Comments on: $700 Billion Bailout Plan Defeated By The House

By: Andy

Andy — Wed, 01 Oct 2008 15:02:07 +0000

What this bill is trying to do is restore confidence in the markets. If that happens we can begin moving forward. The bill is only the first step in the rescue and better governance will be required in the future. A recession is inevitable now, the severity is what is in question. If the markets stabalize, we could have a relatively quick recession (till about mid 2009).

The other big problem is our national debt – $10 Trillion this week!

By: Mr. ToughMoneyLove

Mr. ToughMoneyLove — Tue, 30 Sep 2008 15:23:36 +0000

Too much of the blame is being placed on credit providers. A complete cleansing of the system will have to include changing the mindset of consumers who have grown accustomed to a lifestyle propped up by credit. Who is going to perform that cleansing? I didn’t hear any of that in the debate yesterday. No politician has the guts to tell his/her constituents to stop spending and start saving. It’s too easy to blame the credit providers, not the credit users.

By: Kyle

Kyle — Tue, 30 Sep 2008 14:59:19 +0000

Oh undoubtedly. I think a major part of why the bill failed is that it’s so unpopular and few politicians want to give their opponents ammo on election day.

By: Curt

Curt — Tue, 30 Sep 2008 14:57:01 +0000

I guess what I am saying is that not only is this an economic disaster, but it is also going to be a political disaster.

By: Curt

Curt — Tue, 30 Sep 2008 14:54:34 +0000

I completely agree.

But, now what is congress going to do? They all want to leave town to work on their campains with 36 days before the election. But, the administration and the congressional leadership is trying to push another bailout bill before the stock market continue to tank.

I think the time to pass the bill is over, and it’s not likely that they will get anything passed before the election. The people have spoken. Even if they modify the bill, they still will not get enough votes. Nobody wants the bailout. The failure of this bailout bill will surely sink the market and many politicials careers will go down the drain with it.

By: Kyle

Kyle — Tue, 30 Sep 2008 14:30:35 +0000

It might not be quick, but it will at least be quicker than the long drawn-out pain we’d see if we employed bailout after bailout to prop up a rotten financial system. IMO we need a complete cleansing of the system.

By: Mr. ToughMoneyLove

Mr. ToughMoneyLove — Tue, 30 Sep 2008 14:24:12 +0000

Your assumption that a severe recession will be “quick” may be unfounded. Unemployment will increase sharply, followed by massive government spending to create jobs and provide even more jobless benefits. Many of us will be severely taxed to pay for it. For me, that’s a recession because my standard of living will be substantially impaired.