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2 of 3 Utah congressmen vote no on bill
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Basic economics | 11:18 p.m. Sept. 29, 2008
Everybody who is happy that the bailout failed does not understand basic finance
or economics. Unfortunately they will very clearly in a few months when the
economy collapses and we are forced to pay a much higher price for recovery.
Take some time and study the whole situation before you oppose the bailout. I
don't have time to write a long, drawn-out explanation here but ALL people
will suffer severely if the plan is not passed. I agree with free markets and
minimal government but this is not the time for ideologies. This is the time to
act or forever suffer the consequences.
Power House Hogan | 11:44 p.m. Sept. 29, 2008
Other states across the country, to protect their local economy, have stepped in
to help homeowners save their homes from foreclosure and are not waiting for the
Federal Government to act. Why is Utah not legislating ways to help our
homeowners? Too many Utah lawmakers and lobbyists have their hands in the real
estate pie; conflicts of interest with substantial personal monetary gain.
Many long-term homeowners in Utah are entangled in the lending crisis due to a refinance and not a recent within two-year purchase. These homeowners are at risk at losing substantial amounts of equity in addition to large down payments paid at the initial time of purchase. Not all of these current at-risk properties fall within the no down payment and no income verification at the lending phase. Real estate preditor property flippers anxiously await these at-risk homeowners, many times within inside information from the broker and title company arena � not just ethical violations, but actions falling under the classification of felonies.
Utah also needs to pass laws to protect the homeowner in addition to the fraudulent transfer statutes.
Many long-term homeowners in Utah are entangled in the lending crisis due to a refinance and not a recent within two-year purchase. These homeowners are at risk at losing substantial amounts of equity in addition to large down payments paid at the initial time of purchase. Not all of these current at-risk properties fall within the no down payment and no income verification at the lending phase. Real estate preditor property flippers anxiously await these at-risk homeowners, many times within inside information from the broker and title company arena � not just ethical violations, but actions falling under the classification of felonies.
Utah also needs to pass laws to protect the homeowner in addition to the fraudulent transfer statutes.
Comments continue below
Anonymous | 12:41 a.m. Sept. 30, 2008
I don't think our government can stand aside and let banks fail, regardless
of the cause. So far as the 700 billion dollar bailout is concerned, no one
knows if it will succeed. I'd like to see a little more debate before
committing taxpayers to this astounding debt. I'm also not in favor of
rescuing over-extended homeowners who borrowed beyond their means, or people who
simply couldn't afford to purchase houses. Irresponsible borrowers should
not be rescued by the more responsible citizens who are also struggling to pay
their bills. This country is so far in debt that we need to pick and choose
where we put our dollars.
VOTE THESE TWO OUT! | 1:48 a.m. Sept. 30, 2008
I have worked in banking for 10 years. Nobody understands that banks all across
the USA are virtually shut down due to this credit crunch crisis and very strict
OCC/FDIC regulations that have made it impossible for most banks to do any
further commercial lending! This will DESTROY our US economy and all foreign
nations will pull their US investments and hurtle us towards another GREAT
DEPRESSION like the 1930s unless this this bailout occurs to help stabalize
things! This is a once in a 100 year crisis and you CAN NOT just ignore it and
hope it will go away! It is also not just free money to greedy banks! The
government will own these mortgages/homes and their value will go back up with
the market and minimize the losses/tax burden package. The cost of doing nothing
will be 100 times greater for ALL of us!
DUE TO THEIR TOTAL IGNORANCE OF THE CURRENT FINANCIAL MARKET, THESE 2 MORONS JUST DESTROYED ANY CHANCE OF A RECOVERY, SENT US CRASHING TOWARDS A GREAT DEPRESSION, ENDANGERED 100,000++ JOBS AND DESTROYED OUR 401K'S IN ONE FELL SWOOP IF A SIMILAR AID PROGRAM IS NOT APPROVED RIGHT NOW!
DUE TO THEIR TOTAL IGNORANCE OF THE CURRENT FINANCIAL MARKET, THESE 2 MORONS JUST DESTROYED ANY CHANCE OF A RECOVERY, SENT US CRASHING TOWARDS A GREAT DEPRESSION, ENDANGERED 100,000++ JOBS AND DESTROYED OUR 401K'S IN ONE FELL SWOOP IF A SIMILAR AID PROGRAM IS NOT APPROVED RIGHT NOW!
