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Feedback ForumNOW wants to hear from you! Send us your opinions, reactions and ideas about "Behind the Bailout"Submissions for this question are no longer being accepted. Previously submitted comments appear below. Comments may have been edited for content or space. Poster: American Carol Comment: Someone mentioned healthcare - do you know what you are talking about? When a government runs healthcare (i.e. Italy) they decide what doctor you will use, what treatment you will get (if any at all) and if your age is a factor (babies or elderly many times get no care and are sacrificed so the government really only takes care of the healthy) Only the healthy or mildly sick get care - not really sick people. Transplants go by the wayside, critical care is scarce. Get it? Steer clear of the wolf (Obama) in sheeps clothing. This is a dangerous road to go down. McCain and Palin will be sure that the private sector finds ways to insure every American and care is guaranteed. Additionally, McCain/Palin will change Washington. The good old boys are gonna have to kiss the perks goodbye. They will turn that place upside down - Palin did it in Alaska, McCain has done it in the Congress on occasion and even stood alone leaving Dems and Republicans without his support. He is not afraid and he does not take handouts like Obama/Biden. There is not one financial discrepancy in his past! Let's get our security taken care of first so we will have freedom to speak. Without freedom, we have no rights. Obama and Obiden will limit your freedoms and smile all the way to their bank. Poster: Bob Jennings Comment: I am a avid viewer of NOW! Thanks for the Great Reporting! Many add-ons to the Paulson Bailout Plan did not make a BAD plan better. This is the wrong approach. More debt is not the answer. Tax cuts are not the answer. Lets get to the core of the crisis; Commercial Paper. Why not buy commercial paper rather than worthless paper? Why not GATHER LEADING ECONOMISTS FOR AN EMERGENCY SUMMIT? This could lead to a sound plan that we can all understand and buy into. The economy may need some immediate support, so again I suggest buying commercial paper which only has a life of 9 months max. This should provide time for Congress to study the crisis and act in a RESPONSIBLE manner. Poster: Kmaver Comment: A correction to one of the posters: The quote, Recesson is when a neighbor loses his job. Depression is when you lose yours was not Ronald Reagan's. It was said by Harry Truman. Reagan quoted Truman when he was running against Carter. Poster: Michelle - Delloy OH Comment: Listen, we are damned if we do and damned if we don't bail them out. And quite honestly, for the amount of money these CEO's make a year, on top of taking several millions in bonuses, and their inflated outrageous corporate spending (perks), they should bail their own greedy selfish behinds out, and not expect the middle class citizens who make next to nothing anymore save them. They didn't have any pity on their middle class hard working associates who they laid off when times were tough! That's right, take away any kind of incentives, lay off associates, yet continue to collect your millions in bonuses. And they have the nerve to expect us to save them? I'm tired of hearing about government threats that say if we don't bail them out, we will lose our jobs, our credit. Hey news flash! We are already there!! If the middle class loses their jobs, credit etc. Well then those execs should be shaking in their boots because it's our piddly little pay check that we spend that lines their golden pockets! So they better figure it out for themselves. They think they deserve to make all that money, take all that bonus money - they've got to be genius enough to clean up their own mess! Poster: Clare Comment: Concerning the Fannie Mae etc. Real Estate Debacle - No one needs to buy a home if he/she cannot afford to pay for it on a timely basis. Any American has the same opportunity as the guy down the street. Its' what a citizen does with that opportunity that helps them afford more... or less. Too many people think the government owes them a living. Not so! If I want something of substance I either save for it like my parents did, or I realize it is not in my budget and settle for less. Our constitution does not assure Americans of anything but the OPPORTUNITY FOR BETTERMENT. What we do with that opportunity is up to us. None of us is assured of immediate gratification for material goods. With goods comes the responsibility to pay for and care for them. Amd the government needs to give a teeth rattling shakedown to the politicians like Barney Frank, Chris Dodd and Obama for the kickback type advantages they took with other taxpayer's money; all the while giving assurances with outright lies to those brave enough to ask serious questions ! Poster: Juan Carrillo aka Pancho Villa Comment: Were evolving into an aristocacy. Republican government always leaves a huge gapping hole in the economy after they rape and terrorize the economy. Now they want a bailout of their devastating ideals based on pure greed. Banking insitutions milk every bit of account money they can get their hands on with overdraft fees taken from low income accounts, its an unseen big marketing segment for them. Banks arepigs along with Republican ideology. It's time for CHANGE AGAIN, like Clinton saved it a few terms back, so that the elistist few can grab and run with the goods AGAIN during their term. In our desperate times this cycle can only last a few more terms before the middle class is non existent and the poor revolt free of bullshit excuses and process and go stright for the knock down drag down of elite terrorists to restore Democracy. Poster: Roger1 Comment: The panic we are seeing now is due to the Nothing Down & No Closing Costs of home buying -- just move right in and maybe, just maybe in the future you will have money to pay the mortgage. Of course besides Congress who started this mess the individual involved also must share the blame as well as the builders and loan institutions. Keep in mind that MOST people do pay their mortgage to their Bank every month. The number I have heard is that there are about 4% that do not - so why the panic? Is it because the news media is spreading doom & gloom and causing the nation to go into hysteria? Or is due to our congressional leaders loosing their financial support from Wall Street? I believe that a maximum of six (6) years is long enough for any of these politicians to be in office. All politicians should get Social Security and Medicare when they each retirement age - no other stipend. Any money they collect for their campaign that is not used goes into the national budget or their state's budget. No campaign money can be spent on any personal item for themselves, family or supporter, only for advertisement. NO family member can be hired by them or any other congressional member. None of them (Congress) nor their family member can accept any gift of any kind what-so-ever, if they do they are fired with no appeal. The Democratic and Republican parties are dissolved - Politicians need to be statesmen and serve for the good of the nation not a party. All campaign money needs to be documented as to its source and expenditure, failure to do so all of the money is confiscated and the person is banished for ever holding any political office and if the money in question exceeds an accumulation of $100 they are placed in jail as well. When they leave office they cannot hold any job that deals with or influences the government or government employees in any way for 6 years. If a family member works for the government or becomes an elected official the 6 years does not start until that person is out of office or no longer is a government employee for 6 years. Radical; maybe but we have to start the cleanup somewhere. As I said, these people are Politicians and not Statesmen, our founding Fathers did not expect these to become full time jobs. They served our country then went home and