I hate the bailout bill, but if it had to happen, I'm glad it happened now

[mtnsnake]

and not on Obama's shift. That wouldn't have been a good way to kick off his presidency.

This bailout is Bush's baby, and so is the monumental financial crisis that led to all of this.

[DevonRex]

1. I agree. Bush has wrecked the economy and he should own it.

I read what economists had to say, especially Krugman. He doesn't like the details but agreed it had to be done immediately. God only knows if it will actually help. And we'll never know how bad it would have gotten without it. But it's all on Bush now.

[mtnsnake]

3. "God only knows if it will actually help"

Ain't that the truth, Jennifer. Even the financial analysts don't really have a clue if this thing is going to work or whether it's a short term or long term thing. But you're right, it's all on Bush now. It's his bill, it's his mess, and right or wrong the bill can't come back to haunt an Obama administration.

[whosinpower]

2. I go back and forth on this in my mind

If it had to happen.......and I suppose there are many others who do as well. This will greatly hamper any progressive ideas that Obama will want to implement. And, there is no guarentee that banks - even after being able to write down their bad assets, will be more willing to loan to each other. They might tie their money up in t-bills instead. And still, there would be a gridlock.

The true problem begins to reveal itself with more and more clarity, and it becomes obvious that the subprime scheme was not the overall culprit - but just another symptom of a much bigger problem.

[busymom]

4. very interesting....would you mind elaborating?

[whosinpower]

8. Consequences of drifting from a manufacturing economy, to a financial one

Corporations lobbied for tax cuts. This was, according to the conservative mantra, to be more competitive on the world market. It would lead to more jobs - and those jobs would pay taxes - and everything would work out well. And somehow, with this magical invisible hand - government revenues would increase because there would be more people employed.

Those same guys did not go to the "greatest job force in the world"(according to GOP VP nominee Sarah Palin) though - they outsourced jobs to India, China or anywhere cheaper. America lost jobs AND did not recoup its tax losses through increased job creation. Economically - labour=wealth, and for America to retain its financial superiority - some way had to be created to grow wealth. A person can no longer work their way out of the multi trillion dollar debt that threatens to drown the nation. The jobs are gone, and now, as a nation, you import far far more than you export.

The ponzi scheme of the sub prime mortgage is a symptom of the depth of debt that your nation faces. You don't make enough money making stuff to sell anymore - so how do you generate wealth, to foster confidence in your nation, to encourage other nations to invest in you, to bankroll a war? Well - there is value in houses and real estate - but that will inevitably fall should the general population be unable to pay for it. The real problem is one of confidence given the debt load you currently carry.
The sub prime thing just glossed over the issue - because it "appeared" that America, as a nation was still a place where profits could be made.

Wall Street has become disconnected with main street. They insulated themselves with the delusion that they could generate wealth without you.....even though you are America's greatest asset, and without your work, your labour, all would fall apart. That is the consequence of decades of conservatism. And it is over. I agree with Sarah Palin on one point - government IS the problem - when government is controlled by corporations - they only see one side, they only hear one side, and this is the result. Less government is not the answer. RESPONSIBLE government is. Responsible to you - the taxpayer, the main street guy, the worker on the corner - not the vampires on Wall Street.

[Bucky]

5. FDR had that very problem. He started out his term bailing out a GOP mess.

And what a disaster that turned out to be!

[Bucky]

6. afterthought...

I do think that it's better that the fix on the Wall Street & banking disaster happens now instead of in February or March. We're probably not getting as good a plan of it now as we would six months from now, but it would be insane to let the financial markets tank out for half a year just for the sake of gaining a moderately more fair bail out package.

[mtnsnake]

7. Yup

and the last thing we need is for Obama to have the masses of the middle class up in arms over him in February or March. If you think everyone's screaming bloody murder now, imagine what you would have heard if it took place during the infancy of an Obama administration.