Economic Crisis – To Bail Out or Not

September 26, 2008 at 4:51 pm 4 comments

There is no doubt that the economy is in trouble. Is it possible to place the blame on one person for this. No. No way. President Bush is a veritable punching bag for anything that goes wrong. The things that people blame the presidency for currently are astounding. They are topics that have never been the presidents responsibility solely. He did not “allow” the sub-prime market to do anything. Investors, lenders, and home buyers did. There is plenty of blame to go around. Sure it is more convenient to blame Bush, but it is wrong. It serves all kinds of purposes to accuse one man of all of our problems. Bush has been blamed for everything from global warming, weather patterns, to this current mortgage situation. Really. One man. The strength and grace it must takes to bear the weight of everything. Amazing. I doubt many of us could shoulder such responsibility and yet still push forward for the better of all Americans.

I digress, this article – “Who is to blame for the sub-prime crisis?” – gives some insight into the current sub-prime crisis which in turn has spilled over to create our current financial crisis. Clearly there is plenty of blame to go around. But does it really matter at this precise moment, who caused the situation. NO. We just need to come up with a strategic plan to resolve it.

I don’t personally believe that McCain is simply pulling a media stunt. Do I think it was a little dramatic? Possibly. But I also think that Obama’s statement that presidential politics should not be brought in is ridiculous as well. Last time I checked both of these guys were still acting representatives of states. They never stepped down from their positions when they began their campaigns. So, in essence by returning to Washington and making the situation a priority they are just doing their current job. There is plenty of partisan commentary to say this group or that group is keeping the plan from going through. Each group is sure that they other is at fault. Unless you were in the room you are believing here-say and biased views. Even in a printed transcript you would lose the intonation and verbal context in which things were spoken. So I choose to believe that they are all being difficult and trying to make what they believe in best work.

Frankly as much as I dislike the idea of a $700 billion bailout, I do think it is interesting. The fact that money could possibly be made off this deal in the long run is very intriguing. The problem is the growing of government and the precedent it sets for government to step in and take over more and more over time.

Consider this interesting proposition by financial guru, Dave Ramsey - He suggests doing the following:

Call your Congressman. Call your Senator. Tell them to change the mark-to-market accounting law and to extend insurance but extend no loans. If they extend loans – if they borrow the money on the national debt in order for us to all go into the mortgage business a trillion dollars – you’re going to fire their butts and send them home.

I did email all my representatives suggesting the plan. Take action and email yours too.

It makes sense and it could be interesting. What is your take? Let’s pray they resolve it fast. (and yes i pray)

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4 Comments Add your own

  • 1. norulesriders  |  September 26, 2008 at 5:38 pm

    I think this is the biggest rip off in the history of the USA
    They say if we don’t bail them (who every that is) out then we will hit rock bottm. Hell, I been at rock bottom. And you know what, when your at rock bottom you have something to stand on. And when you have something to stand on then you can stand up and make something for yourself.
    F A HAND OUT
    F A BAIL OUT
    How about a free market? Is a free market a new idea? I just don’t get it.
    Mad as hell about government and it giving away my hard earned money.
    Mike

  • 2. rightwingchicky  |  September 26, 2008 at 8:17 pm

    did you read the article by ramsey? he gives evidence and facts about the current accounting method that has created the current situation. if you read it and take the time to think about his proposition it makes the most sense. i am not for $700 billion dollars. that amount is more than my mind can even fathom. our leaders need to be diligent and responsible in their decision. i don’t necessarily feel that ramsey’s suggestion is a bail out or hand out.

  • 3. Julie at Cool Mom Guide  |  September 28, 2008 at 9:58 pm

    I agree with what you said on my site, about not being able to change minds when someone is set in their ways. This “bail out” leaves me with a bad feeling. Maybe I interpreted it wrong, but I’m under the impression all the companies that lost money by lending it are going to get bailed out so they can lend money again? So save the rich so the poor can borrow more they can’t afford to pay back? I don’t know. It just seems like it’s giving the okay to screw up. The ones who pay their bills and don’t get in over their head will suffer the most, having to pay the taxes to cover all the collective asses.

  • 4. rightwingchicky  |  September 28, 2008 at 10:10 pm

    personally i agree. i am not a big fan of the bailout. i think there were ways to avoid having to make this decision. i downloaded the 106 page draft off foxnews and was trying to read through it.
    i do think that the people (lenders, bankers, etc – not blaming bush for this whole problem) should have to be held accountable for their actions and have to suffer through them. i know things are unstable and people are scared but they could be a whole lot worse.
    i believe that government is trying, misguided as i think it might be, to make people feel less scared.
    my biggest concern in this situation is not the precedent has been set for government to step in and rescue any failing organization. Airlines and beyond. Where will it stop? Our governent will end up running and controlling everything in what is suppsed to be a free market economy. The implications stretch far beyond just this one choice. It will be interesting to see what happens, either they will all take a big fall together for going ahead with this or it will work and we will head down a path of no return to a place where government controls everything.
    good luck in deciding who to vote for. it is a critical time in our country and we are all responsible for helping to chose who will take us through the next four years – good or bad.

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