That trickle never reaches the bottom guy, there are already numerous unemployed and lots who have had to use their 401k. So what is it that bailout does really? It just keeps the big guys going a little longer. Not a long term solution to the economy,just a short term solution..

I think the bailout would only work if there was more to back it up. Meaning of course strict supervision but also something aimed towards creating lots of good jobs fast. For it is only through a working society that enough will be able to "buy" again to get the economy going again. Also prices of everything would have to go down in order to speed things up.

The $700,000,000,000. that is being requested should help in some ways. This should be enough to revamp a lot of banking institutions. I believe the
use of funds could be better spent in aiding small businesses. The amount requested could provide $1,000,000. to
700,000 small businesses. This would create more jobs, help ease expenses,
and improve U.S. Small Business spending, marketing and consumer output. These functions are necessary to promote economic growth. The rescue is necessary to save the financial systems, but the banks should return the favor to enterprises that will use funding to empower the country.

"Stocks will tank, nest eggs will crumble, retirement dreams will disappear, lending will halt, people will not be able to buy houses, home prices will fall some more, foreclosures will rise some more, consumers will hunker down, corporate profits will sink, jobs will be lost … and those are consequences everyone can understand."
Do you have a job? 'Cause I don't. Retirement? The insurance took that away from me when they forced me to get a disability. Stock? I did have a $300 stock in a windturbine company. They tanked. Life savings? 38 years of two or three jobs down the drain to the fraudulent medical big business, so they would have a reason to fire me. Loan for a business? Are you serious? Foreclosures? Mine is paid off, built by those "disabled" hands, still the vultures are circling, breathe baited with the stench of newly printed money.

Who the h#@l has been having trouble understanding for the last eight years? Maybe the "public" should be "funded to get a study of financial literacy" of the media, politics, big companies, big pharma, insurance and the like. Then we could buy the results that would produce a little more compassion, morality and intelligence for the people that have been making this country work, utilizing legal means. Where did they think that all of the money was going to come from when they were tightening those screws to bleed every drop of blood from everyone else? We need to focus on the problems instead of the posturing and sticking the nose in the air. These endless "bailouts" do nothing to save confidence. Somebody needs to get back to the drawing board and come up with a way to actually help.

Maybe this can be the plan? Has anyone seen this?

The Birk Plan for Economic Recovery

I’m against the $85,000,000,000.00 bailout of AIG.

Instead, I’m in favor of giving $85,000,000,000 to America in a "We Deserve It Dividend".

To make the math simple, let’s assume there are 200,000,000 bonafide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults18 and up.

So divide 200 million adults 18+ into $85 billon that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a "We Deserve It Dividend".

Of course, it would NOT be tax free. So let’s assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes.

That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket.

A husband and wife have $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family?

Pay off your mortgage – housing crisis solved

Repay college loans – what a great boost to new grads

Put away money for college – it’ll be there

Save in a bank – create money to loan to entrepreneurs

Buy a new car – create jobs

Invest in the market – capital drives growth

Pay for your parent’s medical insurance – health care improves

Enable Deadbeat Dads to come clean – or else

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehmann Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.

If we’re going to re-distribute wealth let’s really do it...instead of trickling out a puny $1000.00 “vote buy” economic incentive that is being proposed by one of our candidates for President.

If we’re going to do an $85 billion bailout, let’s bail out every adult U S Citizen 18+!

As for AIG – liquidate it. Sell off its parts. Let American General go back to being American General. Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up.

Here’s my rationale. We deserve it and AIG doesn’t.

Sure it’s a crazy idea that can “never work.”

But can you imagine the Coast-To-Coast Block Party! How do you spell Economic Boom?!

I trust my fellow adult Americans to know how to use the $85 Billion "We Deserve It Dividend" more than the geniuses at AIG or in Washington DC.

And remember, The Birk Plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.

Ahhh... I feel so much better getting that off my chest.

Kindest personal regards,

T. J. Birkenmeier, A Creative Guy & Citizen of the Republic

I am so tired of hearing about the average citizen who does not know how to "connect the dots" on this bailout. The financial pundits and "journalists" keep telling us what will happen if we don't do this bailout. The reason we don't care is that it has all already happened to us. We can't borrow money because the credit reporting companies in this country make sure that the banks charge us the highest interest rates possible by downgrading our FICO scores at every available opportunity. We can't buy homes because the prices have been so high, a responsible buyer knows they can't afford them. We have lost our jobs and our homes because we get sick and have no health care insurance to help us. The financial crisis has already hit Main Street. We are living it. I think the American people should help them just as much as they have helped us. Give them a $600 incentive package and tell them to hit the road. Let's start over and do it with some moral and ethical provisions in place. And remember that America is supposed to be the land of opportunity for everyone, not just the rich 5 percent of the population.

