Everyone’s hands are out for bailout money
A rehashing of the events that led up to the government bailout and its original mission would certainly have everyone focus on mortgages and banks. After all, the economic problems that the bailout sought to address were firmly rooted in the subprime and adjustable mortgage crisis and the problems wrought by derivative securities.
Now, months later, the bailout has morphed into something no one recognizes. The auto industry became a benefactor of the bailout and now the states are jumping on the gravy train.
You heard right, the states, faced with mounting budget shortfalls, are after the money that was meant to solve the mortgage crisis. The hard-up states are asking for $1 trillion over two years. That ‘T’ word keeps coming up and the cost to the U.S. balance sheet is staggering after a while.
The states are in line just behind the automakers
Five Democratic governors are asking the Obama administration for the money. How this will help the mortgage crisis is anybody’s guess. The states have a duty to their citizens to keep their checkbook balanced. The same could be said of domestic automakers, who needed to keep labor costs within a range that would allow for a reasonable profit on a competitively priced automobile.
The states asking for the bailout funds are Wisconsin, Massachusetts, New Jersey, New York and Ohio. No doubt that Michigan and Arizona cannot be far behind with their growing financial problems. Some fiscal leadership may have been a nice alternative to more taxpayer money redirected from its original intent and an ever-growing national deficit.
Can you wrap your mind around what a trillion really is?
Originally, taxpayer money was going to bailout the financial industry, hurt by mortgage-backed assets. Next came the Detroit automakers with loan requests because of their own mismanagement, and finally we are seeing the states begin to line up. The original $700 billion bailout is going to seem like a tolerable dream at some point soon.
With unemployment projected to reach nearly 10% by next year, some targeted bailout money needs to stop the bleeding. This, combined with funds to get the credit markets flowing again, will benefit Americans and small business owners the most. If we are to have a bailout, it should get to the very core of your problems and prevent additional misery.
Throwing money at those who simply made fiscal mistakes is the wrong direction for a bailout; especially when taxpayer dollars are a stake.
January 25th, 2009 at 4:07 pm
This is BS. If we don’t let these companies and states fail we can kiss our freedom goodby. They are talking about a GRANT not a loan what a joke. The people keep voting these legislatures in. They deserve a little pain and maybe they will wise up. No one talks about how to repay trillions of dollars. What is so bad the answer is in front of our nose but our idiot poloiticians say no! THE COMMON SINCE SOLUTION
Is domestic drilling the answer to all of the country’s problems?
The State of California has capped producing wells off the coast, oil that can be delivered to Long Beach fineries in 90 days. The State was only 15 billion in debt when Davis was kicked out of office now we are looking at 30 billion next year. Obviously all the legislation wants to do is spend.
The Governor’s solution: Increase sales tax 1½ % and approve a $ .22 tax on every gallon of gas Californians purchase for infrastructure improvement.
Common since solution: Would be to open the tap and use the shared revenue to balance the debt and repair the infrastructure.
We know what solution 75 plus percent of Californian’s would choose.
All we hear about is the mounting trillions of debt we are throwing upon our great grand kids. Ninety million baby boomers are coming aboard. Medicare and Social Security will be upside down in no time.
The only thing we know for sure is Congress does not have the guts to do anything about it.
If you tell a lie often enough it is only a matter of time before the uninformed public will believe it. “The U.S. known recoverable oil reserves are less than 3% of the world’s reserve!” Oil Shale produces the cleanest diesel and airplane fuel money can buy. USGS survey indicates shale oil deposits amount to as much as 1.5 trillion barrels. We have enough Rocky Mountain Oil Shale deposits to provide all our needs for 110 years. These deposits triple the oil deposits in Saudi Arabia. http://www.usgs,gov
US Geological Survey estimated 3.65 billion barrels of recoverable light sweet crude oil, 1.85 trillion cubic feet of natural gas and 148 million barrels of natural gas liquids in the Bakken Formation in North Dakota and Montana. http://www.usgs.gov Congress was briefed on this discovery in 2005 and President Bush mandated its extraction on August 8, 2005. Where is the oil?
Transberry Report Online - 4/20/06 – Hidden 1000 Feet Beneath The Surface Of The Rocky Mountains Lies The Largest Untapped Oil Reserve In The World.
Every time a country orders a barrel of oil a supplier will respond. No matter whom that supplier is a certain amount of green house gas will occur in the development and delivery of that barrel of oil. The cost to pump the barrel of oil is $4.00 if we pump it in the U.S. or $4.00 if Saudi Arabia pumps it. If oil is selling at $104.00 a barrel and Saudi Arabia is the supplier they put $100.00 in their pocket. We have to assume the same amount of Green House Gases will be omitted in the atmosphere no matter where that Oil Shale or Oil Well was drilled. There will be a demand for fossil fuel for at least another 30 years, a demand that is growing almost daily.
Questions:
1. What would happen to our National Debt, infrastructure problems, social security and Medicare disaster if the U.S. received $100.00 per barrel of oil to work with?
