Sergeant Vince Carter, USMC asked:


I’m really shocked at the resistance to the proposed bailout of the failed Big 3. Do you think Obama will take note of this before he embarks on his socialist agenda? That perhaps a fair amount of Americans are still believers in personal freedom / personal responsibility? Just a theory of mine, I kind of doubt it personally, given that he thinks raising taxes on some is nifty simply because of the “fairness” thing and without any consideration with respect to what it means for economic growth.

Carol

Jerry H asked:


Well this move by congress obviously keeps me interested in Japanese auto products.

The US automakers are doing a PR stunt claiming it’s not a bailout. How can they claim that when its the taxpayers taking the risk of a 25 bn loan? In other words the General Public Fund absorbs the losses of Ford/GM/Chrysler’s mistakes.

I believe Ford and GM and Chrysler are performing this PR stunt to save their future sales from angry taxpayers.

Wilma

hamn asked:


Honestly, this 700B bailout plan was pretty weird to be from the beginning, but what does it mean to us the taxpayers? And what is your opinion on it?

Shane

William J Thomas asked:


It seems that everybody has their hand out for some bailout money these days.What started out with the government generously giving away money they didn’t have to Wall Street has morphed into billions being given to the banksters and insurance CEO’s, with the automotive industry and others standing in line seeking their share of the government bailout loot as well. It has become so ridiculous that even Larry Flynt of Hustler fame wants a bailout for the Porn Industry. The whole thing would make for good comedy if it were not for the consequences these actions produce. For while many noted economists declare that bailouts and stimulus money are necessary to ‘kickstart’ the economy, history and logic show otherwise.

Many have been led to believe that it was FDR’s ‘New Deal’ that put America back to work when the real truth is that it wasn’t the New Deal but World War 2 that pulled America from the depths of the Great Depression. As shown by Llewellyn H. Rockwell in his recent column called ‘How This Happened’,

” Economic growth went nowhere between 1933 and 1939, with real gross domestic product per adult still 27 percent below trend at the end. Per capita GDP was lower in 1939 than in 1929. Unemployment was at 17.2 percent in 1939. This was actually higher than it was in 1931. This is despite a 100 percent increases in monetary expansion. Taxes had tripled. Employing people became ever more expensive due to unions and national income guarantees”.

While I’m not advocating another world conflict to get things going, the point is that it wasn’t FDR’s job programs or the creation of money out of thin air through the printing presses that pulled America from the depths of the depression, but the cranking up of the war economy and the rebuilding that came afterwards with America left standing as the major economic power capable of producing the products that the rest of the world needed to rebuild, that created the boom.

Another unfortunate result of the bailout is that it rewards businesses that made unwise or downright stupid financial decisions and allows them to stay in business and compete with companies that didn’t. In a free market capitalistic system, the incompetent would be allowed to fail. The inefficient would be replaced by those who are able to produce products and services that people want and the net result is that consumers and society benefits.

Much of the same can be said for the multitude of homeowners that the government is trying to save from foreclosure. The immoral aspect of the government’s actions is that diligent homeowners will by punished by being asked to subsidize those that made terrible financial decisions such as buying houses they really couldn’t afford. In both cases, the government is stepping in to alter the normal business cycle that would weed out the inefficient and unwise.

The end result of these numerous bailouts is that individuals and businesses that in a free society should be ‘punished’ for their imprudence are instead rewarded. These actions can only produce disastrous results for society at large. Not only does it create market distortions and misallocations, but sends the wrong message as well. If there be no price for failure, than there really is no longer a reward based free market, and things quickly evolve into a free for all, with everyone trying to get their hands on some of the loot, knowing that moral hazard no longer applies, and there is no price to be paid for failure since the government stands waiting to bail them out.



