Why are people sooooo against the bailout?

I believe that the bailout is a necessary evil... unless you don't want to be able to take out a loan in the near future... or if you want the stock market to crash.

Yes... there are some dumb@ss CEO's and rich people we are bailing out.... but both candidates are working to hold those companies more responsible... meanwhile....

If we didn't bail out these companies.

BANKS would be affraid... Banks WOULDN'T WANT TO LEND OUT MONEY FOR ANYONE!!! Andy they would eventually Fail !!!

You've seen the stock market... it thrives off of whatever is happening in the government.

ex: they didn't agree on a bail out plan... stock market plundged almost 800 points in one day

Ex2: Bush met with countries to adress the crisis... market shot up around 900 points.

Finally... what the source of the problem is:

- People not living within their own means

- Government deregulation of the banks

- banks making bad decisions

- Housing bouble: people relying on their house as their major asset/investment

Update:

GOP lisa... i'm not looking to blame individual(s) or parties.... i'm merely stating why it's necessary.

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  • 1 decade ago
    Favorite Answer

    The only people who are FOR the bailout are the ones that have no understanding of basic economics, or even money really.

    The Bailout is a farce.

    Forget about the credit crunch. Forget about the housing sector and the mortgage crisis. Forget about derivatives. ALL NONSENSE. Its a smokescreen. These are all SYMPTOMS of a market collapse, NOT THE CAUSE. Not a single Main Stream Media source I have run across is giving the real reason, which is; INFLATION!!!

    Yes, and who controls the inflation of our Dollar? THE FEDERAL RESERVE. This is the cause. Everything else is crap to divert your attention.

    The Federal Reserve creates inflation through Fractional Banking (which should be illegal), through overprinting of currency, and by charging interest to the Treasury on every dollar the Fed creates! All these things in concert cause massive inflation, which dilutes the value of the dollar until it is almost worthless.

    It now takes $21 to buy what $1 could buy back in 1913 when the Federal Reserve was created.

    http://www.infoplease.com/ipa/A0001519.html

    The Dollar has lost 1/3 of its value verses other currencies since 2002 alone!

    http://ftalphaville.ft.com/blog/2007/11/07/8713/th...

    The more inflation we have, the less the dollar is worth, and the harder it is for you to pay your bills. Its as simple as that. The Housing market collapsed because people couldn't pay their mortgages. This is entirely DUE TO INFLATION, and we are only seeing the beginning. The Stock market WILL crash, it is inevitable. In fact, with the new "Bailout", the crash will be even worse, because the bailout adds to the root cause of the problem, which is too much money printed out of thin air into the system. I give the market until the middle of next year if not before. It will probably take people that long to realize that the bailout was pointless.

    Then, either China, Russia, or OPEC, will stop trading in the U.S. Dollar, and that's when the market will plummet. The Dollar is the world's trading currency. A lot of other countries peg their currency to the dollar. If they stop trading in dollars, then that is the end.

    This event has been building since 1913 when the Federal Reserve was created. A Depression cannot be avoided. The only way to put an end to this once and for all is to shut down the FED, give the Treasury back its job as the issuer of currency, and run the Central Bankers into the Atlantic Ocean. Hopefully, people in this country will finally get angry enough to do this.

    "The powers of financial capitalism had (a) far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. The apex of the systems was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world's central banks which were themselves private corporations. Each central bank...sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world."

    - Carroll Quigley, member of Council on Foreign Relations (CFR), mentor to Bill Clinton, quote from “Tragedy and Hope”, 1966

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  • Ruby
    Lv 6
    1 decade ago

    Because it is a swindle.

    It sounds by your question that you have been scooped up by all of the media and political propaganda. If you don't know about the agenda of the mainstream media, I recommend learning about it. It has become a propaganda tool for the government and the elite ruling class. That happened because rules were relaxed that allowed a hand full of giant corporations to buy up the media. Watch this film for a crash course on the media.

    http://video.google.com/videoplay?docid=-117917551...

    Look to independent media if you want to understand the bailout.

    The financial system is crashing. The pain is coming. It cannot be stopped. The numbers don't jive. It is the inevitable result of 100 years of a currency system where the money is backed by nothing other than a promise to pay.