worked their farms or businesses not expecting to be supported forever by the people they represented. Poster: Tracy Comment: I believe a bailout is needed, but i want ownership of the assets and I DO NOT WANT to pay for the fat cats to keep their yatchs. Pelosi & Co's insistence on playing the blame game is INFURIATING, UTTERLY COUNTERPRODUCTIVE (big surprise) and DISGUSTING. Poster: donna prijatelj Comment: Hasn't anyone in Washington got the news that the U.S. Government is broke? U.S. taxpayers should not be made to pick up the bill. We taxpayers are being penalized three ways: we were poorly represented in the halls of government, we are not the perpetrators of this criminal mismanagement, we taxpayers are the innocents. Why are the taxpayers being penalized? How about doing what we average U.S. citizens do: take our medicine and learn to budget? Poster: Cheboy Comment: Why is it, that no one talks about ACORN, the charges against them, the fact that the GOVERNMENT (democrat controlled at the time) passed a law mandating the banks give out the loans to those that could not afford them, then the same people refused to address the problem a couple years ago when McCain asked for regulations on Freddy & Freddy. The fox is in the henhouse and I do not like giving more money to the fox. Do you?I am not in favor of socialism either. Check this link and you will find it interesting. http://www.rushlimbaugh.com/home/daily/site_092908/content/01125107.guest.html Poster: Nan Comment: We NEED THE TRUTH and I don't believe POLITICIANS, MEDIA and especially HOLLYWOOD!!! THESE groups have shown for years that they are LACKING in COMMON SENSE..they may have degrees but do not have a clue how to RUN A BUSINESS, BUILD A BUSINESS..PRESIDENT BUSH WAS NOT THE PROBLEM..why dont you get the TRUTH OUT about the meeting when the DEMocrats voted against reigning in fannie mae and freddie over 2 yrs ago. SHOW THE VIDEO...FOX NEWS SHOWS IT LIKE IT IS..they don't talk SPIN & LIES..some people just can't take the TRUTH..rather destroy our ELECTION PROCESS ...LETS FORGET PARTIES and try looking at the RECORDS..the ones in charge of BAIL OUT received more money from the ones they were elected to oversee ..OBAMA #2 in receiving FUNDS..DODD #1...BARNEY FIFe FRANKS is a JOKE!!! Poster: Barbara Cook Comment: It failed because the citizens rose up and said no! Policies of banks, Fannie and Freddie were changed and overlooked, due to pressure on them by certain groups, ACORN, Fushion-New Party, Rep. Frank, Sen. Dodd. When ACORN formed, their purpose was to destroy our economy to gain what that wanted, socialism. The breakdown of these facts are on www.americanthinker.com in their Sept. 28th blog. Barrack Obama and the strategy of manufactured crisis. This Country needs to return to working for all citizens, not certain groups. The times we are in now, no one should vote due to Party loyality. It's time to research and check out all facts. Poster: Thomas Hostetter Comment: Let's call a spade a spade: today's financial mess was caused by poor governmental policy, ill-adviced mortgage banking policies, and poor judgment on the part of John Q. public. The Democrats pushed for greater opportunities for lower income families to become homeowners. Fannie Mae and Freddie Mac developed ill-adviced mortgage lending vehicles to make it happen, and wild-eyed individuals signed the dotted line for mortgages they could not afford. Everyone was living large until adjustable mortgage rates increased and the inflated real estate market bubble burst. Now everyone from top to bottom wants a bailout. It was all too good to be true. Poster: Steven Comment: * Congress to TAKE THEIR TIME. We closed the stock market for 9/11 and we survived. Don't budge until we get everything the taxpayers and congress wants. DON'T CAVE IN TO PEOPLE TRYING TO RUSH THIS THROUGH!! * Tell them we don't want another vote rushed through by the administration like the one that got us into Iraq. * We don't want CEOs walking away with millions when WE start paying their salaries. Let them live on the same income as our elected officials. (This bail out will cost each taxpayer about $5000.00). They really belong in jail, but I won't hold out hope of that. * Tell them we want regulations put in place NOW to stop the oil speculators who are causing the inflated gasoline prices. * Tell them it's like buying a car.... Wall Street wants to sell this to us more than we want to buy it. Hence, we have a good bargaining position and don't need to take on Wall Street's debt without getting something for the taxpayer as well. Poster: Dirk Comment: Answers,Answers,Answers, What do we do as a nation???? This is so easy to fix, I feel a monkey could make this decision. First off we let these corps go under and NOT bail them out. I was once told you reap what you sow. We live in the most beutiful country there is with Americans that have worked as well as served themselves to the grave for there country and fellow man kind. There is only one way to truly get out of this crisis. Our nation has always taken care of the upper class of earners first. This time if our Government would take care of this crisis in reverse they would find that this problem would take care of it self. If our government would have sent a check to everyone over the age of 18 that is a u.s. citizen(man woman,) for the money that was already spent on AIG alone it would have put about 400,000.00 in everyones pocket. Of coarse we would pay taxes on this which would be about 30+/-%. This would give our government back roughly 30% of the total, leaving 280,000.00 per person to use to pay off home morgages(housing market fixed),pay of car loans,college loans,put money into retirement funds (investments)another situation fixed. Buy new cars or furniture, clothing, start new businesses(this could cause employment) another problem solved. The American dream is your limit. If our gorernment does not take care of the people that spend a majority of there time paying bills and morgages to begin with this buy out will never work. If our government gives this money to big corps it is only a matter of time before history repeats it self. We the people have supported our government through thick and thin for as far back as time can go. It is time for our government to return the favor to use the tax paying Americans. We all know that there will be a few people that will do the wrong thing with this money, however, more of use will do the right thing and pay off our det load that the fuel crisis has caused this countrys failing economy. So if we take care of the small things the big things will take care of themselves weather you are Republican or Democrate. This may sound far out there but take the time to sit down and give it a thought, the numbers will suprize you on just how fast it would fix this countrys problems. If we do not take care of the home front someone else will. So the answer is right in front of our governments face they just have to decide if they want to bail out the failing corps. But they better understand use tax paying Americans still have no jobs, no money to pay back the loans that they are trying so hard to bail out. So if they dont start and the bottom this time if is going to fail anyway and then use Americans will be having to figure out another way to try and pay back a loan that will never be able to be paid back. Some times the answers are right in front of use and we can not see it. Smoke and big words that no one can under stand can be said against this idea, but if does not matter, take care of your fellow man and he in return will take care of you. Poster: Bill H Comment: everyone is pointing fingers at congress saying that they need to do this or that.... the investors want a bailout plan to rally the market and sell their stocks when recovering losses. after a market rally caused by a bailout, you will see the same drop back to our current levels or below (in my opinion) due to the selling of these stocks after recovering losses. because now the gov. would own the securities but their worth is still unknown. without making the actual worth of these questionable securities transparent, there is too much risk for these same investors to put their own money on the line and purchase these securities themselves. so why should we? none of the banks trust each others books anymore due to fact that their home mortgages are worth more on paper than within our current real estate market. I believe the congress should come back on thursday to form a way to make housing securities more transparent.