Not to seem stupid, but please tell me again

[sarettah]

why my idea wouldn't work.

Back in October I posted my solution to the economic situation (for at least the U.S.)

Original thread is http://www.gofuckyourself.com/showthread.php?t=863605

and an easier to read version of the original essay is at http://www.americantune.net

The cliff notes version is that if we spent 12 trillion dollars and paid off all consumer debt in the U.S. the economy would be healed. A Bottom Up solution.

As of today, the Fed has spent, lent or pledged 12.8 trillion dollars and we are no where near seeing the light at the end of the tunnel.

http://www.bloomberg.com/apps/news?p...efer=worldwide

Financial Rescue Nears GDP as Pledges Top $12.8 Trillion (Update1)

By Mark Pittman and Bob Ivry

March 31 (Bloomberg) -- The U.S. government and the Federal Reserve have spent, lent or committed $12.8 trillion, an amount that approaches the value of everything produced in the country last year, to stem the longest recession since the 1930s.

New pledges from the Fed, the Treasury Department and the Federal Deposit Insurance Corp. include $1 trillion for the Public-Private Investment Program, designed to help investors buy distressed loans and other assets from U.S. banks. The money works out to $42,105 for every man, woman and child in the U.S. and 14 times the $899.8 billion of currency in circulation. The nation?s gross domestic product was $14.2 trillion in 2008.

[Carmine Raguso]

Because a lot of undeserving people would get to start off with a clean slate again and fuck everything back up like it is now.

[sortie]

Originally Posted by sarettah

why my idea wouldn't work.

Back in October I posted my solution to the economic situation (for at least the U.S.)

Original thread is http://www.gofuckyourself.com/showthread.php?t=863605

and an easier to read version of the original essay is at http://www.americantune.net

The cliff notes version is that if we spent 12 trillion dollars and paid off all consumer debt in the U.S. the economy would be healed. A Bottom Up solution.

As of today, the Fed has spent, lent or pledged 12.8 trillion dollars and we are no where near seeing the light at the end of the tunnel.

http://www.bloomberg.com/apps/news?p...efer=worldwide

Because your plan would result in a rush on all empty homes with more stupid loans since
they are all going to now get a house for free from the government.

And of course any home owner with a brain will claim to be broke so they can get their
free house too.

Basically your plan is the dumbest shit I ever read.

[collegeboobies]

The reason it wont work is because it will never happen. No one would LET it happen.

[sarettah]

Originally Posted by sortie

Because your plan would result in a rush on all empty homes with more stupid loans since
they are all going to now get a house for free from the government.

And of course any home owner with a brain will claim to be broke so they can get their
free house too.

Basically your plan is the dumbest shit I ever read.

So, it's better to give it to the bankers and wall street?

Noone would have to claim to be broke to participate, it is simply paying off ALL consumer debt. Anyone with a mortgage would get paid off.

[sarettah]

Originally Posted by Carmine Raguso

Because a lot of undeserving people would get to start off with a clean slate again and fuck everything back up like it is now.

Yeah, but that would take about 80 years.

[sarettah]

Originally Posted by collegeboobies

The reason it wont work is because it will never happen. No one would LET it happen.

Exactamente

[sortie]

Originally Posted by sarettah

So, it's better to give it to the bankers and wall street?

Noone would have to claim to be broke to participate, it is simply paying off ALL consumer debt. Anyone with a mortgage would get paid off.

Hey, wake the fuck up.

I would write 5000 mortages the second they decided to do that.

Further why should people who bought houses and can't pay get a free house
when other people live in the street because the one who couldn't pay for the
house is the one that makes the prices go so high to put the others in the street.

So, people go out and cave into a $300k house and now every house is $300k and I can't buy
one for that price so I live in a rented dump because of you and
now you want the fucking house for free and I still pay rent??

[pornguy]

Originally Posted by sortie

Hey, wake the fuck up.

I would write 5000 mortages the second they decided to do that.

Further why should people who bought houses and can't pay get a free house
when other people live in the street because the one who couldn't pay for the
house is the one that makes the prices go so high to put the others in the street.

So, people go out and cave into a $300k house and now every house is $300k and I can't buy
one for that price so I live in a rented dump because of you and
now you want the fucking house for free and I still pay rent??

Using your same argument., Why should a company that could not do business properly and turn a profit with no debt be bailed out?

There is no simple solution to this.

But the business that need bail out money she not get it, they should go out of business. The people with mortgages that they can not pay should lose the home. its that simple. the banks that made the bad loan should also pay the price.

[sortie]

Originally Posted by pornguy

Using your same argument., Why should a company that could not do business properly and turn a profit with no debt be bailed out?

There is no simple solution to this.

But the business that need bail out money she not get it, they should go out of business. The people with mortgages that they can not pay should lose the home. its that simple. the banks that made the bad loan should also pay the price.

Simple :

Bail out consumers = They have no more debt and also no job since you didn't save their employers.

Bail out employers = People keep their jobs and pay their own debt.

Duh???

[sarettah]

Originally Posted by sortie

Hey, wake the fuck up.

I would write 5000 mortages the second they decided to do that.

