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Old 09-22-2008, 11:07 AM
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Default The Middle Class Must Not Be Forced to Bail Out Wall Street

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The Middle Class Must Not Be Forced to Bail Out Wall Street

By Sen. Bernie Sanders

If the economy is on the edge of collapse we need to act. But we can't just give away $700 billion of taxpayer money to the banks.

For years, as a member of the House Banking Committee and now as a member of the Senate Budget Committee, I have heard the Bush Administration tell us how "robust" our economy was and how strong the "fundamentals" were. That was until a few days ago. Now, we are being told that if Congress does not act immediately and approve the $700 billion Wall Street bailout proposal these "free marketers" have just written up, there will be an unprecedented economic meltdown in the United States and an unraveling of the global economy.

This proposal as presented is an unacceptable attempt to force middle income families (and our children) to pick up the cost of fixing the horrendous economic mess that is the product of the Bush Administration's deregulatory fever and Wall Street's insatiable greed. If the potential danger to our economy was not so dire, this blatant effort to essentially transfer $700 billion up the income ladder to those at the top would be laughable.

Let us be clear. If the economy is on the edge of collapse we need to act. But rescuing the economy does not mean we have to just give away $700 billion of taxpayer money to the banks. (In truth, it could be much more than $700 billion. The bill only says the government is limited to having $700 billion outstanding at any time. By selling the mortgage-backed assets it acquires -- even at staggering losses -- the government will be able to buy even more, resulting is a virtually limitless financial exposure on the part of taxpayers.) Any proposal must protect middle income and working families from bearing the burden of this bailout.

These are the last days of the Bush Administration, the most dishonest and incompetent in modern American history. It is imperative that, at this important moment, Congress stand up for the middle class and for fiscal integrity. The future of our country is at stake.
The Middle Class Must Not Be Forced to Bail Out Wall Street | Corporate Accountability and WorkPlace | AlterNet
If you'll follow the link you will see what Senator Sander's plan is. I agree with the part that says:
Quote:
the price the government pays for any mortgage assets are discounted appropriately so that government can recover the amount it paid for them; and, finally, the government should receive equity in the companies it bails out so that when the stock of these companies rises after the bailout, taxpayers also have the opportunity to share in the resulting windfall.
And I agree with this part:
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we need to protect ourselves from being at the mercy of giant companies that are "too big to fail," that is, companies who are so large that their failure would cause systemic harm to the economy. We need to assess which companies fall into this category and insist they are broken up. Otherwise, the American taxpayer will continue to be on the financial hook for the risky behavior, the mismanagement, and even the illegal conduct of these companies' executives.
I dislike his idea of a surtax on high income earners, while recognizing that it is equally unfair to saddle low and middle income Americans with the cost of the bail outs. I'm opposed to the idea of bailing out failing companies with tax money, but Senator Sanders does propose some ideas that are worth considering.
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Old 09-22-2008, 11:14 AM
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I'm opposed to bailing out failed companies! Let them fail and make them cover the losses of the investors (such as all those retirement funds, IRAs and the like that your average Joe is relying on).
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Old 09-22-2008, 01:07 PM
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How are they going to cover the losses if they are bankrupt and have failed?

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I'm opposed to bailing out failed companies! Let them fail and make them cover the losses of the investors (such as all those retirement funds, IRAs and the like that your average Joe is relying on).
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Old 09-22-2008, 01:30 PM
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How are they going to cover the losses if they are bankrupt and have failed?
How are who going to recover? To me, this isn't about saving financial institutions that don't know basic math.
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Old 09-22-2008, 01:36 PM
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How are they going to cover the losses if they are bankrupt and have failed?
The mult-million dollar bonuses they've been paying to the CEOs. Oh, and they're not bankrupt. They still have their hands in things that are still making money for them.
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Old 09-22-2008, 01:55 PM
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So you the libertarian, plans on taking away money already earned by the CEOs. What if the CEOs don't have the money?

Btw I think the CEOs should be held personally responsible, but I am not sure if it is possible to do so.


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The mult-million dollar bonuses they've been paying to the CEOs. Oh, and they're not bankrupt. They still have their hands in things that are still making money for them.
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Old 09-22-2008, 02:18 PM
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Only in America can a completely unregulated industry be driven into the ground by unfettered, naked greed, and con the populace into footing the bill to prop them up out of self-created bankruptcy, enabling future mercenaryism.

This makes less and less sense, to me.

When mere speculation and skittish investment firms can send the whole country into a tailspin, wouldn't it make some sense to get just a little bit of control over this? We need leadership that's not afraid to do some serious ***-kicking. There's only so much abuse by the corporatocracy that the people can be expected to take.
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Old 09-22-2008, 02:30 PM
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They don't call it a "risk economy" for nothing. If you invest in a company and that company fails, you took a risk and it backfired. If you were defrauded, then the government can prosecute, otherwise you just ****ed up as a consumer, and deserve to fail just like the company with whom you invested.

On topic, we've got no business footing the bill for irresponsible trade practices....or any trade practices for that matter.
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Old 09-22-2008, 05:36 PM
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They don't call it a "risk economy" for nothing. If you invest in a company and that company fails, you took a risk and it backfired. If you were defrauded, then the government can prosecute, otherwise you just ****ed up as a consumer, and deserve to fail just like the company with whom you invested.

On topic, we've got no business footing the bill for irresponsible trade practices....or any trade practices for that matter.
What of the suggestion that those people whose mortgage lenders greeded themselves into bankruptcy should now simply own their houses, to crease a baseline for market normalization? Rather than everyone effectively getting the largest housing subsidy ever, and attempting to rescue these companies from themselves?

Or, perhaps the people who are being foreclosed on and forced into bankruptcy as a result of all of this should lose the house, but be refunded what they've paid into it. Call it a draw. Of course, that would make the government the biggest reseller of property, right now.

What a mess. What cracks me up is that there are still those hardcore people who firmly believe unfettered markets can do no wrong and require no watchdogging......
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Old 09-23-2008, 09:48 AM
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i agree - tax payers shouldnt foot the bills for these multibillion dollar companies and multi millionaire CEOs. take that $700 billion and how about this - PAY OFF ALL THE MORTGAGES. then the banks would have money and people would own and have their homes saved
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