It looks like, within the next week or so, the average American household will be some $10,000 poorer.
As Congress continues its roller coaster debate of the $700 billion bailout of the U.S. financial system amid ever-increasing turmoil and panic, I find myself befuddled.
While watching TV the other day, a financial adviser reminded people that they shouldn’t make rash, panic-driven decisions regarding their financial portfolios. The adviser said that people who make decisions in response to panic often make the wrong decisions. How then, could we expect congress, who consistently makes terrible decisions even when not in crisis mode, to successfully navigate through this financial turmoil while the federal reserve and treasury department scream “Panic!” from the rooftops?
If you want a group of people to give up their rights or power, you need to scare them. We saw it with the Patriot Act. Panicked people are quick to relinquish their freedoms. The $700 billion bailout is atrocious. The powers that it grants the treasury department are staggering. The amount of debt each American will have to incur is mind-blowing. It seems to me that we are all being played. We’re being played like pawns in a great game orchestrated by the treasury department, the federal reserve and the powers that be.
In all honesty, this whole debacle has played out like some drama cooked up months ago. Panic the American people and Congress. Tell them that the whole financial system will crumble. Push legislation just days before Congress is scheduled to go on vacation. Claim that there is no alternative. Pull the strings on Washington Mutual so that we have the largest bank failure in U.S. History to add to the panic. It’s all just too perfect.
And who will gain from all of this? I guarantee it will not be you or me.
A recession or depression is awful. But, it’s part of the natural cycle of an economy. I learned this in my first economics class in university. Jobs are lost. Industries shift. And then the economy is reborn. It’s like the natural cycle of life and death.
Meanwhile, as Congress spends another day debating this bill, 32,877 children will die of hunger today. $700 billion is a lot of money. It could help a lot of people. A fraction of that amount could solve world hunger. It could fund 10 years of universal health care under Obama’s plan. It could buy 3.5 million homes (more than the total amount currently in foreclosure in the United States).
I don’t want to foot the bill for Wall Street. I find this whole spectacle to be disgusting and dishonest. I feel like we’re all being played.
September 26, 2008 at 8:46 am
Yo, I kinda really want to live in Canada now.
Our country scares me, and not only ’cause of this crap.
September 26, 2008 at 8:59 am
To defend Wall Street a bit, the banks do quite a bit of philanthropy work. They might still be greedy bitches, but they at least give a couple spare million in grants to more caring organizations.
Without Wall Street, places like Meals on Wheels, New York Cares, and education non-profits would suffer.
Just as homeless people depend on the tiny number of people who give money, charitable organizations depend on the tiny millions of dollars Wall Street is willing to give out.
September 26, 2008 at 10:45 am
BFD! This is a pittance compared to what they have taken from us! It’s all about greed. Sorry, I live in the NYC area, too, and see it everywhere I look. And they love the fact that they’re screwing us. They really do.
September 27, 2008 at 8:31 pm
your defense seems a bit near sighted. do you really think the bnaks would be acting so benevolently if there wasn’t something in it for themselves? even in philanthropy there is greed.
September 26, 2008 at 8:59 am
Befuddled.Confuzzled. Neither I nor my financial advisors have an answer. I’m not much into conspiracy theories, so I don’t feel we are being played by the powers that be. This mess came about, in a large part, due to greed and lack of oversight. This may very well play out to be a natural cycle of the economy. But if we do not learn a lesson from the Universe, then Mankind is surely the fool. Greed with bring on retribution of karmic proportions. Peace.
