Your thoughts?

[singleguymoney]

I posted this question on my blog today. How do you feel about the proposed government bailout?

http://www.singleguymoney.com/2008/0...oughts-on.html

[Gootsy]

Privatize profits, socialize losses.

Sometimes thinking about it makes me laugh, and sometimes it makes me want to puke cause it's so friggin scary.

[khorrell]

While I don't completely understand the proposal (and I doubt many people do), my gut instinct is that it is bad. I would prefer that the fall just come now and get it over with so we can all start to recover.

Just my 2 cents.

[kav122]

too late now, its over.

[Julie Rains]

I got a letter (as a Motley Fool subscriber) from Tom Gardner today and he recommended that everyone contact their elected representatives and request that the government receive an equity stake in the assets that they are bailing out. It makes sense to me that if we as taxpayers are going to buy these assets, we should receive some benefit from them (that is socialize the benefits).

[finance blog]

I feel as though it is necessary only because of the problem the corps (and citizens) have created. It will hurt us...but its better than a financial collapse in the market.


Check out www.allthingspersonalfinance.blogspot.com to see what Warren Buffet thinks of the government bailout...

If he's in...so am I

[purplefdu]

I think that it sounds nice but people who need the help aren't necessarily going to get it, just like every other government (state or national level) funded program out there. The people living in the gap between qualifying and able to afford to live are going to get hurt as usual. And they are still going to have to pay the taxes to not get the benefits.

[amyschiff]

I think the bailout is a bad idea. Handing over $700 billion will not teach the banks anything. I can easily see this happening again in the future if the banks don't even get so much as a slap on the wrist. It will hurt for a while, but I think we just need to wait this one out and let the market correct itself.

If we do end up bailing them out, I would like to see it in the form of a loan--which accrues interest. That way we can make a profit. I would also like to see a little bit more strict regulation regarding high risk lending practices (the loosening of regulations is pretty much why this began to happen in the first place).

[72Tiger]

I think the bailout needs to be tied to some kind of fundamental financial institution reform. When banks are allowed to only keep 5% of their assets as cash, it is easy to see why a 5% mortgage default rate/foreclosure rate can instantly drain them of any operating funds. Couple that with the housing bubble, and the weak economy, and they can't even recoup much of that 5% by auctioning the foreclosures.

When our financial institutions don't have the money on hand to provide the loans that keep our economy moving, big time investors and depositors start to move their money from the banks, and the problem just builds on itself. Just an ugly, massive problem all around.

[financepro]

It is really frustrating to see that the government is bailing out different companies, but it is necessary. Nothing else can be done!