Bailout Fails
The proposed 700 billion dollar bailout proposed by President Bush failed in the House today. The failure of this bill also sent the Dow Jones tumbling over 700 points. In my opinion this is great news. Yes the market fell and it may send us into deep recession true, but that is what this country needs right now.
America needs a dose of medicine. Corporate America needs to learn the hard way that they can’t operate in reckless abandon and hope for our tax dollars to bail them out. Why should we foot the bill because a bunch of banks decided to loan money to people who couldn’t afford to pay it back? Bailout the speculators in the housing market because they figured they could buy anything and everything and flip it for a large profit in just a few months.
No the failure fo this bill hopefully will let capitalism run its course. Those that made sound financial decisions will come out on top. They will be able to purcahse the other companies that failed to be responsible (IE Chase buying WaMu). The companies that survive will rebuild the financial markets it is just going to take time.
Also with the failure of this bill the credit markets are still going to be tight. Good. There is no reason that we need to open up the gates on cheap easy credit. We don’t need to go back to no money down mortgages, no low teaser rates. Even when the economy gets better there is no reason to exetend easy cheap credit to everyone.
Easy cheap credit is what got us into the situation that we are in now. There is no reason WaMu should have given Jon who works at BK for minimum wage a loan for $400,000 because he said he made $80,000. That is what got everyone in trouble. Banks made loans to people without income verification. Banks approved people for loans based on low introductory rates figuring that the person who bought it would either flip it or be able to refinance it when the loans reset. Well obviously this didn’t work.
No it is time to make all those that failed in making good financial decisions pay for it. It is going to hurt us. It is going to put the US into a major recession. Unemployment will rise, bankruptcies will go up, banks will continue to fail, companies will loose money. This is what they deserve.
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September 30th, 2008 at 7:43 am
[...] What’s up?Most people see the banks getting what they diserve anyways for loaning money carelessly to people (like myself) who can’t afford to pay it back. [...]
September 30th, 2008 at 11:34 am
Call it victory for a day. The government will find a way to squeeze this bloated bailout bill or a modified version of it through the door and into the laps of the wealthy.
September 30th, 2008 at 7:13 pm
Patrick
I hate to say it but you are probably right.
October 1st, 2008 at 5:40 pm
[...] glad the so-called bailout failed. See how your Congressman voted. There are other options that should be considered first. As [...]
October 1st, 2008 at 5:48 pm
I agree 100 per cent! Let those who made their house of cards deal with the after effects. Unfortunately, Patrick is probably right. That’s just further proof we no longer have a representative democracy. Unfortunately, both parties have become beholden to special interests and big business.
October 3rd, 2008 at 4:39 pm
[...] Bailout Fails. From The Jarhead’s article: “In my opinion this is great news. Easy cheap credit is what got us into the situation that we are in now.” Amen! …but it looks like a modified version of the bill will be passed. [...]