Hey, Impetuous Hot Head Voter | 5:33 a.m. Sept. 30, 2008
Vote those two out!! Yea,... grab a rope!! That will really help. This
knee-jerk reaction is a metaphor for the bailout plan to start with. Get it
together. Stop hyperventilating. We all know the market is schizophrenic.
There will be a bail-out plan later this week after the Jewish Holidays are
over.....and it wlil be substantially better than the one that failed. More
market-based features and less sticking it to the taxpayer. We're oging to
live with this bailout for a decade or more; probably worth at least a week
worth of examination and refining to get it right. And yes, keep calling
elected offiials "morons." That's your God-given right,
isn't it. Such immaturity is one reason our society is going to hell.
CP | 5:50 a.m. Sept. 30, 2008
Cannon could careless about what the people living in his district think cause
he's already been shown the door by the voters. And I'm happy to say I
helped to point the way to that door. And I hope the next to go will be Bob
Bennett. This bailout was bad to begin with. And I was glad to see Sen. Hatch
cheering on Bishop and Matheson when they voted against it.
Bob G | 5:48 a.m. Sept. 30, 2008
To those that think the bailout would have helped the economy are the dreamers.
This plan made no efforts to help the economy, only banks and financial markets
that needed to have their eyes and pocketbooks suspended. The current system is
broke and needs to be regulated, not fed to keep things as usual. The consumers
are tired of living on credit and being in debt. The consumers want freedom from
debt and credit, thats the american dream. Just because banks thrive on credit
and debt does not mean it is good for the economy and the consumers. Debt is
worthless and has no value, but it is traded as an asset. How can something of
no value be considered an asset? When a consumer trys to borrow money their
debts are considered a debit. The US economy has been inflating itself with
erroneous numbers for years, now its time to face the piper. Now if we people
could be more voiceful about forcing government to actively deport illegal
aliens will help the recovery in the economy, opening jobs that american
taxpayers and government will need. Beware, Obama and McCain oppose any actions
against 22+ million non-taxpaying illegal aliens.
Who Really Lost | 5:54 a.m. Sept. 30, 2008
The call for a No vote is just the vindictive view of "Main St" folks
with no vision of the negative implications of this meltdown to the nation/world
as a whole. Face it, many loved the no downpayment, way above our means access
to home and other credit purchases. Many of those calling for Wall St to be
punished were just as involved in greed as the brokers and bankers. Now I have
to suffer when I lived within my means. Utah and the country has been ill-served
by politicos only concerned about re-election. This was a buyout not a bailout.
Sure lots of details need to be better worked our but that could have been
written into this bill in broad terms and refined later. We need market
stability now or we will be enjoying Wall St's misery standing in the
unemployment line.
Susy | 6:05 a.m. Sept. 30, 2008
any other suggestion than that to vote against the
bailout?
bailout?
Love it! | 6:24 a.m. Sept. 30, 2008
Utah's people are unedumacated! Mainly because many of them don't
want a government bailout. If people would just leave Utah and get an education
they would then want government to bail out the banks.
Well, I am not from Utah - actually I live in Virginia and work in the District. I have a BA and will soon have an MA. And I support what Congress did yesterday because it was the right thing to do. It's about time they look past politics and vote for what is actually right for the country. Kudos to Matheson and Bishop. By far Matheson is the most responsive member of Congress, and the man really does want to understand the issues (his staff is great as well). I'm also glad that Cannon was voted out in the primary. Looks to me that Utahns are making great decisions.
We'll get past this, just as we've gotten past all other problems - and we'll be better for it.
Well, I am not from Utah - actually I live in Virginia and work in the District. I have a BA and will soon have an MA. And I support what Congress did yesterday because it was the right thing to do. It's about time they look past politics and vote for what is actually right for the country. Kudos to Matheson and Bishop. By far Matheson is the most responsive member of Congress, and the man really does want to understand the issues (his staff is great as well). I'm also glad that Cannon was voted out in the primary. Looks to me that Utahns are making great decisions.
We'll get past this, just as we've gotten past all other problems - and we'll be better for it.
AHHH! | 6:31 a.m. Sept. 30, 2008
The sky is falling, the sky is falling, quick, throw money at it and everything
will be fine and I can go back to spending money I never had in the first place.
We are now CRASHING TOWARDS A GREAT DEPRESSION - how does the ride feel - feels like yesterday, expect today I have a little more confidence in the ability of Congress to deal with tough issues.
