Comments on: Government, Quit Using My Money To Bailout Companies! http://www.startbreakingfree.com/410/government-quit-using-my-money-to-bailout-companies/ How to Quit Your Job and Start Your Own Business Thu, 29 Jul 2010 18:11:56 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Delores http://www.startbreakingfree.com/410/government-quit-using-my-money-to-bailout-companies/comment-page-1/#comment-1010 Delores Wed, 19 Nov 2008 00:18:05 +0000 http://www.startbreakingfree.com/410/government-quit-using-my-money-to-bailout-companies/#comment-1010 Whose going to bailout the taxpayers when we're through bailing out everyone else? Whose going to bailout the taxpayers when we’re through bailing out everyone else?

]]> By: jere http://www.startbreakingfree.com/410/government-quit-using-my-money-to-bailout-companies/comment-page-1/#comment-1009 jere Tue, 18 Nov 2008 03:01:55 +0000 http://www.startbreakingfree.com/410/government-quit-using-my-money-to-bailout-companies/#comment-1009 My brother in law had the best idea. If the government paid off everyones, lets say 21 and older that have a job and are tax payers, bills up to a million with that 700 billion bailout, everyone would be a winner. Loans would be paid off, companies would be back in the black, people would have the money to buy new things and business would be back in business because of sales. A win win for everyone. My brother in law had the best idea. If the government paid off everyones, lets say 21 and older that have a job and are tax payers, bills up to a million with that 700 billion bailout, everyone would be a winner. Loans would be paid off, companies would be back in the black, people would have the money to buy new things and business would be back in business because of sales. A win win for everyone.

]]> By: Brian Armstrong http://www.startbreakingfree.com/410/government-quit-using-my-money-to-bailout-companies/comment-page-1/#comment-1007 Brian Armstrong Sat, 18 Oct 2008 04:41:33 +0000 http://www.startbreakingfree.com/410/government-quit-using-my-money-to-bailout-companies/#comment-1007 Hey Kathryn, you're right the federal funds rate only has an indirect effect on interest rates (I don't understand it entirely either) and the Iraq war is a colossal waste of money. As for Milton, I'm not entirely sure but I think he said the fed tightening the money supply is what caused it. In other words, there was a shortage of cash and when people came to get it out the Fed should have provided it...like the actual paper currency. Worst case print more of it until people stop asking for their deposits. Not bailing out banks that made poor business decisions, etc. Somewhat different...but I don't claim to be an expert on the subject, that is just my understanding. I do know that 200,000 tax payers investing their own money are going to do a lot better than 10 bureaucrats in a room spending all of ours for us. As Milton was fond of saying, "you will never spend someone else's money as carefully as you will spend your own". Hey Kathryn, you’re right the federal funds rate only has an indirect effect on interest rates (I don’t understand it entirely either) and the Iraq war is a colossal waste of money. As for Milton, I’m not entirely sure but I think he said the fed tightening the money supply is what caused it. In other words, there was a shortage of cash and when people came to get it out the Fed should have provided it…like the actual paper currency. Worst case print more of it until people stop asking for their deposits. Not bailing out banks that made poor business decisions, etc. Somewhat different…but I don’t claim to be an expert on the subject, that is just my understanding.

I do know that 200,000 tax payers investing their own money are going to do a lot better than 10 bureaucrats in a room spending all of ours for us.

As Milton was fond of saying, “you will never spend someone else’s money as carefully as you will spend your own”.