Of course this mess was caused by Bush and the republicans in Congress. They provided the deregulation that allowed people to have these loans. Bush wanted everyone to have a home- the American dream, whether you could afford one or not.

this is to joe, who posted the idea of distributing the money to all 18+ people in the US.
do the math again. it comes out to $425 to all, NOT $425,000

So, those of you that don't think the administration has anything to do with it: Prove it.

I say that history has repeated itself, from Wiki:

The Lincoln Savings led to the Keating Five political scandal, in which five U.S. senators were implicated in an influence-peddling scheme. It was named for Charles Keating, who headed Lincoln Savings and made $300,000 as political contributions to them in the 1980s. Three of those senators – Alan Cranston (D-CA), Don Riegle (D-MI), and Dennis DeConcini (D-AZ) – found their political careers cut short as a result. Two others – John Glenn (D-OH) and John McCain (R-AZ) – were rebuked by the Senate Ethics Committee for exercising "poor judgment" for intervening with the federal regulators on behalf of Keating.[10]
[edit]Silverado Savings and Loan
Silverado Savings and Loan collapsed in 1988, costing taxpayers $1.3 billion. Neil Bush, son of then Vice President of the United States George H. W. Bush, was Director of Silverado at the time. Neil Bush was accused of giving himself a loan from Silverado, but he denied all wrongdoing.[2]
The US Office of Thrift Supervision investigated Silverado's failure and determined that Neil Bush had engaged in numerous "breaches of his fiduciary duties involving multiple conflicts of interest." Although Bush was not indicted on criminal charges, a civil action was brought against him and the other Silverado directors by the Federal Deposit Insurance Corporation; it was eventually settled out of court, with Bush paying $50,000 as part of the settlement, the Washington Post reported.[11]
As a director of a failing thrift, Bush voted to approve $100 million in what were ultimately bad loans to two of his business partners. And in voting for the loans, he failed to inform fellow board members at Silverado Savings & Loan that the loan applicants were his business partners.[citation needed]
Neil Bush paid a $50,000 fine and was banned from banking activities for his role in taking down Silverado, which cost taxpayers $1.3 billion. A Resolution Trust Corporation Suit against Bush and other officers of Silverado was settled in 1991 for $26.5 million.

Link: http://en.wikipedia.org/wiki/Savings_and_Loan_crisis

Apples don't fall far from the tree.

I like the Birk Plan but you need to consider the many people living and paying taxes in this country for many years that for various reasons are still holding a green card and not a US Citizen but are LEGAL in this country.

The problems lies with the rating agencies in America like Moody’s Investors Service which overnight downgraded Freddie Mac and Fannie Mae's preferred shares to one level above junk after Warren Buffet negative comments on these FIs. The rating agencies had earlier given A+ ratings for these companies enticing investors to invest.

Secondly America free market policy. We need to have some regulation on banking and financial markets otherwise greedy banks will do anything to garner business which will eventually turn into a disaster as happened now.

Good Idea Debbie post sep. 26

To reply to Heather. I am what I thought was a middle class citizen with a 60,000-80,000 salary. Excellent credit score. I bought a cheaper home that "we could afford". Hell, we even put a good chunk of money down. Due to the failing economy, my husband a musician and myself in the health industry was severely affected. Our income dropped significantly and in turn we could not afford our house payment and other bills. We do what pretty much every american citizen would do and try to save their home. We even maxed out our two credit cards to pay our expenses. Now I'm stuck with two high interest credit card bills on top of all my other bills, including mortgage. We have never spent more than we could afford nor have we given up. I am still struggling to stay afloat because I don't want anyone to be responsible for my debts. I agree people should not buy homes they can not afford, however not everyone can foresee financial trouble like we did. I am a hard working, responsible U.S. citizen. I pay my outrageous taxes each year and for what to get screwed over by the government and their representatives. Now there is no "Middle Class" anymore. There is only "RICH" and "POOR" classes. I'm tired of making the rich richer. And yes I do blame BUSH and his administration and all those congressional idiots in Washington. I agree with Birk's statement. I also agree with Huh. Ron Paul would have been a smart choice for us. Sad to say but nobody is looking out for us. It's time for a change!!!!!!!!!

01 Oct 2008

3 Market, Mortgage and Vegas Rules

1. Winners take home all profits.
2. Losers take home all losses.
3. Gamble at your own risk.