We are officially Socialist

[BlueHair]

The government is using tax dollars to buy insurance companies, mortgages, real estate, and who knows what else. If this isn't Socialism, what is? $700,000,000,000 bailout? That is roughly $2300 for every man, woman, and child in the US. Throw in the Iraq war, social programs, defense spending, education, foreign aid, etc. and you can come to no other conclusion than that our currency is a farce. You know they aren't going to raise taxes to pay for this because there would be a national uproar. Instead they just borrow money from the Federal Reserve and further devalue the currency. We have government manipulation in the markets. It's more than just oversight or regulation. It is downright manipulation.

[Indy Coug]

Originally Posted by BlueHair

The government is using tax dollars to buy insurance companies, mortgages, real estate, and who knows what else. If this isn't Socialism, what is? $700,000,000,000 bailout? That is roughly $2300 for every man, woman, and child in the US. Throw in the Iraq war, social programs, defense spending, education, foreign aid, etc. and you can come to no other conclusion than that our currency is a farce. You know they aren't going to raise taxes to pay for this because there would be a national uproar. Instead they just borrow money from the Federal Reserve and further devalue the currency. We have government manipulation in the markets. It's more than just oversight or regulation. It is downright manipulation.

Is the government going to continue to own all of these new "acquisitions" in perpetuity?

[MikeWaters]

Originally Posted by Indy Coug

Is the government going to continue to own all of these new "acquisitions" in perpetuity?

No, they are merely going to pay the owners so that they do not suffer the financial results of their poor decisions.

Remember, capitalize the profits, socialize the losses.

[Indy Coug]

Originally Posted by MikeWaters

No, they are merely going to pay the owners so that they do not suffer the financial results of their poor decisions.

Remember, capitalize the profits, socialize the losses.

Pay the owners? If the government has purchased the mortgages for pennies on the dollar, they've already paid the owners with no regard to the future losses or gains.

[MikeWaters]

Originally Posted by Indy Coug

Pay the owners? If the government has purchased the mortgages for pennies on the dollar, they've already paid the owners with no regard to the future losses or gains.

they are not paying pennies on the dollar. The orginal Paulson plan said 70 cents on the dollar--which is clearly overpaying.

If these assets were a great deal at 70 cents on the dollar, don't ya think there would be a big market for them?

[Ma'ake]

Originally Posted by Indy Coug

Pay the owners? If the government has purchased the mortgages for pennies on the dollar, they've already paid the owners with no regard to the future losses or gains.

Pennies on the dollar - maybe we can make a profit & pay down the debt a bit. That would be a welcome bonus.

[Indy Coug]

Originally Posted by Ma'ake

Pennies on the dollar - maybe we can make a profit & pay down the debt a bit. That would be a welcome bonus.

I hesitate to be that optimistic, but this is much closer to a break-even proposition than it is flushing the entire $700B down the drain.

[Ma'ake]

Originally Posted by Indy Coug

I hesitate to be that optimistic, but this is much closer to a break-even proposition than it is flushing the entire $700B down the drain.

I'd much rather have the possibility of significant financial compensation than just be the candy man, the banker of last resort. If that is socialism, so be it.