September 26, 2008 at 9:09 am
That is what I am saying completely, The US of A is leading into something very wrong, it seems as though we have become inslaved in our own ways , using scare tacktics to get the people of the US to do what they think is right. Our freadoms are slowely taking away by people who are currupt. It is a almost that the we can not even trust the people that we vote into office. The people have a right to stand up for themselves, it is written in our constitution, and I do believe the people will stand up and put a end to all this evil going on. Seems the more money you have the more the way you can get away with something, while the middle class, the ones that work the hardest are suffering. These large currupt companies need to fall. There is no need for some bailout, that is like feeding a drug addict. I just doin’t want to see a day where children are growing and raised in a state of martial law. Somethng bad is going to come out of this any way around, this is very bad, and people think I am crazy but the year 2012 is at hand, Our world is coming to a drastic change, there will be a stand by the simple people as our selves, and the currupt and evil will fall. It is so hard for people right now, incluiding people that have emotional and physical problems, it so hard to look twards a future when everything seems to be backwards today.
September 26, 2008 at 9:20 am
I agree, I don’t smell a conspiracy but I do hear and see the signs of panic. 700 billion is an incredible amount of money. Giving that much money to any government agency or group of government agencies is asking for trouble. Just look at the money that was thrown at Iraq and Katrina and look at how much of it was wasted.
There needs to be some very strict oversight and accountability in place or you will have the greedy mismanaged corporations back again with their hands out (can anyone say welfare ?).
Then we have the politics – everyone wants to be a part of the solution (regardless of how minor their contribution is). After all, elections are coming up and all the congreemen want to say they have been doing something for the economy, even though the problem did not just magically appear.
I am not optimistic about the outcome regardless of how slowly or quickly the bailout plan is crafted.
September 26, 2008 at 10:01 am
Strange….Reuters isn’t reporting a $10,000 amount in their FactBox article? Where did you find this figure?
September 26, 2008 at 10:21 am
It’s 10,000 per household – not per person.
September 26, 2008 at 5:16 pm
check your figures, you are WAY off.
September 26, 2008 at 10:15 am
I think it shows that it is so important for everyone to go out and vote.
We need leadership and not leadership that scares us from poor choices or from fear that we will all fail. We need someone who we can believe in and who presents us with a level head.
I don’t care who you vote for, just make sure you vote. It is about taking control back. If we sit and do nothing, then we can not complain but if we go out there and vote we can make a change. We have voices that need to be heard.
September 26, 2008 at 11:18 am
Ditto.
Peace.
September 26, 2008 at 10:24 am
Hey United Staters,
like Bob Marley said:
Get up, stand up, stand up for your right,
Get up, stand up, don’t give up the fight.
September 26, 2008 at 10:27 am
here is a link that will cause you to think more about all of this.
the federal reserve (5 parts)
http://www.youtube.com/watch?v=_dmPchuXIXQ
September 26, 2008 at 11:26 am
These ‘free market’ folks have time and time again demonized poor people for needing welfare, but the moment they lose their s**t, they jump the line at the welfare office. They decry socialism as an answer to REGLER folks’ healthcare needs, but they are all for it if it keeps them at the top of the food chain. Actually, it looks like Congress may not roll over on this deal, particularly Republicans, who have grave concerns about how the deal is put together, and they are seeking a bipartisan alternative to Paulson’s program.
The fine print gives the Sec. of the Treasury monarchical powers, with not nearly enough oversight. The debate tonight, and yes, John McLame will attend, will be riveting. Cindy’s probably popping vicodins like cherry lifesavers.
September 26, 2008 at 12:12 pm
In the UK we have had to live with the most expensive Petrol in Europe – due to legistlation on Global Warming. Meantime America has carried on having it’s cheap fuel and trying to bribe poorer countries to make cuts, so that America doesn’t.
Americaa also went to war with Iraq (due to Petrol running out) and once again the UK was dragged into this.
As the recent Credit Crunch was caused by Bad Debts in America, I think it only fair for the Americans to realise how the rest of the world is trying to exist at present and try and put their OWN house in order before expecting the rest of the world to clear up their mess – Yet Again!
September 26, 2008 at 12:42 pm
How about a financial stand down for the ordinary citizen with all their motgage, credit card and car debt!
