Ok. So suppose instead of doing a govt bailout they decided to distribute the money equally.
Govt bailout total. 7,000,000,000
Number of people in USA 305,292,910 aprox.
And you get about 22.9 million per US Citizen.
And you can suddenly see just how much freakin money they are talking about. It is kinda like charging everyone in our country 22.9 million dollars to bail out a bunch of banks... Doesent make sense to me.
You know that its borrowed money and you calculation are totally wrong
First of all the bail out plan is about:
1. the US newly "junk bank" would buy assets for 250 billion USD. President would have an option to give out 100 billion more to the new bank.
2. The 350 billion left would be given out if the congress would pass it again Option.
3. The financial institutions would give the government stock options if they use the junk bank.
4. Golden parachutes in the participating companies would be stooped
5. The options would give the gov huge leverage when the situation normalizes
The only drawback is the securities that US banks use they are so related to housing market, the European way is much better
6. Stupid people would not go on a bank run witch would lead to more problems
The bail out would have worked the Nordic countries did do the same in the early 90's and the government has even made a profit from it, and it was a round the same scale of GDP. The failure to pass the plan yesterday cost 3000 billion USD in just a few hours. If you take yesterdays bail out of Glitnir it did cost the Icelandic taxpayer much more per capita then the US bail out plan.
They should have saved Lehman when they had the chance, they had assets of over 600 billion USD, Fannie and Freddie had 2.5 trillion USD in assets, Washington Mutual 327.9 billion and that has effected the rest who now need liquidity (short term capital) that was what happened to Lehman
Second of all you don't see the connection you need the banks, almost every company are relaying on outside capital, so if the banks fall most Americans would loose there pension and savings and home and most likely there job. And still many people has there pension in one ONE company stock, they might get hit very hard when they have not diversified there portfolio. 777.68 points on just dow is the biggest drop in history. S&P 500 and NASDAQ did fall as well 100's of points
2.30 USD per tax payer is a great deal or 2295.08197 per head over a years time. But if you only count the first stage and president option it would only be 1 147.54098, the stage 2 is option if its still needed
Plus they spend around the same amount on defense in a few years time why not invest 700 today and have the opportunity to win lots more
Your math is completely off. How does a trillion divided by a million equal a million? Did you fail 3rd grade?
And your values for the bailout are an understatement by a couple powers of ten.
700,000,000,000
You missed two digits
We're already in over 10 trillion dollars in debt.
Revised calculations would be $2,292.87 per citizen, your estimates, if done correctly shoudl have been $30 per citizen, which would mean nothing.
If you add it to the current US debt, the number would be roughly 11.7 trillion dollars. In that case, every US citizen must pay $38,323.85.
Yea now i see were he went wrong... when he did the 7 billion (not 700) her got this: 22.928799754963192561530498693861 and prob confusing it to be this: 22928799.754963192561530498693861 the decimal place is different
But i still would say let the banks go bankrupt put similar things like what canada has in place allow a few people set up banks give them a hand full of properties to sell Buy back money from the citizens influence more businesses buy giving ouyt grants for entrepreneurs and a few other things... that should allow the economy to go back up fast
Basically this:
Banks
Shut down all banks
Reclaim all properties which the banks had and were going to loose to null payment
Short sell the homes (wait dont bitxh) for quick profit and to pay off some of the silly bank debt which they accured (not the USA one)
Allow a few people to open banks create a insurance institute to protect the peoples money (like what canada has)
Give strict guidelines to giving out money
Businesses
Found structural support to the companies which support the most to the USA
Give out grants to entrepreneurs OF whom have been approved
Taxes
Raise taxes (not property but income etc...)
Give more by increasing taxes... influence buying of cheaper cars and smaller give discounts
Others
PRAY
I'm glad they denied the bill. Why should I have to pay because some banks couldn't keep their poop togeather?
lol agree
NOW SUSHI TIME
All developed countries has guaranties on there banks customers assets in the US its the FDIC and the guarantee 100000 USD per account. Banks are one of the best tax payers and they don't get anything back. Some of the banks are in trouble but if they fall they drag with them a few other banks and and other industries that own them money. You can't Reclaim property that you don't own it will get sold of if they go in to chapter 7 or 11 bankruptcy, and they will most likely sell under market value. It would only lead to more problems on the housing market witch are record low and it would not work without capital. Short selling is that you sell stocks that you don't own for a higher price in hope of buying them back for a lower and make a profit. Guidelines will get better after this US banks will not lend money to the no job, no asset, no nothing group anymore. The business side would not work in a large scale you need to allocate capital and have high leverage. But yes the US citizens should pay more taxes to get there finances on track or lower spending
