If you haven't heard about it, the latest news is here:

 

 

 

http://www.nytimes.com/2008/09/26/busin ... ei=5087%0A

 

 

 

A key thing to note here is that outrage over this is coming from both sides of the aisle- many Republicans are also going berserk at the thought of 700 billion dollars going to rich and irresponsible banks headed by CEOs that make millions.

 

 

 

The Bush administration and Paulsen/Bernanke are pushing HARD to do this QUICKLY and are pushing everyone aside in their efforts to do it quickly.

 

 

 

If you live in the United States, here are the two links to contact your local State Rep and Senator:

 

 

 

http://www.senate.gov/general/contact_i ... rs_cfm.cfm

 

 

 

https://forms.house.gov/wyr/welcome.shtml

 

 

 

 

 

Unless you're an executive at bank that's being bailed out, and I highly doubt you are if you're reading this, write to your local Senator and Congressman. It doesn't take very much time. Let them know how bad of an idea it is to spend 700 billion dollars this quickly with such little oversight.

WASHINGTON House and Senate negotiators from both parties said Thursday that they had reached general agreement to move forward with the administrations proposed $700 billion bailout of the financial system, authorizing unprecedented government intervention to prevent what President Bush warned could be a widespread economic collapse.

 

 

 

Without the bailout another depression would be starting right now. Rather than learning about the 1930's, you'd be experiencing it. We were on a razors edge and the bailout saved us. Just today, my econ prof was telling us about his friend who worked in the pits (don't remember what they were called, but banks would lend money to each other overnight) and no money was moving. Banks were so scared of what could happen they didn't trust each other with money overnight. Funnily enough, he was also talking about people like you, who think the bailout was a complete mistake and that the company's should burn for their mistakes, when you have no idea what could've happened.

So what exactly are they doing with this $700 billion? Sounds a bit extreme if you ask me.

 

 

 

Without the bailout another depression would be starting right now. Rather than learning about the 1930's, you'd be experiencing it. We were on a razors edge and the bailout saved us. Just today, my econ prof was telling us about his friend who worked in the pits (don't remember what they were called, but banks would lend money to each other overnight) and no money was moving. Banks were so scared of what could happen they didn't trust each other with money overnight.

 

 

 

Debunking courtesy of http://www.eetimes.com/news/latest/show ... =210603982

 

 

 

Myth 1: The U.S. economy will collapse and fall into a deeper recession. Even Fed Chairman Ben Bernanke admits to not being 100-percent certain the plan will work. The economy is already in a recession and pouring $700 billion into it won't change the equation. The economy is experiencing a major hiccup, but it will recover once the excesses of the past are flushed out.

 

 

 

Myth 2: Lenders will stop lending. That's a huge exaggeration. If you are in the lending business, you don't turn around to start selling bread and milk. Lenders temporarily stopped lending to any Jack and Jill because they needed first to clean up the mess they created. They needed to examine their books, review which loans were bad and which ones should be or could be salvaged. That's why they temporarily stopped lending--when you are in a hole, stop digging. We should let the process run its course. Let the lenders review their operations, adopt better practicies, set new loan terms for borrowers, monitor them and let regulators do their work.

Locked - please use this topic and search for a thread before starting a new one.