Further why should people who bought houses and can't pay get a free house
when other people live in the street because the one who couldn't pay for the
house is the one that makes the prices go so high to put the others in the street.

So, people go out and cave into a $300k house and now every house is $300k and I can't buy
one for that price so I live in a rented dump because of you and
now you want the fucking house for free and I still pay rent??

First, of course there would be a cut off date on it. All consumer debt prior to whatever date they decided. Since I originally proposed this back in October it would have been as of mid October or so.

Second, they have already laid out 12.8 trillion dollars and people are still losing their homes. My version all those people would have kept their homes. Yes, some people would have made out.

This is/was a true middle class bail out that was proposed instead of a financial institution bail out. All of those sub-prime mortgages were the result of the financial markets greed and finding ways around the rules. When someone gets conned, who do you blame, the victim or the conman?

Again, because you did not answer; Would you rather see the banks and financial institutions bailed out or the consumers?

[pornguy]

Originally Posted by sortie

Simple :

Bail out consumers = They have no more debt and also no job since you didn't save their employers.

Bail out employers = People keep their jobs and pay their own debt.

Duh???

Again Not that simple.. AIG has gotten HOW MUCH?? And what have they done with it.. How many banks have gotten how much?? And how easy is it to get a loan???


Like I said its not easy one way or the others.

[sarettah]

Originally Posted by sortie

Simple :

Bail out consumers = They have no more debt and also no job since you didn't save their employers.

Bail out employers = People keep their jobs and pay their own debt.

Duh???

The employers are bailed out because consumers now have money to spend on product. The big old commercial machine keeps churning.

Did you even read the original idea?

[sarettah]

Originally Posted by pornguy

Using your same argument., Why should a company that could not do business properly and turn a profit with no debt be bailed out?

There is no simple solution to this.

But the business that need bail out money she not get it, they should go out of business. The people with mortgages that they can not pay should lose the home. its that simple. the banks that made the bad loan should also pay the price.

I pretty much agree and if you read the second paragraph of the original essay it states:

Who should be bailed out

If we attempt to look at the question morally, no one should. We can take the attitude that those that are hurt by the ongoing economic collapse deserve it. In reality, if the collapse is not averted we will all be hurt. Unemployment will rise, foreclosures will rise, production will fall and the logical end is a total halt to the economic machine of the United States and eventually the world (or vice versa) and then a long slow recovery.

[sortie]

Originally Posted by sarettah

First, of course there would be a cut off date on it. All consumer debt prior to whatever date they decided. Since I originally proposed this back in October it would have been as of mid October or so.

Second, they have already laid out 12.8 trillion dollars and people are still losing their homes. My version all those people would have kept their homes. Yes, some people would have made out.

This is/was a true middle class bail out that was proposed instead of a financial institution bail out. All of those sub-prime mortgages were the result of the financial markets greed and finding ways around the rules. When someone gets conned, who do you blame, the victim or the conman?

Again, because you did not answer; Would you rather see the banks and financial institutions bailed out or the consumers?

Simple :

Bail out consumers = They have no more debt and also no job since you didn't save their employers.

Bail out employers = People keep their jobs and pay their own debt.

Duh???


See the Business Bail Out is also a Consumer Bail Out because consumers get bailed out
of the fucking unemployment line.....get it?

[sortie]

Originally Posted by sarettah

The employers are bailed out because consumers now have money to spend on product. The big old commercial machine keeps churning.

Did you even read the original idea?

So the consumer is now going to buy a second house and second car now that
they have been bailed out?

Or what the fuck are they going to buy.....cheese burgers?????



And will everyone rush out on day one and buy all this shit before these companies
collapse.

Please stop.

[pornguy]

I think that you are missing part of the point. The companies are being bailed out, and they continue to lay people off. So how does this help the people again??? How does it help the businesses??


of those companies had been run the right way, they would not be in this situation. IF every time you needed a server, you had to take out a loan, how long do you think your business would last?? Oh Yeah the government will bail you out. No worries.

[pornguy]

Anyway. I have work to do. Enjoy trying to solve the problems of people that dont care.

[Nicky]

I need to solve my declining forex trading account. I aim to do it now

[sarettah]

Originally Posted by sortie

Simple :

Bail out consumers = They have no more debt and also no job since you didn't save their employers.

Bail out employers = People keep their jobs and pay their own debt.

Duh???


See the Business Bail Out is also a Consumer Bail Out because consumers get bailed out
of the fucking unemployment line.....get it?

No, the businesses still end up going out after being bailed out because the consumers are still carrying too much debt. They still cannot afford to purchase product.

Unless the consumer can afford to purchase the downward spiral of the economy contimues.

from the essay (since you apparently did not read it):

The middle class is the consumer class of the United States. If they are freed of their current debt they will spend money and will also start saving and investing money. It is very difficult to save money or participate in investments when you are also trying to pay down debt. If the middle class is freed from their current debt then it becomes much easier for them to start putting money away in savings and investments while continuing to use their purchasing power as they always have.

.................

The immediate effect on industry, the production part of the economic machine, is that consumers will continue to buy products. The factories and farms that produce the product, and the wholesalers and retailers that distribute the product, will be able to thrive into the foreseeable future.