September 26, 2008 at 2:48 pm
Good post Davey, you are right on everything you said, I feel the same way. We are being fleased! At least some of the conservative republicans are trying to put a stop to it, or at least make it better for us the tax payer. Let’s hope they succeed. The real question that is not being addressed is how in the hell we got here in the first place. I know the answer, GREED.
September 26, 2008 at 3:24 pm
I will be so glad when George Bush is out of the white house. I am hopeing we do not make the same mistake and vote in McCain. That would be a blunder. We have a mess to clean up. We need to get out of the war. We need some regulation over Wall Street and all the poker players. We need to move away from a gas based economy and diversify.
I guess I could wish in one hand and and s**t in the other and see which one gets filled first.
But we really do need a smart person for a change in the White house.
thanks for listening to my ramble.
Mike
September 26, 2008 at 3:42 pm
Wow! This is the first time you have sounded upset or frustrated. Usually you just act like everything is a learning experience and that everything that happens in this world can be overlooked. It is nice to know that you are human after all and capable of feeling something besides being a resident of La La Land. I guess I will take this opportunity to give you advice like you are always giving out. Davey Wavey, don’t be upset about the $700 billion bailout. Make it a positive experience and consider yourself lucky to have experienced it because it means you are alive and not dead. Remember, it isn’t really that bad if you look at it in a bright light. When you get up in the morning, decide that you won’t let this get you down and just go about spreading love and sunshine in your fancy apartment with your dog and great body. You have way more than most of us so chin up little camper. Stop and smell the roses, even if you have to pay to do it.
September 26, 2008 at 4:34 pm
At times like this, I’m happy I live in Canada. I still like United States, but I’m happy where I live because I don’t have to worry as much about this. Also, I’m only 15, so I’m probably really going to sound stupid for saying any of this…
All said and done, I would prefer Obama to win, because he has the same opinions as I do for most topics. *go obama*
September 26, 2008 at 5:07 pm
People forget that during WW2 it was America who came to our rescue and saved us in the South Pacific from Japanese invasion.
Whats this got to do with the currant financial doom. Not much. But I want to say that the USA is appreciated greatly in some parts of the world. So please Americans don’t think the world hates you.
BTW I with Davy on this…. but I’m glad I live in New Zealand.
September 26, 2008 at 5:15 pm
didn’t you leave america to goto canada? you follow your c**k, not your patriotism. I find your post a bit mis-informed and a bit hard to believe next to “flip that trick like a bacon strip?” come on WD, you can do better than this kind of critique.
September 26, 2008 at 6:21 pm
Actually, Roger, he’s exactly spot on. As for Davey “leaving” America you’d be amazed how many Yanks we have living among us up here in the only free country left in North America. Too bad he’s only up here for a visit, the same way we “snow birds” flock to your warmer southern states during the winter. If John MacSame is in the White House there will be many of us staying home or going to friendlier warm climes.
Be well,
September 26, 2008 at 5:17 pm
Banks are crooks! This article may only be PART of the problem that got us into this mess in the first place.
news.yahoo.com/s/nm/20080924/us_nm/us_usa_economy_creditcards
September 26, 2008 at 5:35 pm
I am at loss with words on the bail out plan… The government that supposes to be for the people, by the people, and tax the people, chose to help the banks (with the people money) and ignore the people’s problem. I agree with Davey… it’s a scam Friends taking care of Friends in high places.
September 26, 2008 at 6:01 pm
I’m not from the US, but your economical problems affect the whoel world, including my country of course. My president went over there to the UN thing the other day.
Here in Chile, everything is getting more expensive as the days pass. And life for the poorer people is getting a lot more difficult than it should be.
I hope your country finds some balance in their economy soon, it will help us all.
September 26, 2008 at 6:13 pm
Well, finally! You must have learned a thing or two whilst living in Canada where we get more than FOX (faux) News and CNN. And to those who don’t smell a conspiracy in the timing of this money grab, you really need to refine your raydar! There is no way in hell that a scheme like this can be plopped out of Bushes noggin overnight. It was planned weeks ago, as was the timing right before the first debate, only they didn’t figure on the People not panicing as they hoped. Instead they joined in with Obama and said, “wait a minute Georgie boy”. This is exactly like the “Patriot Act”, volumes written and kept in waiting for the right moment (911).
