Who thinks the bailout won't work?

[MC Twinkie]

I only took intro economics, but something doesnt seem right with this bailout plan. I think its going to have the oposite effect. I think a $700 Billion bailout by the government will just devalue the dollar. Gas prices are going to climb. People wont be able to afford imports. US goods will sell for nothing. I think if we don't bailout the housing market, everyones home will drop in dollar value, but the trade value will be the same. I think it will cause the value of the dollar to increase. I think its a lot like a forest fire. Sure there will be masive devistation, but it will grow back more healthy. This bailout is like smoldering coals, the whole thing is going to just spark up again in a year or two.

My other problem with the housing bailout is that californians are the people we are bailing out the most. The homes are wayyyyy over valued. They have the shadies market. Not to mention most homes are built by illegal mexians. So basically half this bailout money is what they have been sending to mexico.

[Guido]

I agree that this bailout will essentially devalue the dollar further. Beyond that though, I'd like to point out that whether other countries admit or not, the dollar has stabilized other countries currencies around the world. Things promise to be very interesting in the next five years.

[jtoosweet]

all i can say is i'm nervous bc i don't know what the hell is going on. im looking for links online but it's all like this or that may or may not happen. no real answers. i just get this idea that taxes will go way way up and i won't be flying home for christmas this year

[St. Stalin the Apathetic]

let me simply add.... my wife, who some of you know and others at least know what she does and further that as much as I love the woman she's a flippin pinko and proud of it..... she has me in agreement that (with specific reference to AIG) that its entirely necessary and foolish not to do it. This, as a political football, seems to have the parties inverted in large part or at least finding odd coalitions. W/AIG its a loan to a corp that isn't going to default (has far too many assets not to be able to cover a paltry $85B) and the gov't could well make money on the deal.

with the financial institutions issue - she's talking like some libertarian free market absolutist w/her concerns about people thinking, "hell its the gov't that bought my note - fuck 'em." rather than the lefty she is. WTF? Where is her Gov't White Knight now eh? Remind me to tease her in a few years when I can finally see her again.

With the bailout (or buyout of paper) the gov't could still stand to make money. I doubt it will fail. If it does there will be much larger problems than your or my tax bill. It must succeed.

[MOM]

Well...the dollar should fall in value because of this. That means other countries selling us oil will want more money for oil because the dollar buys less. So...I would assume oil prices will rise and maybe other commodities. But, if things get really bad and no one is spending money...companies will have to lower the price of their products to move them. You have to have a willing buyer in this game.

You will prolly also see American exports increase. Manufacturing firms will see some benefits if the dollar gets devalued. This will create some jobs possibly.

If everything goes to shit...I worry about foreign firms and investors coming in and buying up tons of assets. Maybe some dont see whats wrong with that...but I dont want a bunch of Indians or Asians coming in and buying up tons of real estate or other important assets. I guess that money will trickle through our economy and be a good...but still.

I really dont think anyone should be worried. It might be rough for a little while...but we will pull through. If you work hard or have a skill...you will be fine in all of this.

[MC Twinkie]

Originally Posted by MOM

I really dont think anyone should be worried. It might be rough for a little while...but we will pull through. If you work hard or have a skill...you will be fine in all of this.

I have heard that one before. Bush has been kicking my ass for the last 7 years. I think this bailout is the defication on the knocked out guy part.

I would rather see the market self correct than government correct. If you have a skill or work hard... You have to be kidding me. think of it like preditor and prey. If the rich people eat to many prey, they will starve because they cant reproduce enough prey. There has to be balance between the rich and the poor, that is what started this whole problem. You just keep stamping on poor people ans see what happens. If you make people to poor there will be an outbreak of crime. Whatever happens needs to be swift and decisive. I feel like throwing money at it is just sweeping it under the rug.

[St. Stalin the Apathetic]

Originally Posted by MOM

Well...the dollar should fall in value because of this.

I'd argue this will stabilize the markets and therefore the dollar and oil market.

[david austin]

Oooo fun

ill get back to this in the morning.

asian markets are still in flux.

xian. you get a lunch break on tues and thurs?