(like a commodity) When you take the gray area out of these securities worth, then buyers will be available without government assistance. also, banks will be able to look at the numbers of another bank with confidence and loosen up lending. (Would the bank give you a loan if you told them your making income, but just don't show proof?) THIS IS NOT WHAT THE BANKS WANT YOU TO SEE. in my opinion, the actual worth of these homes is probably only approximately 60% of what some lenders have invested in with a loan to a homeowner. showing actual worth will probably cause a downturn in the market, but..... it's all uphill from there. arm rates will drop.(putting more money into consumers hands, and lowering foreclosure rates.), banks will trust each other. real estate taxes will be re-adjusted.(putting more money in consumer hands, investor hands, and lowering foreclosure rates.) this housing bottom is a tough pill to swallow, but it is just what real estate investors and homeowners alike are waiting for to start buying. with all investments, BUY LOW AND SELL HIGH. I'm no rocket scientist, but there's my 2 cents, Bill Poster: Roger Comment: Here's an idea. Why not take all that money and divide it equally amongst all adult Americans. Give us all $300,000 to $400,000. Then those that owe mortgages could get them paid, student loans will be paid, car loans paid, money generated from taxes, the taxpapyers who own their own homes and have no loans could go and spend, spend, spend, generating more jobs and boosting the economy. Why do we have to keep bailing out everyone while we go without? Poster: RShaffer Comment: This is what happens when GREED takes place through out the world and also PEOPLE who think they know best and when things fail guess what its always someone else's fault, until people take responsibility for there own actions then nothing will ever change, no one in the world is perfect but at least admit when your wrong and make it right... I believe the greedy should be put away, in other words strip away all there high and mighty power and funds then let them see what its like to be a struggling tax payer and raise a family on a budget. God will take care of the good. As far as the election, tell me that this is not a battle between black and white this will become a major effect on our country, dont take my word look for yourself and see if this doesnt become the next issue once the politicans settle down... Poster: Will Walters Comment: The American people are angry and justifiably so. 700 billion dollars of their money going to a bailout that has no guarantee of working. If this money were given to the people instead, what would happen? I would pay off my mortgage and so would most everyone else. There would be no more mortgage crisis. I would make my credit perfect. So would everyone else. There would be no credit crisis. I might even buy a new Chevy or Ford and they would not be in crisis either. The people along the Gulf Coast could rebuild their houses and that recovery could start. If we want to stimulate the economy, give us our own money back and let us spend it here in America for the things that are import to every single American. It is the people that will make or break this economy, not government or corporations. Who knows, if we did this it is just possible that every American could afford to buy gas and feed their families. Wouldn't that be novel? Will Walters Sedona Arizona Poster: Scott Comment: I think the 700 Billion dollar bailout payout is going to the wrong sector of people, i believe it should be doaled out to people with a combined income of less than $50,000 a year, these are the people that are hurting the worst in this country, if these people are given the money, it would enable them to repay the banks that they have mortgages with and also credit card companys and auto loans, thus boosting the economy and giving the money back to the creditors that are failing, how about helping out the people that need it the worst in this country and not the people that have made millions of dollars already, we need to help the people that are the backbone of this country, not the idiots at the head of this mess. Poster: joe mikus Comment: I would like to hear -i am not accepting 13 million for 3 wks. I am a well informed executive and knew that there was no possibilty of saving wamu Poster: Maria Schneider Comment: Do you remember when President Bush wanted to Abolish your social security retirement benefit and have people just invest in the stock market? Handle their own retirement instead of having government do it for them. Now with this stock market fiasco, seeing how the unregulated market can be manipulated, many people would be without any retirement benefits at all. Those people with 401k's are finding that their investments are shrinking, due to the stock market volatility, and finding that what they thought was a nest egg, is now more like a rotten egg. Capitalism, may be good in theory, those who work hard get the most rewards. But unfortunately, many middle class people work very hard, only to find that they have been duped, by unscrupulous money hungry corporations, that have no qualms about taking their jobs to over sea low cost employees, (India, China, Mexico) and our US government does not impose any fines or additional taxes to do so. I know in every system there are flaws, but it seems that socialism sets out to give the general public a decent quality of living. Things such as healthcare, education, a roof over your head with out being gouged, food on the table. No one should be looking for a handout, but those hard working American's should expect to have a reasonable quality of life. I have found in the last 8 years, the quality of my life has deteriorated, I still work at the same job, and still live in the same home, but what I can buy with my paycheck, is less than I could 8 years ago. This Republican government has taken a thriving country and has brought it to it's knees. All but for a few 1% which had more than enough in the first place, have benefitted with this Republican government. The theory is if corporations have free reign to build, that there will be a trickle down effect for the middle class, but unfortunately, we can see that there is no end to corporate greed, and there is a very, very slight trickle down effect. In fact in these 8 years, more people have had cutbacks in pay, and loss of jobs than any improvement in their lives. Do not let any more years of the irresponsible government continue! Poster: Maria Schneider Comment: I find it funny, that the Republicans have money for war, and bailouts for billion dollar corporations, but when it comes to healthcare for American's they say, oh, no, where will that money come from?? The tax payers will have to pay for that, also education, we need more cutbacks, no money there either. Gee, I wonder who they think pays for the Iraq war, and corporation, Wall Street bailout?? At least when the tax payers pay for healthcare and education, we the middle class might actually get something for the money spent. The war seems to help Haliburton, or did we forget who's making profits there too! With this mess, I think it's quite embarassing to think we can invade a country and say how we know how to run a country better, it might be the pot calling the kettle black, don't you think?? Poster: Maria Schneider Comment: Wow! Don't we remember the wake up call of Enron!! This was our wake up call, but Wall Street said it was on top of over inflating of stocks, and manipulating the