91–100 of 194 posts
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$85billion!!! where do the Reserve get the money? do they print it? gold reserves? next year's taxes? asia?
they get it FROM YOU.
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If you ignore the the actual reasons why the bailouts happened, how can you argue against them? Sure, the bailouts preserved weak companies, which is a bad thing, but you can't just ignore the benefits of the bailouts and say they shouldn't have happened. That in no way resembles an argument, though "meaningless platitudes" may have been an incorrect characterization. "You don't have to address the other sides reason…
What about the example of Swedish banks that failed and were not bailed out? Surely that serves as a counter-example.
Also, after actually looking into the example, it looks like Sweden did bail out the banks to end the crisis: "The government rescued the banking system by issuing a general guarantee of bank obligations. The total direct cost to the taxpayer of the salvage has been estimated at around 2 per cent of GDP." (http://ideas.repec.org/a/oup/oxford/v15y1999i3p80-97.html)
Even with a valid counterexample, I think you should still have to explain why the current course of action is wrong, not just why another would be right, which is why I didn't address it in the first place.
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You don't think the Fanny bailout "worked"? We don't have the luxury of seeing what would have happened if we hadn't bailed them out. To make the pro-bailout argument more clear, here is one reputable economist predicting that if we had let the FMs default, the dollar would drop about 30% and unemployment would double, in about a week. http://www.marginalrevolution.com/marginalrevolution/2008/09...
So it would be like a 19th-century panic/recession, without hard money. He's omitting the part where, since we aren't subsidizing stupid decisions, stupid decisions don't get made and the economy recovers very quickly.
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Isn't this called fascism?
Whoever modded you down needs to know that collusion of state and big business is a distinct attribute of fascism.
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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
Wouldn't that increase inflation.
"The Federal Reserve plans to offer an $85 billion bridge loan to the American International Group in return for control of the ailing insurance giant..." Nice redefinition of AIG.
$85billion!!! where do the Reserve get the money? do they print it? gold reserves? next year's taxes? asia?
god! this will affect the economy here in the philippines -- an the rest of asia. makes me sad :(
"The Philippines is less vulnerable. It’s in a stronger position to withstand these events due to sensible and prudent fiscal response of the government."
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Partially correct. It's socialism for the rich. If it were socialism, you wouldn't have poor/middle-class people dying from treatable diseases.
What treatable diseases are poor/middle-class people dying of, that could be prevented by socialism?
So if big companies can't fail what prevents them from taking a risk that ends up this way in the future? Small companies have the advantage of being able to risk it all, big companies have the advantage of large sums of capital. To upset that balance is to increase the barrier of entry for small players.
Yes, all these bailouts create what is known as a "moral hazard" http://en.wikipedia.org/wiki/Moral_hazard
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