We are now CRASHING TOWARDS A GREAT DEPRESSION - how does the ride feel - feels like yesterday, expect today I have a little more confidence in the ability of Congress to deal with tough issues.
republican | 6:35 a.m. Sept. 30, 2008
I support the administration. They got us into this and they can figure out how
to get us out of it.
One possible and likely scenario is that the people will finally smell the rat and vote democrat. That is probably the only solution to this greedy, greedy administration and its billionaire millionaire friends in high places.
Sheep, it is time to vote democrat and send the message: we are sick of this greedy gop!!!!!!
One possible and likely scenario is that the people will finally smell the rat and vote democrat. That is probably the only solution to this greedy, greedy administration and its billionaire millionaire friends in high places.
Sheep, it is time to vote democrat and send the message: we are sick of this greedy gop!!!!!!
McCains Victory Dance | 6:38 a.m. Sept. 30, 2008
McCain was doing a victory dance on the 1 yard line yesterday morning and got
tackled by members of his own team
Casual observer | 6:39 a.m. Sept. 30, 2008
The world will not end tomorrow. It's better to have a good law than a
quickly passed, fear driven, poor one.
Cannon is such a wuss.
Cannon is such a wuss.
Government is Broken | 6:49 a.m. Sept. 30, 2008
This NO vote by congress cost the taxpayers many times that $700B in lost money
in their 401k's and investment accounts. This will cost far more to fix
later. Elected officials can't make tough decisions when the voters are
against it. That's why we have a trillion dollar deficit. These people
are unqualified to make these decisions and now we're all going to pay a
heavy price to clean up the bigger mess they just created. Yes guys on Wall
Street created this mess, but nobody but our Government has the ability to
restore the confidence we need to turn this around. If all those banks and
investment firms fail, the cost to the taxpayers will be many many times more.
It only took a few hours after that vote wipe out many times $700B in taxpayer
wealth. yes it sucks to be in this position, but a NO vote was clearly the more
costly one for taxpayers. Government is broken!
Why the Bad Math | 6:49 a.m. Sept. 30, 2008
Many of the posts here have criticized someone for suggesting that the $700
billion be given to homeowners in foreclosure. Saying $700 Billion divided by
300 million would be too small. This shows the exact reason why the bailout is
bad. Every person in the US does not need a bailout. In fact home ownership is
only at around 68% of heads of households according to Wikipedia. The
percentage that are in foreclosure is much smaller, many have already been moved
out and it is too late. In fact, if the banks would just renegotiate with half
of the people for a lower valuation and loan instead of rushing them out of
their homes, there would be no crisis. This is a bad bill, meant to give our
money to stupid people.
CougarKeith | 6:51 a.m. Sept. 30, 2008
I noticed one interesting thing across the congress when they voted. 1. A lot of
"no" votes were by those running for re-election. 2. The Bill would
have failed if not ONE REPUBLICAN showed up to vote. Nancy Palocci's
remarks about partisanship were TOTALLY FALSE and a lie! Funny how our
"lame duck" congressman voted "yes" and he will be a
"regular guy" come January. The Bill has Problems, IT DOES, but how
would Bishop and Mathison have voted if they were not up for re-election? I say
VOTE THEM OUT! They would have voted yes if they were not up for re-election!
The fact is these guys are worried about their JOBS, NOT YOU! The bill stinks,
it needs more transparency, it needs more kick-back for the tax payers, it needs
NO KICK-backs to politicians OF ANY KIND! It needs to have an investigation of
Barney Frank and Christopher Dodds who said Fannie and Freddie had no problems
while they took millions from them in campaign funding! There needs to be more
limits on the funneling of moneys to executives, and more "Self
Regulation" and less Government Regulation, this is not the old Soviet
Union!!!
finance | 7:21 a.m. Sept. 30, 2008
If Bailout does not pass, in two weeks most banks will be nationalized. Economic
reality will trump conservative ideology.
ameritah | 7:24 a.m. Sept. 30, 2008
The bailout is bad for America. The market will rebound. Look, if China is
saying we need to pass the bailout then it has got to be bad.
Ignorant Utahns | 7:26 a.m. Sept. 30, 2008
Get a grip people. We need this bailout. It's not ruining the free
markets. It's not increasing the size of government. It's freeing up
the credit markets so that they can function again. It's not the first
time the government has done a bailout and it won't be the last.
