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    7 Replies Latest reply on Sep 30, 2008 12:26 PM by DomainDiva

    The House Did Not Pass Bailout Bill, What are your thoughts?

    jamesreal1 Wayfarer
      As a business man I am discouraged that the markets are tumbling BUT wallstreet and high powered, extremly well paid CEO's that drove their companies to failure should not get bailed out. This is a free market let those that fail to fail and those the prosper to prosper and when I say that I am talking about high level executives and wall street crooks.

      At one point in my life when I was a mid-level manager the CEO took the company to failure and when it was said and done the CEO resigned taking over 28 million bucks not including his yearly salary of 980,000 buck plus stocks and commisions which after his resignation propelled the company to chapter 11 bankruptsy and many layoffs and fiscal problems.

      This bill has over 100 pages of legislation that know nothing about and I believe that one this bill in completely transparent to the public so the public will know who benefits from it and who does not. I am in favor of a solution to the credit issues but I think it begins with criminal investigations of executives and wall street and the process so we can see a a bill that will resolve the issue and not place a trinquit to on a bleeding artery that with time and more corruption will return.
        • Re: The House Did Not Pass Bailout Bill, What are your thoughts?
          DomainDiva Ranger
          Deregulated sectors always ASSUME that the players know how to manage their businesses in a deregulated environment.

          As we can see this is not always the case. Deregulation, while it presents new business opportunities, also presents new challenges and the 'old fixes' do not always work.

          This problem started 10 years ago, and intensified when interest rates declined and 'new' products' were introduced that tied the interest rate to the LIBOR. Historically the LIBOR did not fluctuate as much as the US Treasury rate and thus lenders felt safer. When the LIBOR reset and started moving, interest rates reset at a higher level than expected.

          Then we have the 24:1 leverage ratios of some investment banks, the gross compensation for CEO's that watched while their companies died, and the buying and selling of mortgage paper to anyone and everyone.

          Putting people in jail is not the answer, although many people will feel better thinking that 'justice' has been served. The real crime is creating the environment for this behavior to flourish and rewarding those fueling the process.
            • Re: The House Did Not Pass Bailout Bill, What are your thoughts?
              jamesreal1 Wayfarer
              There will always be risk involved in business but with risk there needs to be accountability and responsibility. When an Executive Board and Investors take a risk that bombs, it should not be at the expense of employees which do not have a vote on because middle management and lower employees are on a need to know basis.

              I own a company and every choice I make will impact everyone from the bottom up. If I make a failing choice as a small business owner I pay the consiquences and have to make amends or close my doors WITH NO BAILOUT! Does the government really think that if I pled my case to a bank for my bad choice that they would just bail me out? No they would turn me away very quickly and if I did not have the money to bail myself out then I would have to close the doors and try to recoup.

              Any thoughts?
                • Re: The House Did Not Pass Bailout Bill, What are your thoughts?
                  DomainDiva Ranger
                  If you read my profile you will see that I too, am a business owner. I agree that accountability and responsibilty are the foundations of good business management. I believe in the 'one another' principle.
                  In any business environment there is room for abuse and dishonesty. There will alwys be those people that play whatever is in place to their advantage and to the others' disadvantage.

                  The government would not see fit to bail me out either. So instead of railing and ranting, and jumping up and down about the inequities inherent in the system, I choose to make prudent business decisions and be proactive with my companys' finances and the care of my team. I understand that the system is not 'fair' and instead of whining about it, I know what to do. I do not let 'the conduct of others' determine my course of action.

                  The airline industry has been feeling the effects of deregulation since 1982 with the Braniff bankruptcy. Been there done that as well.
              • Re: The House Did Not Pass Bailout Bill, What are your thoughts?
                amspcs Ranger
                James: Re: " BUT wallstreet and high powered, extremly well paid CEO's that drove their companies to failure should not get bailed out"--I'm with you 100% buddy. Help out the small businesses, help out the truly needy homeowners who are about to lose their domiciles (not to be confused with the greedy investment flippers, however), help out the small neighiborhood banks if possible. But the crooks and shysters...let 'em fail.

                I must say, I have very mixed emotions about many elements of the proposed bailout. It's gotten to the point where I don't believe ANYTHING the politicians say anymore.

                My basic credo and philosophy: Help small business. What's good for small business is good for America.
                Enriching and empowering some shyster CEO or pickpocket bank doens't help anybody except the handful of crooked politicians and other low-lifes in cahoots with them.

                AMSPCS
                  • Re: The House Did Not Pass Bailout Bill, What are your thoughts?
                    jamesreal1 Wayfarer
                    AMSPCS,

                    I completly agree with you that small businesses are the backbone of American success and infrustructure. If small businesses begin to drop like flies where will America's economics go. Big corporate business do not and cannot carry the entire economy. In a small city what do you see is the backbone of the city? The small businesses and few corporate titans but if you remove small businesses you get a ghost town.

                    What do you want to see congress layout for the economical mess?
                  • Re: The House Did Not Pass Bailout Bill, What are your thoughts?
                    puzzleman Tracker
                    I agree with all of the above. As a small business owner, I feel the government is mostly concerned with me paying my taxes.

                    My question is: All of the experts are saying that not doing a bailout will have a doomsday effect on the economy. What is your opinion??
                    Jim
                      • Re: The House Did Not Pass Bailout Bill, What are your thoughts?
                        DomainDiva Ranger
                        What bothers me is the rush to the total solution proposed by Paulson. Key issues such as bank/thrift failures need to be addressed first. Then solving the foreclosure issues. There needs to be some kind of a stop order on foreclosures so that the institutions holding the paper can start getting them sorted out...one at a time. This is not going to be easy. (Remember the Resolution Trust in the late 80's?)

                        Of course for that solution to really work...the banks are going to have to make concessions and really look at the finances and ability to pay of the mortgage holder...and no more of this adjustable rate mess....

                        Is it better to loan at a lower rate to ensure stability of the payback or is it better to loan at a higher rate and force the mortgage holder to default? That is what these people are going to have to decide. Who knows...maybe people could actually get back into their homes. After all in some cases 1 point can mean several hundred dollars a month on a mortgage.

                        But of course that is just me....I work for solutions not for the 'what if'.

                        The system actually worked with the WAMU/JPMorgan-Chase deal....no disruption at all.

                        There does not seem to be any orderly problem solving or prioritizing of tasks. I have not seen any clarity, and the body language of Bernanke and Paulson during the hearings was not comforting.

                        As far as the 'doomsday effect' on the economy, I can't really say. One persons definition may be different than mine. There seems to be a concerted effort to put great fear into the public domain. That bothers me because fear motivates people to do things they would not ordinarily do. Fear makes sure that there is no scrutiny during the process.