In an attempt to win over the House of Representatives and Main Street, a few tax incentives and increased FDIC money deposit insurance were added to help sweeten the pot of $700 bailout out or rescue plan in debate for the last few weeks.
And, it worked. On Friday, the House of Representatives approved the package 263-171 after modifications and approval by the Senate earlier this week.
Main Street America has been vocal about their standing on the issue.
On MainStreet our readers have commented on the proposed $700 billion bailout for days.
NO 'CASH FOR TRASH'
The "cash for trash" (our cash for their trash) that is at the heart of this plan is insane. What idiot would pay more for an asset than it is (objectively) worth? If these "banks" are insolvent, let them declare bankruptcy. Yes, markets will go down and credit will be scarce--for a season. But do this bailout and we go the way of Japan. Why prop up the value of assets when it is their reversion to the mean that is required to resolve the issue in the first place? –Don
Please understand that you will GET HURT by this if it doesn't pass. I'M sorry to inform you of this. This has now become a world credit problem... This no bailout attitude will also affect your 401k, and mutual funds (if you have one) for say the last 8-10 years… It WILL affect your job, commodity prices, house price, friends and family too… More corporations will fail, more small businesses will fail and more unemployment… All of this resembles a Great Depression (not saying we will have one, but it will get bad). I'm talking about 3-5 year deep recession. The price we pay now if we do nothing will cost trillions and trillions of dollars more when we could prevent it through 700b… So please stop pointing fingers because there is problem. A smart executive/manager notices a problem first then fixes it. But before they can change policies they have to put out the fire.–Michael
ONE MAN'S PLAN
A real rescue plan will do these things simultaneously: buy up distressed homeowner loans with a FHA guarantee… set a basis for valuing all the collections of loans, and also allow banks to honestly state whether they are solvent or not.
Punish those who created this mess by denying them access to taxpayer funds, period. Indeed, the first and most important parameter of any measure to be considered is to protect the average citizen against anymore thievery from the genius types of Wall Street and the SEC and the Treasury and The FED, all criminal enterprises run by friends of good ole boys who, lets face it, are all of the above. Trickle up will reward average people and might just leave a few small crumbs for the genius ruling class. –Charles Kincaid
Strongly feel that there should not be any bailout. Stock market cannot always have an uptrend for years and when it jumps no one objects. I think Wall Street lobby influences those supporting this bill. Let market settle down on its own. Why should we pay for wrongdoings of others? –Sanjay
DON'T BLAME THE BANKS
The entire credit market is not drying up. The sub prime credit market is drying up which is a good thing. So you and your spouse can't get a mortgage loan for that 1800 sq ft home with a swimming pool...GOOD.
So you can't get for that new car you just have to have because you are already upside down on your trade in....GOOD.
So you can't pay your payroll for your business because you have never been disciplined enough to build up cash reserves...GOOD (your business is on shaky ground and not being run right in the 1st place)
If those types of loans dry up, yes it will be painful. Withdrawal usually is, but once you are no longer dependent on the drug, you are better off.
This country's "why not me" attitude is what has gotten us into this mess in the 1st place… Owning a home, a car, or a business is not a RIGHT, it is EARNED through years of wise choices and living within one's means. Just because it is available to you does not mean it is a wise choice to buy it. These materialistic individuals are the ones to blame for the mess we are in. These are the same individuals with $15,000+ in credit card debt, driving newer autos and living in a home that is not in their means. When they took out that ARM loan that they KNEW the payment would increase in the future, How did they plan on adjusting to the bigger payment.....oh, right, they didn’t plan at all... Therefore your home was foreclosed on, your car was repossessed, your credit cards were shut down and it is the banks fault right? Wrong! –JJ
A WORKING FAMILY'S PLIGHT
It's a shame that my husband & I have seen this coming for years. We both work and at this time only make a total $45,000 per year. We are both 60 years of age. In the past 20 years since we lost our job with CSXRailroad we have been struggling to get back to where we were then. We are barely there and now the Government wants us to provide more.. NOOOOO, NO WAY, NADA, GET LOST, FORGET IT, FIND A WAY AND LEARN TO LIVE ON LESS LIKE THOSE OF US WHO ARE THE ONES WHO KEEP THIS COUNTRY GOING AND WITH A SHRINKING PAY CHECK. My husband and I could help find ways to fix this mess (and believe me we have had to learn at different times to live on less) only a family like ours knows the ways, and what to cut out to be able to survive!!!! Find someone like us to fix this problem, KEEP THE GOVERNMENT OUT. –C. Bennett
THE TWO CHOICES
The problem of the moment is simple: The nation's banking system is choking on bad debt, and threatens to melt down completely unless liquidity is at least partially restored…The time for finessing this situation was last year… I too despise some of the people who got us here, and the list is long… But now is the moment to grow up, and realize that there are only 2 choices on offer. The first is to do nothing, and not have a banking system in 6 months. The second is to have the taxpayers buy distressed assets, hold them, and then sell them into a recovering market… The consequences of the first option are beyond horrible, and those people who think that their emotional satisfaction is worth another depression are insane. –RW
In a USA Today poll, 78% of the 1,019 polled after George W. Bush’s speech last week, wanted a bailout with changes.
Are the recent changes enough? Have the new incentives changed your thoughts on the bailout? Let MainStreet know your thoughts.