Kelly

R. Sebastian Gibson asked:


WASHINGTON: In a breathtaking development that makes all prior bailout, rescue and stimulus plans including TARP Plans 1 through 15 pale by comparison, Palm Springs and Palm Desert Lawyer Sebastian Gibson today unveiled a 250 Trillion Dollar Bailout Uber-Rescue Plan and Stimulus (known both as BURP and BURPS) designed to give a boost to the nation’s troubled and often misunderstood lawyers by rescuing the heart of this country’s economy, its lawyers who, like much of the nation are depressed and stressed-out like never before.

If you need of an attorney with a sense of humor for a personal injury, business, employment, real estate, patent, trademark, copyright, environmental, entertainment or international law anywhere in Southern California, visit our website at http://www.sebastiangibsonlaw.com and call us at any of the numbers easily found on our website.

While Congress which has been split down partisan lines over each of the previous bailout and stimulus plans proposed so far, with many of the Senators being former lawyers, Congress is said to be almost unanimous in their hunger for a plan like BURP. For the first time, Congress could come together to the dinner table in our country’s time of need to help feed our nation’s overburdened and unappreciated lawyers.

It remains unclear, however, whether President Obama, himself a lawyer, will be willing to sign the legislation once the House and Senate pass BURP. Speaking on condition of anonymity, a spokesman said, “BURP may simply be too much to swallow.”

Using language only somewhat similar to what has been used by the nation’s Treasury Secretaries, but in some ways more graphic, Palm Desert Lawyer Sebastian Gibson stated that having BURPS could repair the part of our country’s anatomy that is in a word, most constipated. Warning that the nation faces the most serious economic crisis since lawyers went into depression in the 1930s, Sebastian Gibson said that BURPS are necessary to get the guts of this economy, its lawyers, functioning again. BURPS, he said, are necessary to get toxic matters, unemployed attorneys, out of the nation’s overburdened financial system, before the economy and the system shuts down completely.

Unlike TARP, which some have criticized for not having released sufficient funds, BURP is actually comprised of a number of smaller BURPS focused on various segments of the legal community such as personal injury lawyers, divorce lawyers, criminal lawyers and government lawyers. Designed this way to provide maximum relief, BURP has been praised for having at the center of it’s plan, these simultaneous releases (both large and small BURPS) designed to get the economy moving again before the financial system in this country shuts down completely and the recession becomes a full-blown depression.

It has taken Palm Springs Attorney Sebastian Gibson who comes from main street USA to be hailed as perhaps the one American with a vision that could actually stimulate the economy, applauded the broad support for BURP saying it was essential to have a BURP after all the other stimulus and rescue plans that have been causing so much gas among Americans and Congress. Without BURP, this build-up could have allowed the worst crisis in our history, to become a catastrophe, blasting away any hope of recovery.

The BURP plan includes help for legal victims of this gas build-up with over 47 Billion for health services including tax credits for the purchase of medications to prevent and relieve future financial indigestion and an 82 Billion credit for stomach relief medications for those already suffering from the bloating, cramping and other medical issues brought on by this crisis.

While some members of the media, notably those on Fox News, questioned the sanity of spending this amount of money to save this country’s lawyers from losing their jobs and bankruptcy, Palm Springs Attorney Sebastian Gibson reminded the detractors of the plan that there are now more lawyers than you can shake a stick at.

Speaking at a press conference, Gibson said, “Right now, dysfunctional attorneys are like gallstones in the nation’s bowels. If all the lawyers in this country were to go on the unemployment lines, unemployment in this country would swell like an inflamed or overripe prostate, and eventually explode, causing panic in the streets and around the world.”

While there was no comment from Treasury Secretary Timothy Geithner about BURP, it was believed that many of the staff at Treasury were wondering why no one at the Treasury department had spit up a BURP plan of their own.

Visit our website at http://www.sebastiangibsonlaw.com and call us if you need a lawyer for a personal injury, business, real estate, employment, patent, trademark, copyright, environmental, entertainment or international law matter anywhere in Palm Springs, San Diego, Orange County or anywhere in Southern California.

As BURP was being digested by Congress, Palm Springs and Palm Desert Lawyer Sebastian Gibson was said to be working on a more effective plan designed to help the nation’s financial system by discharging all of the CEOs of major financial institutions. Known only as BARFS (Bailout And Rescue of the Financial System), details are expected to be released next week.



