My Economic Bailout Plan...and some more Economics babble

[raining_cloud]

So I've been paying close-ish attention to the roils of the economy over the past couple of weeks or so. It's more than a little terrifying. Ultimately I'm against paying nearly $1 trillion to banks that made risky or bad business choices. It's irresponsible in all areas. Except that when the House rightly voted it down, the stock market took a

Comments

[defygravity0915]

Wow...at least you can put a rational thought together about all of this. I have no idea how to save for the future...like the retirement future, but like you, I like to put my money 'under the bed'. Hopefully a decent alternative will make itself available for all of us gun shy of investing world.

[raining_cloud]

But actually people usually use government stimulus checks to pay off debt, which is why the "stimulus" part of those checks usually fails miserably.

Even so, there would have to be a way to direct the money...I'm not sure how, but I think there is a way.

And our generation's apathy terrifies me. Especially because I think we've got more potential than past generations. It's just all wasted.

[kibarika]

While nobody proposed directly giving money to those people, lots of people did propose things that would help them more directly and not exclusively help the banks. So they aren't 100% evil or stupid, really.

As for preparing for the future: if you ever buy stocks, buy in a company you believe in. This is the first rule of investing.

Also, CDs are a little better than savings accounts, because they generate higher interest and the interest is compounded more frequently. So that might be something to look into; if you were to put money in a CD now and then keep re-investing it in new CDs, by the time you're looking at retirement it should be at least some helpful. And as long as it's less than the FDIC limit, even if the bank holding the CD fails you will get it back.

[raining_cloud]

Those are both really good things to know. I can have slightly more faith in people now. I've been trying to keep up with everything that's been going on with the changes to the bailout plan, but I haven't had much time in the past week to do that. And I hadn't really looked into CDs before, and I'll definitely do that. The stock market scares me.

[kibarika]

the reason the money is going to the banks is because there is an understanding that is like a loan so the government will get the money back gradually instead of just giving it away.
how cynical you all are.