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So What if the Bank Goes Belly Up?

Discussion in 'Political Debate & Discussion' started by righteousdude2, Oct 1, 2008.

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  1. righteousdude2

    righteousdude2 Well-Known Member
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    While a part of me wants the bill to pass through the House and be signed by Bush, there is another part that would like to see this nation stop the madness. They are leading us blindly into some kind of Socialistic bail out bill.

    The scare tactics of the past few weeks is no different than the WMD's that Bush and company used to get us into the Iraq war. Granted, the war has reaped some good, especially for the majority of Iraqis, I am concerned about the ability of those elected to office who cry "Wolf" and do the Henny-Penny chicken dance when things get beyond their comfort cushion. These politicians should have brought in the finest and the brightest men and women in economics, and held hearings to develop a plan that will be in the overall best interest of ALL Americans.

    I say this because if we were confronted with some kind of natural disaster, like an asteroid, we would have formed a commission of the finest and brightest scientist to advise them on what to do.

    It seems to me that because nothing catastrophic has befallen the US yet, maybe, just maybe, we should ride out this financial storm. It may not hurt if the crooks lose their banks, and new, more honest banks take their place. After all, Japan went through something similar to this, as did Russia and Europe. Would a break down really bring doom and gloom to America, or would it clear away the rubbish, allowing us start over.

    If it throws us into a recession, that too may not be such a bad thing. It would mean that all Americans would have to tighten their belts, and learn to live on what they have in liquid cash. Credit has gotten way out of hand, and when John Q. Public hits hard times, they have to work through it. There is no Government intervention to "bail them out" when they finally meet reality face-to-face, eye-to-eye.

    This may even cost some of the old politicians their jobs, and that could mean new blood, with the lessons learned, and a new direction in America.

    I can't help but wonder how our fore-fathers would have handled such a mess?:praying:

    Shalom,

    Pastor Paul:type:
     
    #1 righteousdude2, Oct 1, 2008
  2. webdog

    webdog Active Member
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    There really is a lot more to this than we have knowledge about. It goes much further than the banks. Like you, I have mixed feelings. I do hope it passes for the sole reason charitable giving won't be a victim in all of this, particularly to ministries and missionaries. If it doesn't pass, many ministries and missionaries will suffer.
    I do like the FDIC going from $100k to $250k.
     
    #2 webdog, Oct 1, 2008
  3. TC

    TC Active Member
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    I hope it does not pass. It is a hack job to protect the lifestyles of the administrations and congresses buddies. Paulson begged Pelosi and others to bail out AIG after that meeting in which there was only one banker present. That lone banker was the head of Goldman Sachs - Paulson's former firm. It is not lost on me that AIG owed Goldman Sachs 20 billion dollars even though the major media failed to mention that major fact. So, can you say CONFLICT OF INTEREST?

    This current bailout proposal is a continuation of that which will go to foriegn investors first, does not have taxpayer protections, is now over 800 billion instead of 700 billion, does not address the root causes of the financial turmoil, ect. ect. ect.

    I also do not like the fact that President Bush and those in Congress are talking down to us like we are a bunch of idiots. They knew years ago that problem were coming and did nothing to stop it. People have been warning them about the issues and they ignored it.

    I have been reading and watching economists, bankers and other financial minded people on all sides talk of much better solutions for the current problems. We do not need to rush into a poorly thought out "bailout/rescue/recovery" bill simply because Wall Street demands it now.
     
    #3 TC, Oct 1, 2008
  4. Revmitchell

    Revmitchell Well-Known Member
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    It is unconstitutional
     
    #4 Revmitchell, Oct 1, 2008
  5. rbell

    rbell Active Member

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    If the bank goes belly up...
    • God is still on His throne.
    • My needs will be supplied.
    • Along with everyone else, my priorities will get rearranged, and to be honest, it might be good for me.
    • Congress will still be run by two types of thieves: Democratic ones, and Republican ones (with a few exceptions).
    • President Bush will still not know what to do.
    • Obama will know what to do, and it will be a bad idea.
    • McCain will become like either Bush or Obama on this issue.
    But...the first three points will be the main issues I think about....and to be honest, the first point is all that matters. :godisgood:
     
    #5 rbell, Oct 2, 2008
  6. thomas not doubting

    thomas not doubting New Member

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    I do think raising the FDIC Insurance limit is an idea that is long overdue. How long has it been at $100,000? I'm not sure, but it seems to me it was at that limit in the 1970's. Possibly even earlier.

    How much is $100,000 in today's money worth in 1970's dollars? $25,000? $30,000? Certainly the minimum wage has gone up 3x or 4x. $100,000 isn't worth nearly what it was 30 years ago.

    Personally, I am against the bailout than for it. America has lived on credit for far too long and this will make the eventual withdrawl symptoms even worse.
     
    #6 thomas not doubting, Oct 2, 2008
  7. JustChristian

    JustChristian New Member

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    I agree that from a depositor's perspective raising the FDIC limit is overdue. However, it's not a magic wand. Today the FDIC has less than 2% of the money required to pay the insurance if all the banks went down. of course, that's highly unlikely. The bill raises the limit by a factor of 2.5. that means the FDIC has much less on a percentage basis to cover deposits. Where will the extra money come from? The Treasury (translated taxpayers). It will add to our $12T debt that Bush has given us (was $5T in 2000).
     
    #7 JustChristian, Oct 2, 2008
  8. Salty

    Salty 20,000 Posts Club
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    #8 Salty, Oct 2, 2008
  9. rbell

    rbell Active Member

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    If there were a massive run on banks, the FDIC wouldn't have a prayer of covering the losses, even at $100K per pop. The amount of money that would have to be "created" to cover these losses would lead to such hyperinflation that your $250K new limit would be worth less than the original $100K anyway.

    The FDIC is simply a "confidence booster." Oh, it works...if the panic is small, or the collapse is contained.

    A national scale...it stands a shrimp's chance at a Cajun family reunion.
     
    #9 rbell, Oct 2, 2008
  10. Baptist in Richmond

    Baptist in Richmond Active Member

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    I can only assume you are not cognizant of the shock wave that would have occurred should the insurance giant be allowed to fail.

    The Goldman Sachs conspiracy is one I keep hearing. Do you know why so many people that are movers and shakers are coming out of Goldman Sachs? That's an easy answer: they are the varsity team. Goldman is one of the greatest names in the industry. Not surprisingly, many of the great minds in the industry come out of Goldman.

    Regards,
    BiR
     
    #10 Baptist in Richmond, Oct 2, 2008
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