ANSWERS: 36
  • Grab hold of your wallet Keithold yo...
  • The repercussions of that will reach not just the U.S. but the foreign markets as well, so we all can expect for that to affect us indirectly sooner or later.
  • The working class
  • I guess its me:) But I have no money..the banks took it all:)
  • American taxpayers for the next 40 generations. My 2 cents.
  • The American taxpayers.
  • Anyone living in the united states..and if that werent bad enough..it will be the middle class once again that carries the load..:)
  • In a word: TAXPAYERS
  • Everyone LOOK IN THE MIRROR!
  • you do ...im assuming you live in america
  • nobody.....until China decides to cash in.
  • Don't get me started here Keithold. I'm so mad I could spit.
  • the question should be, "who pays if we do NOT bail out these companies"? since our already wobbly market could not absorb the loss and continue to function, the answer would be: american taxpayers for the next 40 generations. damned if you do, damned if you don't
  • They intend to do this with foreign money but it will all come back to bite us when the dollar drops further in value against other currencies! This would be good if we managed to export more to other nations but we are long past doing that now!
  • taxpayers if the bill passes as it was first written.
  • As issued, the $700 billion is being paid for "illiquid assets" - mostly the subprime mortgages and the derivatives built from them. But not all the subprime mortgages will go wrong: some borrowers will hang in there, making their payments, until house prices climb back up again. In those cases, the government will get the money back and there will be nothing to pay. But for the rest, where the mortgage is foreclosed and the house sold at a loss, there is a net loss which will have to be paid by the government - minus any discount which the government forced the banks to give them. My guess would be that if the government can force the banks to sell at at 80c to the $, there would be no loss to be paid, but the banks would be so crippled that they could not lend much for years. At 90c to the $, there will be about $100 billion of losses, which will eventually paid by the taxpayer, but the financial system will continue working. At full price, the cost to the taxpayer will be larger. A lot of the haggling in Congress is how to make sure that the Fed demands a "reasonable" discount, and doesn't just by the debt at full price - the easy option which allows the banks to get away with it. The pain must be shared by the banks, which means a discount - and some Congressmen want that written in not just promised.
  • We taxpayers will. The bankers are going to roll over and have a cigarette, and we're going to get the wet spot. But this is why it won't work:
  • Time Will Tell - But I doubt that a government as undemocratic as the U.S. will be very gentle on the taxpayers. Certainly not as gentle as was Sweden which has a very democratic form of government. ( see below ) The following NYTimes article interests me only because the NYTimes is suggesting that a highly democratic nation like Sweden was able to solve their economic crises with little or no cost to the tax payer. That strategy held banks responsible and turned the government into an owner. When distressed assets were sold, the profits flowed to taxpayers, and the government was able to recoup more money later by selling its shares in the companies as well. ==== NYTime article Stopping a Financial Crisis, the Swedish Way http://tinyurl.com/4xuwta Introductory Quote: "A banking system in crisis after the collapse of a housing bubble. An economy hemorrhaging jobs. A market-oriented government struggling to stem the panic. Sound familiar? It does to Sweden. The country was so far in the hole in 1992 — after years of imprudent regulation, ( personal note: They use term deregulation later in the article.) short-sighted economic policy and the end of its property boom — that its banking system was, for all practical purposes, insolvent. But Sweden took a different course than the one now being proposed by the United States Treasury. And Swedish officials say there are lessons from their own nightmare that Washington may be missing." ======== I_Voter My Rule of Thumb: People without power tend to suffer. My New Web Site:( Under Construction ) Political Power in the U.S. http://tinyurl.com/2sdtvk
  • Just you Keithhold. Sorry : /
  • The nation has to pay for losses bailout or no bailout
  • you and your offspring, thanks.
