Where's MY bailout?
Filed under: Ripoffs and Scams, Tax, Wealth, Recession, Bankruptcy
I've been against the whole concept of "government bailouts" of private businesses from the start. The theory was that we, as consumers, needed the government to prop up failing businesses because they were so vital to our economy. My personal theory has been that we need the free market do the work. If companies made bad investments or bad business decisions, then they should have to live with the consequences. If the companies still have value but are headed toward death, let another company (via the free market) decide that and purchase the company with its own funds.
Having the government intervene in all of these bailouts seems to just prolong the pain. The companies receiving money don't seem to be making the kind of drastic changes they need to rehabilitate their businesses. There are just more handouts every time we turn around.
Remember American International Group (AIG)? It got an $85 billion bailout from the federal government because it was too important to go out of business. Well that amount quickly escalated to $123 billion. And now the government has made a deal with AIG to instead give it a bailout worth $150 billion. How is it that in just about a month since the bailout deal with AIG was made, it has almost doubled in cost to taxpayers?
There are people saying these bailouts won't really "cost" taxpayers anything, as the government is taking ownership interests in the companies getting bailout funds and will someday see profits. That's supposed to make me feel better? Our government, which is totally inept at running anything like a real business (don't spend more than you make) will own parts of private businesses? I know it may not be popular to mention this, but government ownership of businesses is one part of Communism, something I don't think we want to explore.
So now we've got bailouts of AIG, big banks, and probably the Big Three automakers. Who's next for their handout? I think more insurance companies will be next, with credit card companies following closely behind. It's hard not to ask where my bailout is. I've been responsible. I bought a house I could afford, and I make my mortgage payments on time. I've never been late on a credit card payment or charged more than my limit. I pay all bills on time always. Yet I, as a taxpayer, should continue to help fund these bailouts of companies that don't seem to be doing much to fix their problems???
And in case you're wondering... YES, there is already talk of expanding the $700 billion bailout....
Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.
Reader Comments (Page 1 of 1)
11-12-2008 @ 11:58PM
elmo cornelius said...
Why not make it easy for 350,000,000 americans .WHY not give all us $1000,000,each.Then we will spend atlease$500,000.back,look how much the gov, will save.Why give those fat cats $800.billions.Which they will not put back in to play, (make it happen we the people)
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11-11-2008 @ 4:53PM
Robert said...
I think it is ridiculous how much money the government is wasting. If they would give each american household 1 million dollars they would do two things, spend less money and rejuvinate the economy.
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11-10-2008 @ 9:58PM
LJ said...
It's funny you focus on the big company bailouts alone. The housing collapse was caused by people taking loans they could not afford. Lending institutions were mandated to make subprime loans under the community reinvestment Act under Clinton. But it was up to the BORROWERS to have enough brains to see they could never make the payments. Lately I even hear radio ads berating " greedy credit card companies" who actually seem to expect people to pay their bills!!!! Gasp! Imagine that!!! Actually having to be responsible to pay for the stuff you buy???? How greedy of the charge companies!!! Too many people are buying into the idea that whatever they do is not their fault. That is the line we should expect from children avoiding blame for their actions. But don't worry. Our new president is going to magically make all the poor people rich and fix all our problems by stealing the money earned by the wealthy. And when even all THAT money is not enough to solve the problem, I'm sure he'll say "it's not my fault."
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3-22-2009 @ 3:08PM
Roy said...
Stealing money earned by the wealthy? It seem to me that the wealthy has stolen from the poor blue collar workers by not giving them their fair share in order to get wealthy. If the money the poor has made for the wealthy was equally distributed to each worker instead of the largest portion going to the wealthy the poor wouldn't be living in poverty while the wealthy are living in luxury. The greatest part of the money should go to the ones who do the greatest part of the work and that does the hardest jobs for a change. For some reason the pay scale has always been backwards and it is past time for that to change. The ones that live in luxury always does the least and ends up with the most. Just like the politicians for example,look at who they bail out and look at who they ignore but look at who they expect to pay it all back.
4-12-2009 @ 2:12PM
Roy said...
That statement,no doubt had to come from the mouth of a wealthy person. And in response,the wealthy has got rich from stealing from the poor. The poor works for dirt cheap wages and no company bonus to make the wealthy even richer each day then the wealthy wants bailout money for hiding money or poor management and still thinks the poor that has worked to meake them wealthy deserves nothing at all. Are you a politician? If not you sure missed a good chance,because you sure think like one.
