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Entry bubble BAILOUT

By: Colleen | October 01, 2008 | Category: Money

Wall Street, New York street signTruth be told, I can recite the entire Phillies lineup by memory, yet I know embarrassingly little about finances.

With all that's been going on this week, it's time I educate myself. A good friend of mine is an I-banker in New York, and I asked him to give me an easy breakdown of what's been going down on Wall Street the past few months. He sent me an e-mail using different sports teams as an analogy. On the most basic of levels, I think I'm starting to understand what all the fuss has been about—and it ain't good.

I realize now more than ever the importance of making wise investments. I'm doing some reading to help get a better understanding of how to be smart with my hard-earned cash.

These are just a few helpful resources available to help you feel more secure in these unsteady economic times. Another helpful site is www.mymoney.gov. It gives ideas on how to plan on everything from investing to paying for college.

With a bailout plan still in limbo on Capitol Hill, we're all anxious to see what's going to happen next. What are you doing to protect yourself and your finances?

| View Comments [13] | envelope E-mail This Entry | Tags: bailout   colleen   deposit   finances   investing   money   wall_st  

Comments (13):

blue comment bubble Posted by working middle class single dad on October 01, 2008 at 10:07 AM EDT

i got this email, and it really struck me, why are we bailing out these rich
folks who made bad descisions milkine s suituation that anyone could see was
temporary and unsustainable. I called this meltdown 12 years ago, it was just
a matter of time. What kind of bank lends $125% of the appraised value, and no
money down! it was simply insane. Now they got called on it...

here is the email (i know you can't make political comments, Hatch act
stuff, but you can post mine) Food for thought.... How much more can we do
with this $$$
****************************************************

They need this man in Washington.

OK.....here's a plan I could live with.

Hi Pals, I'm against the $85,000,000,000.00 bailout of AIG. Instead,
I'm in favor of giving $85,000,000,000 to America in a We Deserve It
Dividend. To make the math simple, let's assume there are 200,000,000
bonafide U.S. Citizens 18+. Our population is about 301,000,000 +/- counting
every man, woman and child.

So 200,000,000 might be a fair stab at adults 18 and up.. So divide 200 million
adults 18+ into $85 billon that equals $425,000.00. My plan is to give $425,000
to every person 18+ as a We Deserve It Dividend.

Of course, it would NOT be tax free.

So let's assume a tax rate of 30%. Every individual 18+ has to pay
$127,500.00 in taxes.

That sends $25,500,000,000 right back to Uncle Sam. But it means that every
adult 18+ has $297,500.00 in their pocket.

A husband and wife team has $595,000.00. What would you do with $297,500.00 to
$595,000.00 in your family?

Pay off your mortgage - housing crisis solved.
Repay college loans - what a great boost to new grads.



Put away money for college - it'll be there.



Save in a bank - create money to loan to entrepreneurs.

Buy a new car - create jobs Invest in the market - capital drives growth.



Pay for your parent's medical insurance - health care improves.



Enable Deadbeat Dads to come clean - or else!



Remember, this is for every adult U S Citizen 18+ including the folks who lost
their jobs at Lehman Brothers and every other company that is cutting back.
And, of course, for those serving in our Armed Forces. If we're going to
re-distribute wealth let's really do it ... instead of trickling out a
puny $1000.00 ('vote buy') economic incentive that is being proposed
by one of our candidates for President. If we're going to do an $85
billion bailout, let's bail out every adult U S Citizen 18+!



As for AIG - liquidate it. Sell off its parts. Let American General go back to
being American General.

Sell off the real estate. Let the private sector bargain hunters cut it up and
clean it up. Here's my rationale. We deserve it and AIG doesn't. Sure
it's a crazy idea that can 'never work.' But can you imagine the
Coast-To-Coast Block Party! How do you spell Economic Boom? I trust my...

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blue comment bubble Posted by Rus on October 01, 2008 at 10:48 AM EDT

I like the above idea, unfortunately the math is incorrect - $85B divided by 200million people equals $425, not $425,000.

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blue comment bubble Posted by luckylady46158 on October 01, 2008 at 12:35 PM EDT

i agree with rus. nice comment rus!!!!

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blue comment bubble Posted by BillyMuyo! on October 01, 2008 at 02:38 PM EDT

For those of us with money in Credit Unions ...

http://www.ncua.gov/ShareInsurance/index.htm
Information about Credit Union Insurance via NCUA

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blue comment bubble Posted by annymous on October 02, 2008 at 10:09 AM EDT

The guy who did the math is correct. He just forgot to add 3 0s to the billion. 85,000,000,000,000 divided by 200,000,000 is 425,000.
I just thought I would clarify.

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blue comment bubble Posted by sapphirez on October 02, 2008 at 12:22 PM EDT

Has anyone emailed this to Congress? What a wonderful plan! When I think of the bailout, I get a sick feeling in my gut as I recall ALL those credit card offers that come in the mail by the bucketfull that I have torn up for years. This was very poor business to cram credit offers down the throat of people who are struggling. Then came the tightening on bankruptcy. Now comes the bailout. GO WORKING MIDDLE CLASS SINGLE DAD! (just don't forget those extra three 0's).

