What is really happening with the “rescue”?
I’m on the republication of some facts about the “rescue” (a misnomer – it should rescue plan because it is misleading) Security is in no way a negative thing. There are two very important distinction I make comments on this topic. THIS IS NOT a bailout, why it has not been translated for the first time in Congress, because he was released for sale to the public in a terrible manner. The 700 billion dollars are not used to save larger companies and banks. Second, this is not the cost. Bring the money the government has already done, this idea is an idea Investition.Die behind the plan is to release the loan market by buying bad mortgages from these banks and large companies (and investors) , to reduce the fear of lending between banks. What happens now is that nobody borrow money because it is unstable in banks for fear that nobody is able to think, now, to repay their loans. The idea behind investing (not spending) is still on the market so that people can go back and loans to expand their small businesses and perhaps a erwerben.Jetzt home for the investment part of this issue. This is not government spending. This figure is less tax money from people (about 2,000 dollars per person in the U.S.) and sends it to purchase goods (bad loans) to free markets. These assets are worth something, they are not a piece of paper that will be worth nothing if the government buys them. The idea is to get money now, these assets are free to buy on the market, and if they sell enough value back on the market, the government will start to sell (you can even make profits, the RTC was in the 80s). Money is the government is deliberately and we hope to be read on taxpayers as Steuererleichterungen. Die question is, who needs the money, how much and when. Wall Street is not always a clear passage of this, they will pay. The idea is to prevent taxpayers from paying for their mistakes, and honestly the only way to do it, he is currently working with the financial sector of the economy (especially mortgages and credit markets) that the common population credits können.Ohne this government intervention, I guarantee a depression of Old Nice, we all know how … And one more thought. As we emerge from this depression? Ah yes, the Second World War, I hope this is not the only way out of depression, another World War II * sigh *. get “The banks are closer than ever with their money, and is not likely to grant loans to ordinary consumers than they are today. You said yourself, “is a fear among banks unstable, who believe that one is now able to repay their loans. “Change is the plan?” No “A compromise must be between the excessive lending of the past (ie NINJA loans) and lending currently limited (ie market frozen). We can not expect to get a loan and I think everyone that there are more restrictions for the loan at the beginning, but at the same time you can not take into account the countless people who could not pay what they have borrowed a loan. The reason is that false statistics produced. The other day, we thought that everyone could, however, a lot of credit, and whenever they wanted. This must change now, and this is the lesson we unfortunately have to pass lernen.Zu hard with the faith of financial institutions, we must consider the human species. There are so many fraudulent people in the world, let alone the United States. You can say that this is not the institutions who created this financial mess, I mean the source of these bad loans, banks that go around about this, we are pursuing individual people in the United States. The people who took loans they could not not pay. It is one of the group, in which the consequences of the fault has produced a result leider.Sozialismus group, draw, I think it’s far from it. What the government is to invest money taxpayers to stabilize the economy does not control the economy. So far, all I saw was trying to take over the company and liquidate, no private company has been taken Production of government, it is liquidated. Without government intervention, we all end in a shit hole, or if you do not invest.