can someone explain the bailout plan?

soon2bmrsVPT Posted: Oct 03, 2008 02:49 PM

can someone explain the bailout plan?

thanks, i am economically-challenged. it is total jibberish

ChipNdipLover Posted: Oct 03, 2008 03:13 PM

Re: can someone explain the bailout plan?

me too. Thank you.

MJDoc12 Posted: Oct 03, 2008 03:31 PM

Re: can someone explain the bailout plan?

Wikipedia has a page on it

Bailout Plan

its so damn complicated its so hard to follow. but the only thing that i understand of it--is that this country relies heavily on credit--and right now the subprime mortgage crisis that so many banks backed that are now failing has destroyed the the credit industry in this country....if there is no credit--the country can not function...states can't get loans for things and consumers can't get credit for cards, car loans, homes, etc. now how the bailout WORKS for this--i'm not 100% sure if its a good idea or not...since the mortgage industry and sub-prime lenders are heavily to blame for this problem....so its like saying 'You made bad investments---so here's some more money to help save you and lets hope you make better investments this time.' BUT since its impacting the country so much, i don't know if its a necessary evil or not--so i'm a little confused by the whole thing myself.

beram63 Posted: Oct 03, 2008 04:10 PM

Re: can someone explain the bailout plan?

Posted by MJDoc12

Wikipedia has a page on it

Bailout Plan

its so damn complicated its so hard to follow. but the only thing that i understand of it--is that this country relies heavily on credit--and right now the subprime mortgage crisis that so many banks backed that are now failing has destroyed the the credit industry in this country....if there is no credit--the country can not function...states can't get loans for things and consumers can't get credit for cards, car loans, homes, etc. now how the bailout WORKS for this--i'm not 100% sure if its a good idea or not...since the mortgage industry and sub-prime lenders are heavily to blame for this problem....so its like saying 'You made bad investments---so here's some more money to help save you and lets hope you make better investments this time.' BUT since its impacting the country so much, i don't know if its a necessary evil or not--so i'm a little confused by the whole thing myself.

they're not throwing money at them so much as they're buying the failing mortgages from them, freeing up credit so banks can make new loans, and making it possible for the government to grant forebearance to people who are at risk of foreclosure. the govt has the chance to make the money back bc they've invested in these mortgages. if it eventually pays out, we will have only spent a portion of the 700 billion.

unfortunately, they've had to add an extra billion in programs and tax credits to get it to pass in the house, many of which are focused on small sectors of society (like archery schools ).

MJDoc12 Posted: Oct 03, 2008 04:15 PM

Re: can someone explain the bailout plan?

Posted by beram63

they're not throwing money at them so much as they're buying the failing mortgages from them, freeing up credit so banks can make new loans, and making it possible for the government to grant forebearance to people who are at risk of foreclosure. the govt has the chance to make the money back bc they've invested in these mortgages. if it eventually pays out, we will have only spent a portion of the 700 billion.

unfortunately, they've had to add an extra billion in programs and tax credits to get it to pass in the house, many of which are focused on small sectors of society (like archery schools ).

well i guess the key here is whether or not the creditors who were the ones that screwed the mortgage industry...are going to get us in a financial crisis again in the future!

and yeah--i heard about a lot of the 'pork barrell' spending programs that were snuck into the bailout--i would love for all of THOSE to get listed and who put them in!

beram63 Posted: Oct 04, 2008 10:14 AM

Re: can someone explain the bailout plan?

Posted by MJDoc12

and yeah--i heard about a lot of the 'pork barrell' spending programs that were snuck into the bailout--i would love for all of THOSE to get listed and who put them in!

i read a pretty good article on CNN, but i can't find it now. it was called 'A Spoonful of Pork Helps the Bailout Go Down.' it gave an itemized list of some of the more broad-sweeping and also some of the more ridiculous additions.

my feelings about the govt--->

roan126 Posted: Oct 05, 2008 08:31 AM

Re: can someone explain the bailout plan?

Posted by MJDoc12

Posted by beram63

they're not throwing money at them so much as they're buying the failing mortgages from them, freeing up credit so banks can make new loans, and making it possible for the government to grant forebearance to people who are at risk of foreclosure. the govt has the chance to make the money back bc they've invested in these mortgages. if it eventually pays out, we will have only spent a portion of the 700 billion.

unfortunately, they've had to add an extra billion in programs and tax credits to get it to pass in the house, many of which are focused on small sectors of society (like archery schools ).

well i guess the key here is whether or not the creditors who were the ones that screwed the mortgage industry...are going to get us in a financial crisis again in the future!

Unfortunately, the fact that the government bailed them out means that they have no reason to be more careful the next time around. Why be prudent when the government will be there to bail us out if we get into trouble?