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blue comment bubble Posted by Colleen on October 02, 2008 at 01:32 PM EDT

Sapphirez-

If you're looking to contact your elected officials here's the page to get their info: http://www.usa.gov/Contact/Elected.shtml

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blue comment bubble Posted by math wiz on October 02, 2008 at 03:48 PM EDT

85 billion (85,000,000,000) divided by 200 million (200,000,000) is $425. The extra zeros shouldn't be there.

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blue comment bubble Posted by FL. RN on October 03, 2008 at 07:51 AM EDT

We Must NOT help out these guys, Let them put back money they have taken out of these companies over the years. The government wants to bail out the big businesses but cannot give us small guy any breaks .... If I had a business and it started to fail would they help me out? NO!

The big wigs in these businesses that are going under have already put aside money for themselves, they have nest eggs and could care less what happens. If every CEO and wealthy US citizen that really cares to help people should just put back some of the money they have taken out back into their own businesses.

Why do you think our wealthy citizens like Oprah, Brad Pitt, Jolie, Gates, Madona, etc., slap us in the face and help others by sending money to foriegn countries..they could care less about helping out a country where the rich just keep getting richer off the backs of the middle and poor class. We have vets that return from war without jobs and homes, we have children in our streets starving....millions of our citizens without health care, What kind of democracy is this..think about it--

we are the serfs woking for the feudal lords.

We put people in jail for years and years for tax evasion but big business people that have created this mess will get away with legalized loan sharking and stealing and what, get a slap on the wrist...!

I am a Registered Nurse with over 30 years of trauma and surgery experience. Do not be fooled, nursing shortage-what a joke---I am a RN with over 30 years of experience, I came to Fl. to help my elderly parents and cannot even get an interview. I am either too old, too experienced or don't speak spanish and creole..Fl. would rather hire a foriegn nurse for half the salary that a US graduate would make. I cannot pay my school loan bill and cannot even get anyone at our federal financial system to talk to me and try to help. Does our government care? NO. yet my tax dollars are going to help the rich get richer and bail these guys out...I don't think so.

Last but not least our own government discriminates, telling me I am too old to be a nurse for our servicemen when I tried to sign up so I could work off some of my school loan fees.

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blue comment bubble Posted by Freedom55 on October 03, 2008 at 05:35 PM EDT

Save your breath calling Washington. The people have spoken – NO Bailout! Your representatives are not listening! They are to busy covering their tracks – who do you think is responsible for Freddie and Fannies demise? These guys don’t go to Washington for the paycheck. They go to Washington to wheel and deal with those that will line their pockets with special interest monies. Representatives like Barney Frank and the members of the Black Caucus took quite a bit of money to look the other way when questionable accounting practices were uncovered at Freddie and Fannie.

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blue comment bubble Posted by California lady on October 04, 2008 at 02:11 PM EDT

I don't like this bailout. The answer is not to make more credit available to those who can't afford the credit they already have. While we need to get it flowing to businesses that can afford to pay their dues. We need to get morgages affordable to those paying on them, not make more available to those who don't have the income. We need to find a way to stabilize the economy, lower gas prices, food prices, and work out a credit system that works. We need to make the companies responsible for their actions, not bail them out. Why should they not chose between their jobs and taking a pay cut. The Common American should not be footing this bill alone, both sides were responsible, consumers for getting in too deep, suppliers for loaning more than the consumer could afford. WE NEED TO MONITOR HOW BOTH SIDES ARE OPPERRATING ON A STATELY LEVEL< NOT JUST FEDERALLY.

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blue comment bubble Posted by ARVIND GUPTA ( INDIA ) on October 08, 2008 at 12:51 PM EDT

US Financial Problem
How we can solve Financial Problem of US?

Ans.
1. In US the banks are failing due to sub prime real estate problems. There is huge supply of property and no buyers. Property rates are crashing.
In US the culture is Loan Culture.All properties are Financed by banks. Thus, banks are failing.

Only solution is to stop all construction of new property in US for the next 15 years.
This will cut the future supply of any new property in US. No new homes, offices,commercial shops, etc..
Thus the property prices will increase and people will try to retain there property as they will become sure that no new property is going to Be added in next 15 years and the investment will be fruitful.

IF U THINK THAT I HAVE SOLVED UR PROBLEM.....THAN PLEASE CONTACT ME.
ARVIND GUPTA,
ADDRESS - 405B,JIVAN APPARTMENTS,
SECTOR 6 , VASUNDHARA,GHAZIABAD.(INDIA)
MOBILE # 9990489688
LANDLINE # 0120-4112198

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blue comment bubble Posted by Buddhadznr on November 20, 2008 at 01:33 AM EST

I cannot believe the audacity of the Car company executives who want the Government to bail their companies out while they continue to take private jets to "the meeting". If that isn't an indication of nothing is going to change same way of doing business. Why give them the money so that they can continue to live the way they always do, continue to stop a wound with a bandaid. It's never going to help the company get on it's feet, the money will go directly to the greedy CEO's pockets who use the common people as their doormats. If they had taken an interest in their companies instead using the money for their own benefit, WHY are they not accountable for their mistakes and lack of leadership? If any of them had an ounce of integrity, they shouldn't be able to get paid. Who's accountable? It dumbfounds me that they can just ask for a handout, and what would be corrected?
It doesn't make sense. If the Government is going to help, why not compensate the workers directly with a year severance pay? The CEOs can assess the reality of their companies and then close shop or merge with another if they chose to stay in business. NO HANDOUTS TO THE CEOs. NO BAILOUT...the bandaid fix

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