The world as we know it 2
http://www.michaelmoore.com/words/message/index.php?id=235
The above is an article against the $700 billion bailout of Wall Street by the US Fed Treasury.
Read it, think through it.. Now STOP.
Seriously, there is some truth in it, but anyone who thinks we should let Wall Street crumble and die IS selfish. I am soo pissed off that I'm posting this right here, right now.
Wall Street is crumbling. The idea is that it is a liquidity crunch. "What is a liquidity crisis?", you ask. It's when you have assets but no cash to back it up, to put it in layman terms. You've got stuff but can't sell them off. No cash, and no one to borrow from, you're stuck with debts that you can't pay, because you can't recover the cash owed to you, and you can't sell off your assets. That's what the major financial institutions are going through.
Why is the world over watching the scenario so carefully? Lets see.. what happens if the bailout does not occur. AIG has already been bailed out. What if it hadn't?
1) Many people will lose all their money invested in insurance. Globally.
2) Many people will lose their jobs.
3) Man United will not have a main sponsor.
ok this is simplistic. let me delve deeper...
If financial institutions fall, we're talking about century old companies falling. there's a big void with no one to fill it in the short run. In business, everyone runs up good debt. You borrow to start up. You borrow to get a project going, be it construction or the next Broadway musical. You borrow to get supplies for your next harvest. You borrow to buy a house.
Sure, it's these very institutions' fault for being blinded by greed and making rash risky loans with high risk of defaults to ppl who can't afford the houses they're living in. But punishing them would be detrimental to the country. Just look at the list in yellow. The collapse of these institutions as a whole would bring the country's economy to a standstill. Employees won't get their pay check on time, rents will be overdue, utility bills unpaid... you get the picture. It'll be a bleak time for the citizens, but that's not all. 401(k) pension plans invested in these very firms will be gone, extinguished, evaporated, just like that. Imagine being 50 and finding out that all your hard-earned savings have been wiped out. How would you feel?
The bailout plan is a short-term solution. It is not meant to be a solve-all solution. A lesson learnt and a long term solution to the industry and its regulation is required for sure. But that doesn't make the bailout plan any less urgent or important. Everyday, the taxpayers that you're worried for are losing their savings, their insurance, and if a company goes bankrupt, they lose it forever. If this plan is not put into effect, there will not be any cash moving around. No banks buying up ailing banks to stop their freefall. No banks lending money to provide the necessary liquidity to tide over the influx of defaulters. Paper loss is still a loss, and without the necessary liquidity to cover for it, that loss will be realised, and even the super rich won't be able to afford it.
So quit thinking of revenge, stop wishing for payback, because it's not going to happen. In reality, the rich will be rich, and they'll stay that way, as we've found out in this "crisis". Think of the consequence if their companies fall. They'll still be rich. Heck they've earned more than enough for a dozen lifetimes. But the fall of the companies they run will mean the death of the accounts of millions of citizens, and millions more people worldwide. Remember, these firms we're talking about are international organisations. Barclays, AIG (AIA), CitiGroup, Goldman Sachs, ...
@ Barclays. It's not just confined to the US. Already, repercussions are felt worldwide. European governments are rushing to provide the necessary liquidity to keep their companies afloat. ING along with government-funding have bought over a competitor to prevent it from failing in Holland, and across Europe, the situation is viral. The only way to stem the tide is for a strong reaction by the US. However, blinded by personal agenda, they've held the world hostage.
Sure, 700billion sounds alot and unreasonable, and i'm sure it may be so, but the world needs a saviour, and they need it fast. The meltdown is scary, but it's quite real. Face facts, and take responsibilty as a person of the world. You're but one person in a billion, but what you do affects billions. So think twice.
p.s. the bailout plan is a tiered plan. 700billion is a cap. 250billion is the initial amount released. 350billion being the 1st tier cap, and the other 350billion up to 700billion max will be under case-by-case scrutiny before release.