    The bailout does nothing to prevent the crash except give the banksters and the power elite a cushion while the rest of us go down for a crash landing. The bailout might buy a little time before the crash (maybe two months, maybe six months) but it will prolong the recovery by (among other ways) devaluing the dollar (inflation).

    Already the government is backtracking. What was "URGENT" to free up credit ten days ago has now been put on the back burner. Now (read today's news) we are buying shares in banks and holding off on the purchase of the toxic securities. Funny thing .. it is the corrupt bank CEOs (who caused the crisis) that are now sitting down with UNELECTED officials to determine the terms under which the taxpayers will buy those shares. Is there something wrong with that picture? Even the mainstream media is reporting some truth about that today!

    Here are some reading links if you are at all interested in how the banksters and power elite are pulling off the swindle of the millennium.

    Full Spectrum Breakdown: Grasping at Straws

    http://www.informationclearinghouse.info/article20...

    Paulson Bailout Plan a Historic Swindle

    http://www.thenation.com/doc/20081006/greider

    The Wall Street Model: Unintelligent Design

    http://www.counterpunch.org/martens09202008.html

    Mushroom Cloud over Wall Street

    http://www.informationclearinghouse.info/article20...

    The New New Deal. Footing the bill and holding the bag

    http://www.informationclearinghouse.info/article20...

    For the Love of Money: When Corporations Rule the World

    http://www.pcdf.org/corprule/failure.htm

    "Trouble in Banktopia"

    http://www.informationclearinghouse.info/article20...

    "The Rise Of The American Oligarch Class"

    http://www.informationclearinghouse.info/article20...

    The Mugging of America

    http://www.lewrockwell.com/orig9/quinn8.html

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  • 1 decade ago

    It is admitting that the Free Market Capitalism has failed...

    The Government is buying stock in companies... COMMON OWNERSHIP in the company... Every citizen of the United States is now a shareholder. So how do shareholder meetings go? Yes I agree something should be done but I would rather encourage the free market to invest their own money in these companies. I trust the people to make the judgment on which company is best instead of investing tax money into banks that have FAILED because they made bad decisions.

    So banks that are successful now have to compete with a government backed bank?

    Capitalism is the economic system in which the means of production are owned by PRIVATE persons, and operated for profit and where investments, distribution, income, production and pricing of goods and services are predominantly determined through the operation of a free market, rather than by CENTRAL ECONOMIC PLANNING.

    Communism is a socioeconomic structure that promotes the establishment of an egalitarian society based on COMMON OWNERSHIP of the means of production and property in general.

    THIS IS COMMUNISM! That is why I am against it! What next are we going to nationalize the American auto industry? After that what next? This is an OUTRAGE!

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  • 4 years ago

    I think that they voted against it because they are up for re-election and they do not want to lose their seats by voting for a bill that the American people do not want. This shows what a joke Pelosi is. It was their plan and they did not need the Republicans to pass it, yet she could not control her own caucus. EDIT: Make no mistake, this is the cause of the Democrats. In 2004 Democrats were warned by regulators and Rebublicans about Freddie and Fannie. The Democrats ignored it all.

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  • 1 decade ago

    A lot of the opposition to the bailout comes from people who believe the markets should be allowed to sort themselves out. Companies should be allowed to fail if they made bad choices and/or investments.

    In a perfect world this position would be just fine. But many of these companies also hold the life savings of many American's. If these companies fail, it could cause people to lose everything they've worked for. People who did everything right but just trusted their money to the wrong company. And it would ultimately cost the government by having to take care of these people.

    The other main criticism of the bailout comes from people who think it moves us closer to being a socialist nation. This notion comes from the false idea that we are strictly a capitalist nation. In truth we have a mixed economy with elements of capitalism and elements of socialism. When the free market fails to work for the citizens, the government should step in and help out. Plus, it should be pointed out that the government buying to banks and other businesses is intended to be a short term fix to stabilize the economy. Everything I've heard indicates the government plans to sell it's stake on the open market when the economy turns around.

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  • 1 decade ago

    This bail-out takes us to the brink of Socialism. This country was built on our ability and freedom to succeed or fail On Our Own.We are teaching our kids that it's okay to live way beyond what we can afford cause 'good ole uncle sam' will be there to pick up the pieces for us.. The government can't afford to do this. Where is the money coming from? We can't borrow anymore from China. Why in the world are we borrowing from them any way? I like being a capitalist and I won't let the government take that away from me........

