The rising number of bad mortgages was on an ever present omen for the American people the last few years. Banks and companies had lost millions of dollars, investors, and investor confidence. Treasury Secretary Henry Merrit Paulson Jr., Republican, came to the rescue. He had been Time’s “Man of The Year” in 2007, and his popularity was high. On September 19, 2008, he proposed an overwhelming bailout-plan. The plan was called the TARP, or Troubled Asset Relief Program. The TARP required congress to give $700 billion to get failing banks, who had given bad mortgages to people unable to repay them, back on their feet.
You don’t find many people considering Paulson as “Man of The Year” any more. Paulson has become an unpopular, controversial figure, the target of harsh criticism in the media. America simply doesn’t believe that it is right to use tax payers money to help private companies out of a self dug ditch. Shouldn’t America choose what to do with their own money? Both questions force yourself to think about your own opinion. Should the government use tax payers hard earned dollars to help private companies avoid chapter 11 bankruptcy?
Some think that the company should be able to close for making such lousy decisions. The company obviously is doing something wrong, there for they should take the consequences and pay. In many cases we find that large businesses pay their CEO’s and presidents hundreds of millions a year (AIG gave $165 million for just bonuses), which obviously could put the company in terrible debt, and cause the workers to be upset. When asked “Under what conditions would multi-million-dollar bailouts of private businesses be acceptable?”, reporter Mike Moffatt said this. “Never. The difficulty is, though, that some companies get “too big to fail” and have to be bailed out…”. Some say that GM deserves to fail, that they over produce cars that few people really actually buy; many also think that the best idea is to declare bankruptcy. MSNBC says that “[Saving] AIG or any other banks/ auto industry, would be a catastrophe, an economic domino effect of bank losses, stock market chaos and job cuts. No one – at least no one in the government- has the stomach for that”. And for banks? Their mortgages and loans that were almost handed out by the hundreds. Did they even think to look at the back grounds of these people on the other end of the deal? The only reason to give a student loan is so that you already have them as an adult in the future. But who is expecting a student to repay thousands of dollars worth of loans in an economy like this? Banks looked like the worst characters in this story of cheating.
Dogs chomp on more than four million people a year. Don¡¦t be one of them. Dog bites on the rise Megan Boger of La Belle, Pa., returned from shopping with her mother and ran into the yard to greet the family pet, a part-cocker mutt named Blaze. Seconds later, her mom, Elena Boger, heard a snap and then shrieks from three-year-old Megan. There was blood all over her face from tooth punctures under ...
Then again, what about the hundreds of thousands of jobs that would be lost if we didn’t bail out these over-the-top companies? To declare a bailout would probably mean to declare the end of a company. And some companies are too important to lose, some are simply a historic landmark on Americas time line. Kodak for an example, so many people are being laid off, yet we can’t possibly turn our backs on them because Kodak is a house hold name that’s been around for ages. “Economists estimate that a rapid auto industry meltdown could cost up to 3 million jobs, perhaps sending the jobless rate as high as 9.5 percent. It could also result in a bottomless psychology of panic” says Michael Gerson of the Washington Post. Federal Reserve Chairman Ben Bernanke warned that the damage to the world economy of an AIG failure would run into the “multiples of trillions.” Im not sure if that’s a threat or a plea for help, but the government and business owners obviously don’t think that we should simply ignore them.
I personally think that the businesses should stop begging for help and just listen. Just listen to the American people and trust what they say. Number one, stop paying your “important” leaders the millions of dollars that you could be using to keep your company out of debt. Rick Wagoner, I like your idea about having a $1 salary. These people are filthy rich already, if there are 20 people in a business who are being paid 50 million a year, they would save a billion dollars. The plus side for Wagoner is, there isn’t much income tax on one dollar. Two, if you know that only you and your buddies with your multimillion dollar salaries can pay for the car, that means you don’t make more that four. One for you and two friends, and one for some rich guy in Dubai who already has fifty sports cars in a air-proof garage. Three, make sure you only give loans to people who can pay it of in just a few years. That one is pretty self explanatory. Just don’t give out loans like you obviously do money. Be safe with your money, I personally wouldn’t be putting my money in the banks at the moment, so I think your goose feather, pillow top, handcrafted mattress will do just fine.
As we all know the Great depression is time in American history that will not be forgotten. Depression struck forcing people to live with out jobs. Many businesses struggled to survive along with many people. The twenty's were a boom while the thirties were a bust. This same thing is happening now. Surely smaller in degree to the Great Depression but what makes this so bad is the span over the ...