Good Work--HURRAY!! | 7:32 a.m. Sept. 30, 2008
Good work, just say NO to bailing out banks and people who made very unwise
decisions. It's called the MORAL HAZARD. You overextend yourself and you
should pay the piper, to do otherwise sends a very wrong message that will come
up and bite us in the keister down the road. In other words, in the long run it
is far better not to do this bailout, yes, in the short run the markets will
suffer but, hey, for those of us not too stupid to have overextended ourselves
there are buying opportunities.
We have to be vigilant, congress and the uber rich insiders will still try to get us to pay, eternal vigilance is the price of freedom--TJ.
We have to be vigilant, congress and the uber rich insiders will still try to get us to pay, eternal vigilance is the price of freedom--TJ.
Jesse Harris | 7:54 a.m. Sept. 30, 2008
I say bring on the recession, depression or whatever you want to call it. This
country is well overdue for a lesson in humility for our self-absorbed
"gimme" culture of instant gratification. You don't deserve a
4000sf house in the burbs with a plasma TV and an Escalade, especially if you
can't afford it. Unfortunately, we got drunk on credit and decided that the
real measure of affordability was the monthly payments, not the item we were
purchasing. I'm willing to endure some pain to teach everyone the hard
lessons of money management and fiscal responsibility.
Cameron | 8:15 a.m. Sept. 30, 2008
Most people in America have no clue how the economy works. Only 1 in 4 (25%)
Americans have a college education and only a portion of that 25% have a solid
grasp of how the economy works. If you were about to die on the operating table,
would you want your surgeon to make decisions during an operation based on the
opinion of the majority of Americans?
I hope not.
The economic experts of the country have overwhelmingly stated that although this bailout is distasteful, it is absolutely necessary to avoid a meltdown like the great depression. And instead of following the experts advice on how to save the patient, congress has decided to listen to the non-experts and walk away from the operating table.
Shame on them.
The majority opinion is not always correct.
I hope not.
The economic experts of the country have overwhelmingly stated that although this bailout is distasteful, it is absolutely necessary to avoid a meltdown like the great depression. And instead of following the experts advice on how to save the patient, congress has decided to listen to the non-experts and walk away from the operating table.
Shame on them.
The majority opinion is not always correct.
Richard Nibbler | 8:18 a.m. Sept. 30, 2008
Luckily, most Utahans have drained their 401(k)'s and savings to pay for
their overpriced home, or to invest in their fellow ward member's
multi-level marketing scheme. So, who cares if the stock market tanks and the
banking sector fails, right? Doesn't matter much to most Utahans since
they don't have any money in the bank or in the stock market anyway.
Poor Bankers | 8:27 a.m. Sept. 30, 2008
Re: CougarKeith | 6:51 a.m. Sept. 30, 2008
Sorry, your name makes it impossible for anything you say to make any sense at all. PERHAPS IF I TYPE IN CAPS SOMEBODY WILL READ MY POST. There is no simple fix to the current problem. Sorry, our leaders are going to have to actually work a bit to come up with a better solution.
Sorry, your name makes it impossible for anything you say to make any sense at all. PERHAPS IF I TYPE IN CAPS SOMEBODY WILL READ MY POST. There is no simple fix to the current problem. Sorry, our leaders are going to have to actually work a bit to come up with a better solution.
Scott | 8:30 a.m. Sept. 30, 2008
So our two congressmen put their heads in the sand with the other 228.
Congratulations on the nihilistic do-nothing inability to make a hard choice for
the good of the country.
Looking for courage | 8:32 a.m. Sept. 30, 2008
The profile of courage award in Utah goes to Chris Cannon. I suppose it helps
when you are not concerned about reelection to cast a vote that is for the good
of the country, rather than listen to uninformed constituents. Matheson and
Bishop will both end up voting for a similar bill after claiming that suitable
changes have been made.
Anonymous | 8:33 a.m. Sept. 30, 2008
Vote all of them out of office.
RR | 8:55 a.m. Sept. 30, 2008
It's funny to read people explain this to each other. I agree with the
above writer that few Americans really understand the economy. I'm a
college grad, and I have no clue, and I took a few economy classes. Unless you
directly work with it, I don't think many people understand it.
I can tell some people here let their political party make the decision for them. Whatever Obama says they believe. Whatever Bush says that is right. Get rid of your political party and think for yourself. Maybe 1% of people who post here knows how the Great Depression started and ended, and know how the government can truly stop that again.
