Wall Street

[MMI]

... Yes, investors would be bearing some costs - as they would under the bailout plan, as taxpayers - but no more than the amount they invested, usually far less, instead of the thousands of dollars each the bailout takes ...

I don't disagree. Investors won't lose a lot compared with the losses the taxpayer or the ordinary creditors and depositors will bear.

Let investors loose the lot: theirs was money at risk anyway. But a bailout is to protect the ordinary users of banking services - people with little or no choice about how their money was used and nowhere else to place it (except under the floorboards). A bailout is to protect other companies - employers, people's jobs. It is to protect the economy of the States ... and, frankly, of the world too. America can quite legitimately look to the rest of the world this time and ask for a small contribution.

I'd rather a bailout than another Depression. Even a small one.

[Ragoczy]

I don't disagree. Investors won't lose a lot compared with the losses the taxpayer or the ordinary creditors and depositors will bear.

Let investors loose the lot: theirs was money at risk anyway. But a bailout is to protect the ordinary users of banking services - people with little or no choice about how their money was used and nowhere else to place it (except under the floorboards). A bailout is to protect other companies - employers, people's jobs. It is to protect the economy of the States ... and, frankly, of the world too. America can quite legitimately look to the rest of the world this time and ask for a small contribution.

I'd rather a bailout than another Depression. Even a small one.

No, the bank depositors are already insured by FDIC for $100,000. These bailouts are to keep the investment houses solvent.

[MMI]

No, the bank depositors are already insured by FDIC for $100,000. These bailouts are to keep the investment houses solvent.

I don't know anything about the FDIC insurance, but if it's anything like the "protection" offered under UK compensation schemes, it's only available to private depositors. The Company that pays your salary won't be protected. The businesses it gets its supplies from won't be protected either, nor will the businesses it sells to. Furthermore, the protection is capped: $100,000 in your case. There are very many people who have deposits with banks in excess of that amount. Often those funds are used to finance commercial enterprises. That investment will no longer be available. The economy will not expand. Your company will find it harder to get new business. Perhaps you'll be one of the guys who are laid off.

At least, eventually, after six ... nine months ... maybe longer? you'll get back the few thousand dollars in your bank account from the FDIC - assuming you have the necessary documents to prove you did have money in your account in the first place, and that you are who you say you are.

But it's too late now. There's to be no bailout.

So, last night, a concerted effort was begun to turn this global Credit Crunch around, and while Asia was prepared to lend to US banks again, while central banks around the world poured new money into the markets, while Belgium, Germany, UK and Iceland took failing banks into public ownership, trusting America would in turn, put its own rescue plan in place, USA slept. When it awoke, it baulked at the part it had to play, preferring to vent its spleen on the capitalist pigs that it had up to this point held up as epitomising the American Dream.

The Republicans' fear of socia1ism is greater than its duty to the nation's, and the world's, well being, it seems.

Well, I'd like to propose a new poll: Did America f^ck up and let the rest of the world down, or did it really f^ck up and let the rest of the world down?

And non-US readers will again have no say.

... And now your politicians have to go back and think of a new plan. They will probably end up raising interest rates so high they'll have snow on them, and they'll have to print so much extra money, the dollar won't be worth tuppence and inflation will soar. Look at what happened in Japan in the 90's. It was painful.

[Ragoczy]

The Republicans' fear of socia1ism is greater than its duty to the nation's, and the world's, well being, it seems.

For the record, since we're pointing at political ideologies, 40% of Democrats in the House voted against the bailout. The Democrats, on their own, have the votes to pass it, but almost half rejected the plan.

Further, Republicans have been warning about the meltdown of Fannie-Mae/Freddie-Mac for the last five years, wanting more oversight and regulation, but Democrats saw nothing wrong with the situation because 100% financing to high-risk borrowers is good to them. The facts are in the Congressional Record for the the 2003, 2004 and 2005 debates on Housing Reform.

[mkemse]

I don't know anything about the FDIC insurance, but if it's anything like the "protection" offered under UK compensation schemes, it's only available to private depositors. The Company that pays your salary won't be protected. The businesses it gets its supplies from won't be protected either, nor will the businesses it sells to. Furthermore, the protection is capped: $100,000 in your case. There are very many people who have deposits with banks in excess of that amount. Often those funds are used to finance commercial enterprises. That investment will no longer be available. The economy will not expand. Your company will find it harder to get new business. Perhaps you'll be one of the guys who are laid off.

At least, eventually, after six ... nine months ... maybe longer? you'll get back the few thousand dollars in your bank account from the FDIC - assuming you have the necessary documents to prove you did have money in your account in the first place, and that you are who you say you are.

But it's too late now. There's to be no bailout.

So, last night, a concerted effort was begun to turn this global Credit Crunch around, and while Asia was prepared to lend to US banks again, while central banks around the world poured new money into the markets, while Belgium, Germany, UK and Iceland took failing banks into public ownership, trusting America would in turn, put its own rescue plan in place, USA slept. When it awoke, it baulked at the part it had to play, preferring to vent its spleen on the capitalist pigs that it had up to this point held up as epitomising the American Dream.

The Republicans' fear of socia1ism is greater than its duty to the nation's, and the world's, well being, it seems.

Well, I'd like to propose a new poll: Did America f^ck up and let the rest of the world down, or did it really f^ck up and let the rest of the world down?

And non-US readers will again have no say.

... And now your politicians have to go back and think of a new plan. They will probably end up raising interest rates so high they'll have snow on them, and they'll have to print so much extra money, the dollar won't be worth tuppence and inflation will soar. Look at what happened in Japan in the 90's. It was painful.

The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation created by the Glass-Steagall Act of 1933. It provides deposit insurance which guarantees the safety of checking and savings deposits in member banks, currently up to $100,000 per depositor per bank. The vast number of bank failures in the Great Depression spurred the United States Congress to create an institution to guarantee deposits held by commercial banks, inspired by the Commonwealth of Massachusetts and its Depositors Insurance Fund (DIF).

The FDIC insures accounts at different banks separately. For example, a person with accounts at two separate banks (not merely branches of the same bank) can keep $100,000 in each account and be insured for the total of $200,000. Also, accounts in different ownerships (such as beneficial ownership, trusts, and joint accounts) are considered separately for the $100,000 insurance limit. The Federal Deposit Insurance Reform Act of 2005 raised the amount of insurance for an Individual Retirement Account to $250,000.


I also heard that after the BailOut was killed in Congress that they may appraoch the Trasury for a direct Loan, or a "Bandade" fix as they put it, whether they will wether that is true , only what I heard, as well as tomorrow being another rough day on Wall Street

Only time will tell what happens now here