11-11-2008 @ 7:11PM
christina santiago said...
I would have to agree it is not right to bail out these companies because they made bad choices. Me as a citizen of this country has to take responsibility for the decisions I make if I don't pay my mortgage then guess what I lose my home.Is the government going to bail me out...I think not. And I agree as citizens we make or break this economy and with the way it is right now bailout your citizens send them money majority of people would pay off there mortgages and car loans and so on, once the citizens are out of debt so will this country. There should be stipulations though money should go to pay off debts.It makes me sick to hear about one story in particular about the bailout crisis after is was approved and that company went on vacation, where as we have millions of people losing there jobs (recently DHL) and they don't know what they are going to do who is going to help these people who is going to bail them out when they are on the verge of losing there homes, cars and so on. What a pitiful country we have become ...these big companies it called "what's in it for me and forget everyone else". Sad, Sad, Sad.......
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11-10-2008 @ 11:23PM
Deb said...
AMEN. Now. Can someone tell me why we are sitting here blogging and THEY are in Congress? It's about time we stop electing people on name recognition alone. You want change? Then next go round what do you say we change the hole lot of them?!!
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3-22-2009 @ 3:11PM
Roy said...
The only way to change it other than the poor American people banning together is to put working class people in office from the very top to the very bottom and take the wealthy out of office. The wealthy does not understand the lifestyle of a poor class American and never will. They cater to the rich because the rich caters to them. In their opinion the only right the poor class is entitled to is to pay back the enormous debt that the wealthy creates. Until the poor class takes a stand against the wealthy and demands their fair share and puts the wealthy out of office,it will never change. Remember,they can't survive without people like us doing the hard labor and making the money for them. We the American poor class people,deserves to be bailed out above and beyond any of the others. Take the wealthy out of office and put the blue collar worker in office,someone that understands the meaning of poor and needy. Each American household could receive a $5,000,000.00 bailout and it would still be far less than any bailout that has been given yet. Again it goes to show that the government is for the wealthy and against the poor,who has worked so hard to make this country.
11-11-2008 @ 8:35AM
Banker said...
Are we supposed to belive the world economy is on the verge of collapse because a couple of million people in America defaulted on their mortgages?
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12-03-2008 @ 11:55AM
where's_ours said...
http://gohmert.house.gov/Article.aspx?NewsID=1355
Check out Loui Gohmert's bailout plan that is gaining momentum.
In the final paragraph of the article is a link to a petition. You can sign up if you believe in the idea. Support from the American public is needed to keep this moving.
11-12-2008 @ 2:23PM
Karie DiMarco said...
I think this BAILOUT is hurting more people than it could ever help. I was an owner of a small business until I became disabled. When money was tight we would go from the top down including myself by not taking any bonus until we were meeting all expenses and trying not to take any thing from our core employees. Not from the bottom up! Those are the people we need.
With our SEP retirement package I never decreased our company match which was only 3 %,That 3% meant alot to the employees. Because every little penny counts when you don't have the money given to you on a "silver platter". I think most companies have way to many vice presidents, assistants to the V.P.'s and even assistants to them. The small companies watch over everything daily and can control departments immidiatly. Usually the owners of the smaller companies do everything themselves. (ie: payroll, working with clients, going to the prospective sales reps company and give a seminar, and to do what ever cost the least amount of money,(That way you are paying for one persons hotel stay, plane fare, and possibly a rental car) doing their own set of books and have it reviewed by an accountant only at the end of the year. Basically there are to many jobs people are getting paid for that could be consolidated. I am meaning the managers, vp's,ect. I don't think It is wrong to do paycuts on those people. Which are overpaid anyway usually. I believe with the to paycuts that would let you hire more core people in whatever trade you are in, which would make the company even more money. Instead of spending your companies money where it is not producrive. That is one way they could avoid layoffs. Now for the majority of hard working employees they are only making ends meat. I believe if you asked every employee any where right now they would take a pay cut to keep their jobs instead of a layoff. Because it would be about the same as they would get filing for unemployment benefits. Which is another expence that would be increasing for the companies in the next year when they are given the % amount they have to pay the Government Work force Commission. As for bailing out the car companies I don't understand why that makes any sence because even if they got the bailout money, then they would continue to make cars and trucks that very few could afford now. And there is such a surplus of autos that need to be