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  • 1 decade ago

    I agree with you to a point. However, I think it also sends the wrong message to banks....{Sure! Make stupid choices and lend suckers money who really can't afford it. If it fails, don't worry...we got your back!} It doesn't really teach anyone a lesson. For example, just days after the bailout those idiots at AIG took that $400,000 junket. Hello?

    So, I guess I'm on the fence. It needed to be done, but it sends the wrong message. I think along with the bailout, some serious firing and criminal charges should have been applied.

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  • Anonymous
    1 decade ago

    I have already yelled at my mother about the bailout. She is in short sale for her home... she is just taking advantage of this economic crisis... they don't have to move... they can afford their house payments... they just need to quit f*cking spending their money on crap... it's called a BUDGET people... USE one!

    The bailout may be helping people, but others are just taking advantage of everyone else's economichardshipp, while racking up credit card debt andunnecessaryy spending... UGH! I have to live pay check to pay check while my mom can go out and spend money just because she needs to get out of the house... grow up... ur an adult now... take care of yourself... don't rely on others to bail you out!

    now let's hope my mom doesn't read this... LOL...

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  • Anonymous
    1 decade ago

    The bail out is BS.

    Plenty of things they wont tell the public right now.A Bailout hurts the situation far more than it helps it.We are going to go through a period of deflation.That will be followed by super-inflation due to the market being flooded by extra money causing the dollar to lose/extremely decrease it's value.Watch this about the federal reserve--It is not a government agency and is unconstitutional.

    what we have is a global hostile take over designed to rob wealth from We The People

    Source(s): http://video.google.com/videoplay?docid=5232639329... People should at least be informed and watch this documentary on the federal res.Before Thumbing down.Be informed that's all I'm saying!
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  • 1 decade ago

    Actually, the bailout was pretty bad for the economy.

    The major problem with our economy is the failing dollar. The dollar losing its value means that companies have to use more of them to make the same products. So they have to charge more at the stores, and they also have to cut expenses.

    Usually the biggest expense they cut is payroll; in other words, they lay off employees.

    But employees are also consumers. Now they have no jobs to fund their spending; and even the ones who manage to keep their jobs must deal with higher prices, so they also are cutting down their spending.

    But Middle Class spending is the biggest driver of our economy; when it falters, the whole economy falters right along with it.

    To fix the economy, we must fix the dollar. To fix the dollar, we have to pay off the National Debt.

    Unfortunately, the economic bailout plan actually ADDED to the National Debt. It basically handed out free money to the banks, but further lowered the value of that money. It handed out free buckets of worthless green paper to the banks, and then further devalued the money that is in the pocket of their customers.

    The Stock Market is actually closer to fully crashing now than before the bailout. Our whole economy is in dire straits, and on the verge of collapse. The bailout actually pushed us closer to the edge, not further away.

    Banks got a whole lot of worthless money, only to find out their customers have even less money and the banks cannot make a profit off of them anymore.

    We are in serious trouble now, made even worse with that bailout.

    The only way to fix it is to cut spending in government by cutting down on entitlement programs (like McCain wants to do), but also by leaving the very expensive Iraq War (as Obama wants to do).

    And we MUST raise taxes to pay down what was already spent. Its the only way. McCain is right that we have to cut spending, but there simply isn't enough to be cut to make up the huge National Debt. We also HAVE TO raise taxes to cover what the cut spending cannot cover.

    Add-on:

    And the huge upward motion of the Stock Market on Monday (over 900 points upward) is also a bad sign. A really bad sign, I didn't realize how bad the situation had gotten.

    All studies into complex systems (like the Stock Market) show that when it is on the verge of collapse, they all follow a similar basic pattern.

    There is an extreme failure in the system. As other parts of the system (in this case the government) attempt to fix it, the whole system makes a strong recovery. And very soon after the whole system collapses.

    Every major collapse of complex systems follow this pattern. We are in a very dangerous moment right now. Its being made all the worse by the fact that everyone saw that immense rise as proof that things will get better, and everyone is running back to the stock market when they should be running away with everything they've got.

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