Isn't this bailout the same as paying "protection money" to the gangster who threatens you

[TooBigaTent]

and your children?

With the police (politicians) taking their cut to look the other way, the similarity is complete. Actually, they are active participants in the theft - they will actually make the "collections" and pass the money on to the real bosses.

And how do you fight that? Certainly not by paying the crooks.

There is a chance that the "system" can be repaired, but that will not happen if the criminals get their payoff.

A similar argument can be made that "we" have to stay in Iraq forever because we are there now and pulling out will be THE END OF THE WORLD.

I call bullshit on the war and on this "crisis" in our/their economy.

[daninthemoon]

1. I'm with you. Bottom lne is: they can't be trusted.

[rwenos]

2. Yes - On Wall Street it's called "Greenmail"

Greenmail is what a company pays to make a corporate raider/shark GO AWAY. It is not paid to acquire any assets. It is not paid to satisfy any debts. It is money paid from the general funds of the corporation to the raider, so that the raider will not make a hostile takeover -- usually in the form of an offer to buy any and all stock for 10-15% MORE than the market price.

Like this hypothetical: Carl Icahn goes to the General Motors board of directors and says, "I am going to make an offer, on the front page of the Wall Street Journal, to buy any and all GM shares anyone will sell to me, at $75 per share. I know the current trading price is $62 per share. I will pay that premium for control. If I am successful at obtaining a controlling interest, you directors and the officers of the company will all be fired immediately, and I will install my own people."

GM's board says, "How can we stop you from doing that?" Carl says, "Pay me $500 million in CASH, and I will go away." GM's directors say "Where can we send the check, Mr. Icahn?"

Some of you might recall. This actually happened in 1988. It's called "Greenmail" because of its close relationship to blackmail.

[izquierdista]

3. No

This is like when the Godfather comes and asks if you would like to donate to the church building fund, or the Columbus Day parade fund, or buy a share in his son-in-law's new condo project. Yes, it may be overpriced and have a bad return right now, but you stand to get back something for your payment: a church to go to, participation in a community event, maybe even real cash when the condo project turns a profit.

Bottom line is that you really HAVE to participate, there's no opting out. That said, quit being like a cheapskate Republican trying to find a way out of paying, and be like a Democrat and spread the wealth around for everybody concerned. (That means accountability for those pulling in the big bucks)

[lib2DaBone]

4. Yes.... this bailout has nothing to do with Credit Markets....

This whole thing has to do with "Control". It's all about complete control and manipulation of the banking system from the Federal Reserve all the way down to Wall St. (Thus you will see no penalty clauses, no new regulation and complete blanket immunity handed over to Secy Paulson) The Global Bankers have to break the will of this country in order to initiate the Amero and the NAU (North American Union). I think this is what they are doing... they want to merge the 3 countries sooner than later and this is their full court press to bring about the new currency. Today was a banking holiday.. so a lot of the big players were not at work. But they will be back with a vengeance tomorrow. They will do whatever it takes to whip and punish the American Public with fear.. so that by Friday.. American's will be so tired and frustrated, they will agree to most anything. Mark my words... by Friday this bill will sail thru both houses with flags waving as another piece of our Constitution is set on fire.


http://video.google.com/videoplay?docid=-9050474362583451279

[anigbrowl]

5. No, that's BS.

I don't get why people post in the economics forum when they don't want to make economic arguments. Hint: use numbers to make your case.

[Art_from_Ark]

7. So, would you like to show, with numbers,

just how this bailout is supposed to work?

Economists like to use numbers. Sometimes they are right, sometimes they are wrong. They can pull any number out of any body cavity they want to, and the layman will not be able to understand. They can derive all their numbers from peer-reviewed research, and still be wrong.

[anigbrowl]

12. OK, I'll put up a thread about it later

and unlike some others here, it won't beg the question by denouncing people as criminals or praising them as geniuses. I am sick of these 'anyone else think evil people are bad?' threads, which are nothing but political posturing designed to inflame rather than inform.

[AdHocSolver]

9. I will provide you with the numbers. 2 + 2 = 4. QED.

If it looks like a duck, and quacks like a duck, there is a high probability that it is a duck.

By the way, I have a degree in economics.

[leftofthedial]

6. yes. it is an extortion attempt, pure and simple.

[ixion]

8. Why yes, yes it is...

and the thugs shouldn't be allowed to get away with it.

[Warpy]

10. It's more like paying a compulsive gambler's debts

without treating the underlying problem. Oh, you'll buy him a few weeks or months of not worrying about getting his legs broken, but he's just going to run up more of those debts and you won't have anything left to buy him safety the next time.

Whether or not we have enough time and Congress has the will to correct the underlying problems starting in January is the big question. If both those conditions are true, then the bailout would have been worth it. If not, it's the dying gasp of the GOP's failed economic philosophy of fattening the supply side while starving the demand side.

It's going to be interesting to watch as we all slide into poverty again.

[truedelphi]

11. It is truy a disgusting mess.

Check out the DUZY's this week for the analysis of the people saying that it is a pile of shit,and the politicians translating that into "it is stuff which will make growth possible!"