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as much as I hate to pay for someone else foul up I think we need to on this one. next is energy
 

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BULL SH%$

THIS IS WHAT THEY NEED TO DO!! HELL YEAH!!!!!!!!!

SPREAD THE WORD!!!!!!!!!!!!!!!!!!!


LOOK, THIS IS THE SIMPLE WAY TO SOLVE THEIR PROBLEM.............

I'm against the $85,000,000,000.00 bailout of AIG. Instead, I'm in favor of giving $85,000,000,000.00 to legal American citizens in a "We Deserve It Dividend".

To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+. Our population is about 301,000,000 +/- counting every man, woman
and child. So 200,000,000 might be a fair stab at adults 18 and up. So if you divide 200 million adults 18+ into $85 billon that equals $425,000.00. My plan is to give $425,000 to every person 18+ as a "We Deserve It Dividend".

Of course, it would NOT be tax free. So let's assume a tax rate of 30%. Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000.00 right back to Uncle Sam. But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has $595,000 .00. What would you do with $297,500.00 to $595,000.00 in your family?

Pay off your mortgage - housing crisis solved. Repay college loans - what a great boost to new grads. Put away money for college - it'll be there. Save in a bank - create money to loan to entrepreneurs. Buy a new car - create jobs. Invest in the market - capital drives growth. Pay for your parent's medical insurance - health care improves. Enable Deadbeat Dads to come clean - or else!

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces. If we're going to re-distribute wealth let's really do it...instead of trickling down a puny $1000.00 ( 'vote buy' ) economic incentive that is being proposed by one of our candidates for President. If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!

As for AIG - liquidate it. Sell off its parts. Let American General go back to being American General. Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't. Sure it's a crazy idea that can 'never work.' But can you imagine the Coast-To-Coast Block Party! How do you spell Economic Boom? I trust my fellow adult Americans to know how to use the $85 Billion. We deserve this dividend more than do the geniuses at AIG or in Washington DC. And remember, The Family plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.

Ahhh...I feel so much better getting that off my chest.
 

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M1P90 - That is the "trickle-up" plan that has been mentioned and no one in DC wants to touch it with a 10 foot poll because well...you can figure that one out...
 

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Dosen't that work out to $425.00 per person?
 

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yep, you beat me to it TA. 200 million people divided by 85 billion dollars is $425.00 each.
 

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I'd take it too but it doesnt really solve the problem. The worthless mortgage back securities would still be on the books of all these banks who would still not lend money to companies and individuals and we would still be in the same situation we are in today, just $425 richer.
 

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So, someone please splain to me how this is gonna work...

7 Years ago Suzy homemaker and Herbie Handyman buy a house for $250,000 at 4% interest on a variable rate loan and no money down. The houses value is over rated big time. It may fetch $175000 now days.

Their payments are $1200.00 a month. They have racked up a bunch of credit card debt furnishing their new wonder home and bought a new car. At their present salary they can barely pay their bills as it is. They are living pretty much beyond their means. If either one of them get sick or injured, they are going to lose everything pretty quickly.

Now the interest rate goes up to 15% and gas prices triple and groceries are on the rise. Their electric bill has almost doubled. Their house payments are now $3100.00 a month. They can no longer pay the bills.

So along with this family, millions of other home "owners" stop making payments. The cash flow at the banks sinks to all time lows. They have no money to loan anymore and no money coming in.

Bush and Congress give 700 billion to mortgage companies and banks to keep them afloat so they can make more loans in order to get some cash flow back.

How does this help Suzy and Herbie?
 

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The news keeps interviewing "big, fat, triple chinned, hog jowed, three pieced suit, pin head jerks" and asking them why this Bail Out needs to be done. News Flash- these are the A-holes that got us into this situation and you want their advice? Not.

