We now have corporations owning the governmental leaders which curry their favor by giving them bailouts. We have now a system where the corporations make the profits, and keep them private, while giving the public the financial, environmental, and social risks. This should not be. The corporations should not be allowed to get away with this. But unfortunately, as they now own the governments of all the nations, getting this to change will be very difficult. We have seen the Supreme Court come under the influence of the corporations when it said that they could become more involved in the political process, and be counted as an individual. This is just an indication of what is wrong in the political system now. We have lost our government to corporations. They should not expect us to bail them out especially when their losses are illusions, and yet they will continue to expect just that from us. And as long as we do persist in allowing corporations to purchase our leaders, this will continue.
There is an argument that goes like this. Since the financial bailout is part of a plan for economic recovery and because economic growth increases tax revenues, the bailout is good for the federal deficit. This argument is correct in form but not in content, so it is not sound. First, there is another argument, which is sound, according to which the bloated financial sector is too large for the economy. The bailout has the undesirable effect of keeping parts of the financial sector in place, preventing necessary liquidation of financial players. Second, the tax revenue would be better used elsewhere. The bailout hinders economical use of federal money.
Times are hard for everyone. The financial industry is unfairly expecting to be bailed out, but that is not a good thing. Everyone would love to be bailed out. I certainly would. While the financial industry is in trouble, I don't see the CEOs and COOs taking drastic moves to bail themselves out. Their employees are getting bonuses and big paychecks. I haven't seen a bonus in years, but I do see my taxes go up.
It is upsetting to see companies being bailed out by our tax dollars, but the board members or executives are still receiving large payouts, or even bonuses. I think that the financial cuts should come from within, and preferably from the top down. If the executives care about the company and really want to see it survive, then I think they will do what they have to do, without taking government money and putting the burden on taxpayers.
More lower income families are losing their homes, due to the current financial crisis. They were encouraged by various financial institutes to take out mortgages, regardless of their credit status. Now, after giving out the bad loans, the financial institutions are demanding the loans be paid in full. Then, they also tell the government that they need a bailout or they will fail and make the crisis worse. The government tax revenue is from the same people who are being foreclosed on.
Between overspending by government, and misspending by corporations, John and Jane Doe taxpayer have a completely drained economy, no jobs, no hope
for future benefits from the depleted social security system, and no part of
leadership and industry that can be trusted. Stop bleeding John and Jane
I think that the overspending of our government needs to stop. We are heading into a crisis, and the people who are going to pay the most are members of the middle class. We need to head back into a time where we were stable as a country. If the U.S. financial-industry players can't stand on their own two feet, we need to let them fall.
A whole lot of money was made by Goldman Sachs and other speculators in the financial industry, using CDs, CDOs, and AAA-rated junk securities to rip off average investors. To offset this, an emergency $700 billion tax should have been imposed on the banking industry, to directly return the money to the average American.
Just like any business out there, the financial industry needs to be held accountable for the mistakes that they have made. They should not have the option of taking, or the expectation to rely on, taxpayer money to bail them out. They should face the same consequences as any business faces when they make a financial mistake.
In this day and age, the economy is bad and everyone is struggling, even the average Jane and John. Asking them to contribute towards a tax revenue bailout puts more strain on them. I am sure funds can be found somewhere else, and spending cuts can be made elsewhere.
I don't think that taxpayer money should go to help with the financial industry bailout. The reason I feel this way is because there is no company that is too big to fail. I feel that by the government bailing out one company with tax payer money, that will lead to more and more companies being bailed out, and that it will not stop. If even a large company is allowed to fail, then other companies will rise because of this, and possibly make better decisions knowing there is no safety net.
I do not believe that the average Jane or John Doe's taxes should be used to bailout the financial industry players because Jane and John did not cause the need for them to be bailed out. Our taxes should be used to lower the U.S. deficit or perhaps go to a cause such as education, feeding the hungry, etc.
As an investor it is your responsibility to know all of the risks involved with every investment you make. For example, depending on home loans is tricky because you don't know if people will pay. When you mess up badly you shouldn't make the people who are already struggling (like tax payers in the US-especially homeowners) pay for your mistakes.