News: Bailout Plan Loses
Sep. 29th, 2008 10:48 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
stinglikeabeeIn the debate leading up to the vote on the $700 billion bailout, Representative Jeb Hensarling of Texas (R) said the proposed plan would put America on the 'slippery slope of Socialism'.
That makes me twitchy. Look, I'm not happy that it's come to this: the government buying up securities and throwing money into what may be a black hole of an economy. And that the money to finance this will ultimately come from increased borrowing overseas. But I don't agree it amounts to Socialism, or that it deserved to be beaten.
It's said the money could be used elsewhere, or an improved solution could be had. It sucks that the government could have used this amount improving lives of their citizens, but the financial situation is more pressing. And while we wait for something better than what was pitched the two parties fight amongst themselves, global investors are becoming hysterical, and against reasoning start pulling out money from financial institutions. This hurts Main Street as much as Wall Street -- where do we do our banking, our insurance, our pensions? And businesses and individuals across the world have as much stake as those living in the States on having this bailout passed. Why bet on whether the world's largest economy can withstand the failures of several huge multinational institution?
Listening to those who oppose the situation say 'I got myself into the mess, and the government didn't come and help me out', I can understand where it's coming from. It's sickening to read how much those involved in the crisis were getting paid a year. I'm all for making sure the bailout doesn't directly reward these guys. But punishing the institutions won't work, as less money in the sector means less money regular banks will want to lend out to consumers. It will be harder to earn a mortgage loan, or buy a car. Small businesses won't have the wherewithal to expand or hire more employees. Then what's the alternative?
The bright side of this is that it's back to the drawing board, and hopefully there will be more amendments to limit Treasury Secretary Paulson's power and more room for regulations to make prevent shit like this from blowing up without any checks. As for the Socialism part of getting the state involved in the free-market, I say yay. Bring on the nationalised healthcare!
That makes me twitchy. Look, I'm not happy that it's come to this: the government buying up securities and throwing money into what may be a black hole of an economy. And that the money to finance this will ultimately come from increased borrowing overseas. But I don't agree it amounts to Socialism, or that it deserved to be beaten.
It's said the money could be used elsewhere, or an improved solution could be had. It sucks that the government could have used this amount improving lives of their citizens, but the financial situation is more pressing. And while we wait for something better than what was pitched the two parties fight amongst themselves, global investors are becoming hysterical, and against reasoning start pulling out money from financial institutions. This hurts Main Street as much as Wall Street -- where do we do our banking, our insurance, our pensions? And businesses and individuals across the world have as much stake as those living in the States on having this bailout passed. Why bet on whether the world's largest economy can withstand the failures of several huge multinational institution?
Listening to those who oppose the situation say 'I got myself into the mess, and the government didn't come and help me out', I can understand where it's coming from. It's sickening to read how much those involved in the crisis were getting paid a year. I'm all for making sure the bailout doesn't directly reward these guys. But punishing the institutions won't work, as less money in the sector means less money regular banks will want to lend out to consumers. It will be harder to earn a mortgage loan, or buy a car. Small businesses won't have the wherewithal to expand or hire more employees. Then what's the alternative?
The bright side of this is that it's back to the drawing board, and hopefully there will be more amendments to limit Treasury Secretary Paulson's power and more room for regulations to make prevent shit like this from blowing up without any checks. As for the Socialism part of getting the state involved in the free-market, I say yay. Bring on the nationalised healthcare!
no subject
Date: 2008-10-01 11:16 pm (UTC)I suppose that is wrong that my first reply is "because our model is doing so well" isn't it?
no subject
Date: 2008-10-02 05:30 am (UTC)Hahaha! Nope, not wrong at all no matter what the red scaremongers would otherwise say. Socialism ≠ Communism, yo.