market. That Enron was just an oversight. You have got to be kidding me! Didn't those Enron execs, just barely get a slap on the wrist. California had to still pay for the overly fraudulently inflated energy contracts, which started the problems in cutting education, social programs etc. Why were contracts that were based on fraudulent information still valid?? Why did California still have to pay the overly inflated price?? Does this sound familiar at the gas pump! According to stock market speculators, (unregulated) they are the ones driving up the price on oil! The Republican's stating less government, is not less government for the average American, (hence the new bankruptcy laws for you and me) compared to how big business get's away with murder. The less government is all about de regulating the way business is allowed to take things away from the middle class. Do you forget that the 40 hour work week and child labor laws were passed to assist the middle class. (You know that now most companies must pay overtime for over 40 hours per week). Yes regulations are good! Like the ones when an oil corporation is making billions of dollars in profits quarterly, on the backs of hard working Americans. But somehow still get subsidied from the American government to lower their (the oil companies) taxes. There has been graft and illegal doing in governments for decades, but I believe our government has gone too far! I hate to remind you, but the failed Savings and Loans way back in the 80's was all about George Bush Sr, in office with one of his son's heading up the junk bond sceme in Texas. Don't you think it is a big conflict of interest that both the President of the United States and the Vice President of the United States all made their money in OIL??? Do you wonder why no in government has done anything to restrict the oil companies from gouging Americans??? GET A CLUE!!! Now you wonder why we are in the problems that we are in! This guy and the vice president should have been impeached when they FRAUDULENTLY put us in the Iraq war! They have nothing to lose, they are out of office in January, and they are taking the money and running with it at the expense of America! All I can say is I didn't vote for Bush, and I will definitely not vote for McCain for more of the mess that we are in! By the way, there are many alternate fuel sources out there, our government is doing there best to block those options. Why aren't we being subsidized for solar energy, especially in California, the Sunshine State! Set up neighborhood solar panels to provide power to neighborhoods, also incorporate home energy stations (powered by the solar panels to create hydrogen) to fuel you hydrogen car, and then the by product from the home energy station is water, then irrigate your lawn and garden with the water by product. Pretty good idea huh!! Since California has all the sunshine, and seems to be in a drought! Win, Win situation, also very green, no polution. Why can't someone in our illustrious government put that one together. Oh, yeah, that might not gouge the US public, and not make some greedy corporation a million, or should I say a Billion dollars!! It is a scary time that we live in, there are solutions, but those in office that are there to make the lives of the American people better, are only working for that upper 1%. Poster: ARW in Ohio Comment: I don't pretend to completely understand what the bailout is about. What I CAN say is that it looks bad for people like me! I see that the bank executives will still be paid they will just have more taxes on everything they make over $500,000. What? I see that banks will be able to continue approving loans to consumers, and one another. Huh? I see that people that have lost their homes and homeowners that are being foreclosed on are up the creek without a paddle! They are getting NOTHING! I see no jobs coming to the area. I see that I am going to have to work three times as hard instead of twice as hard and now I'm scared to put money in the bank, not that I have much of it to that with anyway! Basically what I DON'T see is a REAL soulution! Poster: Stephen Lahanas Comment: Why the Bailout Won't Work Here is exactly why this Bailout Plan won't work: * Because the other Bailout plans that were supposed to work didn't. This one won't either and we have set the precedent now for even bigger ones. * Because the Bailout Plan, even today's version does not address the real root causes - those are: predatory lending has become mainstream - adjustable rate mortgages, balloons, subprime lending and other commercial debt enticements all should be illegal. The economy is weak and spending and borrowing more will not correct that - only jobs will. There is no accountability in our financial sector. * Because this plan has been conceived and will be managed by the very people who ensured that the economy would collapse - the Chairman of the Fed, the Treasury Secretary and the head of the SEC. They have proven only one thing to us - that they are NOT Qualified to manage a financial crisis. * There is no way to track or price these bad debts. Mortgaged-backed securities & CDOs have 1000's of mortgages and other debts bundled together - it is not one mortgage represents one property as it was in the Great Depression or the Savings & Loan Bailout - it will be IMPOSSIBLE to Manage and Impossible to know where the money is going. Saying the word accountability doesn't magically make this issue vanish - No One has answered this and this should have been the first question answered to even consider a bailout. * We will deprive ourselves of money when we need it most to save real deposits. When those go, it really is Depression 2.0 * The Risk to banks is not Removed - without correction of the mortgage market and economic improvement, they will still fail because Americans will continue defaulting on their debts. The problem here is not the need to stimulate new lending - it is defaulting on all of the existing debts isn't it - how do we stop that responsibly? * Why in heck do we want banks to continue lending the way they have been - especially when we know now that the outcome will be more bailouts paid for by us? * We get nothing - but vague assurances and increased risks of losing our money and our mortgages - real deposits and real assets. Big finance has overseen mergers and downsizings for two decades, we are now a debtor nation and all of us have felt the pain while they lived it up. This deal represents a massive, collective Golden Parachute for the wealthiest 1% of the country. If we're worried about more banks closing while we work towards a real solution to this problem, then why not Close Down the Markets for a few weeks and remove the pressure that is driving us headlong into this extremely bad idea. We need to target our economic crisis planning to those parts of the economy that do work and need support to keep the country running, not to the practices and inventions that led to the crisis. BTW - hot off of the presses: here's part of the definition for Troubled Assets - any other financial instrument that the Secretary, after consultation with the Chairman of the Board of Governors of the Federal Reserve System, determines the purchase of which is necessary to promote financial market stability, but only upon transmittal of such determination, in writing, to the appropriate committees of Congress. This is the blank check folks, the Fed decides any type of debt is game here, ANYTHING - read it and weep... Poster: Gabriel Nagy Comment: Why I am not voting for Mr. Obama On November 4th, my first time voting for President of this Great Nation will not be for Mr. Obama or Mr. McCain. This is the best way to protest against the bi-partisan decision to support an unfair bill stabilizing the markets and rewarding reckless speculation and greed in the mortgage business. The unprecedented blank check Congress agreed should served taxpayer refinancing their debt with banks instead of rewarding Wall Street. The $700 billion bailout should help homeowners repaying