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Stop the Bailouts

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September 21, 2008 – Comments (5)

Leverage terrifed me about the banking system and the amount of money governments, in particular the fed also is of grave concern to me as I know what was sacrificed getting Canadian debt under control. 

All I have known as an adult is high taxes cuts to social programs that were a free-for-all until I qualified for them.  Some of the programs, despite missing out of them, I would really like to see come back, like tax write-offs for money saved towards a down payment.  (Tax writes-off for mortgage debt should be abolished for the laisse-faire attitude towards debt it created.)

Anyway, everyone ought to have been gravely concerned about the level of federal debt before these bailouts.  The level of debt was such that it already required huge changes with a lot of scarifice to bring it under control, and I already had concerns about the ability to bring it under control.

These bailouts, the socialization of risk which was not taken by taxpayers, make the problem beyond my comprehension. 

Mish and Yves both have good write-ups about the bailouts.  I think Mish's urging to contact your congress person about the issue is exceptional advice.

To me it would be better to have some retirement, school and health benefits for those who need them rather then do nothing but protect the wealthy.  The wealthy can withstand a hit and whether they did due deligence on the risks or not ought to be their problem, not taxpayers.

What else really gets to me is that I've taken huge hits in my life and not once have I stood up and said someone else should pay for it that had nothing to do with it and I've watch other people take equal hits and get bailouts at tax payer expense.  I don't mind taking my own hits, but I don't like the idea that I also pay for others to get bailed out. 

Time to speak up for yourself because to do nothing is to say you don't mind paying...

 

5 Comments – Post Your Own

#1) On September 21, 2008 at 5:14 PM, UltraContrarian (31.94) wrote:

"Some of the programs, despite missing out of them, I would really like to see come back, like tax write-offs for money saved towards a down payment.  (Tax writes-off for mortgage debt should be abolished for the laisse-faire attitude towards debt it created.)"

Absolutely agreed.  The mortgage deduction needs to be phased out over the next 5-10 years.  The political likelihood of that happening is pretty much 0.

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#2) On September 21, 2008 at 9:45 PM, dexion10 (27.95) wrote:

dwot I am with you.

This is ridiculous. These banks aren't victims of anything but their own greed.

I acknowledge that we need to save the financial system if for no other reason than it's what people know and perhaps because it'd be too painful to set up a new smarter system.

HOWEVER.... I do not believe that the banks who took on excessive risk and incouraged homeowners to do the same deserve a bailout without suffering large equity reductions... 

I think government money should be a very costly gift for these banks.

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#3) On September 21, 2008 at 11:04 PM, dwot (46.63) wrote:

Dexion, like a system that protects people from their own stupidity?  When I did some training in loans when I worked in banks I had an old school mentor and protecting people from their own stupidity was regularly applied.

For example, some guy comes in to borrow for Xmas and wants two years to pay it back.  Back then he was told if he couldn't pay for Xmas in 3 months he wasn't getting his loan.  A two year loan should be for a significant asset, not stupid stuff like trying to impress your girlfriend of 3 months...

If you consider the loans that were granted, too many of them let people behave like kindergarten children gone crazy on over indulgence...

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#4) On September 29, 2008 at 9:52 PM, pjani06 (29.32) wrote:

hottest blog post and 50+ caps recs for the savvy fool who makes the naughty and nice list on the bailout vote.

those who voted for : naughty

those who voted against : nice

make it easier for all of us & the public to send positive reinforcement to their offices for those courageous enough to stand behind principle & on the flip side negative reinforcement/combined with educated outcry for the offices of the misguided. 

research and post the list someone!  Report this comment
#5) On October 11, 2008 at 1:27 PM, marcd77 (< 20) wrote:

Well said!  More government and taxpayer funds are not the solution to what ails us.

I had previously posted a missive along similar lines -http://caps.fool.com/Blogs/ViewPost.aspx?bpid=95776&t=01008088053910281678

 

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