Saturday, September 20, 2008

Bailout

The American government has bailed out the banking system to the tune of $1 Trillion. It has asked congress to increase the ceiling for the national deficit by $700 Billion to facilitate further bailouts. Namely, taking all of the bad debt.
Here is something that occurred to me. Lets assume that the war in Iraq's cost, which was borrowed from the financial community, is partially responsible for this. Would that mean the government borrowed a lot of money with no intentions of paying it back and as a result the banks neared bankruptcy. The government is now bailing them out instead of paying them back and fixing their balance sheets?
Not to mention in the process taking a huge share in at least one company (AIG). This situation is seriously messed up!
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5 comments:

j-rem said...

interesting though.
so basically what you are saying is that they really pushed the limit with their re-payments and Bush is paying it off in one shot?

this whole thing did make me think again today that this is part of the republicans not wanting to win. just when you thought obama would inherit the most disgusting amount of debt in american history, Bush tacks ~10% on it.

i have a friend who threw one out there the other day: throw on another trillion in debt, but the wrong assets (as they have "power of attorney" for the most part with the banks balance sheets), let the market crumble even more, and then declare a state of national emergency to keep bush in the white house (like FDR during WW). OMG WTF.

22 September 2008 at 12:13
j-rem said...

but in 3rd paragraph = buy

22 September 2008 at 12:14
\ said...

That is basically what i am saying only even more. At least I was trying to. That they are paying off the debt in one big payment but getting more than debt free - gaining a stake in the industry.
Not only that they are basically paying off their visa with their mastercard.

22 September 2008 at 12:31
Anonymous said...

I've been drafting a letter to my Congressmen asking for them to bail ME out. Hey, at least it ain't 100 billion- I'd only ask for like 10K. Not even a drop in the bucket for the economy, and I haven't done anything illegal, just maybe lived beyond my means a bit. But hey, I didn't defraud anyone, and I pay my bills on time. I just hate paying all that interest on my credit cards.

Chris

26 September 2008 at 11:07
j-rem said...

and the best part is, is that the Federal Reserve makes money no matter what... and its at the tax payers expense.

3 October 2008 at 11:27

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