partially or totally non-performing loans will allowing taxpayer families avoid foreclosure and keep their houses. Refinancing loans will help banks cleanup their balance sheet and provide the market with most needed liquidity; keeping jobs and retirement security. Man is not free unless government is limited. Recession is when a neighbor loses his job. Depression is when you lose yours. (Ronald Reagan) Poster: Lewis N. Villegas Comment: Wall Street is famous for discounting events ahead of time. Let's suppose that the coming event is the end of a Wall Street friendly Administration. When would be the right time to cash in? NOW! The two most remarkable characteristics of this crisis have been: (a) the naked over-reaching of Hank Paulson, and (b) the lame analysis by the national press. It is Iraq all over again. Brought to you by the same guys that brought you Iraq, now just weeks before they go away. Poster: MC Comment: Let's take a minute to look around and assess our industry's standing. First of all, we must realize that we are making history. The events that have unfolded over the past few weeks - takeover of Freddie Mac and Fannie Mae, fall of the big investment banks, the failure of WaMu and bailout of AIG - they are unprecedented in our lifetimes. Entire college courses will be created over the changes we're seeing in the banking industry right now. Old order changeth giving place to a new. old rules will be thrown out; new ones will be written. There are still a few certainties: 1)There will be more failures. We've seen 23 institutions fail so far this year, and more are teetering on the edge right now. I don't dare predict how many more failures we'll see by year's end (or by Monday, even), but they will occur, they will impact people's lives (employees and customers), and they will further undermine the consumer confidence that has already sunk to a new low. 2) The regulatory environment will change Again, I don't dare say how - who does? But given the bailout the feds are weighing, the sweeping changes that have already been proposed, the imminence of a new administration and - don't underestimate - the ire of a prickly populace, it is inevitable that banking regulation will change dramatically in 2009, and we need to prepare ourselves for new rules and rule makers. Community institutions are particularly fearful of (as one leader put it) being swept over and wiped away by the regulatory tsunami. 3) There are still great opportunities for sound institutions This seems absurd in some ways, but if you represent a banking institution that's relatively unscathed by the credit crisis and data breaches, then now is the perfect time to reach out to current and prospective customers and reinforce that 'Your financial and informational assets are safe with us.' Your business truly can grow as the marketplace shrinks. Community Banks and Credit Unions will prosper and benefit from this chaos and instill consumer confidence. Poster: MC Comment: I saw the debate last Friday. Both candidates talked at great length but none of them gave specifics on how each was going to handle the present economic crisis. We are very good in doing routine things, such as debate before the election and ask the candidates a certain set of questions. That is fine. Is that how our electoral college works? If so, that would be the greatest thing. We have two more debates. We must see how the candidates present the facts on those debates. I think, even now, many Americans are uncertain about who to elect this time. Let us keep the Patriotisim, Change, etc.. aside for a while and focus on the issues on hand. Gasoline price has not gone down as expected. Unemployment is still high. Added to this, we have two new failures by WaMu and Wachovia. Inflation is high. California is the largest entertainment capital still things are not in good shape so to speak. Newsmedia network, also do not know, what to say and how to say it They talk in terms of generality. Hope PBS handles it well. Poster: MaryAnn Comment: I am not an economic expert but it is apparent that our nation is in serious financial stress that is beyond castastrophic. Unfortunately, in the past this same nation voted George Bush as President of the United States twice, having stated that, the nation took to their bosoms less government is great! We are a nation of deregulators wanting less government were that portion of the nation's attitude who voted George Bush in twice. Realistically our nation can not run smoothly with deregulations. Regulations have to be in place to put a stop to the financial arena and other systems in our government from making bad judgements. As we all know the few regulations that were in place were ignored and here we are trying to pull ourselves up literally by our boot straps. May God be with us through this tumultuous time. Poster: C.L. Shea Comment: Out of the Mouths of Babes: President Bush, in his speech to the American people outlining the economic disaster we're currently facing, repeated a familiar shibboleth held dear by all proponents of privatization when it inevitably all goes wrong : the markets aren't working the way they're supposed to. Wrong. The markets worked exactly they way they were supposed to our current economic disaster is a market correction and a classic demonstration that unchecked, unregulated capitalism is a bloody stupid idea! Just ask all the parents in China whose infants died from contaminated milk powder. Adam Smith's famous self-regulating marketplace is based on a fatal flaw: it assumes an economy based on continually expanding resources and propelled by enlightened self-interest which functions to the greater good of all. Real markets include piracy, slavery, unrestrained greed and pure foolishness. Leaving them unregulated and unrestrained is an act of touching faith in human nature and succeeds about as well as the famous tissue-paper dog chasing the asbestos cat through Hell. Resources, markets and people are all limited, and need to be treated with respect. You can't base your economy on the model of rape and run. Remove regulation, as the Republicans have done in the name of free market capitalism, and surprise, the economy falls victim to yet another bout of unrestrained greed and foolishness masquerading as wisdom. Dispersed risk my Aunt Fanny! Sub-prime mortgages are the folly of an industry that forgot you can't shear the sheep down to the bone, and expect wool and mutton dinners next week. They read all the market will bear and translated that into all the market will let them get away with. And never mind the folly of today's economists, who created an index to judge the health of an economy and failed to include the cost of food and fuel as a primary economic indicator! Perhaps it's time we all re-read Charles Mackay's classic, Extraordinary Popular Delusions and the Madness of Crowds, with particular attention to the chapters on the South-Sea Bubble and the Tulipomania. It's far from the first time that a free market has bitten the hand that fed it. In England, in the 1700s, The next consideration of the legislature, after the punishment of the directors, was to restore public credit…but it was a long time before public credit was thoroughly restored. Enterprise, like Icarus, had soared too high and melted the wax of her wings; like Icarus, she had fallen into the sea, and learned, while floundering in its waves, that her proper element was the solid ground. In times of great commercial prosperity there has been a tendency to over-speculation on several occasions since then. Popular imitativeness will always, in a trading nation, seize hold of such successes, and drag a community too anxious for profits into an abyss from which extrication is difficult. Bubble companies, of a kind similar to those engendered by the South-Sea project, lived their little day in the famous year of the panic, 1825. On that occasion, as in 1720, knavery gathered a rich harvest from cupidity, but both suffered when the day of reckoning came. (pp.87-88 of Mackay) And then there's the sterling