Their are billions being waisted in Iraq, get out. Stop foreign Aid. Decrease politicians wages at the same rate that averages wages in the US have gone down. Cap all CEO wages, if they want to make more money, than let them get a second job, cuz no one should be making 2 billion a year. I don't care if they drop gold nuggets out their butt. Tax the stock market, return the bankruptcy laws to the way they were, freeze interest rates. Look, there are tons of ways to skin this cat. I'm not buying that the bail out is the solution.

If we do this bail out, we will no longer be a "Free Market System". The fear that is being discussed are from those that make their money by borrowing money. Sorry, but as we say in the Navy- "choose your rate, choose your fate". With all the financial people being out of work, I suggest they go and enlist in the Army, I hear they are hiring.
 

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Doc I agree with you 100%. There needs to be a fundamental change in the economic infrastructure of this country. Stop spending billions overseas, reform investment banking (if there are any left), bring industry back to this country, stop predatory lending, etc. And TA - I agree with you too, there are lots of folks out there who made really bad financial decisions (whether they knew it or not) and a hell of a lot of greedy Wall St types who were willing to take advantage of a system full of loop holes and deregulation. At some point, some of the blame needs to be put on Herbie and Suzy.

However, all of the things you are talking about are long term, fundamental changes in the way the economy works. We absolutely need to do them, but if the market doesn't free up credit for companies - small and large - a lot of people, A LOT OF PEOPLE, like Suzie and Herbie are going to lose these jobs in the very near future. It is nice to stand on principle and I agree with everything you are saying, but I am afraid if we do nothing, a month from now, we will all be having this discussion in the unemployment line.

atapilliar just borrowed over a billion dollars at 7% - twice the rate they paid last month - just to make payroll this week. Cat has traditionally been one of the most stable American companies left. How long do you think they can continue to operate like that? Reynolds Metals in Richmond (think Reynolds Aluminum Foil) is about to lay off close to 500 employees b/c they suddenly can't make payroll THIS WEEK - not good news. Bush has no credibility with me but I am beginning to wonder if we are getting closer to a real crisis.
 

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I don't know why we can't go back to the 1933 regulations and admit we should have never messed with them in the first palce.

Everything we have deregulated in the name of competition has backfired.

We were a prosperous country under those regulations. We have now tried and retried the deregulation exercise and sooner or later we have to say... we screwed up again.

Let's not do this anyore and go back to what worked. I admit I have no idea if it is possible to go back, but if we can, now is the time to do it. While the system is in shutdown mode, reset the regs, THEN fund the system again.
 

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Wait, you'd seriously take $3500 over making sure that the financial market doesn't crash? I don't like this either, but if the entire financial market crashes, your $3500 will last about 1 month, because everything will triple in cost. It sucks but this is probably the best option available, the bailout that is. I only hope some of these jokers that caused it go to fraking jail!


Zhur
 

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I agree with TA, Why can't they enact the rules first than the bail out. You know damn well once they get the cash, their lobbiest will be trying to stop any attempt to regulate them.
 

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So, someone please splain to me how this is gonna work...

Bush and Congress give 700 billion to mortgage companies and banks to keep them afloat so they can make more loans in order to get some cash flow back.

Not quite. Suzie and Herbie's mortgage was sold to another bank who converted it and many others into a "mortgage backed security" essentially a stock whose dividends come from house payments not company profits. Those securities are now unsellable due to the collapse of the housing bubble and the firms that invested so heavily in the are now stuck with no cash. What Bush wants to do is buy those securites, hold them and sell them back when the economy recovers. No money is "given" to anyone. Whether it will work is another matter.

The bottom line is that everyone involved is to blame. The lenders who sold mortgages they knew people could never pay off, the investment firms who bought up the mortgages because they wanted their piece of the housing bubble, the companies like AIG who insured the investments that were obviously going to fail, the federal government for standing by and watching the whole deal unfold and of course Suzy and Herbie who are just plain stupid or wanted more than they could afford. None of them deserve any relief. The bailout is intended to stop the damage from spreading further.
 
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