>>>>>>>Just wondering, since no one has posted on it, is everyone aware that foreign banks are part of the 700 billion bailout? Do you care? Does it matter?
>>>>>>
>>>>>>This country does such a pitiful job educating our children about money, finances, the stock market and the economy, (four different things, that most people believe are the same), it comes as no surprise to me that most are either panicking or ignoring the news. The so-called "experts" have led us into this mess and they're now ready to repeat the same failed ideas once again and lead us into the next financial mess. More bailouts, more regulation and now we're throwing in actual nationalization as opposed to the previously legislated pseudo-nationalization. Instead of simply implying that the government will be there to prop up the risky failures, this time they're making it official policy, and not only do few seem to care, those that do are actively championing the idea.
>>>>>>
>>>>>>The silly notion being postulated that the free market is to blame for the current mess is either politically motivated red meat to the masses during an election year, the ignorant ravings of a financially uneducated and panicky populace or the insidious propagation of a lie by those who seek to destroy the market economy upon which this nation was built. In the free market, ideas and institutions must be allowed to fail. Repeatedly during this mess our "expert" leaders have justified massive bailouts because the recipient is deemed "too big to fail". Free market capitalism is a risk-reward system and as we've seen in the past and are now repeating, if there's no consequence for the risk then the big boys will go hog wild risking other people's money without fear of a consequence.
>>>>>>
>>>>>>Lather. Rinse. Repeat.
>>>>>>http://www.propublica.org/special/government-bailouts
>>>>>>
>>>>>>We are a capitalist nation, based and founded on the notion that money is the fuel of freedom’s engine; everything we have as Americans is predicated upon our nation’s wealth. Despite this we refuse to educate our populace adequately about money or economics. As a result most people leave their financial dealings (401k, mutual funds, mortgages) to "experts". It's quite apparent that all the people want these days is to be told that everything is fine. People simply want to be nestled into the government tit and told to suck until they’re tired enough to fall fast asleep. As long as the “experts” say everything is and will be “okay,” they all feel better.
>>>>>>
>>>>>>I now agree with what Tracy posted some time back. We are fiddling...
>>>>>>
>>>>>>$2+ Trillion and counting in bailouts so-far (14% of America's GDP)
>>>>>>$700 billion proposed for in nationalization of financial vehicles (5% of America's GDP is being nationalized before our eyes)
>>>>>>
>>>>>>"A billion here, a billion there, and pretty soon you're talking real money" - partial credit to Everett Dirksen
>>>>>
>>>>>This crisis did arise in the free market. Deal with it.
>>>>
>>>>Flattering me by proving my point about the lack of financial education will get you nowhere.
>>>>
>>>>> If anything the government should have gotten involved sooner. For instance, if Fannie Mae was too big to fail, it was probably also too big to be leveraged 35 to 1.
>>>>
>>>>Fannie and Freddie's creation and bloatation are a direct result of governmental involvement.
>>>>
>>>>>As Fareed Zakaria wrote in the current issue of Newsweek, if you want a truly free, unregulated market, check out Haiti or Somalia.
>>>>
>>>>For a free market lesson set up a lemonade stand.
>>>>For a lesson in government interference in the market, set up a lemonade stand in Jacksonville.
>>>>http://www.news4jax.com/news/2283228/detail.html
>>>
>>>Creation, yes. Bloatation, no. F&F got so big because loan originators were more than eager to churn mortgage loans immediately. If they had to keep the loans on their own books they would have been a lot more prudent in who they lent to.
>>
>>2 things. They were required by law to offer sub-prime loans and F&F had an implicit government backed agreement whereby it was always known that they'd be bailed out if things went sour. Hence, no consequence which I previously mentioned.
>>
>>>They were following their own economic self interest, exactly as market theory says they should.
>>
>>and they were following the law.
>>
>>>And now we are seeing what can happen in an insufficiently regulated market.
>>
>>Nope. We're seeing what happens when the government provides a safety net.
>>
>>>It's like leaving cats alone in a roomful of balloons and acting surprised when you come back and find all the balloons popped.
>>>Let me ask you a question. Do you see some proper degree of "government interference in the market" or do you believe government should stay out completely?
>>
>>There's a necessary amount of regulation that is needed to protect both the financial institutions and the consumers. It's the nature of the regulation that must be carefully considered. The problem with attributing lack of regulation to the current mess is that it ignores the legislative decisions which have directly led to the problem. Now the solution is more regulation? The root causes will still exist, they'll simply be added to and the cycle will begin again.
>>
>>The federal government has nationalized 80% of AIG! Where's the outrage? What's next? Apparently another $700B which of course if only the quick fix, because real change will have to come later...at what price?
>
>What do you think should have been done about AIG? Maybe I'm wrong but my understanding is they were going to go down the tubes completely.

It should've been made very clear decades ago that the federal government will not bail out any private enterprise. This crucial element of free market capitalism must be adhered to in order to ensure that failing companies are allowed to fail and important lessons are learned by the surviving entities.

As to the current situation, I thought we were done with bailouts once they allowed Lehman to fail, less than a week later...

...and the cycle begins anew. Lather. Rinse. Repeat.

btw : Another 25 Billion for the automakers. http://www.ft.com/cms/s/0/83bfe68c-8a8f-11dd-a76a-0000779fd18c.html