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Should We Tax Junk Food?
Here's an idea. How about the government stops spending money like it's going out of fashion.
It's the government spending that has to stop, not more taxes.
Government Has Made $4 Billion On The Bailout, So Far
I hate to say it but even the NYT is having trouble with honest journalism these days. Thats not to make an ad-hominem attack on them however. If the banks have indeed repaid back 4 billion and they didn't receive tradeoffs or legislation or anything else, then that is indeed good.
It's also an incredibly tiny drop in the bucket. I'm happy for any drops, but they have to not only keep up the trend, but increase it 10,000 fold. If they do that, we'll be breaking even.
We are in pretty bad straights right now. I encourage any good news, we just have to hear a lot more of it.
I can't however trust the banks, in the same way I can't trust a spoiled child that if I give him a bit more money, "this time" he'll be good. There only seems to be incentive to misbehave and the government lending them oodles of cash there's little reason to stop.
Judge Orders Fed To Reveal Stimulated Companies
@dragonfire81: And, in the minds of many, the smoking gun may never be found since it's well established Barack Obama doesn't like guns...
No no.. Obama likes guns. He likes them in Afghanistan, and in Iraq, he likes them on police, and military, and FED, and CIA, ATF, Swat, oh and on the FAA, even some of the IRS, and there's nothing wrong with government funded mercenaries like blackwater having them too.
But if you aren't in the above, he doesn't like it on you.
Judge Orders Fed To Reveal Stimulated Companies
@thebluepill: While I appreciate the "golden poo" award being done by the consumerist. Most of the companies up for it have broken, twisted or bend some very serious laws and should be fully prosecuted for them.
The award is merely a snarky "good job" on being the biggest offender to get away with murder many times over.
The golden poo only becomes worth while when, as now, the businesses have such strong connections to government and sometimes the judiciary, that they seem to be completely above the law. And the nation of laws becomes a nation of corporations.
A sad state of affairs.
Colonial Bank Fails, Assets Bought By BB&T
You guys do realize that during the great depression, most of the small banks in the US failed. And the few largest banks around, which are in fact pretty much the same largest banks today, eventually bought them all up.
A lot of competition shrunk down to just a few of the most powerful players.
Also the same rumors of collusion with uncanny ties to the federal reserve, as it is a private company. It's largest shareholders are the respective largest banks also was abound. Similar to Goldman Sachs today. Before it was JP Morgan that was most suspect.
It may or may not mean anything. But history certainly does rhyme.
Senate $2 Billion Approves Cash For Clunkers Extension
@AlexDitto: I'm pretty sure frugality didn't get the US out of the Great Depression: it was massive spending, first through New Deal Programs, and then finally for war-time production efforts in WWII, that got us out of the "frugality" tailspin we were in.
Whaaat? That is so wrong I don't even know where to start. To spend money you must HAVE money. The government does not produce actual wealth. It has to borrow it, tax it or inflate it into existence. All of these ways take money from people actually producing things.
When a person loses a job, it sucks of course. They have to find a way to do income. Without a government supplied job (the new deal) they have to perform a service or produce something of use to someone else. In doing so they produce real wealth. When the government gives someone a job they also pay them. To pay them again they must take money from everyone. So there's a net loss of wealth.
The government actually stalled the depression from ending for YEARS. The Fed even admitted to doing so! It wasn't the war that turned things around. Things were already turning around by the time the war hit.
Congress May Limit Cash 4 Clunkers To Those Making Less Than $50k
@militarydave: It makes NO sense to create new money (thats what they have to do) which depreciates everyone elses money (see inflation) in order for some people to get into debt to trade in a car that already works. For a discount on one that is more fuel efficient. It doesn't even help with the carbon footprint. The process of MAKING a car utilizes a lot of energy. And then they destroy the other cars (more energy) driving up the cost of cars because there are less around.
Even the profits for the car companies are phantom. It's partially subsidized by everyone and thus no true wealth is being created. This plan is utterly ridiculous.
VIDEO: What Happened To All Of Those Toxic Assets?
Ugh. I hate these guys trying to explain things. The presentation and analogies are simple to understand, but incorrect.
First you don't "balance" toxic assets with anything. They are junk. Worthless. You write them off. Period. They are a loss.
Second, that "good gravy" that was purchased was only done so because the government insured 90% of losses, and you earn all profits from it. In other words, it's low risk for investors, however YOU pay! The government pays when there is loss. The more they buy, the more will of course have a loss. And the government gets it's money from YOU. So that "good gravy" is costing you now, and will continue to do so for years. (Even though it's off the banks balance sheets.)
Lastly you've bailed out banks whose management ran them into the ground with these practices. So even if you've given them a transfusion of cash, how in the world do you expect their behavior to change if there were no repercussions for it???
Remember even if the bank went under the management at the bank wouldn't be broke, but they would suffer because they would have to find other jobs.
Also real people who got burned (and badly) from the banks collapse losing money would obviously find better SAFER places to store their money.
Instead you still have people trusting the same unsafe places still led by the same reckless managers!!
In short, where did the toxic assets go? The banks still have a bunch, and they've offloaded some that have a hope in hell of making money, but most still won't, and you'll end up paying for it.
Who Will Save The Economy? Not Strapped Consumers
@humphrmi: If a little inflation would be great then so would a little deflation. Inflation is NOT great.
Yes debts would be less, but interest levels would rise to match. Banks will make money on you no matter what.
Federal Debt would effectively reduce, but no one would actually lend the US money. Why bother if essentially you are getting back less money than you lent? So most of the programs the US government has would have to get cut. They certainly can't tax you if you are broke.
Wages would not be able to increase as fast as actual inflation. Employers would make their best conservative guess. If they pay you too much they'll be broke. In countries with hyperinflation jobs pay increasingly worse and worse.
DEFLATION makes money worth more. Which encourages people to save money and pay off debts. After all if your debt is getting bigger by interest and monetary value then its in your best interest to pay it off.
Savings is the key to the growth of a country. With savings you can spend your extra money wisely to loan (with interest) to others who will give you back more than you put in. You also have a reserve of money in case something bad happens. Savings = Safety.
Comments from sirellyn
Dow Breaks 10,000, Officially Disconnects From Prosperity Of Normal Americans
@NeverLetMeDown: I don't know where you have been living but prices for nearly all basic goods are up at least 25% from year 2000. The only things that have gone down are electronics and cars. Anything basic you need to live has gone up. Waaaay up.