example of the Dutch response to the economic disaster of tulipomania and the subsequent collapse of both tulip market and economy. The matter was finally referred to the Provincial Council at the Hague, and it was confidently expected that the wisdom of that body would invent some measure by which credit should be restored. Expectation was on the stretch for its decision, but it never came. There the matter rested. To find a remedy was beyond the power of the government; those who made profits were allowed to keep them; but the commerce of the country suffered a severe shock, from which it was many years ere it recovered. (pp.96-97 of Mackay) Those idiots in Congress had better get a move on, or this might be our own sorry epitaph. But what else should America have expected? The legislature spent years rewriting the banking laws-not to protect the consumer, not to protect the economy upon which we all depend-but to remove all restraints and regulations to create a truly free market. End result: market collapse. You don't remove the governors, run the engine as hot as it will go, and then act surprised when you crack the engine block! You cannot worship at the altar of unrestrained market capitalism without paying the price: unmanaged, unregulated economies collapse. And they take both Wall Street and Main Street down together when they go. So now we have to bail 'em out, or we'll all drown in this economic dam burst. But maybe this time, we and our legislative representatives can learn something bloody obvious. The private sector cannot be left to its own devices without pulling the entire country down in its mire. It manifestly does not and cannot regulate itself. How many more bailouts must we go through to learn this simple lesson? How many more crashes can America afford before it enacts seat-belt laws to restrain our wayward economy? So, yeah, put the economy back together again, fellas, but leave the safety on this time, o.k.? Poster: John M Hilb Comment: Dear nice NOW producers , handsome and debonair David Brancaccio , very lovely Maria Hinojosa , and other people , I hope that you are in good health , Republicans get elected because they say that they keep taxes at low rates . But , do they actually keep the tax rates low ? Do Republicans actually reduce taxes , do they actually reduce spending , do they actually shrink the size of government ? I would like to see some actual statistics , facts , and numbers which present the actuality of these claims . Thank you . John , Kankakee , IL 60901 Poster: Tom Shillock Comment: I suspect that David Johnston's glib assertion that executives of firms that get bailed out can elude any rider limiting their compensation, and that therefore it's not worth bothering with is false. If they were confident in their ability to get around any restriction then Paulson, Bernanke and other members of that club would not be opposed to such restrictions. In any case, it's cretainly worth a try. They have already obscenely rewarded themselves for the illusion of creating value for society. To reward them again would be absurd especially if they are--via Paulson and Bernanke--trying to hold America financially hostage through brinkmanship. The immediate threat is lack of credit because inter-banks are drying up. This is a separate from the deleveraging process which may take a couple years or more. So congress could address the liquidity issue by simply ordering the banks to behave as if they did not fear the solvency of other banks. Then the FDIC and other agencies could deal with defaults as they came along just as they did expeditiously with Washington Mutual. There is no need to write a $700 billion check to Paulson. It could end up being a $5 trillion problem that government just cannot resolve. In any case, there is no Hollywood ending for most of us from this massive fraud and self-deception, just a weaker dollar, a slower and declining economy, and lower standard of living. Poster: Stephen Comment: I believe an under-represented cause for the crisis was that government, as it relates to technology, is often times too slow to react. As the lending system became so diffuse, of course a monolithic, centralized government was unable to govern the system. By extension, our government is designed to represent us. We should always remember that we have access both in addressing our leaders in office, as well as voting for future leaders. The solution to this crisis will need to be multifaceted. One facet that will improve our government is an active, engaged voting public. Poster: Dick Gaden Comment: I would like to see punitive damages of the most unimaginable magnitude recovered from all who have been executive officers of the Fannie Mae & Freddie Mac companies. I would suggest to freezing ALL their accounts held directly & indirectly, leave their immediate resident family with one modest home, two modest automobiles, less than $10,000.00 cash, and no more than $50,000. in all other assets. Audits to provide true accounting for the past 5 years to assure complete transparency of all transactions, and restricted travel of the complete families of these people until all valuable assets are acquired by the Federal Government. All consulting firms retained, should repay their fees to the penny, unless it is shown that complete & accurate reporting was made to the parties that retained them. Without true accountability for executives who draw the magnificent employment contracts, continued negligence and incompetence will destroy our ecomony while they enjoy unearned benifits. It is time to hold these people accountable for the responsibilities they are being paid for!!! This is a very serious CRIMINAL offense, error, mis-judgement, or whatever & these people need to suffer to the extent the average american would if they performed in a similiar manner... not have millions or billions of dollars to continue a lifestyle at the expense of and beyond average people's imaginations. Why is something like this not being considered in the bailout proposals??? Any ideas?? Poster: James Stanfill Comment: Who's to blame? Exactly! Remember, people who could not afford mortages were given mortages. So they were the first ones to be to blame. Next, the lenders pushed mortages that people couldn't afford, so they are the next ones to blame. Thirdly, somehow, many loans ballooned to a higher than expected interest rate. The national interest rate on housing has not been above six percent for years. I hear about people getting 10 to 14 percent rates. What idiot would ever sign a contract for that possibility. I see everyone from the bottom to the top as being responsible. The people on wall street should have known better than to get involved in stupid loans. I took my money out of the stock market a year ago, and was just waiting for something like this to happen. Poster: James Stanfill Comment: I can not decide which party is the worst. I guess if Democrats win, they will give everybody everything. This will force them to print more money. More Inflation. If the Republicans have their way, they are going to give away everything before the election gets here. Print more money, more inflation. Just a few things to worry about. What if: The baby boomers retire and quit paying taxes? The working genteration gets frustrated and just quits? (since you can get free housing, healthcare, and food) why work if you are going to be burdened with all the tax burden of the rest of society and the rest of the world? The corporations will just move away from America. Exxon can buy a country if needed, and just quit paying higher taxes. Maybe we will boycott their gasoline? Ha! I doubt it. By the way, they are selling their gas stations in America. I wonder what the real reason is behind that. Oh, by the way, another oil company is also selling theirs. Can't remember for sure the name of the company. Yes, It is going to be an interesting four years. Poster: jo tavener Comment: this show was terrific - I tried to get people to watch online - I wish you would do more about bankcruptcy judges and reworking morgages. i've heard this from several corners but Obama just sent out word on friday I think that he's against it!!!!! I think people would stand up more if they had some option that seemed promising and this seems to be the best core of a plan i've yet heard of but of course, our leaders are against it!!!! We need more on this, please Great interview with Johnson - he's terrific!! thanks for a consistenly good show yours, jo tavener Poster: Chuck Tinker Comment: Bailout Limit to sub-prime mortgage defaults for mortgages sold prior to September 1, 2008 1. Businesses with sub-prime mortgages buy default insurance from insurance companies a. Upon default, mortgage payments are made until the home is sold b. The home can be rented until it is sold, perhaps to the mortgage defaulter c. The house is put on the market as is d. When sold, the insurance covers any difference between the selling price and the mortgage balance 2. Insurance companies may apply for reasonable reimbursement of loses from the program. 