Suze Orman just convinced me the bailout bill is a bad thing?

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Comments

  • mammasan
    mammasan Posts: 5,656
    sweet adeline wrote:
    yeah but she didn't mention that small businesses need credit for investing and capital expenditures which is important. If that dries up it will cause huge ripple effects throughout the economy.

    There is any easier way to address that than this bail out. Instead of the bail out give a large sum of that $700 billion to the small business administration to use for loans for small and medium sized businesses. This way you can reward the companies that have performed well and are helping the economy without having to bail out those that screwed up.
    "When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
  • blackredyellow
    blackredyellow Posts: 5,889
    mammasan wrote:
    There is any easier way to address that than this bail out. Instead of the bail out give a large sum of that $700 billion to the small business administration to use for loans for small and medium sized businesses. This way you can reward the companies that have performed well and are helping the economy without having to bail out those that screwed up.

    That's what I don't get... It seems like Washington is saying that the only way to enable banks to lend money in "good" loans, is to reward them by covering them for all of the bad loans that they bought or issued.

    We are closing on a house next week, and talking to my mortgage broker, we have nothing to worry about, because we have good credit, and the house was appraised well. It's a responsible loan for a bank to make. Why would credit all of a sudden dry up for "good" loans. You would think that if anything, banks would be fighting over good loans to help make some money back to cover all of the shitty ones they made.
    My whole life
    was like a picture
    of a sunny day
    “We can complain because rose bushes have thorns, or rejoice because thorn bushes have roses.”
    ― Abraham Lincoln
  • Speakers
    Speakers Posts: 252
    I put everything on credit and then pay it off at the end of the month. Its all about the miles baby. I'm almost up to a free trip to New Zealand! whoo hoo.
  • mammasan
    mammasan Posts: 5,656
    blackredyellow wrote:
    That's what I don't get... It seems like Washington is saying that the only way to enable banks to lend money in "good" loans, is to reward them by covering them for all of the bad loans that they bought or issued.

    We are closing on a house next week, and talking to my mortgage broker, we have nothing to worry about, because we have good credit, and the house was appraised well. It's a responsible loan for a bank to make. Why would credit all of a sudden dry up for "good" loans. You would think that if anything, banks would be fighting over good loans to help make some money back to cover all of the shitty ones they made.

    Of course banks are still writing loans. They need the business so if you have a good sized down payment and a good credit score you will have no problem getting a mortgage. My father just closed on a loan to expand his business with no problem because he has been a customer of his bank for years and has a good credit history with them. The problem is that the government wants the banks to hand out more loans, mortgages, car loans, credit cards, because our economy is fueled by our ability to create debt. Without our ridiculous spending habits our economy will slow down and we will go into a recession. So instead of actually fixing the problem they want to just sweep the bad loans under a rug and return to business as usual.
    "When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
  • mammasan
    mammasan Posts: 5,656
    Speakers wrote:
    I put everything on credit and then pay it off at the end of the month. Its all about the miles baby. I'm almost up to a free trip to New Zealand! whoo hoo.

    When I use my credit card that's what I do. I make sure that I have the cash for the purchase and then pay it off, in full, when the next statement arrives. I have two credits cards and both have a zero balance.
    "When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
  • know1
    know1 Posts: 6,801
    Speakers wrote:
    I put everything on credit and then pay it off at the end of the month. Its all about the miles baby. I'm almost up to a free trip to New Zealand! whoo hoo.

    I think they have debit cards that do the same thing. I'm pretty sure I can redeem rewards on mine.
    The only people we should try to get even with...
    ...are those who've helped us.

    Right 'round the corner could be bigger than ourselves.
  • Kel Varnsen
    Kel Varnsen Posts: 1,952
    know1 wrote:
    I think they have debit cards that do the same thing. I'm pretty sure I can redeem rewards on mine.


    My debit card does the same thing, except with my bank I only get 25 debit card purchases a month before they start charging me per purchase. If I use my credit card, I actually get better rewards and I basically get unlimited transactions.
  • Speakers
    Speakers Posts: 252
    know1 wrote:
    I think they have debit cards that do the same thing. I'm pretty sure I can redeem rewards on mine.

    Plus it helps build my credit so when I actually need a real loan, I've got a good record.
  • polaris
    polaris Posts: 3,527
    Speakers wrote:
    I put everything on credit and then pay it off at the end of the month. Its all about the miles baby. I'm almost up to a free trip to New Zealand! whoo hoo.

    i flew to NZ on points too! ... also took my folks to europe!! ... for sure, if you can make your credit card work for you - do it for sure!
  • acutejam
    acutejam Posts: 1,433
    Suze Orman -- don't get me started, she was my financial advisor at Prudential back in the 80s... She's definitely about tough love though!

    So what I don't get is if the underlying problem is the bad mortgages, why are we proposing $700 Billion to go buy up ALL kinds of bad loans, credit card, car loans, biz loans, help out overseas banks, etc. The bailout just reeked of overkill to me, with no oversight. Along with the whole "privatized gains and socialized losses...."

    I've totally thought a major "correction" was coming for quite some time and was glad when it finally popped it's head up last Nov/Dec. I prefer my house to be made of bricks and steel, not straw, or wood ... or playing cards!

    It's gonna be bad, mayhaps real bad, but we'll be better off rebuilding on solid foundations.

    And MAN can we start seeing some PERP WALKS for some of these mortgage morons and bankers and "regulators" for fraud already!
    [sic] happens

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