To Bail or Not to Bail...

[NightmareKnight]

*shrugs* I dunno.

 

[Gods-Spartan]

The key to changing the economy IMHO is if your going to rely on the trickle down BS stop outsourcing all your jobs... like how do you expect consumer spending to be the brunt of the economy when your answer to less buying is to cut costs and cut out jobs on US soil?

Well trickle down does work but in the right economic conditions. I don't much like the term trickle down as it does not adequalty paint the picture of how things should work. Fact is we don't make money here anymore. How often are you going to find products made here in the U.S.A.?

So the trickle down effect hits a dead end. It should also be thought of as a loop, not an actual downward motion. Instead...in our economy, its a straight line right off our shores.

So...
Empoyer creates jobs-->provides money to workers-->workers buy stuff-->money goes to invest in foreign countries.

Then the employer is left with having to magically come up with funds to maintain a buisness that is failing only to be bailed out by the government. This might provide relief, but without a change in practice it only delays the inevitable.

Another problem with this country is that industry is looked at as the bad guys. We do very little to help them stay here. Instead, we jack up buisness tax (35% I think?) and also demand fairness when they profit. Profit helps these guys expand. I understand when these hoard the cash is wrong and unpatriotic but again who are we to tell them what to do with thier funds? I'll just not do buisness with them.

We all should decide to invest in America. And find ways to stregnthen growth here on our turf. If anything, spend. Spend your money. Spend it in places that provide jobs to your neighborhoods. Demand American products. Don't settle for what might be cheaper. invest in American products made by American workers.

 

[wuben213]

Banks simply cannot fail. Volatility in the market went up like crazy when Lehmann collapsed. It is obvious that that was a big mistake.

So then what? Providing them with huge loans to buy off their 'infected' assets? That pure moral hazard right there.

I have no idea what the best plan at the moment is. I do know that incentive structures and risk management need a heavy restructure.

 

[Doctor_Toasty]

money management class

 

[Jaxel]

Trickle Down is a mistake in most situations... simply because nothing forces a company to put it back into the US Economy...

The bail out, and Obama's stimulus package are both mistakes... The economy is languishing, and they think they can fix it by creating $1,800,000,000,000 (1.8 trillion) out of thin air and giving it to the people who fucked our economy up in the first place? Why are we rewarding failure? The banks fucked us over by supporting sub-prime mortgages, and yet we are bailing them out... The auto-industry is failing because their product sucks, and yet we are bailing out; in 3 years, once they have consumed all the bail out money, their product will still suck! The economy is in crisis, and our government is trying to fix it by helping the people who put us here.

$1.8 trillion... there are 600,000 people in this country... If they want to stimulate this economy, they need to forget about the trickle DOWN effect and work on the trickle UP. Instead of giving money to big business; money that gets wasted... give $30,000 to every CITIZEN (fuck you illegal immigrants) and see how that stimulates the economy. Maybe people would actually be able to pay their CREDIT BILLS, and then the credit industry wont be so fucked. People may be able to afford houses, so the housing industry wont be fucked. etc... And if people want to spend their money on drugs and boos; at least they wont be able to blame the government.

Maybe then people could afford to get a one-way plane ticket to India... so they can get a real job.