sold now and very few can afford those. And giving them money so they could put back in the pention plans of hard working employees at our expense is just plain wrong. They should of never used any of that money. I have a small portion in the stock market and no one is going to give me what I am losing. It's a gamble and everyone knows that. I am leaving mine in and I have seen personally my stcks lose 5000.00 and made that back and even more it just took awhile. .Also there are so many americans that are to scared to spend any money because they can't forsee the future. I am one of them. I also think that the 3 plans Obama wants to do when he takes office last I herd was to 1. extend unemployment 2. to give everyone healthcare. and 3. Have people build roads and bridges. The problem with #1. above is you will be paying alot of people unemployment that don't want to work and won't if that check keeps coming in. #3. Who is supposed to employ these unexperianced people that range in age feom 16 to 70 years old that lost there jobs. I live in Texas and I doubt if men or woman that are up in their years could even stand the heat. Then there is heavy work and there is more risk of them getting hurt or even killed building (the road and bridges. And my last question would be "where are you going to build the roads to? Possibly EGYPT if you get my point." The mortgage bailout plan they came up with states you have to be 3 months behind on your house payment to get help. What about the people including myself that are struggling and paying every month on their home, trying to do the right thing and paying their bills. All we have is stress everyday until every bill can be paid which is about 365 days a year. We are the ones that are going to pay the bailout money back as well as others and I don't know where that money is going to come from all of us.I don't believe it is fare to us especially when we don't have money now and live paycheck to paycheck. I guess that's when you start to pay the most important bills and then your credit will start to go bad then it will be the credit comanies wanting to be bailed out. You can't give to one and not another. I learned that from my parents as a child and I'm sure millions of you were taught the same. I wish the people with money could picture what it is like to struggle for money, and watch CNN to find out more companies want money. I blame the lenders for giving loans on these houses with interest only for awhile then add the principle in next knew that they did not make the money to afford a 300.000.00 to 500.000.00 house. The lenders were all being greedy and now they want to be bailed out for their stupidity. To bad people couldn't switch shoes and see for themselves what it is like. This reminds me of a song by Whitie Ford called What it's like. These big companies have been in trouble for several years until they couldn't take from Paul to pay Billl anymore. That is what they are doing to their employees theylya off now they are starting to take from Paul and pay Bill. This is a big circle and part of it broke so now they are taking from someone else and now that part of the circle is broke. I wonder if our economy will ever be a complete cirlce again?
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11-14-2008 @ 12:53PM
Maria Kelly said...
Amen. Where's MY bailout? Credit card companies able to change contracts... even if you pay on time every time... student loans that have no restrictions... I've always done the RIGHT thing. Where's my GOLDEN or even SILVER parachute?
If the Auto industries go on the list for bailout make it conditional on no CEO bailouts and affordable hybrid vehicle production for all of us! Forgive a percentage of my debt if you BAIL OUT my credit card companies. This trickle DOWN thing is all wrong!
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11-13-2008 @ 1:47PM
Scott said...
The government is clueless! They will screw around until it becomes a situation like back in the 30's. This world is becoming worthless! Where is that big bad asteroid that is gonna smash into Earth and vaporize us? Bring it on!
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11-17-2008 @ 3:43AM
Whizworks said...
Hold the bailout; Reduce the size of our Govt. by 80%; Allow lousy businesses to fail; Make all health ins. co.s sell healthcare to private individuals and families at the same rate that big corporations get; Do away with the $5000.00 hammer's used to fix an FA 22 Raptor, when a $35.00 Sears hammer will work just fine; and the list just goes on, and on!!!
The biggest fix needed, is to the election campaign finance laws.
All donations should be made to the party of choice, not one cent should actually go to any particular candidate. Whichever party collects the least amount of money; set's the standard for how much ALL candidates can spend; That way, they are all on equal footing, and nobody can be accused of "buying" the election!!! All money left-over by any party, stays in their coffers for future elections, but cannot be spent, unless equally distributed to all partys involved in any given election.
Once we fix the campaign finance situation, then we can actually do what our forefathers intended, and let anyone who is a natural citizen, and over 35 years old run for office; any office all the way up to president. For the last 75 years only the rich have been able to play politics, I think my barber should be able to run for president!!!
If not my barber, then me, and I would solve a lot of these problems, but I would piss off a lot of people in the process. Primarilly because the Government is just way too damn BIG!!!!!!!!
Done
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11-21-2008 @ 9:22AM
Angelina said...
