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• mohit - Nov 13 2008 | bush, economy, news

  It looks to me that the bailout has not delivered.

  Quoted: Congress has balked at the Bush administration's proposed $700 billion bailout of Wall Street. Under this plan, the Treasury would have bought the "troubled assets" of financial institutions in an attempt to avoid economic meltdown.
• mohit - Sep 30 2008 | news, politics, economics, bailout

  ReFaving @zzelinski. Almost everybody in the media is saying the nonapproval of the bailout is a disaster. Further, they argue that those who opposed the bill did so because of politics (e.g. the "Main Street" voters they represent want to punish "Wall Street") but are not giving more thoughtful analysis.

  This is the first article I've read that gives some high quality reasons why a bailout might not be the right approach.

  Quoted: Talk of Armageddon, however, is ridiculous scare-mongering. If financial institutions cannot make productive loans, a profit opportunity exists for someone else. This might not happen instantly, but it will happen.

  Quoted: Further, the current credit freeze is likely due to Wall Street's hope of a bailout; bankers will not sell their lousy assets for 20 cents on the dollar if the government might pay 30, 50, or 80 cents.

  Quoted: The obvious alternative to a bailout is letting troubled financial institutions declare bankruptcy. Bankruptcy means that shareholders typically get wiped out and the creditors own the company.
  ...
  Bankruptcy punishes those who took excessive risks while preserving those aspects of a businesses that remain profitable.

  • sung - Sep 30 2008
    

    completely agree!
• zzelinski - Sep 30 2008 | free, go, call

  Hmm I like this article a lot. Voice what I felt.

  Quoted: Congress has balked at the Bush administration's proposed $700 billion bailout of Wall Street. Under this plan, the Treasury would have bought the "troubled assets" of financial institutions in an attempt to avoid economic meltdown.