Bailout hindsight

MontereyVol · 11-18-2008, 11:03 AM

Now that the bailout was passed do you still think it was a good or bad idea?

I stated it was a bad idea and so far I see no reason to change that stance.

**volinbham** · 11-18-2008, 11:05 AM

I think the credit market actions were necessary but the "government save me" mentality that it has spurred may have worse longer term consequences than the short term pain we would have experienced.

droski · 11-18-2008, 11:11 AM

if they didn't do it we would have seen a colapse of the banking system. and it is a little too early to declare it a success or failure.

rjd970 · 11-18-2008, 11:13 AM

It was a bad idea, and still is a bad idea. Anyway you slice it or justify it, it is still just basic rewarding for bad behavior. Let all these guys fail.

Anybody watch Mike Huckabee on Hannity and Colmes last night? I think Huckabee is a complete loon usually, but I found myself agreeing with much of what he said.

droski · 11-18-2008, 11:16 AM

the govt will make a profit on this. probably a large profit. if you think interest plus warrants is "rewarding" the banks you are high. and letting them fail is a great way to send us into a great depression. it's all well and good to say those things, but if the govt allowed all those banks to fail you'd be unemployed very soon and you'd be raising hell about it.

VolByBirth · 11-18-2008, 11:17 AM

I'm not sure we are in the hindsight position -- but the fact that this money has not been used to force banks to lend makes it pointless. I also strongly disagree with giving money to banks that are still paying dividends and excessive bonus structures.

MontereyVol · 11-18-2008, 11:18 AM

Quote:

Originally Posted by droski

if they didn't do it we would have seen a colapse of the banking system. and it is a little too early to declare it a success or failure.

This part I have a tendency to agree with, however I think it should end there.

Paulson is not impressing me one bit.

MontereyVol · 11-18-2008, 11:19 AM

Quote:

Originally Posted by droski

the govt will make a profit on this. probably a large profit. if you think interest plus warrants is "rewarding" the banks you are high. and letting them fail is a great way to send us into a great depression. it's all well and good to say those things, but if the govt allowed all those banks to fail you'd be unemployed very soon and you'd be raising hell about it.

Do you really think they are not going to forgive those loans down the road? The US government is going to lose money on this.

MontereyVol · 11-18-2008, 11:20 AM

Quote:

Originally Posted by VolByBirth

I'm not sure we are in the hindsight position -- but the fact that this money has not been used to force banks to lend makes it pointless. I also strongly disagree with giving money to banks that are still paying dividends and excessive bonus structures.

Don't worry I will start one next year too.

droski · 11-18-2008, 11:21 AM

Quote:

Originally Posted by VolByBirth

I'm not sure we are in the hindsight position -- but the fact that this money has not been used to force banks to lend makes it pointless. I also strongly disagree with giving money to banks that are still paying dividends and excessive bonus structures.

the bonuses are pretty much gone this year. as for the dividends many banks were forced to take the money so i don't quite understand why they shouldn't be paying dividends. you can't force the banks to lend btw.

droski · 11-18-2008, 11:21 AM

Quote:

Originally Posted by MontereyVol

This part I have a tendency to agree with, however I think it should end there.

Paulson is not impressing me one bit.

paulson is not a salesman. he is very bright though.

rjd970 · 11-18-2008, 11:22 AM

Quote:

Originally Posted by droski

if they didn't do it we would have seen a colapse of the banking system. and it is a little too early to declare it a success or failure.

Would we see a complete and total collapse?

We should have let these guys fail. This bailout just seems to me that we are giving these banks one set of rules to play by and making everybody else play by another. If I own a small business and go under because of bad business practices nobody is going to bail me out, but once I reach a certain size that is big enough, it doesn't matter how I run my business because I can always count of the government to bail me out.

I don't care if we go into another depression. It is the system we have in this country and we should take the good with the bad. For all the harping I see on this board for free markets and true capitalism, I would think more would feel this way.

droski · 11-18-2008, 11:23 AM

Quote:

Originally Posted by MontereyVol

Do you really think they are not going to forgive those loans down the road? The US government is going to lose money on this.

i think there is zero chance they forgive the loans. it is written into the preferreds that they get paid back and at what interest rate. if these banks are profitable again (which should happen as soon as 09), how could you possible justify forgiving the loans?

rjd970 · 11-18-2008, 11:26 AM

Quote:

Originally Posted by droski

if you think interest plus warrants is "rewarding" the banks you are high.

Is it not a reward if the alternative is going out of business completely?

droski · 11-18-2008, 11:26 AM

Quote:

Originally Posted by rjd970

Would we see a complete and total collapse?

We should have let these guys fail. This bailout just seems to me that we are giving these banks one set of rules to play by and making everybody else play by another. If I own a small business and go under because of bad business practices nobody is going to bail me out, but once I reach a certain size that is big enough, it doesn't matter how I run my business because I can always count of the government to bail me out.

I don't care if we go into another depression. It is the system we have in this country and we should take the good with the bad. For all the harping I see on this board for free markets and true capitalism, I would think more would feel this way.

if these banks went under you wouldn't be able to get a loan to make your payroll for your small business and your clients wouldn't be able to get loans to buy your products. and for all the "bailout" rhetoric please explain how a high interest rate plus warrants can be called a bailout? doesn't a "bailout" imply that that money is down the tubes? this is an investment. not a bailout.