Let me tell you how I feel about this whole mess.I'm not worried,I have God on my side.He has made a plan for everything.I think Clinton made some bad choices.I also agree that loans were made that should have never been.But we need to keep in mind that we are of human nature,who wouldn't want to own their own home?Unfourtnately,there was and is a ripple effect.The waters are going to take some time before they are calm again.I would also like to say that the Government should Not bail out any company.If you mis-manage your money you should learn from your mistakes.If you fall hard you'll remeber that feeling and you may avoid it the next time.We are all human in the end.We really should make the effort to learn from our mistakes.Please never forget to let God be present in your life.Lets love like Jesus.Where else can you be dirt poor and still be a Prince or Princess of a King? Lets stay strong !We are all mankind.So lets be kind to all man.
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12-20-2008 @ 10:22PM
John Gerena said...
What about my bailout?
The last time I checked the government was dolling out over 2 Trillion Dollars in assorted Government Bailouts. Yet where’s my check? I to can be irresponsible. I have not made the big mess AIG, Fannie and Freddie or Citibank has done, but give me a chance, I just got started. I am only behind on my mortgage, car payments and credit cards. If Congress would just give me a chance, I too can mess up just as “BIG” as General Motors and Chrysler. I also like the Big 3 don’t think I can make it pass a few more weeks.
I watch the news everyday to see if CNBC mentions my name and the needs that I have, but nothing yet. I sent the two page TARP application to Henry Paulson at the Treasury, but I have not heard anything. I sent a letter to Ben Bernanke about my problem and he has not responded. What am I doing wrong? If you like, I can issue worthless checks, like AIG issued worthless credit default swaps or make promises that I will not keep like the Banks, give me those Billions and I will lend the money to Main Street.
What do I have to do to get mine? The crooks at Wells Fargo, Morgan Stanley, B of A, Fannie, Freddie, and the rest of those outfits got theirs. AIG got 150 Billion; Citibank got $50 Billion plus Billions in guarantees, JP Morgan $25 Billion, Wells Fargo $25 Billion, Bank of America $15 Billion, Merrill Lynch $10 Billion, Goldman Sachs $10 Billion & Morgan Stanley $10 Billion, but where is my bailout?
If Congress would have just taken all those 2 Trillion dollars and sent a check to every American, it would have been around $7,000 per American or about $28,000 per family. I can guarantee you that the economy would turn around in about 2 weeks and we would experience the Greatest Economic Recovery in World History! Not only that but Congresses approval rating would go from an all time low of 17% to a RECORD HIGH 99% approval. President Bush would be the Greatest President EVER and who cares about the deficit, I always wanted to leave my grandchildren an inheritance, I never said it was going to be a good one.
Sincerely
John Gerena email at: johngerena@wbcsmail.com
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12-22-2008 @ 11:38AM
Kathy said...
I have a question.....
Even if this is government money didn't we give it to them to spend? If we did give it to them to spend shouldn't they give us reports on how this money was spent? I don't think we should care as much about giving them the money as we should about how it's being spent. I think Americans are a little more intelligent then they give us credit for.
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3-22-2009 @ 3:29PM
Roy said...
I say start the bailout at the bottom with the American household. From there it will be used to build or remodel home,pay off mortgages,pay off bank notes and buy new vehicles,therefore everone is being bailed out from the bottom to the top. It seems to me that the poor American household is being taken for idiots,we're not allowed any bailout money but we are expected to pay it back. Wouldn't that be considered discrimination?? Why not give each American household,whether it be one person or a family of ten,$5,000,000.00 dollars per household and let it bail the economy out form the bottom up? Is it because we are not wealthy enough to be reconized? We are reconized enough to be expected to pay it back.
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4-12-2009 @ 2:22PM
Roy said...
It makes me wonder just how many millions or billions of under the table dollars is being given back to the politicians from the wealthy that is getting all the bailouts.
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4-23-2009 @ 3:29AM
Katherine said...
This didn't happen over night people. There are three main types of government: Capitalism, Socialism and Communism... in other words: limited government, moderate government and total government. You still think we have a say in ANYTHING?? We the People?? Are you kidding?? Having certain ideals in the past made us patriots- today we are considered domestic terrorists. Our freedoms that we Americans cherish are already limited and declining rapidly. We need to ignore the media and their view of protesting, & take a stand and fight for what we believe while we still have a constitutional right to do so. If we don't- we only have ourselves to blame. Ask yourselves- once this "One World Government" is formed- what type of government do you suppose it will be??? And why are politicians and the media pushing it so forcefully???
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