If any of you saw John Stewart’s show last night, with the split screen image of Bush ’03 before invading Iraq and Bush ’08 right before the attempted bailout, you can see the same Karl Rovian tactiques at play…scare the s**t out of everyone and get them to run into the corral like cattle. Only this time Hank Paulson is no Colin Powel. The only weapons of mass destruction are in the bank accounts of the super rich. I can’t wait for the search and destroy mission on those guys.
Try to stay calm while they are all losing their heads.
Be well,
September 26, 2008 at 6:34 pm
I don’t have the energy… or desire… to educate anyone here, but there is one point that should be made.
Whether we are borrowing foreign wealth to shore up our financial sector or letting Wall Street crumble and waiting for money to come washing back into a ‘new’ market, either way, it will be foreign money coming in the pick up the pieces.
Our greed, the greed of our corporate fathers rather, have sold us up the river and there is no way to recover or reclaim the nation into which we were born.
September 26, 2008 at 6:43 pm
One way to pay for this might be to reduce your military spending.
But since you believe depression isn’t an issue – what to you think will happen if banks start failing?
Will you be able to get a mortgage on that condo? Will your credit card company go under and you won’t have access to credit any longer? will the stores and companies you buy goods from start to go under, because they can no longer get loans?
Instead of worrying about the greed of banks, maybe you should worry about all the people who wanted to get something for nothing – i.e. buy homes, cars etc on credit – someone else’s money – that they couldn’t afford. It’s their failure to pay their bills that is causing this crisis.
September 26, 2008 at 8:46 pm
i agree completely that we’re being screwed over, but while you may be an american, you are an american in toronto — do you pay US taxes?? more than 1/3 of my gross pay is taken away in taxes. I don’t think you have as much to gripe about.
September 26, 2008 at 10:00 pm
You sure you want to go back to the USA stay in Canada Davey.
September 26, 2008 at 10:56 pm
“The Shock Doctrine-The Rise of Disaster Capitalism”,…written by Naomi Klein.
September 27, 2008 at 4:26 am
regardless of what country were in. we are all going to feel the back lash of such an economic blow. However, dont panic human have existed before money and will continue to exist, we will adapt! Larga vida a la Repulica!! Vamos a prevalecar!!
September 27, 2008 at 5:04 am
“Go placidly amid the noise and haste, and remember what peace there may be in silence.”
There goes the “illusion” bitching you again davey!
September 27, 2008 at 7:09 am
WHEw!!! THAT 5PART TUBE JUST MADE ME LOSE MY APPA. IT REALLY MAKES ME SICK JUST TO REMEMBER WHEN I WENT TO SCHOOL OVER HERE IN FRANKFURT & THE I G FARBEN BUILDING WAS RIGHT NEXT TO US,THATS WHERE ALL THE BIG (SUPPOSE 2BE MEN WHERE)5 STAR GENS & MEN HAD THERE OFFICES.YEA I THINK YOUR RIGHT WE’VE BEEN HAD & TELL ME IS THERE ANYONE OUT THERE WHO CAN TELL US ALL WHAT?? WHAT CAN WE DO ABOUT IT TO STOP ALL THIS MADDNESS??????? KEN77
September 27, 2008 at 9:07 pm
Check out “Bank Bailout and the Fed”
http://uk.youtube.com/watch?v=68JUWYEc0Fg
We’re being ripped off once again.
September 28, 2008 at 3:57 am
$700 Billion dollars to socialize economic markets?!? Has our leadership lost their collective minds? Where oh where does it state in any of our doctrines or policies that the burden of risk that is at the heart of capitalism will be placed on the very backs of those that were profited from? It doesn’t.