3. Those responsible for this crisis are identified and punished Poster: Laura Friedman Comment: My husband is an Internist,we have two kids still in college. Sarah, the youngest, suffers from Cystic Fibrosis. I am a nurse. I have spent my life caring for Sarah and my family, as well as working, doing fund raisers for C.F.,taking in and rearing other children, and the list goes on. Our taxes are more than most people even make in a year! Every income bracket has been hard hit by our out of control tax system. We've been taxed to pay for all the dead beats and now you want to ask us to bail out the the mega rich who are in the stratosphere of wealth? I'd say those good ole boys in Washington are not to ashamed to put their hand out to the American people! I would like to ask this. What have these men done for the American people? Put the crooks in jail, stop the lying and out of control government spending, and stop taxing us to death. Poster: Michael Webb Comment: GOVERNMENT BAILOUT The only people our government should be bailing out of trouble are our United States Taxpayers homes that are being foreclosed. Our government should be bailing out United States Taxpayers that have lost their jobs. Our government should be bailing out United States Taxpayers that do not have a home. Our government should be bailing out United States Taxpayers that do not have enough food to eat. Our government should be bailing out United States Taxpayers that do not have medical care or medical insurance. Our government should be bailing out United States Taxpayers that do not have enough money for a decent college education. I would like to see our tax dollars spent on worthy causes, like the causes that I have just mentioned. Bailing out rich corporate mongers that use unscrupulous business tactics to take advantage of the United States Taxpayers, is not on my list. These rich corporate mongers are the reason our economy is in the condition it is in. The rich corporate mongers wants to horde their money and run. They want to file bankruptcy, so that they can receive more money. We dearly need laws to put an end to corporate mongers that make their fortunes by using unscrupulous business tactics, basically ripping people off. We need a law to prevent them from ever filing bankruptcy. I would like to see them go broke, and make examples of. With the amount of money President Bush want to give away to help his friends out, is enough money to make every United States Taxpayer a millionaire. If every Taxpayer received a million dollars, they would spend it, thus creating a stimulus for the United States economy. This would be money better spent then bailing out a few corporate mongers. After all it is our money, and we should have a greater say in our government in how it is being spent. We need to rid our government of political government representatives that only work for the rich. We need government officials that work for the people that pay their salaries, The United States Taxpayers. It is time for our government to given back to the people that pay for it, the United States Taxpayers. Sincerely, Michael Webb Providence, RI. Poster: Wendell Comment: The executives of Wall Street, the politicians in Washington, DC and the lobbying firms on I and K street are responsible for this attack upon our economy. We do not negotiate with terrorists. We seize their assets and destroy their ability to wage further attacks upon our nation. The financial assets of the Wall Street Executives and their firms should be seized. The financial assets of every politician in our nation's capital should be seized. The financial assets of lobbying firms should be seized. The political campaign contributions held by both political parties and their politicians should also be seized. You do not prevent another act of domestic economic terrorism, by re-arming the enemy. The criminals responsible for this crime should be made to pay. Let the terrorists experience the consequences of the new bankruptcy laws they imposed on their fellow Americans. An extended vacation at Guantanamo Bay, Cuba would also deter further acts of domestic econonmic terrorism by this criminal triad. Poster: Bryant Arms Comment: Bailing out financiers to save the economy is like trying to save a sinking ship by building the decks higher. The holes in the bottom need to be plugged. The root cause of this crisis is supposed to be distressed mortgage holders. If they are bailed out instead of the institutions that loaned them the money, then those institions are automatically bailed out too. Since fools and their moeny are soon parted, money trickles up the economic food chain. But politicians on both sides of the isle seem to believe in trickle-down economic rescue plans. Wise polititians will relize that both their constituents and their campaign contributors can be pleased by helping the borrowers at the bottom of the economic ladder catch up with their debts. Bailing them out will simultaneously fill the hole in the financial markets that started this crisis and buoy consomer confidence. This will provide the cashflow that our economy now needs. Of course most people have not been foolish enough to borrow beyond their means. Many of the fools that did were smart enough to know better. Those who knowingly exposed themselves to the risk should accept their fate. But the uneducated fools who were sold mortgages and revolving credit they couldn't afford deserve a little mercy. Yet the rest of us should not be forced to bear all of their burdens. The proposal to give bankruptcy judges the ability to restructure debt according to the burden of responsibility for the default is a good way to resolve this crisis. Such a plan would take advantage of an existing system designed to deal with financial distress. And it would efficiently distribute much of the costs of the crisis between those who caused it. (The heavily leveraged real estate speculators that inflated the bubble and then escalated its burst would not get any relief.) The only fault with such a plan is the time it will take to sort out this mess. There is another solution to this economic crisis. Use funds from the administation's proposed 700 billion dollar bailout package to provide another economic stimulus package designed to cover the average debt load for several months of taxpayers with a reported income of less then 150,000 dollars. The amount of individual checks should be based on the amount of taxes paid; not income reported. This will provide the immediate cashflow that both consumers and financial markets need to get the economy moving again. And this solution combined with giving bankruptcy judges the power to restructure debt would significantly relieve our economic woes without much moral hazzard. A third solution to help the economy is to offer short-term loans to State and Local governments that would otherwise be forced to cut back spending on essential services and projects. Such loans should be interest free but still have strings attached. So-called