Lauren

sexy law chick asked:


I am a first time home buyer ACTIVELY looking. But this bailout is scaring the crap out of me. Will it impact the housing market? Should I wait because rates/prices will go down lower? Or should I hurry because rates/prices will jump back up?

Any insight would be GREAT!

Gina

V P Singh asked:


INTRODUCTION

 

Whatever the comments trying to lead the public astray be coming, the entrance of world depression 2008 can not be overlooked since it stands well entered in the Indian economy. The decision regarding closure of Tata’s Jamshedpur motors plant for three days, decision of Ashok Leyland to run only for three days a week for coming two months, decreasing interest rates, decrease in CRR, lowered REPO rate, cut in SLR, index of stock market in reverse gear, Rs 275000/= crores released by the Reserve Bank of India (RBI) to help industries and investors etc. are the events which indicate that RBI and the Government accept the entrance of depression 2008 in the Indian economy. Among all these events or the actions the Rs 275000/= crores bailout drew my attention most. The concern and worry of RBI and the Government over the depression are easily understandable to me. But, I could not understand whether RBI and the Government are worried for the economy or for the investors and industries of the economy. To my opinion both are the separate things and the economy should be given priority against industry and investors.

THE DEPRESSION 2008

 

A depression (economic depression) is caused either by the excess of supply or by the lack of demand. In both the conditions depression should be fought against by increasing demand instead of by decreasing supply in market because decrease in supply will always bring national income and employment down while any cut in national income and employment is never acceptable. The present world wide depression has been resulted by both the excess in supply and the deficiency in demand. The excess in supply has been generated by over production on account of heavy productive investment in developed economies and it came about in developing economies due to the dumping through ‘globalization’. The deficiency in demand came about due to deficiency in purchasing power in the hands of the dominant middle income mass which resulted by high level inequality in national income distribution in both the economies. I have explained in detail in my article ‘Story behind the World Depression 2008’ how the depression was generated in developed countries and how the developing economies have come in its grip. My said article (http://www.articlesbase.com/economics-articles/story-behind-the-world-depression-2008-626225.html) concluded that the problem of depression is the problem of increasing the (effective) demand by increasing the purchasing capacity of the dominant middle income group.

 

SIGNIFICANCE OF THE BAILOUT

 

The above said bailout seems to be similar in nature as the Wall Street bailout practiced in America. This type of measures taken in American could not make any dent on the root causes of there’s depression. The depression is still gaining more and more depth in America day by day. Then, how can we expect that the measures as taken in America would be proved fruitful in India? The monetary help to industries and investors preserves their profit whereby the production and employment level is preserved but for the time being only. The root cause of their falling profit remains untouched. Therefore, the bailouts towards helping the investors and industries only postpone for some time the cut in production and employment without helping the demand increase. I could find no way mentioned in economic literature to treat depression without increasing demand if supply side is kept unaltered. The market is suffering from deficiency in demand not because the investors are suffering from falling profits but the investors are suffering from falling profits because the market is suffering from deficiency in demand. Therefore, deficiency in demand should be treated to save both the economy and the investors. There are four conditions when a depressive trend emerges in an economy.

 

(1) When either the rigidity of demand prevents prices from rising to compensate the falling profits of producers in case of increasing costs.

 

(2) When the demand does not keep pace with increasing supply caused by extra production.

 

(3) When the demand decreases on account of emergence of some factor affecting the total consumption of general mass negatively.

 

(4) The dumping of goods by some depression stricken foreign country.