Live your life, be careful with your $$, and work hard.
I can tell some people here let their political party make the decision for them. Whatever Obama says they believe. Whatever Bush says that is right. Get rid of your political party and think for yourself. Maybe 1% of people who post here knows how the Great Depression started and ended, and know how the government can truly stop that again.
Live your life, be careful with your $$, and work hard.
Disgusted | 8:53 a.m. Sept. 30, 2008
Chris Cannon is the only Congressman in Utah with a backbone. The rest licked a
finger, stuck it in the air, felt which way the political winds were blowing,
and voted accordingly. We don't need more politicians in Washington, but
leaders and Statesmen.
We are degenerating from a republic to a pure democracy - a very dangerous move. The access to information has made people think they are knowledgeable. Carefully following the news and reading stories on the web doesn't qualify anyone to lead us out of this financial mess. The leadership in Washington should get the best experts to craft a plan to move beyond this credit and banking problem, act as a check so special interests can not corrupt the process, and then lead us out of this miss - even if it is painful.
Voting according to political expediency and self-preservation is shameful.
We are degenerating from a republic to a pure democracy - a very dangerous move. The access to information has made people think they are knowledgeable. Carefully following the news and reading stories on the web doesn't qualify anyone to lead us out of this financial mess. The leadership in Washington should get the best experts to craft a plan to move beyond this credit and banking problem, act as a check so special interests can not corrupt the process, and then lead us out of this miss - even if it is painful.
Voting according to political expediency and self-preservation is shameful.
Bailout bad | 8:56 a.m. Sept. 30, 2008
To: Messrs. Matheson and Bishop.
Thank you for your vote on this bill.
Thank you for understanding that the worst thing you can do for a child/person/community/society is to shield it from the consequences of its actions.
Why was the greatest generation, those men and women of the WWII era, the greatest generation? The Great Depression. Struggle and want breed decency, self-lessness and good character. Of these we are currently found wanting.
Thank you for your vote on this bill.
Thank you for understanding that the worst thing you can do for a child/person/community/society is to shield it from the consequences of its actions.
Why was the greatest generation, those men and women of the WWII era, the greatest generation? The Great Depression. Struggle and want breed decency, self-lessness and good character. Of these we are currently found wanting.
To: Nah, nah nah | 9:15 a.m. Sept. 30, 2008
Chris Cannon is the only one that does care about the good of the country. The
others shamefully voted out of self-preservation. Cannon has nothing to gain by
voting for this bill as he will not be serving shortly.
This bill was not a good bill. But it would have greatly reduced the potential for financial disaster. Those who voted against the bill are playing Russian roulette with our economy - and should be fired. The ignorant masses do not understand the mess that we are in - those who are informed and understand the potential for a run on money market and bank accounts are terrified. Chairman Bernanke is one of the most knowledgeable people on earth on the causes of the Great Depression. While he had to be careful not to spark fear that could ignite the very problem he is working to avoid, you could understand his extreme concern through his face, voice, and measured words.
We need leadership in Washington, not political pandering to the voters. I want to see Congress lead us to a necessary, if painful solution, even if it is unpopular.
This bill was not a good bill. But it would have greatly reduced the potential for financial disaster. Those who voted against the bill are playing Russian roulette with our economy - and should be fired. The ignorant masses do not understand the mess that we are in - those who are informed and understand the potential for a run on money market and bank accounts are terrified. Chairman Bernanke is one of the most knowledgeable people on earth on the causes of the Great Depression. While he had to be careful not to spark fear that could ignite the very problem he is working to avoid, you could understand his extreme concern through his face, voice, and measured words.
We need leadership in Washington, not political pandering to the voters. I want to see Congress lead us to a necessary, if painful solution, even if it is unpopular.
The Economist | 9:17 a.m. Sept. 30, 2008
Let�s party like its 1929. Learn from history. The market
crashed. Government and the Federal Reserve froze like a deer in the headlights.
By 1931 110 banks failed. Businesses could not function without a lending
system. A deflationary spiral insured. Jobs were lost. More businesses failed.
Unemployment reached 25%.
Our world is much more complex now. The ramifications of �let it fail� are catastrophic. Are you kidding me? Is this really the world you want?
Wake up people. We have the tools to fix this problem. The Paulson plan must be passed. This is a matter of not only our economic well being it is also a matter of national security. Stop being masochists. Call your representatives today and let�s get this bill passed for all of our sakes!!
