Paying for the bailouts

[Dutchie]

I often said to my DH and any others who cared to listen, who is going to pay for all these bailouts because the money has to come from somewhere.

Yes, in Holland we have also had bailouts of banks etc. and it has been costing a LOT of money.
The other day we also got figures announcing the prognosis for the rest of 2009 and it was NOT good.
A large rise in unemployment and negative growth of -3.5% was predicted for 2009 which was enough to throw a lot of people (not only the government) into a panic mode.

Yesterday evening our government was having long discussions (televised) to discuss how and who would be paying for the deficit in our country's budget.
They have said that they will come back with the definite measures that they will taking to make up the shortfall.

So I was right - it will have to be paid for at some point (by us).

I have heard rumours about what they will be taxing or raising and the mere thought of some of them makes my neck hair rise up.

Now is Holland a small country so our problems are relatively small when compared to the mega-billions that are being paid out in the US but what are your thoughts on how this is going to be 'found'/paid for in the US? It will have to come from somewhere.

[thefrug]

It will come from the backs of the blue collar worker and generations of them to come. And this mortgage bailout really has me steamed! We bust out bottoms making our payment every month for our small ranch style home and now WE have to pay for the yuppie's mcmansions! It comes down to practically slave labor on the blue collar folks. WE prop up all the irresponsible, cheaters so they can live their lifestyle. I think that there should be a stipulation that says, if you get bailed out, you can't sell that house for 20yrs! YOU wanted it, now live in it!
They knew they couldn't afford a big house but yet they just had to have it. So now live in it.
I also think that the auto makers should've been left to die and the unions holding them hostage, could've gone down with them. Their doom and gloom story about the end of the world if they went down was a bunch of HOOEY and they convinced everyone in Congress that it was true. Well, apparently giving them all this money hasn't made people rush out to buy a car. It was a bunch of baloney. Wipe the slate clean and let them rise from the ashes if they can. THAT'S the American way. Raising yourself up by your own boot straps. Not crawling ( or jetting in this case) looking for a handout.

OK. This is the last I'm in this thread. There are other forums for political stuff. I come here because there is no political threads LOL. C Ya's!

[Denvergirlie]

Anytime a gov't bails out anyone, the debt is socailised and thus becomes the publics' debt.

Not only will debt increase for future generations, but also with our fiat based money system, the dollar in US's case, will lose more and more of it's purchasing power. Inflation rises, prices rise.

On one hand inflation can be good for debt, because that debt number won't double like the cost of eggs will, but of course when $10 can only buy a loaf of bread, who is really caring about how much debt the country has.

Services can also thus be cut which can lead to a reduction in quality of life for it's citizens

[mombottoo]

Supposedly the bank bailouts & auto industry bail out will be paid back to the feds by those who borrow it. When it comes to the economic bailout for states & homeowners who are in a fix I have no clue at this point. But, since under the bailout for homeowners they will still be making payments I would guess their payments would repay the money to an extent. I would imagine the rest will come from the taxpayers over a rather lengthy span of years.

It is sad to see that so many people are being hurt badly by the global economic crisis. Hopefully, things will start to turn around over the next year.

The following is a typical response from those who have no idea how far the auto industry reaches when it comes to the job market..."I also think that the auto makers should've been left to die and the unions holding them hostage, could've gone down with them. Their doom and gloom story about the end of the world if they went down was a bunch of HOOEY and they convinced everyone in Congress that it was true."

If it weren't for unions being formed many, many years ago people over the past many, many years would not have enjoyed a regular 40 hour work week, health benefits, sick pay, vacation pay, overtime pay, safe work environments and the rest of the benefits workers have enjoyed...think Norma Rae & the textile industry. The auto industry is not the only industry in the United States that has unions for the love of pete (nurses, teachers, bus drivers, retail clerks, police, etc)! Over 3,000,000 additional jobs would be lost if the auto industry tanks and that doesn't include the jobs that would be lost that don't have a darned thing to do with the auto industry.

If these companies want people to work for $10 an hour and pee poor benefits then they'd darned well better cut the cost of their products back to what people could afford working for $10 an hour...and I haven't seen that happen. Prices haven't went down since many of our US companies moved their operations overseas or to Mexico even though they pay next to nothing in wages/health benefits or for environmental protections...instead they are padding their bottom line with more profits on the backs of Americans who are now unemployed or working for peanuts.

I have lived in Michigan most of my life and all of my adult life, I have known many people who have earned their living either directly or indirectly because of the auto industry and these people worked their arses off to earn what they were/are getting. Far be it for me to begrudge them a decent living and far be it for me to even suggest that they should be willing to take $10 an hour in pay when they have managed to work their way up to $25 after many years of service. My dh was making almost $20 an hour when he was injured over 8 years ago (non-auto industry & non-union), he worked himself into the ground to make it too that point and he was worth every penny and then some. JMHO

[frugalbabe]

This bailout is being borrowed from tomorrow, it is our children and their children that are going to carry the brunt of this crippling mess. I wonder how history will judge our generation?

[nancycg56]

Yup, my children and grandchildren will be paying for this "stimulus". When they can't get ahead, they'll know exactly who to blame.

[Cricketlegs]

I think the whole world is about to blow up.