  • I hate to say it... the American taxpayers :(
  • Right now, the taxpayer...ie: everyone. We all have to put out this fire before it burns the house down. Then, we can figure out who set it. try reading this: http://marshandassoc.blogspot.com/
  • "We The People"
  • dave ramsey said it best...and IT WILL WORK... The Common Sense Fix Years of bad decisions and stupid mistakes have created an economic nightmare in this country, but $700 billion in new debt is not the answer. As a tax-paying American citizen, I will not support any congressperson who votes to implement such a policy. Instead, I submit the following threestep Common Sense Plan. I. INSURANCE a. Insure the subprime bonds/mortgages with an underlying FHA-type insurance. Government-insured and backed loans would have an instant market all over the world, creating immediate and needed liquidity. b. In order for a company to accept the government-backed insurance, they must do two things: 1. Rewrite any mortgage that is more than three months delinquent to a 6% fixed-rate mortgage. a. Roll all back payments with no late fees or legal costs into the balance. This brings homeowners current and allows them a chance to keep their homes. b. Cancel all prepayment penalties to encourage refinancing or the sale of the property to pay off the bad loan. In the event of foreclosure or short sale, the borrower will not be held liable for any deficit balance. FHA does this now, and that encourages mortgage companies to go the extra mile while working with the borrower—again limiting foreclosures and ruined lives. 2. Cancel ALL golden parachutes of EXISTING and FUTURE CEOs and executive team members as long as the company holds these government-insured bonds/mortgages. This keeps underperforming executives from being paid when they don’t do their jobs. c. This backstop will cost less than $50 billion—a small fraction of the current proposal. II. MARK TO MARKET a. Remove mark to market accounting rules for two years on only subprime Tier III bonds/mortgages. This keeps companies from being forced to artificially mark down bonds/mortgages below the value of the underlying mortgages and real estate. b. This move creates patience in the market and has an immediate stabilizing effect on failing and ailing banks—and it costs the taxpayer nothing. III. CAPITAL GAINS TAX a. Remove the capital gains tax completely. Investors will flood the real estate and stock market in search of tax-free profits, creating tremendous—and immediate—liquidity in the markets. Again, this costs the taxpayer nothing. b. This move will be seen as a lightning rod politically because many will say it is helping the rich. The truth is the rich will benefit, but it will be their money that stimulates the economy. This will enable all Americans to have more stable jobs and retirement investments that go up instead of down. This is not a time for envy, and it’s not a time for politics. It’s time for all of us, as Americans, to stand up, speak out, and fix this mess.
  • US Treasury has made roughly $350 billion in bank preferred stock injections. The banks pay Treasury 5% for 5 years and then it steps to 9%. 5% is inexpensive cost of capital in today's market. It bolesters a bank's capital ratios and gives an extra assurance and encourages inter bank lending which was at the heart of the early Oct credit crunch. Note this is NOT a bailout, it is a loan from Treasury to Banks. It will need to be repaid. When will banks start lending to main street is THE key question. Its a matter of liquidity. Liquidity is like air, everyone needs need. By the way, Treasury lends it to banks at 5.00%. Rates paid on US Treasuries is currently 2.02% thus Treasury is making money. Its a positive 298bp spread which is SUPER. The main risk is how much can Treasury tap the credit market? The flight to safety has driven 3 month Treasury rated down to 2bp. (YES 2bp which is 0.02% not 2 percent but rather 2 one hundreths of one percent, ie: virtually zero interest) Its equal to stuffing cash in a matress. No return, just get principal back in 90 days.
  • All of us, and already. Not just in the future, but already, today. When the funds of the Federal Reserve, and also of the Federal Government are diverted into paying for financial gambling losses (bank losses), then those same funds are not available for other investments and federal spending. And that's just the diversion side of the equation. We will pay a good portion of this cost very soon (not in generations later) in this way: Everything you buy in 2010 and 2011 will cost more than it would have if this reverse-robin hood bailout had not happened. This is called the inflation tax, and it happens even when the official CPI is low and prices rise a little instead of falling a little like they would have otherwise, for example. In essense, all the dollars in your pocket and in your pay are diluted, and cannot buy as much as they would have otherwise. That difference in buying power, wealth, has been transfered to bank investors and bond holders. http://findingourdream.blogspot.com/2009/02/what-to-do-about-banks.html
  • Look in the mirror.Taxpayers.It used to be that banks lent money and didnt wish to share profits.They now dont mind sharing the loss.And it really isint shared.The taxpayer takes the "haircut".The bank holds onto the asset.When it suddenly becomes worth something.Then they want the profit.If I invest.And if I should lose.Which I have.The government didnt hand My My loss and say."Here,now you are whole."...Life doesnt work that way.Is My opinion.Doesnt make it right or wrong.Just Mine.
  • With luck no-one. You may even get interest on your loan.
  • Taxpayers.
  • US WHO PAID OUR TAXES, BUT I'M AGAINST BAILING OUT WALL STREET. I HAVE STOCK AND WITHOUT SELLING IT, I'M MAKING MONEY AND SO ARE THE PEOPLE THAT TOOK MY ADVISE.
  • Taxpayers provide the money to bail the banks out of the outrageous risks they took which they in turn can pay themselves great bonuses. Are the stockholders ok with this?????
  • THANKS TO YOUR IDIOT PRESIDENT WE THE TAX PAYER'S PAY IT.
  • The American taxpayer, and their children, and their children's children, and their children's children's children....
  • Your's truly..... and everybody else.
  • We do, and best take a look on who we are voting for next time. Hope and change and all the voters have left is change.

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