pork-barrel spending must be eliminated before a local government is eligable for such a loan. This could help keep state and local government bond ratings high and shield local businesses and residents from high local taxes. These solutions do not directly bail out the financiers that ultimately should be held responsible for sinking this economy. (Many state and local governments may be an exception to that statement.) Neither will the over leveraged real estate speculators that were probably aware of the risks they were taking be rescued. These solutions do help the fools who were duped into believing they could afford to buy loans they couldn't afford pay down their depts. But these solutions also reward good taxpayers by giving them an immediate stimulus based on the amount of taxes they have paid to by luxuries for floating the economy. Bryant Arms Poster: Lester Comment: I agree that the bailout is not a wise move. I think that your comments on how to reorient our economy to produce some real new wealth is right on. How to get that going is the real tough question. Incentives for new energy, new transportation and techniques to prevent further environmental deterioration might provide some ways. Poster: robert karas Comment: i read the comment that says that you are insured to $100,000 per bank, however i believe that if you have parents, children, siblings and grandchildren as beneficiaries then you can insure up to $100,000 per beneficiary in each bank. ex: me $100,000, my wife, son and daughter as beneficiaries $100,000 each gives me $400,000 insured by the fdic in each bank. is this accurate? Poster: Jo Jo Comment: Enronned again? And we, the taxpayers should pick up the tab? Much like enron, as little as a week before the collapse, concerned individuals were assured that everything was going to be fine. I don't live on 'Mainstreet', didn't buy a $400,000 home nor did I do any lavish spending. So that rules me out as one of those individuals who allegedly should have known better. This week I was laid off for the third time this year. I'll attribute that to consumer spending being down- which is probably due to high unemployment, lack of jobs, and a mind jolting increase in the cost of living. Yet the politicians think it's a good time for me/us to bail out the institutions that they were in charge of regulating to begin with? What have the politicians been doing for the last six years instead of what they should have been doing? Fundraising? One can only imagine how AQ would be celebrating if they could have carried out an attack of this magnitude on our economy. Our politicians would be writing blank checks to the president with little or no oversight while at the same time giving the pres unlimited authority to hunt down all those responsible. Will any politicians recomend sending the parties/suspects who made the the Wallstreet disaster possible to gitmo? Will we hear the pres give a speech suggesting that we need to do some 'patriotic spending'? Poster: Steve Devereux Comment: To Whom It May Concern: I am a fan and frequently tune into PBS generally, and NOW specifically. In his interview of David Cay Johnston, I felt that David touched on a core issue of the current financial crisis but did not quite explain it. David Cay Johnston described how inflation had raised the asset values of home equities and financial equities, he then pointed to a lack of regulation as the culprit, saying a society requires rules. I do agree, however, Mr. Johnston failed to make the connection between the rising tide of money that drives inflation to its progenitor, the Federal Reserve System under Alan Greenspan. At root of today's crisis is the failure to learn the true lesson of the Great Depression. For decades, the central explanation of the Great Depression runs like this: private industry had run amok, the stock market crashed, and government swooped in to bail it out, though the efforts of government were lacking, and only World War II got the economy moving again. If only this were true. In 1913, the U.S. Government established the Federal Reserve System, with the sole authority to issue currency, today's money consists of Federal Reserve notes and bank credits (debt). Throughout the 1920s, an inflationary movement began that was caused directly by actions undertaken by the Federal Reserve, both to stimulate the economy and to prop up the British pound. The effort to assist the pound was driven by a desire to moderate the transfer of gold as required by the gold standard. As it began to steam forward, the rising tide of new money poured into the banking system by the central bank, in the form of U.S. securities, allowing the private banks to lend more while maintaining their capital ratios, set into motion an inflationary spiral upward. Monetary wealth separated from real goods and services, causing the price system to malfunction, and that price system determines where profits are spent, either on consumer or capital goods. At its height, the boom of the 1920s and the boom of the 1990s share remarkable similarities, and yet, following the dot com collapse, the Federal Reserve System did not rein in its open-market operations to curtail excess liquitidy. No. The target rate was cut 13 times to a 40-year low. Any substantive discussion of how we got into the worst financial crisis since the Great Depression must seek to understand the trade cycle as paper wealth becomes separated from real wealth. I can assure you, the economics of John Maynard Keynes and other orthodox economists of today's interventionist scheme will be unable to shed light on recent events. Thank you Poster: james Comment: how can i determine if the brokerage firm which handles my ira is at risk? should i be transferring my ira to an fdic insured bank managed ira? Poster: Roselyn Jory Comment: I am a Canadian; but I am following the whole bail-out debate with great interest, not entirely because of the potential effect the debacle in the American economy might have on my country. I have such sympathy for the American working man and woman, and I applaud the unions for taking up the cause of all of them. However, I am amazed at the gall that the wealthy and powerful have to demand that their mistakes be subsidized by people who can barely take care of themselves and their families! How good to know that there is one recent bright spot in the lead-up to this financial melt-down. It makes me feel good that, even if the government and the courts cannot call to account the misbehavior of the big Wall Street companies, at least they have punished one of the most egregious abusers of the financial system. Take that, Martha Stewart!! Poster: Marie Peterson Comment: You SEEM to be concerned about how the little guys would fare. You even broadcast a quote by a union member saying if all us little guys band together, we can make changes. Well, why not give us links to send our OWN thoughts (not form letters) to our congress and representatives? Time is of the essence. Maybe include a fax number, too? And an address - although the USPS - snail mail - may be too slow to stop the avalanche. Poster: Marie Peterson Comment: Why worry about inflated executive compensation? The guys at the top FAILED - they should be fired. Let others - equally bright, ambitious, and qualified, who were NOT involved in the mess, step up into those jobs and clean it up. Tie their compensation to their level of success. Nothing motivates like money. Don't give it away to someone who doesn't earn it! And yes, by all means, bail out a corporation that knowingly skated the edges of ethical, legal and prudent. And what about the people who fell for: oh, yes, they recommend you not pay more than 50% of your income in housing, but that's an old model - we're approving you for 75% and it'll work out fine? How about we bail THEM out? Seems that would trickle _up_ to banks not failing: you know, if people could actually continue to make payments instead of being foreclosed? Gee, there's an idea. |
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