I just keep buying food for the stockpile and paying off debt as fast as I come and when we sink I can just close my door and ride it out as best I can.

What else can you do.

I was and am against this "stimulus"bill.

USA doesn't have the money so it borrows but hmmmmm how do we pay that back if we don't HAVE ANY MONEY???

I think the American working man has been grossly underestimated in what he can achieve given time but that is just me.

Sometimes things have to get bad before they can reset themselves. We were living out of our means, we need to regroup.

Throwing money at the problem modivates people how?

I don't know, I just keep buying FOOD LOL! Gimmmmeeee more foood!

[3LittleMonkeys]

I think the whole world is about to blow up.

I just keep buying food for the stockpile and paying off debt as fast as I come and when we sink I can just close my door and ride it out as best I can.

What else can you do.

I was and am against this "stimulus"bill.

USA doesn't have the money so it borrows but hmmmmm how do we pay that back if we don't HAVE ANY MONEY???

I think the American working man has been grossly underestimated in what he can achieve given time but that is just me.

Sometimes things have to get bad before they can reset themselves. We were living out of our means, we need to regroup.

Throwing money at the problem modivates people how?

I don't know, I just keep buying FOOD LOL! Gimmmmeeee more foood!

So what is the answer?

[Milly]

USA doesn't have the money so it borrows but hmmmmm how do we pay that back if we don't HAVE ANY MONEY???

What worries me is who we're borrowing it from. Do we really want to be owned by Communist China?

[HappyMama]

As it is right now there have been reports that unemployment will continue to rise, we have many starving homeless here , children in need and the list goes on. There is so much to be done to help our fellow Americans and bring back America we all Know and love. We need more manufacturing jobs where we can produce things the world needs. My prayers and thoughts are along those lines , how can I help what can I do.?? I am willing to help. But I was against a stimulus bill that was not read by all who voted for it. Many pet projects along with hidden agendas ( like making all the heath care of everyone mandated online) . Our Gov. has already proven to not be able to keep sensitive data from getting in the wrong hands.

With all that said I was very much against the stimulus as it is not helping those in need.

GM is now asking for more per CNN http://money.cnn.com/2009/02/18/news...lout/index.htm

If you keep doing the same thing over and over and continue to get the same result come on..... the answer is there and has been. I am not against Unions, but having been self employed having many family members work hard in various industries I have seen much waste and the proof is in the pudding now. If a self employed person goes under, or many other companies right now there is no help and some are the back bones of our communities. GM and Chrysler need to wake up the American public is hurting, mad and in need. I don't begrudge what they have bargained for but if the money tree won't shake cutting it down and demanding ransom from the taxpayer won't do it either. I know the effects reach far and wide from these companies but it is not working anymore folks and to keep pouring money into some of these companies for jets, parties, golf courses, their foreign divisions at tax payers expense is ludicrous. AS well as the same for the banks etc we the taxpayers will be burdened for generations with nothing to show for it.

[daisymay1960]

It is a difficult one , here we are bailing out banks , I personally dont think we have a choice for a bank to go bust has far reaching consequences that really dont bear thinking about , what is causing great anger is the banks affected are still going to pay out big bonuses which in my opinion is immoral . In theory the government should see its investment back , so i dont class it as money lost ( mind you we are talking about uk government here lol )

We will need to pay higher taxes the result od the job loses here has meant less taxes are being paid for more people claiming benefits . We have to support others not in the position to support themselves .

We have had 20 / 30 years of never having it so good , this has come at a price and tbh it was inevitable we sacrificed our manufactoring industry on the altar of cheap throwaway foreign imports and became greedy .

Please excuse any typos , i cant see the screen from atop my soapbox lol

[Thevail]

Yeah, I worry too.
I wish Bush and Paulson hadn't nationalized the banks. Now so much of our money is tied up in them that they literally have us held hostage. If they go belly up..the American taxpayer takes a $350 Billion dollar hit before the resulting melt down even happens.

And I really don't mind socialism..I just don't think "partial" socialism is a good idea.

"Let's put the people's money into the banks, but not let people have any say in what the banks do"..that is just stupid. If the banks could be trusted to do what was best with the money..they wouldn't be in this pickle now.

And I think "corporate" socialism outright SUCKS.

Because no matter what kind of system you have, capitalism, socialism, communism, whatever..the working people of a country is who pays for it all.

They are the ones who run business, work at business, buy things, hire people, etc. Money changes hands through the consumer..and that's the working person.All taxes are ultimately paid by individuals..whether through the amount added on to the price of a product (business taxes) or through state taxes (sales/property/income)or through federal taxes (income/capital gains/social security/medicare etc.)

So anytime a company gets a "tax break" or a "bail out" one of two things is going to happen..and they're both the same thing.

The individual will be given more taxes to pay to make up the difference, OR there will be a deficit and at some future point the individual will be handed another side dish of taxes to "balance the budget".

Given that you and I and every other individual pays ALL the taxes..shouldn't WE get something out of it??

[homesteadmamma]

Our children, grandchildren, great grandchildren and great great grandchildren will be paying for the bailouts.

The more bailouts the more the greedy will want. Already some are asking for more. It won't stop.

[IntlMom]

can't I just bury my head in the sand?

[rainbowgc]

It will be all of us in some form - it has to be. I get PO'ed about the McMansions too!