Quote:
Originally Posted by Phanuthier
I have heard alot of concerns about this going into "golden parachutes" and so on, but I don't understand how it goes into the fat cats pockets. (though it probably will anyways, but it would even without the bailout, somehow they manage to get their cut either way anyways)
Is this money even a bailout or a leveraged debt? Or is the US gov't just saying "don't worry about it" about this bad debt?
And I know that the point of this bailout is to free up credit, and the intention isn't for it to get banks back into gambling. I'm just curious how and what restrictions there are in place here to ensure that this $$ goes into the nations credit and not some CEO's pockets and was wondering if you had any idea.
Saying all of that, I have to say I am not on board with is a capitalist market for profits, but then turning to socialism for losses. (sorry for the bad wording)
I get the feeling that some Americans - not you in particular, but more the politicians - are so scared of socialism that they are shooting down the bill to preserve the only market they understand, capitalism.
(To your edit, I agree, I don't understand how creating more consumer debt is going to help the eocnomy. But on the flip side, not allowing credit to flow freely could sink the US and world economy.)
|
The golden parachute thing is a huge concern and I don't know what provisions, if any, are included in this bill to avoid that. I do know this: The CEO of Washington Mutual was personally soliciting investment in his 'healthy and growing' company a very, very short time ago. There are some investors who bit and lost everything all in a matter of weeks. Unfortunately for this clown, they have proof that he fraudulently obtained their investment by lying about the health of WaMu. He's going down. It's hilarious that it's not a huge story yet actually.
Free markets are great, but if this (and Enron, WorldCom etc) aren't proof that there needs to be more oversight at the top of the economy then I don't know what it would take.