Comments on: Bankruptcy, Not Bailout?

By: Mel Avila Alarilla

Mel Avila Alarilla — Wed, 01 Oct 2008 21:21:38 +0000

Yes, I agree with all the arguments you put forward but there is one thing you overlooked. You look at it from the viewpoint of just American interest. If the American government fails to restore the confidence of the world economic institutions, then the whole world economic system will collapse and there will be worldwide recession. You see the whole world economic system is so tied up with the American economic system that if the latter collapses, it will bring down the whole world economic system. That’s the price to pay for being an economic and political superpower. When America sneezes, the whole world gets cold. If The US reneges on this most important responsibility to the world, then some other nation would take the mantle of leadership and America will be reduced to a lameduck country running to a dark corner and licking its own wounds. In the end, there will be worldwide economic chaos and economic wars may be waged by power seekers and upstarts. Thanks for the post. God bless you always.

By: FFB

FFB — Wed, 01 Oct 2008 19:31:55 +0000

Interesting point about opportunity. So US companies can't give credit...Why not get credit overseas? Wouldn't that be what a person does if they get a mortgage through ING? Credit wouldn't be frozen forever. We're just looking to save US firms that leveraged themselves too much. I can see the point in raising the FDIC limit in general but I don't see what it has to do with the bailout. It just puts more gov't money on the line if a bank fails. FFBs last blog post..Free From Broke September 08 Review

By: Peter

Peter — Wed, 01 Oct 2008 15:43:14 +0000

The more I read about a bailout, the less I like it. Now we have the senate about to re-introduce a bailout bill – with the main difference from the one that was just defeated being an increase in the amount of FDIC insurance. Why? what difference is that going to make – why would this one pass – and not the other?

By: The Happy Rock

The Happy Rock — Wed, 01 Oct 2008 15:34:25 +0000

I like where you are headed Pete. Fundamentally, I like that we rely on people not government to fix things. We are all to willing to give up our freedom to let government fix all the problems that can only truly be fixed by us(the people) doing something about out. Government should be on our side and enabling solutions, but not taking control wherever possible. We have options as people. Getting involved in government(voting and calling reps), picking what stores and what loans to shop at, getting out of debt and being responsible, and helping others. Our actions can and do influence things even if it takes some time and some unity.

I do agree that fear is the main thing that drives our motivation now a days and I don’t think it makes for very good decision making(usually short sighted and reactionary).

By: Mr. ToughMoneyLove

Mr. ToughMoneyLove — Wed, 01 Oct 2008 12:56:57 +0000

The article is dead-on about the relentless push toward home ownership. Home ownership rates rose 6% to record levels in 2007. Many of those new owners were unqualified. But, it was the politically correct thing to do. Ask Barney Frank. Mr. ToughMoneyLoves last blog post..Liquidity Conflict in the U.S. Economy – Spenders vs. Savers