After Bailout, Economy Will Still Be Lousy

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"What did the Bailout do for the Economy"
What the bailout did in it's present form:
Bolster the banks, and improve their financial situation.
Give people with money (investors.... a chance to buy foreclosed property and sell it to make a profit)
Do nothing for the economy.
Do nothing for:
A: New Home Building & Contractors like painting, paving, Drywall, etc....
B: Electrical Trade
C: Plumbing Trade
D: Carpentry / Construction trades (Housing starts etc.)
If you want to get the economy moving:
Every bank that took bailout money for a house that had a bad loan, should have to bulldoze the house that the loan represented and remove the foundation.
That would get the construction trade working, right now, on demolition.
Remove the glut of houses, to stabilize the value and stop the falling home prices.
[Based on supply and demand. (Buyers versus Houses available)]
Then the demand for homes would be answered with new construction.
* The restrictions on the type of home, built in an area would have to be re-evaluated.
We cannot continue to build these huge homes, in all areas, to try to increase the property tax base.
There has to be places in each area that allow a more modest home with smaller SQ. Ft. to be built.... to supply people with modest incomes...
Where can you go (in each State) to find a new starter house?
Check to find that starter house, did you find any?, what was the cost? are you satisfied with the search?
Example:
* 3 Bedroom
* 1 1/2 Bath
* 2 Car garage
We need to have some common sense added to housing planning... in all areas.

Marty Zamecnik of IL 6:59PM July 04, 2009

bailouts are good if they come with restrictions, as a corporation should only be able to stick to the guidelines with the money and not just do as they please

? of TX 10:18AM March 16, 2009

We have been cutting corners to chase the American Dream and its coming back to bite us. Check the articles on thebailouteconomy dotcom

John of NY 3:53AM December 12, 2008

We are trying to rally Americans to seek "the truth, the whole truth, and nothing but the truth" regarding the Global Economic Crisis. This artical was right. We have to get involved before it gets worse!
Stop The Outrage is a wiki site designed to get Americans involved in peicing together how we got into this mess. We are also drafting an Economic Stabilization Act by the people (and experts from acedemia) to have on President-elect Obama's desk the day he takes office.
The more people we have researching, debating, and figuring out solutions to this mess the better. The bill congress is drafting will be too much "buisness as usual." Obama asked for our help so let's give it to him. Give him a 2nd bill to choose from the day he takes office.

StopTheOutrage of SC 6:55PM November 25, 2008

I believe our issues are analgous to an addict. As a society we are now dependent on instant and large quantities of credit and we have learned to play the float on payback. Well, now it's payback time. So the detox for many will be like coming down-slow and painful. Personally, I think we need to grin and bare it. Once the markets come down and lots of folks learn to tighten up the spend for a while, we'll be on the road to recovery. If the bail out plans continue, however, the gov't has essentially agreed to be our dealer and provide the "fix". It's time to commit to big changes or this will end up being a crutch that will be kicked out from under our economy later and it will be twice as hard to recover.

L Short of TN 1:11PM October 02, 2008

Somehow it does not make any sense to allow all the banks to get rid of their debt at prices they set through reverse auctions. It is sort of like telling a two year old or your dog to choose its own punishment. They will always go with no punishment and try to take over if you do not have a firm grasp of the goal; to curb bad behavior.
All Tax paying citizens, Republican and Democrats, want a free economy. We all want to keep our money. But this plan seems to not only not guarantee any results, but does nothing to prevent it from occurring again. Paulson plans on just adding it to our debt, in addition to lowering taxes, increasing insurance over larger sums; with no change to regulatory measures or enforcement. So he expects the banks to suddenly become less greedy and more trusting because he took their bad debts? Since price setting is so prevalent now, why wouldn't all the banks get together and decide to package all their REALLY BAD debts in smaller debt "packages" for Paulson to buy. How do we get repaid with devalued money, interest payments on the debt, and assets with questionable value which will freeze housing prices at their highest level ever?

C Whisler of TX 12:34PM October 01, 2008

I can understand that a company or a corperation wants to get
the best top people to head their firms.To do this the board of
directors have made the package bad by giving them a contract
which assures them a nice golden parachute even if they fail.
This is wrong, they know it and then they will say "the stock
holders say it's o.k. Who has the controling stock? It is those
in charge at the top.When I vote my stocks,it doesn't mean much
I don't have a large enough amount.Those with the large amount
of stocks will over ride me with all their stocks. But I'm told
your voice is important,but I would never vote for golden
parachutes, I think they are dishonest.

Charles Blegen of IL 12:55PM September 30, 2008

Instead of putting more taxpayer money in the care of those who failed on Wall Street, why not unbundle the mortgages separating the viable from the bad risks. Those who were making mortgage payments should be rewarded by renegotiating their loans. The bad risks should suffer the consequences of their greed or poor judgment. The amount projected to bailout would be better put to use to repair our failing infrastructure. Jobs would be created and everyone would benefit. Also, the dollars spent would immediately recycle through the economy. Where is all the money those Wall Street losers got as bonuses last Christmas? Those who received bonuses should be forced to return the money to the system by investing in municipals and other viable stocks.

Helen Rockwell of OH 10:17AM September 30, 2008

This bail-out will only serve as a short term fix for our economy. This economy is built on credit and survives on credit which in my opinion we have now exhausted. In about 10 years our government revenues will only be enough to fund social security and the medicare program. We already have a national debt of $6 trillion at a minimium and most economists feel that it is much more. The Fed just keeps printing more money which at the rate they are going will soon make it as valuable as monopoly money and we will be in the same situation that Japan got into 20 years ago. They still haven't fully recovered. 60 percent of American households have more liabilities than they have assets and with the fiscal discipline that most of us practice these days I don't see how we can escape this fiscal crisis without experiencing some dire consequences. I could go on with more examples, but I think you get my point.

Big John from N.Y. of NY 12:18AM September 30, 2008

So we lost 777 points in the stock market today, but we are still above 10000 points. Perhaps the real lesson here is that the markets will correct themselves without a bailout and that the Treasure and the Fed Reserve will just have to use their current mechanisms to discipline the market. Banks and investment entities will need to figure out ways to really establish quality lending and credit standards and fix their problems internally without an elixir or juju medicine from the Feds. Is there really a doomsday scenario or just like the Iraq War and the warning colors, is it just hype and frenzied reaction that will inevitably do nothing or cause even more undisciplined responses?

Matthew H of CA 12:11AM September 30, 2008