I'm so sick of the government bailing out failing financial institutions. I'm gonna go all geopolitical on you fools for a minute, so just bare with me
( Read more... )
Yes, short term, bailing out the companies will save thousands of jobs, and will delay a major crash on wall street. Two segments hit hardest by this, people that work for the mortgage companies responsable for this collossal failure, and the richest 2% of the country, who invested heavily in bad paper.
Long term it will cause the economic downturn to last an even longer time, since it is preventing the housing market from bottoming out. It is also 700 billion dollars that we will never see a return investment on, all the loans being bought out by the government is toxic paper, loans that should never have been issued in the first place. Loans that cannot be sold, and will be liquidated for pennies on the dollar.
Its always better to rip the band aid off in one swift motion, it hurts more to start, but the pain goes away much faster.
Comments 4
Reply
Reply
Reply
Yes, short term, bailing out the companies will save thousands of jobs, and will delay a major crash on wall street. Two segments hit hardest by this, people that work for the mortgage companies responsable for this collossal failure, and the richest 2% of the country, who invested heavily in bad paper.
Long term it will cause the economic downturn to last an even longer time, since it is preventing the housing market from bottoming out. It is also 700 billion dollars that we will never see a return investment on, all the loans being bought out by the government is toxic paper, loans that should never have been issued in the first place. Loans that cannot be sold, and will be liquidated for pennies on the dollar.
Its always better to rip the band aid off in one swift motion, it hurts more to start, but the pain goes away much faster.
Reply
Leave a comment