$85billion!!! where do the Reserve get the money? do they print it? gold reserves? next year's taxes? asia?
where does the treasury and fed get the money? THEY PRINT IT a 1982 law lets treasury notes be redeemed with CREATED accounts, as in one of the partner banks of the reserve simply creates a new account by punching in the digits, and they assign it to you once again, this is law since 1982 this is why US treasuries have 100% certainty inside the USA while the US dollar still exists
Do you know for a fact that they will print it?
I would imagine they would have other alternatives.
true. Through printing press though. This is additional 85bln usd in circulation. We will all pay at the gas pump and groceries. Socialism for the rich. Communistic China would not do that. It is sad to see the USA becoming parody of this what it used to represent.
Why is this for the rich ? I've seen that remark thrown around several times & I don't understand it. From what I understand, this sort of a move is basically done by inflating the dollar causing anyone who has savings to lose out (the people without savings only lose if their wages don't catch up).
Look at AIG's dividends over the last few years they where pumping out about a dollar a year in dividends and now their stock is worth ~4$. The reason they where able to generate that type of money is the reduction in banking regulation alongside absurdly low interest rates and a willingness of the federal government to bail out companies that are "to big to fail" all off which is giving money to the people who own and or run AIG and companies like them.
PS: If AIG still had all it's dividends from the last 10 years it would not need any government money.
I want a bridge loan for my startup. Instead, I get to pay taxes to pay for this nonsense.
I am happy to report that one element of Obama's tax plan ( http://www.barackobama.com/pdf/taxes/Factsheet_Tax_Plan_FINA... ) is to "eliminate capital-gains taxes for entrepreneurs and investors in small business".
How will eliminating capital gains taxes help me as a small business owner. Lower corporate income tax rates would be intuitive, but lower capital gains taxes is kind of a head-scratcher.
What harm is there in letting a company that made bad decisions go bankrupt? I don't see how it's pragmatic to pass this burden on to tax payers and the general public. I admit that I am idealistic about such things. I don't see how government is going to solve any of these problems. The government will lessen the pain but that same behavior will also slow any rebound and future growth. It seems naive and narrow mind…
So far the blood on the streets is almost exclusively from the financial sector, ie. investment banks, hedge funds, etc. They may affect your pension funds but it's mainly institutional investors and others with big stakes in these companies that'll pick up the tab. However AIG obviously isn't an investment bank. A failure of AIG would affect people outside of the financial sector who have purchased AIG insurance pro…
I also have life insurance with AIG. How does it affect me?
I only have to cancel and buy it from another company. right?
Chile, because it is a capitalist country. Costs are similar to India, but the weather is Californian and taxes are really low. Still, though, SV is a better choice. Don't move to Chile to start up.
I was under the impression that Chile is socialist.
No, it is not.
Chile had a socialist president 40 years ago. He was overthrown by a military coup in Sep 11, 1973 (note the date)
Now days, Chile is one of South America's most stable and prosperous nations.
I was under the impression that Chile is socialist.
No, it is not. Chile had a socialist president 40 years ago. He was overthrown by a military coup in Sep 11, 1973 (note the date) Now days, Chile is one of South America's most stable and prosperous nations.
They have a left-leaning woman for a president, though.
This is exactly the kind of comment that I feared we would see when articles like this start gaining traction. It's a cheese puff comment: it's got some taste, but it's empty. It has nothing to back it up, no content, no reasoning, no well crafted argument. It's just an empty "rah rah" type of slogan of the type that politicians regularly regurgitate. There is nothing new or clever about the comment, it's the sort of…
My comment was one of the first reaction to the post (16 hours ago) it was a spontaneous reaction to the somehow shocking news that the US government is taking (again) over a private company in the financial sector.
When I wrote "socialist" it was for the irony of the situation, the financial market in the past has been very hostile to any regulation and it is the most visible flagship of liberalism as we know it since Reagan.
People who read about economy (check comments bellow) know exactly what I was talking about, this is a well known topic about the contradiction between "less government, less regulations" and "the need of government help in time of troubles". Some more clever and much more articulate people wrote about it and their conclusion is the the current crisis is a direct consequence of lack of proper regulation in the first place. Go read the source it's free, it's online, it's better than expecting Techie guys to spend 30 minutes of their precious time writing a "reasoning" and "well crafted" comment a topic which is only one of their many "hobbies"