]]> By: Kathryn Loving http://www.startbreakingfree.com/410/government-quit-using-my-money-to-bailout-companies/comment-page-1/#comment-1008 Kathryn Loving Thu, 16 Oct 2008 22:44:50 +0000 http://www.startbreakingfree.com/410/government-quit-using-my-money-to-bailout-companies/#comment-1008 Hi Brian, I just have to comment on the response you gave Alex that: > i agree interest rates will go up in the short term, but > that’s ok. The fed can adjust that how they normally do it > with the federal funds rate if needed. The federal funds rate attempts to influence interest rates but doesn't control them.. I don't understand this perfectly but although the current federal funds target rate for interbank lending is 1.5%, the actual rate for interbank lending is currently around 4.5%. So the distrust in the market is currently playing a bigger role than the Fed. I think the $700 billion bailout is more about instilling trust in the market. If it works, and they invest it wisely, the government will make a profit (or at least make some of it back) on the loans they make now, as the markets improve.. (if they improve..) Compare that to the $563 billion (and counting) that we've spent on the Iraq war, and we will never get a dime of it back. I'm just saying that we might end up looking back on this bailout as a good investment. I think you're somewhat of a Milton Friedman fan so you should read his theories on the causes of the great depression.. Not sure he would agree with everything they're doing today, but he definitely thought the Fed should act as "the lender of last resort" and should have quickly bailed out failing banks during the great depression. Kathryn Hi Brian,

I just have to comment on the response you gave Alex that:
> i agree interest rates will go up in the short term, but
> that’s ok. The fed can adjust that how they normally do it
> with the federal funds rate if needed.

The federal funds rate attempts to influence interest rates but doesn’t control them.. I don’t understand this perfectly but although the current federal funds target rate for interbank lending is 1.5%, the actual rate for interbank lending is currently around 4.5%. So the distrust in the market is currently playing a bigger role than the Fed.

I think the $700 billion bailout is more about instilling trust in the market. If it works, and they invest it wisely, the government will make a profit (or at least make some of it back) on the loans they make now, as the markets improve.. (if they improve..)

Compare that to the $563 billion (and counting) that we’ve spent on the Iraq war, and we will never get a dime of it back. I’m just saying that we might end up looking back on this bailout as a good investment.

I think you’re somewhat of a Milton Friedman fan so you should read his theories on the causes of the great depression.. Not sure he would agree with everything they’re doing today, but he definitely thought the Fed should act as “the lender of last resort” and should have quickly bailed out failing banks during the great depression.

Kathryn

]]> By: Brian Armstrong http://www.startbreakingfree.com/410/government-quit-using-my-money-to-bailout-companies/comment-page-1/#comment-1006 Brian Armstrong Thu, 02 Oct 2008 19:16:24 +0000 http://www.startbreakingfree.com/410/government-quit-using-my-money-to-bailout-companies/#comment-1006 You're right Phil. Somehow the "free-est country in the world" has slipped to 8th place now in economic freedoms: http://baumanblog.sovereignsociety.com/2008/09/us-slips-in-eco.html The government owns 40% of our companies through taxes. 14% higher than the global average. http://www.taxfoundation.org/news/show/23627.html You’re right Phil. Somehow the “free-est country in the world” has slipped to 8th place now in economic freedoms:
http://baumanblog.sovereignsociety.com/2008/09/us-slips-in-eco.html

The government owns 40% of our companies through taxes. 14% higher than the global average.
http://www.taxfoundation.org/news/show/23627.html

]]> By: phil http://www.startbreakingfree.com/410/government-quit-using-my-money-to-bailout-companies/comment-page-1/#comment-997 phil Thu, 02 Oct 2008 15:32:26 +0000 http://www.startbreakingfree.com/410/government-quit-using-my-money-to-bailout-companies/#comment-997 Couldn't agree more!!! Let me (and my kids) keep our money! Leave socialism to the socialists! Couldn’t agree more!!! Let me (and my kids) keep our money! Leave socialism to the socialists!