BTW, all this grousing about finding fault is like arguing over who caused the accident while the victims lie on the ground bleeding to death.
Our world is much more complex now. The ramifications of �let it fail� are catastrophic. Are you kidding me? Is this really the world you want?
Wake up people. We have the tools to fix this problem. The Paulson plan must be passed. This is a matter of not only our economic well being it is also a matter of national security. Stop being masochists. Call your representatives today and let�s get this bill passed for all of our sakes!!
BTW, all this grousing about finding fault is like arguing over who caused the accident while the victims lie on the ground bleeding to death.
To History Lesson | 9:22 a.m. Sept. 30, 2008
The Smoot-Hawley Tariff was not passed until 1930. This act did not cause the
1929 crash. It did however contribute to the great depression. This act was
polocy makers response to the 1929 crash. They were wrong. We are smarter now.
Or are we?
You should take another history lesson.
You should take another history lesson.
Listening | 9:24 a.m. Sept. 30, 2008
It is the media who said Bishop and Matheson voted against because of being up
for re-election. They listened to their constituents and voted in support of
those they represent. Give them credit for that, regardless of what time of the
year it is.
If more Utahns support the bill, call our representatives.
If more Utahns support the bill, call our representatives.
vivian ford | 9:26 a.m. Sept. 30, 2008
I appreciate that our representatives are thinking about us rather than
following Washington leadership. The thought of paying those men in high places
millions of dollars makes me sick while the workers like the janitors, who have
worked for years, has nothing, ZERO for their retirement. Get Real leaders and
take care of the little people who make up this great country. AND LEAVE THE FAT
CATS TO FIND A WAY OUT WITHOUT ALL THAT MONEY.
To: Un-educated??? | 9:34 a.m. Sept. 30, 2008
1) Uneducated is not hyphenated.
2) If someone is having a cardiac arrest in the wilds of Wyoming and is taken to an urgent care center in the closest town, should the attending doctor treat the patient, or send them on down the road to SLC where they can get significantly better care?
We may not have time to come up with a better solution. If we don't have a financial meltdown, I will still be angry at those who voted against the bill. The fact is, they have put the American economy at significantly increased risk, and have rolled the dice in self-preservation.
2) If someone is having a cardiac arrest in the wilds of Wyoming and is taken to an urgent care center in the closest town, should the attending doctor treat the patient, or send them on down the road to SLC where they can get significantly better care?
We may not have time to come up with a better solution. If we don't have a financial meltdown, I will still be angry at those who voted against the bill. The fact is, they have put the American economy at significantly increased risk, and have rolled the dice in self-preservation.
Anonymous | 9:35 a.m. Sept. 30, 2008
All I hear is that this bill has nothing to do with the stock market and that it
is to allow credit flow. If that is true than it shouldnt affect 401 k
investments. This wall street rollercoaster is a big ploy to get that bill
passed. Dont believe it.
Anonymous | 9:44 a.m. Sept. 30, 2008
If most dont want the bailout then those voices should be heard. The media
portrays the public as idiots who just dont "understand" what will
happen. Sorry but we know the difference between moral right and immoral wrong.
This country has been living a lie for too long and everyone knows it. Most want
to do the right thing even if that means suffer the consequences for a bit. No
bailout bill its bad for the American future
To: Matheson & Bishop | 9:55 a.m. Sept. 30, 2008
While I do not like the idea of government bailouts I'm not sure Matheson
& Bishop understand the gravity of the situation. Banks have lent money on
homes that are now worth less than the money lent against them and many home
owners in this situation have defaulted on their loans. Many of these homes
have been sold on what is called a "short sale" causing banks to lose
money. Some people with money in these banks (i.e. Washington Mutual) have
pulled their money from the banks. Between the losses and the monies pulled from
the bank the banks are failing since they don't have the required reserves.
This situation has happened on a large enough scale to make money for normal
lending to businesses (i.e. General Motors) hard to obtain. Businesses like
General Motors depend on short term financing to finance their business
operations. If they can't get short term financing, then they will also
begin to fail as current short term loans become due and new ones cannot be
obtained. The bail out would allow the government to buy these home loans/homes
and hold them until the home's value is restored. Then the homes would be
sold.
