Bailout Rejected

[Tyler]

http://money.cnn.com/2008/09/29/news/economy/bailout/index.htm?cnn=yes

Jeez. I mean I understood the plan was bad but the economy just plunged even more.

The Dow Jones went down 700 points when they rejected the bailout.

 

[Jeremy]

Like I was about to explain in google until it exploded on you (lol), the stock market isn't exactly a measure of how well the economy is doing. It went down today because of emotional reaction. Traders were surprised, so they don't want to trade as much. This is why, for example, it went down after 9/11... people don't like to buy when surprising/uncertain things happen.

Bad things are going to happen with the economy though. But the bailout will make it worse in the long run.

 

[Bulerias]

Good. The bailout would have made things worse in the long term.

 

[Sporge27]

I don't know about economics but what makes it damaging in the long run?

From what I can tell it is a gamble that they hope restores faith n our economy, if it works the government could make money from it, if it doesn't we would be screwed.

Soooo I really don't know.sounds like a gamble that deals with whether the economy improves or not after.

 

[Jeremy]

I don't know about economics but what makes it damaging in the long run?

From what I can tell it is a gamble that they hope restores faith n our economy, if it works the government could make money from it, if it doesn't we would be screwed.

Soooo I really don't know.sounds like a gamble that deals with whether the economy improves or not after.

For starters it would drastically change how the country works. The country would become the third most socialist state in the world, behind Cuba and North Korea. People are against it out of political ideology because it is the opposite of freedom. Some yesterday were trying to call that partisanship... calling political philosophy partisanship is one of the most backwards and disturbing things I have seen.

It would also damage the economy though. The government does not have 700 billion to 2 trillion dollars. It doesn't have anything, which is why it borrows money on a daily bases. The Federal Reserve would just print more money, as it always does, to pay for this. Inflation... loss of value... economic collapse. The entire country collapsing is FAR worse than some banks failing.

Socialism doesn't work... it's not just a "cool" thing to support freedom as Barney Frank tried to make it sound yesterday. Freedom works. Capitalism works. The government caused these problems in the first place by intervening in the markets... it doesn't make sense that the solution would be more government. Government is the problem, not the solution. If all they're trying to do is prevent a recession, they're going to cause a much greater one, probably depression. This is what happened in the 70s and during the Great Depression.

 

[Bacon Boy]

Good. The bailout would have made things worse in the long term.

 

[Jman]

I couldn't believe that this guy on CNN said this was a victory for the American people... How can it be a victory when 1.2 trillion dollars are lost in a single day?

 

[Jeremy]

I couldn't believe that this guy on CNN said this was a victory for the American people... How can it be a victory when 1.2 trillion dollars are lost in a single day?

Lou Dobbs?

Wait, what? Who lost 1.2 tril? o.0 It's a victory because it's not lost since the bill was blocked.

 

[Jman]

I must have misunderstood what I heard... It gets confusing trying to put the pieces of the puzzle together after a while...