Bailout plan for the banks= Epic Fail 56 replies

The $700 billion to buy up bad debts to help end the current crisis did not go through the house of representatives. People panic and the DOW ends up loosing 777.86 points, the largest one day loss ever. Normal banks, the kind where you store your money, took a big hit in their stock value. Why? People can't tell the difference between investment banks and financial banks. The banks where you have your money stored at won't go under.

Good thing this got shot down. I don't see the need to tack on another trillion dollars to the national debt. The markets will sort things out given time. Hopefully banks have learned that you don't give loans to people with poor credit ratings.

Dow Sinks 777 Points As Bailout Plan Fails - Forbes.com

Pethegreat;4606851The $700 billion to buy up bad debts to help end the current crisis did not go through the house of representatives. People panic and the DOW ends up loosing 777.86 points, the largest one day loss ever. Normal banks, the kind where you store your money, took a big hit in their stock value. Why? People can't tell the difference between investment banks and financial banks. The banks where you have your money stored at won't go under.

Good thing this got shot down. I don't see the need to tack on another trillion dollars to the national debt. The markets will sort things out given time. Hopefully banks have learned that you don't give loans to people with poor credit ratings.

Dow Sinks 777 Points As Bailout Plan Fails - Forbes.com

We were talking about this in my government class, and my teacher INSISTED that this was guaranteed to happen, and VOILA!!! It didn't happen. Finally, I can say "I told you so!" for once..

But hmmm

-777 points?

Is it the work of Jesus?! (joke) :P

^'god' ^ ppfftt

My local newspaper this morning spoke about the plan failing but it didn't cover anything on why some votes were in favour and others against. I'd like to know why some voted in favour and others against (other then "only a third of republican representatives voted in favour of the plan, voting in favour of it might be punished during upcomming reelections".

I'll have to look at a summary of the bail out plan to see what I would think of it before being able to say if shooting this down or not is a good thing or a bad thing.

Edit: The rough summary that my newspaper provided was "Bailout plan meant for goverment take over of unsellable stakes (mortgages I believe) and thus gaining a share in various companies. At first it was meant only to cover the big banks but the updated 100 page plan also covers small(er) banks. An emergency fund (capped at 250 bil dollars instead if the initial 700 bilion) was to help troubled banks. When the economy/stockmarket would restore itself the goverment might be able to make a profit, such profit would flow back to the tax payers. The editted plan also insured better monitoring over the execution of the plan and limited wages and "golden handshakes" to the managers of the banks. "

Overall this sounds reasonable enough though the summary remains vague on how this could or could not be considered bailing out those who screwed up (and over) the economy and people without any strings attached.

More importantly though, the newspaper didn't cover why those who voted against or in favour did so. Which further improvements are needed to make the bill acceptable (good enough?). :clueless:

Edit2: Google is my friend Bailout Package Fails; Dow Sinks To New Level - Money News Story - KXAS | Dallas (Don't know how objective the site is but meh).

Someone at work mentioned that now some foreign countries may buy out these banks. So this could be a bad side effect (having other countries basically controlling our countries money), but I still can't get past the idea of the average people bailing out the rich.

The majority of republicans who voted against it did so because they believe the government should stay out of the private sector. Honestly, I can't see any reason that this needs to happen. Basically, it's the government giving my tax dollars to a business I don't have a stake in.

These banks need to fail. It's how the market works. Besides, the Dow will rebound. It always does. The market is a cyclical thing, and it will bounce back, just like it always has. Leave the darn thing alone.

Demonseed makes a good point. Let them reap the horrors they sowed. They brought it on themselves, after all, in many cases.

Penguin_Unit;4607436Demonseed makes a good point. Let them reap the horrors they sowed. They brought it on themselves, after all, in many cases.

Exactly!

Besides, this isn't a market problem, it's a great time to buy!

Like it or not, they are eventually going to pass some type of compromised bailout plan. So it's not a matter of if, but when.

Labour government did this with Northen Bank, it didn't work from what I recall.