Economic crisis!

[alyssamilanofan]

Hey all

So I guess you all have heard about the current economic crisis. And that the governement didn't except Bushs plan..
What are your thoughts about this. How could it come to this? What do you think is a good solution?
Which presidential candidate has the best agenda on this? In short what do you guys think?

Jenny

[Zach]

Hey Jen. Thanks for bringining up this topic. It is definately very current, and is being talked about every second here in the U.S. Here's an update on the situation and the plan:

Senate passes $700 billion bailout loaded with tax cuts, other goodies, to lure House votes

WASHINGTON (AP) -- After one spectacular failure, the $700 billion financial industry bailout found a second life Wednesday, winning lopsided passage in the Senate and gaining ground in the House, where Republicans opposition softened.

Senators loaded the economic rescue bill with tax breaks and other sweeteners before passing it by a wide margin, 74-25, a month before the presidential and congressional elections.

In the House, leaders were working feverishly to convert enough opponents of the bill to push it through by Friday, just days after lawmakers there stunningly rejected an earlier version and sent markets plunging around the globe.

The measure didn't cause the same uproar in the Senate, where both parties' presidential candidates, Republican John McCain and Democrat Barack Obama, made rare appearances to cast "aye" votes.

In the final vote, 40 Democrats, 33 Republicans and independent Sen. Joe Lieberman of Connecticut voted "yes." Nine Democrats, 15 Republicans and independent Sen. Bernie Sanders of Vermont voted "no."

The rescue package lets the government spend billions of dollars to buy bad mortgage-related securities and other devalued assets held by troubled financial institutions. If successful, advocates say, that would allow frozen credit to begin flowing again and prevent a deep recession.

Even as the Senate voted, House leaders were hunting for the 12 votes they would need to turn around Monday's 228-205 defeat. They were especially targeting the 133 Republicans who voted "no."

Their opposition appeared to be easing after the Senate added $110 billion in tax breaks for businesses and the middle class, plus a provision to raise, from $100,000 to $250,000, the cap on federal deposit insurance.

They were also cheering a decision Tuesday by the Securities and Exchange Commission to ease rules that force companies to devalue assets on their balance sheets to reflect the price they can get on the market.

There were worries, though, that the tax breaks would cause some conservative-leaning Democrats who voted for the rescue Monday to abandon it because it would swell the federal deficit.

"I'm concerned about that," said Rep. Steny Hoyer, D-Md., the majority leader.

As revised by the Senate, the package extends several tax breaks popular with businesses. It would keep the alternative minimum tax from hitting 20 million middle-income Americans and provide $8 billion in tax relief for those hit by natural disasters in the Midwest, Texas and Louisiana.

It doesn't designate a way to pay for many of the tax cuts, though, angering the House's band of conservative "Blue Dog" Democrats.

Leaders in both parties, as well as private economic chiefs everywhere, said Congress must quickly approve some version of the bailout measure to start loans flowing and stave off a potential national economic disaster.

It seems like this is politics as usually, and no one really knows how the plan will affect the average person in our country. It might only help the rich; no one knows yet.

[travisboddie]

We all know that the $700 Billion bailout bill was recently passed, but did you know that an additional $150 Billion was added to it as incentives for the senators and congressmen who worked on the bill? Also, with the bill being passed, a senator/congressman questioned which corporations are now going to receive shares of the money? They don't know how to issue the money yet. And get this, however, they do know for sure $200,000 out of the $700 Billion will be given to an Oregon toy company that produces toy airplanes/arrows that was going out of business - because toys are more important than the people.

For me personally I was offended when they provided a bailout what the call I think a "recovery plan" lol. If a average person that lived in this society need help because there bank was closing on there house or business would they get assistance. Yes, we would have maybe had another "Great Depression/World Word III" but would it had not taught the government that there needs to be rules/regulations on businesses. I still have not go the full aspect of the bill but will look into it.

[Zach]

Now we've got problems! AIG, which got money from the federal bailout, spent almost half of a million dollars for a retreat for their executives.. all with taxpayer money!

ASSOCIATED CONTENT: ... with reports today about the posh $440,000 spa retreat vacations taken by AIG executives and employees immediately after the U.S. government used $85 billion in taxpayer funds to keep the company out of bankruptcy.

Yesterday the House Committee on Government Oversight and Reform headed by Henry Waxman (D-Cal) began inquiries into why Lehman Brothers and AIG failed, an inquiry that by rights should have preceded the spending of a single taxpayer cent to bail out AIG and save it from the fate met by Lehman Brothers.

Instead, taxpayer funds rescued AIG executives from the natural consequences of their financial mismanagement. They responded in their typical, fiscally irresponsible manner, treating 70 AIG executives and employees to a week at St. Regis Resort in Monarch Beach, California, according to the Washington Post. The spa bill alone was $23,000. Meals for those 70 AIG executives and employees for a week cost another $120,000, an average of $244 per person per day for meals or $81 per meal per person. A typical American family doesn't spend as much as $244 per week feeding their families.

[alyssamilanofan]

seriously?
How can they do that, where are their morals? Seriously, is all I can utter right now..

Btw the money for the toy fabric is going there because that fabric means jobs, the US can't handle much more job losses so.. I think that was a smart move..

[Zach]

I know, its terrible

Yeah, we definately need jobs. The unemployment rate is not great.