People just don't get it | 10:04 a.m. Sept. 30, 2008
People across the county somehow think that their lives will not be effected by
the failure of congress to pass a rescue bill. People mistakingly think congress
and the Bush administration are trying to bail out rich people on Wall Street
with tax payers money. What people DO NOT UNDERSTAND is we will ALL be effected
by the failure of a rescue bill. The credit markets are in grave danger of
freezing completely which mean NO LOANS to business's to make payroll, no
loans to students to go to college, no loans to home buyers or car buyers etc...
This in turn will cause many more bank and business failures and YES even your
business where you are currently employed. So, when the PINK SLIPS are passed
out what will you say then??? Will you have a warm feeling in your heart that
the bill failed or will you have that gut wrenching feeling inside that says
"OPPS, maybe I made a mistake". The old say "BE CAREFUL WHAT YOU
WISH FOR BECAUSE YOU JUST MAY GET IT". People simply don't get it
right now!!!!!
To Matheson and Bishop continued | 10:11 a.m. Sept. 30, 2008
See also previous comment! Matheson and Bishop show a lack of understanding of
the gravity of situation described above. The longer they leave this situation
unresolved the greater the risk is that it will begin to affect more businesses
than banks who were greedy and made poor mortgage loan decisions. Apparently,
Matheson and Bishop either don't fully understand the situation and
can't explain it to their constituancy or they are being foolish. In
either case neither of them will get my vote or my money.
Dutch | 10:17 a.m. Sept. 30, 2008
Many say we do not understand the economy well this is how I understand it.
Familty has 40K in income they use a screwy loan to get a 400K home and then live beyond thier means by using a multitude of credit cards and 2nd loans on thier home. They pull money out of thier 401K's to buy toys. How can anyone expect this economy of excess to last much longer ? Then ------
The bank makes money on buyers lack of sense and knowledge and then the investment bank bets that the home value will rise making them money. Is that about it ? Now they expect the government to bail them out ? Now credit is plugged due to bad investments even after the Fed is pumpng cash into the system.
I think I understand it pretty well - Does the government need to step in Yes but not to support the golden parachutes of the CEO's etc
Familty has 40K in income they use a screwy loan to get a 400K home and then live beyond thier means by using a multitude of credit cards and 2nd loans on thier home. They pull money out of thier 401K's to buy toys. How can anyone expect this economy of excess to last much longer ? Then ------
The bank makes money on buyers lack of sense and knowledge and then the investment bank bets that the home value will rise making them money. Is that about it ? Now they expect the government to bail them out ? Now credit is plugged due to bad investments even after the Fed is pumpng cash into the system.
I think I understand it pretty well - Does the government need to step in Yes but not to support the golden parachutes of the CEO's etc
Re: Anonymous| 9:35 | 10:42 a.m. Sept. 30, 2008
if it has nothing to do with Wall Street, why then did the market tank yesterday
777 points? Seems like it does have something to do with wall street.
Here's a quick lesson - all these banks are publicly held companies, and they lend to many companies that are also publicly held. These banks also lend to consumers who buy goods from companies that are publicly held. So, if these publicly held companies are negatively affected by the credit freeze, then the stock market will be affected. And, most investments in 401(k) managed accounts have money to some degree in the stock market. So, if the stock market gets hit, then your 401(k) gets hit.
Seriously, some of you who make comments really have no clue what goes on in the real world. Come out of your cave once in a while and enlighten yourself.
Here's a quick lesson - all these banks are publicly held companies, and they lend to many companies that are also publicly held. These banks also lend to consumers who buy goods from companies that are publicly held. So, if these publicly held companies are negatively affected by the credit freeze, then the stock market will be affected. And, most investments in 401(k) managed accounts have money to some degree in the stock market. So, if the stock market gets hit, then your 401(k) gets hit.
Seriously, some of you who make comments really have no clue what goes on in the real world. Come out of your cave once in a while and enlighten yourself.
John | 10:44 a.m. Sept. 30, 2008
I just don't get the logic of the yes voters. Not at all. You say that if
there is a credit crunch, we'll all lose our jobs because companies
can't pay us without credit. Hogwash. Who do you work for? If your
employer is so leveraged that he can't pay you for two weeks pay without a
line of credit then it's time to find a new job. Period. Personally my
boss in my CPA firm pays me by providing services and collecting on those
services. I know because I assist in the billing.
Also, so there will be no credit for a time. Big deal. I can afford to buy a new car for cash and not even have to dip into my kid's college funds. If you didn't rely so much on your own credit card and keeping up with the Joneses, you could too.