2. How many thousands of high paying jobs would be created if the U.S. produced all its domestic needs for oil and eventually became the world supplier of oil?
3. Are we just going to sit on our supplies while the whole world is discovering and developing new fields?
a. Brazil found huge reserves off their shores and has the world’s third largest oil shale reserves.
b. USGS surveyed oil and gas in the Arctic Circle and estimated Reserves of oil to be 90 billion barrels, natural gas at 1,669 trillion cubic feet and 44 billion barrels of natural gas liquids.
4. Why is every country in the world trying to find and develop oil reserves to sell to the world except the United States?
January 28th, 2009 at 1:09 pm
why does the money always go to the people that allready have money…there are people all over that are loseing jobs and homes and no one is bailing the out…it is just tuff luck…all the money that is being spent is helping on one ,,maybe the rich to stay rich,,but they dont really care about the people that need it the most…maybe if the people got bailed out the probles would take care of it self….dont you think it is worth a try
February 6th, 2009 at 11:08 pm
I LOVE THIS PROPOSAL !!
I’m against the $85,000,000,000.00 bailout of AIG.
Instead, I’m in favor of giving $85,000,000,000 to
America in
a We Deserve It Dividend.
To make the math simple, let’s assume there are
200,000,000
bonafide adults in the U.S.
Our population is about 301,000,000 +/- counting every man,
woman
and child. So 200,000,000 might be a fair stab at adults 18
and up..
So divide 200 million adults 18+ into $85 billon that
equals $425,000.00.
My plan is to give $425,000 to every person 18+ as a
We Deserve It Dividend.
Of course, it would NOT be tax free.
So let’s assume a tax rate of 30%.
Every individual 18+ has to pay $127,500.00 in taxes.
That sends $25,500,000,000 right back to Uncle Sam.
But it means that every adult 18+ has $297,500.00 in their
pocket.
A husband and wife has $595,000.00.
What would you do with $297,500.00 to $595,000.00 in your
family?
Pay off your mortgage - housing crisis solved.
Repay college loans - what a great boost to new grads
Put away money for college - it’ll be there
Save in a bank - create money to loan to entrepreneurs.
Buy a new car - create jobs
Invest in the market - capital drives growth
Pay for your parent’s medical insurance - health care
improves
Enable Deadbeat Dads to come clean - or else
Remember this is for every adult U S Citizen 18+ including
the folks
who lost their jobs at Lehman Brothers and every other
company
that is cutting back. And of course, for those serving in
our Armed Forces.
If we’re going to re-distribute wealth let’s really
do it…instead of
trickling out
a puny $1000.00 ( “vote buy” ) economic
incentive.
If we’re going to do an $85 billion bailout, let’s
bail out every adult U S
Citizen 18+!
As for AIG - liquidate it.
Sell off its parts.
Let American General go back to being American General.
Sell off the real estate.
Let the private sector bargain hunters cut it up and clean
it up.
Here’s my rationale. We deserve it and AIG doesn’t.
Sure it’s a crazy idea that can “never work.”
But can you imagine the Coast-To-Coast Block Party!
How do you spell Economic Boom?
I trust my fellow adult Americans to know how to use the
$85 Billion
We Deserve It Dividend more than I do the geniuses at AIG
or in Washington
DC .
And remember, The Birk plan only really costs $59.5 Billion
because $25.5
Billion is returned
instantly in taxes to Uncle Sam.
Ahhh…I feel so much better getting that off my chest.
February 9th, 2009 at 3:04 pm
I believe this bail-out is a band aid for a much larger problem. World wide, people are suffering the impacts of a very weak economy. It is time for a world wide solution.
Through out history economies have been based on growth and expansion. The ever dwindling resources of our planet (energy, food and places to grow it, to name just two), and the negative impact this has on our environment, will not sustain an expanding economy. Rather, it can only serve to foster more of the same economic depression and conflict between nations in the future.
It is proposed to spend billions of dollars in the USA and in other countries for various fixes to this mess. Let us as a world spend all that money on an expansion of historic dimensions. One that would have global impact and usher in a new era of prosperity for all mankind. I believe mankind, as a whole, should begin a massive effort to utilize and colonize space.
We must throw off the ways of thinking of our ancestors, and the failed idioms of today. Expansion off our finite world will create endless opportunities for job creation and a better standard of living for all mankind. Through the utilization of the limitless resources of the limitless oceans of outer space, we can also spare our home world of the devastating effects caused by its exploitation.
It is time for a new beginning for all mankind. It will take an unprecedented effort of cooperation by all mankind to achieve it.
February 17th, 2009 at 2:11 pm
I had been reading about what “JAN E Feb. 6th, 2009″ had said bout “AIG” bai lout , she has a good i dea, I wish something could be done about getting congress off their behionds and start drilling in those big finds of OIL that “STANSBERRY” talked about, great article !