The above is an article against the $700 billion bailout of Wall Street by the US Fed Treasury.
Read it, think through it.. Now STOP.
Seriously, there is some truth in it, but anyone who thinks we should let Wall Street crumble and die IS selfish. I am soo pissed off that I'm posting this right here, right now.
Wall Street is crumbling. The idea is that it is a liquidity crunch. "What is a liquidity crisis?", you ask. It's when you have assets but no cash to back it up, to put it in layman terms. You've got stuff but can't sell them off. No cash, and no one to borrow from, you're stuck with debts that you can't pay, because you can't recover the cash owed to you, and you can't sell off your assets. That's what the major financial institutions are going through.
Why is the world over watching the scenario so carefully? Lets see.. what happens if the bailout does not occur. AIG has already been bailed out. What if it hadn't?
1) Many people will lose all their money invested in insurance. Globally.
2) Many people will lose their jobs.
3) Man United will not have a main sponsor.
ok this is simplistic. let me delve deeper...
If financial institutions fall, we're talking about century old companies falling. there's a big void with no one to fill it in the short run. In business, everyone runs up good debt. You borrow to start up. You borrow to get a project going, be it construction or the next Broadway musical. You borrow to get supplies for your next harvest. You borrow to buy a house.
Sure, it's these very institutions' fault for being blinded by greed and making rash risky loans with high risk of defaults to ppl who can't afford the houses they're living in. But punishing them would be detrimental to the country. Just look at the list in yellow. The collapse of these institutions as a whole would bring the country's economy to a standstill. Employees won't get their pay check on time, rents will be overdue, utility bills unpaid... you get the picture. It'll be a bleak time for the citizens, but that's not all. 401(k) pension plans invested in these very firms will be gone, extinguished, evaporated, just like that. Imagine being 50 and finding out that all your hard-earned savings have been wiped out. How would you feel?
The bailout plan is a short-term solution. It is not meant to be a solve-all solution. A lesson learnt and a long term solution to the industry and its regulation is required for sure. But that doesn't make the bailout plan any less urgent or important. Everyday, the taxpayers that you're worried for are losing their savings, their insurance, and if a company goes bankrupt, they lose it forever. If this plan is not put into effect, there will not be any cash moving around. No banks buying up ailing banks to stop their freefall. No banks lending money to provide the necessary liquidity to tide over the influx of defaulters. Paper loss is still a loss, and without the necessary liquidity to cover for it, that loss will be realised, and even the super rich won't be able to afford it.
So quit thinking of revenge, stop wishing for payback, because it's not going to happen. In reality, the rich will be rich, and they'll stay that way, as we've found out in this "crisis". Think of the consequence if their companies fall. They'll still be rich. Heck they've earned more than enough for a dozen lifetimes. But the fall of the companies they run will mean the death of the accounts of millions of citizens, and millions more people worldwide. Remember, these firms we're talking about are international organisations. Barclays, AIG (AIA), CitiGroup, Goldman Sachs, ...
@ Barclays. It's not just confined to the US. Already, repercussions are felt worldwide. European governments are rushing to provide the necessary liquidity to keep their companies afloat. ING along with government-funding have bought over a competitor to prevent it from failing in Holland, and across Europe, the situation is viral. The only way to stem the tide is for a strong reaction by the US. However, blinded by personal agenda, they've held the world hostage.
Sure, 700billion sounds alot and unreasonable, and i'm sure it may be so, but the world needs a saviour, and they need it fast. The meltdown is scary, but it's quite real. Face facts, and take responsibilty as a person of the world. You're but one person in a billion, but what you do affects billions. So think twice.
p.s. the bailout plan is a tiered plan. 700billion is a cap. 250billion is the initial amount released. 350billion being the 1st tier cap, and the other 350billion up to 700billion max will be under case-by-case scrutiny before release.
Labels: 700billion bailout plan, debts, economy, liquidity crisis, loans, meltdown, people of the world, rich, US
posted by DaDeGea at 3:35:00 AM
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