Lastly, if the gov really will make such a huge profit on this deal, then why doesn't some private equity firm see the profit opportunity and do the bailout instead? Probably because the profit margin is questionable, as these are subprime mortgages no one wants!
Voting no was the responsible choice.
Also, so there will be no credit for a time. Big deal. I can afford to buy a new car for cash and not even have to dip into my kid's college funds. If you didn't rely so much on your own credit card and keeping up with the Joneses, you could too.
Lastly, if the gov really will make such a huge profit on this deal, then why doesn't some private equity firm see the profit opportunity and do the bailout instead? Probably because the profit margin is questionable, as these are subprime mortgages no one wants!
Voting no was the responsible choice.
Obama Republican | 10:47 a.m. Sept. 30, 2008
The Republican Party has called for de regulation for decades. Now we see the
fruits of their efforts. Pain and suffering! There are two sides to the coin
of capitalism productivity and creativity, with the other side being greed and
corruption.
Human nature is always going to give us this kind of excess. Oversight and Regulation are needed to keep people honest.
We let the President and the Congress repeal most the rules put into place after the great depression. What did you expect, take the blinders off and join us. VOTE FOR CHANGE!
Human nature is always going to give us this kind of excess. Oversight and Regulation are needed to keep people honest.
We let the President and the Congress repeal most the rules put into place after the great depression. What did you expect, take the blinders off and join us. VOTE FOR CHANGE!
Re: John | 11:52 a.m. Sept. 30, 2008
You are one of the few Utahns that can say they can afford to buy a car with
cash. Most Utahns, and most Americans for that matter, are so highly leveraged
that their house of cards is just about to tumble. Many businesses are the same
way, but most businesses do not keep a lot of cash on hand. They invest most of
their cash because it's a waste to have cash sitting in the bank. They
draw on their lines of credit because their rates are usually low, and they pay
off those lines of credit within 30-60 days when they receive payments.
Take Christmas for example - most businesses need to stock up on inventory, so they draw from their lines of credit to increases purchases, but then payoff those lines of credit within 30-60 days as payments come in.
There are two ways to look at this investment - take the bad loans off the banks books so they can contiue the flow of credit, which in turns fuels the economy. Or, do nothing, the credit markets freeze and the economy tumbles for a prolonged downturn. Inflation and unemployment skyrocket, and the economy tanks.
Take Christmas for example - most businesses need to stock up on inventory, so they draw from their lines of credit to increases purchases, but then payoff those lines of credit within 30-60 days as payments come in.
There are two ways to look at this investment - take the bad loans off the banks books so they can contiue the flow of credit, which in turns fuels the economy. Or, do nothing, the credit markets freeze and the economy tumbles for a prolonged downturn. Inflation and unemployment skyrocket, and the economy tanks.
Timmy | 12:19 p.m. Sept. 30, 2008
Everyone says that the "no" voters just don't get how it works,
yet the yes voters don't explain a thing.
So Bernake knows all, huh? I should follow whatever he says because he's a high and mighty economist? Well, if he's so smart, how did he get us into this mess in the first place? Years ago, when the housing market was overheating, he and Greenspan should have raised interest rates and restricted loans to central banks. This would have cooled the market by restricting subprime loans. I know all this after 2 econ classes. Why didn't he do this?
Instead he let interest rates be low, which overheated the housing market and destroyed the value of the dollar. Don't tell me I can't hold my own, just because I think this bailout is wrong.
Have Congress convene for more than a day to bring a well-thought bill to the table and then we'll talk.
So Bernake knows all, huh? I should follow whatever he says because he's a high and mighty economist? Well, if he's so smart, how did he get us into this mess in the first place? Years ago, when the housing market was overheating, he and Greenspan should have raised interest rates and restricted loans to central banks. This would have cooled the market by restricting subprime loans. I know all this after 2 econ classes. Why didn't he do this?
Instead he let interest rates be low, which overheated the housing market and destroyed the value of the dollar. Don't tell me I can't hold my own, just because I think this bailout is wrong.
Have Congress convene for more than a day to bring a well-thought bill to the table and then we'll talk.
Simple | 12:20 p.m. Sept. 30, 2008
Can someone inform Republicans they can't their money
with them to heaven...
with them to heaven...
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riddens Cannon. The people are sick of these
wall street manipulators..let the people speak.
Lets loan the money to the banks not give it away.
I am sick these politicians not listening to the
people..so hurrah hurrah for two leaders who
stepped up and said no.