There is a significant risk of failure in any business venture – financial, production, industrial or whatever. For the most part – the benefits (profits) far exceed the perceived risks (such as losing everything). Spending $700 Billion to bail out companies that have profited well over that figure in the past 50 years is ridiculous. Let them fail. Let the markets REALLY correct themselves.
There will be job losses. There will be after effects. That’s what is supposed to happen – we are only delaying the inevitable. And the inevitable is just that – there will be a market correction. If anyone out there thinks that the market is correcting itself right now – you’re mistaken. This has been a tickle and tease.
I’d much rather our government take that $700 Billion that we’re “printing” up and INVEST it in our nation’s infrastructure. And I mean OUR infrastructure. No more of my tax dollars being shelled out to prop up global markets – sorry World – you’re on you’re own. It’s 2008 and its time for you to make it on your own. The U.S. is taking a breather from being the World’s savior and has decided to invest in our future …
We should take that money and do something like Roosevelt and Eisenhower did – create JOBS to replace those lost in the inevitable Wall Street downturn. Spend that money on new highways, new networks, new bridges, new energy production, etc. We need to invest in our future if we are to have any global presence moving forward. Spending $700 Billion on that would be a much better solution that throwing money at Wall Street in hopes of “softening” the inevitable crash and most likely significant recession that will follow. Trust me – we’re overdo for it. And it will be painful.
September 28, 2008 at 5:15 am
thank you Brother Michael, you are right on.
this is a mess and it will it will have to
correct itself like nature does.
I would only add that we need some regulation so that
the “smart” guys on wall street can figure out another
high stakes “poker” game to get involved using our money.
again..thank you for your comments.
mike
September 28, 2008 at 4:03 am
woah davey. getting a little fiscally conservative on us? Go free market! Yay
September 28, 2008 at 10:59 am
Years ago, whilst driving a cab in New York as a summer job, a passenger from the rich upper east side on his way to Wall Street chatted me up. After a few minutes (30 min. ride in easy traffic) he said,
“You seem like a bright enough guy. Why don’t you cut your hair and beard (both hippy length) and try to get a job on Wall street?”
I asked him what they did exactly on Wall Street.
He replied, in total candor,
“We gain the confidence of people with alot of money so that we then get to do with it what we want!”
I answered, “That’s what I thought you did. And that’s why I decided to grow my hair and beard!”
The rest of the ride was done in silence.
Be well,
September 28, 2008 at 6:51 pm
It’s been this way for a very long time. I can only hope that the American people will wake up and do what it right.
Much love from a debt filled world with some glimmers of hope for recovery.
Ciao Bello! – J
September 29, 2008 at 9:58 pm
so now that the bail out has failed and the worlds financial markets are in crisis and normla mum and dad investors and retirees are losing everything what do you think now?
Is this still a big conspiracy? Or is the banking / financial system in need of a total overhaul?
October 1, 2008 at 1:30 am
If the $700,000,000,000 was divided among the people of the united states that filed a tax return last year, every person that filed for income taxes would receive over 5000 dollars.
How’s that for economic stimulus? You could finish paying off a car, make a down payment for one, make a down payment on some houses, people could pay for some school, invest, pay off credit card debts, etc.
No company in the U.S. deserves this bail out. All companies that could have used it have already failed. All the enormous, stable banks have absorbed the smaller, weak banks at dirt cheap prices for future amazing profits. It’s already over. Why is congress still talking about a bail out? Lobbyists, pork barrel projects being attached to the bill, and more lobbyists, and more pork. If this bail out goes through now, it isn’t a bail out, it’s a hand out. To fatten up the wallets of those that have already made incredible gains from this crisis.
Over-extend yourself? Too bad, file bankruptcy. We need to hold the people and the corporations of our country accountable for their actions. No welfare for bad business. No welfare for people with poor decision making skills.
Want to boost the economy? Renegotiate NAFTA. Lift export taxes. Lower business taxes, especially small business taxes. Simplify the tax code. And let the law of darwin play out.
Don’t pay off a credit card with another credit card.