Why is our government bailing out the financial institutions?

D

DrPepper

Why is the government using taxpayer money to bail out the financial institutions? We live in a capitalistic society that allows companies that make wise business decisions to prosper and those that make bad decisions to fail. Why not just let the companies that made bad loans go under? Sure, it would hurt the companies that made stupid loans to stupid people who could not afford them. But shouldn't they take responsibility for their own actions?

I think that our government leaders are afraid that we are heading for a depression and that throwing more money that we do not have at the problem will solve it. The real problem is our personal and national debt. Going into further debt will only worsen the problem due to the added interest payments. We are giving away trillions of dollars that our children will never be able to repay.

And who is going to keep floating this debt? Do we think China and the oil producing nations are stupid? They are going to get to the point where they lose faith in our ability to repay Treasuries and stop buying them. Worse yet, they may cash them in. Then what will happen?
 
Think what kind of shape our federal govt would be if amassing debt was unconstitutional. "Pay as you go."

It is frightening what a big % of our budget goes just to make INTEREST payments. Imagine what it will be like 5 years from now, after all this stupid interference with free markets
 
The Fed has printed $8.5 Trillion in new money, and it's only Wednesday. By the time this financial crisis is over, the Fed will have enough money to purchase the entire national debt. The interest payments on the debt will then go back to the U.S. Treasury in the form of profit from the Fed from holding said debt.

the Fed are probably the bastards who bid the 10 year down to a pathetic sub 3% yield.

Inflate or die.
 
Saw an interview by Charlie Rose of Chris Dodd - CT - Senate Banking Committee. Basically they want to bail out everyone, and start a bunch of government make work projects. None of this will increase U.S. productivity and competiveness in the world. Theyre gonna inflate the hell out of the currency. - - - Anybody happen to come across an estimate of the government indebtedness of each individual American - including Social Secuity, Medicare, etc ? - - Actually I almost hate to hear the answer - - It's likely gonna be a lot more in the next few years.
 
I really do feel, that corporations see US Govmt bankruptcy as inevitable, and perhaps even imminent

I think this has been much of the push behind globalism, an 'exit strategy' so they can trash the country and not have to go down with the ship

but what we may have now, is simply smash and grab what you can get before the cookie jar's empty for all time
 
Quote from swtrader:

I really do feel, that corporations see US Govmt bankruptcy as inevitable, and perhaps even imminent

The actions of the Fed and the US government to bail out businesses with money we do not have seems totally illogical to me. But it makes total sense if they are planning on going bankrupt. When a person is planning to file for bankruptcy, don't they do the same thing by running up their credit cards? They know they are going to declare bankruptcy, so what is the difference how much they spend beforehand?

The question is, how can we profit in these times by making investments in securities that will appreciate in such a scenario and survive a bankruptcy? Treasuries have always been the standard for safety, but I assume a bankrupt US defaults on their treasuries. CDs would also be worthless. What about stocks, mutual funds, ETFs or futures traded through a brokerage account? Would they be safe? Or is the only safe financial vehicle gold and silver coins, real estate or foreign investments?
More...
 
The bottom line is that "printing money" is just a form of government taxation.

This is a legal right of the US to tax at a rate at whatever the dilution impact rate is.

For example....if the Fed doubles the physical money available...this is a 50% tax.....on everyone that has cash.

It is just a tax.

Another type of money gathering impositions by a government is a tax.

...................................................................................................

As I have mention in many previous posts....the Fed would raise many times the "productive" currency they are looking for by removing all forms of taxation....and replacing it with a simple 10% consumption tax.....

The government has two choices.

1) Regulate its impositions such that productivity can thrive....

2) Regulate its impositions such that productivity cannot thrive.

It is opting for 2) ....


Why ?


THEY ARE LAWYERS ..................

THEY WILL NEVER GET IT...........

THEY ARE EDUCATED FAR BEYOND THEIR INTELLIGENCE.....

UNFORTUNATELY.....THIS IS NOT A JOKE........BUT THE "JOKE IS ON YOU"....


What do think the US citizenry would do ....if Nobama told them directly that the economy is in such a tough spot...that we are going to have to impose an additional 50% tax in order to create projects that will provide the voters with money to live on through government jobs and welfare.

As opposed to.....

The best companies from all over the world....flocked to the US in 2009 because of the change in tax structure to a 10% only consumption tax. The companies had to establish their home bases in the US just to remain competitive. The US unemployment rate is 1%.....and there is a dire shortage of labor. Labor is direly needed to finish the green energy projects that were created by energy innovations that were discovered which provide GREEN energy costing 1/10 of the same energy provided by oil......

..........................................................................................

By the way...what is the current REAL TAX RATE in the US ?

ANYBODY KNOW ?
 
By the time you add income taxes, consumption taxes (utilities, sales, luxury, etc.), real estate taxes, death taxes, use taxes (toll roads, permits, sanitary water & sewer hookups, etc.), road taxes - what am I forgetting?

I'd venture the real tax rate for the upper 10% in the U.S. ranges from 55% to 90%+.
 
Quote from Tigerjaw:

Saw an interview by Charlie Rose of Chris Dodd - CT - Senate Banking Committee. Basically they want to bail out everyone, and start a bunch of government make work projects. None of this will increase U.S. productivity and competiveness in the world. Theyre gonna inflate the hell out of the currency. - - - Anybody happen to come across an estimate of the government indebtedness of each individual American - including Social Secuity, Medicare, etc ? - - Actually I almost hate to hear the answer - - It's likely gonna be a lot more in the next few years.
More...
> 500K per US household at this time. They had to pull down the Times Square Debt Clock as they ran out of digits on the existing clock.
 
The point is....

The Fed's legal right to print money, create debt.....

These are just taxes...nothing more....nothing less.....

...................................................................

Printing money is a one stop....trickle down tax.....
whereby the dilution is finally realized at some future date....ie during a period of economic "normalcy"....

This is a tax.....and not even the best students at Harvard have discussed this directly with the public....

NOR HAS A SINGLE WELL MEANING POLITICIAN ....

WHY ?

IGNORANCE, STUPIDITY.....THEY JUST DO NOT GET IT........

Even the most highly regarded Harvard educated politician does not understand that the US already has imposed an unequal consumption tax.....

Price of a $30,000 Car

10% tax rate............$33,333

20% tax rate............$37,500

40% tax rate............$50,000

So one person buys Car A and pays $33,333

And another person buys Car A and pays $50,000


Not one politician....not one "SPEAKS ENGLISH".........
 
You must log in or register to reply here.
Back
Top