]]> By: Brian Armstrong http://www.startbreakingfree.com/410/government-quit-using-my-money-to-bailout-companies/comment-page-1/#comment-1005 Brian Armstrong Thu, 02 Oct 2008 00:15:30 +0000 http://www.startbreakingfree.com/410/government-quit-using-my-money-to-bailout-companies/#comment-1005 Here is some more perspective on just how big $700B is: http://news.yahoo.com/s/livescience/20080930/sc_livescience/howmuchis700billion Here is some more perspective on just how big $700B is:

http://news.yahoo.com/s/livescience/20080930/sc_livescience/howmuchis700billion

]]> By: Freddie http://www.startbreakingfree.com/410/government-quit-using-my-money-to-bailout-companies/comment-page-1/#comment-1004 Freddie Tue, 30 Sep 2008 19:18:08 +0000 http://www.startbreakingfree.com/410/government-quit-using-my-money-to-bailout-companies/#comment-1004 B, we can agree there. We all hope that it turns out well for the people! B, we can agree there. We all hope that it turns out well for the people!

]]> By: Brian Armstrong http://www.startbreakingfree.com/410/government-quit-using-my-money-to-bailout-companies/comment-page-1/#comment-1003 Brian Armstrong Tue, 30 Sep 2008 18:45:15 +0000 http://www.startbreakingfree.com/410/government-quit-using-my-money-to-bailout-companies/#comment-1003 Haha, yeah...it would be nice to get the $3,500 back that the government took in taxes, I think it would do far more for the economy. Ironically, they probably don't even have the money...which means they are going to have to print the money to come up with the $700B and cause inflation. I have no evidence for that whatsoever, but just a guess. Either way, it's not much better. I don't have as a big of a bone to pick with JP Morgan though. Sure they are cleaning up...but they deserve it man. While every bank out there was making the wrong decisions they (apparently) are one of the few who didn't get caught up in it (Wells Fargo is another, i believe?), so now they are reaping the rewards. That is a great thing actually, its a reward for the companies who were smart and a punishment for the companies who made bad decisions. Helps the economy move forward and benefits the consumer (fewer poorly managed companies!). Also, keep in mind that getting mortgage assets is not the same as getting $300B in cash. They probably did the stock offering because they needed the liquidity to take on the acquisition which is not cheap. Again, just guessing...but overall I have no problem with what they did. In a sense they saved Wamu's (and their customers) asses and it will hopefully turn out well for everyone. B Haha, yeah…it would be nice to get the $3,500 back that the government took in taxes, I think it would do far more for the economy. Ironically, they probably don’t even have the money…which means they are going to have to print the money to come up with the $700B and cause inflation. I have no evidence for that whatsoever, but just a guess. Either way, it’s not much better.

I don’t have as a big of a bone to pick with JP Morgan though. Sure they are cleaning up…but they deserve it man. While every bank out there was making the wrong decisions they (apparently) are one of the few who didn’t get caught up in it (Wells Fargo is another, i believe?), so now they are reaping the rewards.

That is a great thing actually, its a reward for the companies who were smart and a punishment for the companies who made bad decisions. Helps the economy move forward and benefits the consumer (fewer poorly managed companies!).

Also, keep in mind that getting mortgage assets is not the same as getting $300B in cash. They probably did the stock offering because they needed the liquidity to take on the acquisition which is not cheap. Again, just guessing…but overall I have no problem with what they did. In a sense they saved Wamu’s (and their customers) asses and it will hopefully turn out well for everyone.
B

]]> By: Brian Armstrong http://www.startbreakingfree.com/410/government-quit-using-my-money-to-bailout-companies/comment-page-1/#comment-998 Brian Armstrong Tue, 30 Sep 2008 18:33:58 +0000 http://www.startbreakingfree.com/410/government-quit-using-my-money-to-bailout-companies/#comment-998 Hi Alex, i agree interest rates will go up in the short term, but that's ok. The fed can adjust that how they normally do it with the federal funds rate if needed. I'm not as worried about savings either...FDIC insured right? I don't mind the FDIC one bit. It seems like a big expense for a problem that will automatically correct itself with natural market forces. B Hi Alex, i agree interest rates will go up in the short term, but that’s ok. The fed can adjust that how they normally do it with the federal funds rate if needed.

I’m not as worried about savings either…FDIC insured right? I don’t mind the FDIC one bit.

It seems like a big expense for a problem that will automatically correct itself with natural market forces.
B

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