Does the American Government get insane about making debts like hell -now again?
By cornyman
@cornyman (1128)
Germany
November 25, 2008 9:32pm CST
Ok, we see each day new panic reactions from this government since around 10 weeks (Fannie Mae and Freddie Mac "Takeover", Lehman Brother bankruptcy).
In the beginning in March they take the risk for the bad debt of Bear Stearns (30 Billion $$) -Since then it decreased already by 4 Billion $$- being paid by taxpayers or someone who wants to buy the american bonds.
Then they started to make the Bailout plan with 700 Billion $$ and changed it week by week, mostly for the benefits of the banks - never for the benefits of the people in Main Street.
And now again 800 Billion $$ to let the credit market recover (they told the same before with the 700 Billion $$).
From the last Budget Report in August they said they want to make new debts from around 400 - 450 Billion $$ and now we have the bailout of AIG, Fannie Mae, Freddie Mac, Citigroup and additional Bailout Payments.
The debts will sum up now to over 2.000 Billion for just ONE YEAR, wasn't it debt for housing, credit cards, cars and so on that took us into this situation?
Aren't these actions insane or is it the correct action??
Here is the link to the new 800 Billion $$ bailout plan from Tuesday, 25.11.2008:
http://news.bbc.co.uk/2/hi/business/7748362.stm
1 person likes this
3 responses
@jonesy123 (3948)
• United States
30 Mar 09
Well, you are right, it is insane. And as you know by now, they keep throwing more money into the game. They go deeper and deeper into debt to the point that China, the main creditor, is now afraid they'll lose their investment into the US dollar. There is no rhyme or reason to the spending really. It just looks good because they are 'doing' something. Our great-great-great-grandkids will still have to pay for this massive spending...
1 person likes this
@cornyman (1128)
• Germany
6 May 09
Hello jonsy123,
and the new news from Warren Buffet on this weekend sound more dangerous than anything else. Inflation is behind the just newly opened door of this fresh printed bailout money.
I guess we really should get out of the bonds and the money-saving account and invest wisely in companies who profit from inflationary price hikes like... Wal-Mart, Phillip Morris, Gilette and all this companies who sell everyday goods ;-)
Have a good time in myLot and hope with me for better times!
@tamarafireheart (15384)
•
26 Nov 08
Hi cornyman,
Where is all the money coming from to bial all these companies out? how much more can the tax payers pay out when they themselvs are struggling to survive? and it is hitting the UK as well, we have a bit of debts and we are trying our best to survive ourselves with trying to pay for our house and all the bills and debts, I wish someone can bail us out for a change. Why do all these big companies spend so much money in the first place?
Tamara
1 person likes this
@cornyman (1128)
• Germany
26 Nov 08
Hello Tamara,
these are the big questions. Why does the politicians only bailout the stock market companies and not common Joe.
Is there the fear behind the government because China and the Arabian countries have so much money invested in the American bonds, Fannie Mae and Freddie Mac and in the last months much money flow into the big banking sector from them.
And the other side is that the banking and insurance sector in America has sponsored so much money for the Bush/Cheney elections in the last 8 years that they have to give them back now a bigger amount in the last phase of their reign.
Obama also got much money from Goldman Sachs during his presidential election campaign, so this Begging (a better word than Bailout) should continue next year, too.
I think when we see what the UK government wants to do in december then you'll get a tax cut. But this will be paid by new and more debts. Debts that have to be paid back by our kids. They will have to pay higher taxes and social security.
Everyone is involved in this downturn of the economy, even the richest of the riches like Bill Gates and Warren Buffett have lost some billions this years. Yes, they can survive with this money.
But this was only an example that they don't gain always like what some persons might argue sometimes.
@scarlet_woman (23463)
• United States
26 Nov 08
i honestly don't know how the government is gonna float all these bailouts..and more line up every day.every package deal i've seen has a B in front of it,and then there's the iraq thing going on too.