 

In case of any one or all of the first three conditions the demand should be increased to treat depression. If the fourth condition is the cause of depression, check on imports would provide fruitful results. The present depression 2008 in developing countries though emerged mostly on account of the fourth condition but due to their being abided by the terms of globalization they can not adopt the way of checking their imports. Therefore, the developing economies like India have no way but to increase demand of general mass to treat the present depression. Therefore any measure not helping increase in demand like above said bailout can not be proved fruitful to treat the depression. However, a bailout, if made to divert flow of funds towards the hands of ‘demand- dominating-middle-income-group’ will increase the total demand in market by increasing purchasing capacity of this group. Therefore, bailouts should be made but to help the consumers instead of helping the investors and industries. Moreover, the investors and industries also will be helped though indirectly but ultimately if the demand is raised by raising purchasing capacity of the dominating middle income group through bailouts because the so raised demand will enable the producers to sell their product at a price that keeps their profit preserved.

 

CONCLUSION AND SUGGESTIONS

 

The above discussion concludes that taking measures to save the investors for time being is not the treatment of the depression but it is only the postponement of the situation. To treat the depression measures should be taken to increase the demand, determined by the purchasing capacity of the general mass, through increased liquidity in their hands as the ‘marginal propensity to consume’ of general mass in a developing country is sufficiently high. Therefore, the bailouts should be made to help the demand increase instead of helping the supply be preserved. In other words, the horse should be made to pull the cart instead of making it to push cart. Hence, the bailouts should be made but utilized to protect income of the general mass against retrenchment, to provide cheap consumer loans and to finance the subsidy schemes launched for the purchase of consumer goods. _______________________________________________________  



Philip

½ asked:


I currently have an 80/20 mortgage with Countrywide. I am in good standing and have not been late on a single payment. I also have close to perfect credit and a great job.

How can I take advantage of the bailout plans? My house has lost 20% of its values since I bought it last year.

Jessie

John Parks asked:


Many people are wandering why the United Kingdom government decided to deposit nearly $90 billion into banks, while lending back $350 billion to the taxpayers. When it came time to make the final decision, the UK government realized they had no choice. Panic in the markets is at a steady increase, while banking shares have been at a steady downfall. British Prime Minister Gordon Brown, along with the help of Chancellor Alistair Darling, knew that something must be done immediately to bring back the confidence within the banking industry. Urgent action was agreed upon, and a bailout plan was put into action.

The UK government created a plan that consisted of funding the banks with over $90 billion, in exchange for shares, in hopes of reassuring the markets that the credit crunch would be survived. The loans received from the banks would total over $350 billion and would be used to stabilize the economy. The banks are currently reluctant to loan to one another, which is much needed for day-to-day business. The UK government has high hopes that this bailout will get cash flowing through the system once again.

A lot of taxpayers have been asking where this bailout idea originated. A similar plan was put into action in Sweden in the early 1990’s, due to a devastating banking crisis. The plan proved to be a huge success for Sweden. Taxpayers eventually received a return on their capital investment after the bank’s share prices began to increase.

The UK government decided against a U.S. style bailout for several reasons. The $700 billion bailout introduced by the U.S. government has been criticized by many. Critics say the U.S. bailout is aimed only to purchase the bad debt held by banks, and capitalize over time by doing so. This plan does not offer the banks an opportunity to recapitalize in exchange for a share holding in which could also bring the taxpayer a return. This creates a perception of greater risk for the taxpayer.

The banks are extremely satisfied with the UK’s bailout plan. They have been trying hard to earn enough cash to even the balance sheets after the runs on their share prices. Abbey, Barclays, HBOS, Lloyds TSB, Nationwide Building Society, RBS and Standard Chartered have all committed to participating in the government plan. In return for the bailout plan, the UK government is asking for preference shares. The government will require the banks to implement new rules that will control executive income and dividend payments. The banks will also be asked to lend more to small businesses and homebuyers.

The UK government has faith that they will see the same success that was achieved in Sweden, however, there is always a potential risk. If the plan were to fail, the money markets would remain frozen, and confidence would continue to decrease. If share prices continue sliding, the taxpayer will lose even more. If the banks use all of the government lending, and are unable to pay it back, the financial crisis could last for years. However, the UK government remains optimistic that bank share prices will rebound, eventually resulting in profit.

For more information on the United Kingdom visit http://www.ukbailout.com.



Elaine