Talk of The Villages Florida - View Single Post - Why the bailout?
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Old 09-27-2008, 02:39 PM
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JohnN JohnN is offline
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decent thread explaining the bail-out on one page:
http://hubpages.com/hub/financialcrisisexplained

quotes:
Bankers got into the same state of mind as American homeowners: they assumed that housing prices couldn't fall as much as they did. Reveling in the boom, they borrowed billions of dollars to increase their stakes in mortgage based holdings. This is what brought Lehman Brothers down: according to some estimates they had 1 dollar in cash for every 32 dollars in assets they owned.

Fact 1: There's going to be some kind of bailout. If the credit markets seize up entirely there will be panic, banks will fail, and we could see financial hardship at levels greater than at any point since the Great Depression. This might end up happening anyway, but its probably a good idea for the government to try and avoid this worst case scenario.

Fact 2: The bailout is going to make some people who don't deserve to make money rich. Its impossible for the government to do anything without winners and losers

How you can help yourself?
spend less and get a 2nd job
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