Economy, Bailouts, Bankruptcy and the American People

[6ftladycop]

I sure would like to know those of you all this is effecting. I have been watching the news, I have been listening to the radio, I hear folks talking and I see evidence of the effect in some places and not in others. Are any of you being effected by all the problems going on in the US and if so, what do you plan on doing about it? Do we proceed as normal, or should we stop trying to buy houses, cars, get credit, apply for loans or anything. They have me so scared since my BK was discharged 2yrs ago, I have not done anything but look for a car. Even then, I was scared to allow the dealer to run my credit.

All this is so frustrating. What should I do?

[OhioFiler]

The stimulus package being proposed includes a $15,000 tax credit for homebuyers. Given the state of the housing market buying a home is probably a good investment at today's prices.

[Flamingo]

An interesting Letter to the Editor was in our newspaper the other day and the writer proposed that the government give every legal American taxpaying adult $1,000,000 instead of giving all those billions to the banks.

[6ftladycop]

Now thats a plan....lol

I have not figured out why the banks are getting money anyway...all of them are crooks.

[TEW]

[Flamingo]

Everyone with a retirement account is in that same nasty boat unless you were market saavy...there are some folks who watch the market and could see it was time to move money...September 2007...we have a good friend who watches the market like a hawk and advised us to get all our funds out of stocks and put them in a money market. I have my 401(k) in a balanced account set on my approximate time of retirement. I didn't move it - our friend did not take a loss although he makes about $10 a day while we make nothing...but the best thing to do is sit tight because if you sell now you turn paper losses in real losses and if you are still contributing you are buying shares of whatever you have your money spread out in at a low cost. Eventually you will recoup losses and go beyond if you don't touch anything - it may take a while and hopefully you don't have a short time until retirement and need those funds...

[Kansas1960]

I have studied the economy since I was in college. I read all I can and consider myself a student of economics and did get my degree in economics back in 1984. I saw the market turning in 2007 and decided to move my entire 401K balance from stocks to money market. It ended up being 200 points off the all time high when I pulled out on October 26th. Unfortunatly I put 25% back in when the market hit 10,000 several months later. I am now sitting 75% in money market funds. I am not moving any old money in but my new contributions I am buying into mutual funds and internation funds. I believe when all the printing of money is done we will have raging inflation. In that environment I am keeping in money market because interest rates will soar. Once that has run it's course I am going to shift all of it to stocks. That is my plan right now.

[Never_Again]

I am doing ok, so I don't see the effects as much...

Speaking of raging inflation, what do you think would happen if you gave every American a check for $1 Million?

[OhioFiler]

I am doing ok, so I don't see the effects as much...

Speaking of raging inflation, what do you think would happen if you gave every American a check for $1 Million?

The same thing that's going to happen once the government prints $1,000.000,000 and gives it to banks, states and pet projects. Adding that kind of money to the economy regardless who they give it to will cause inflation.

Tax cuts is the way to get the economy rolling.

[nervousss]

We as a society have been living on false wealth for far too long. Being in debt in exchange for having lots of stuff is a form of slavery, and we've all been eating it up for years. America needs a fresh look at how our gluttony has hurt our population, regardless of the economic state of the world!

[drowningNdebt]

Fact is that the american dollar will go BK if Obamas new baliout plan doesn't work. They already have a new dollar sort of like the euro for back up in mind. Look, there really is no option here. We have WAY to much debt deficientcy and just adding to it by the billions is not the way to get out of a hole. Look at what got us into our BKs? Make sense?

[Kansas1960]

The back up currency is the Amero. There has to be a crisis to make this come forward. How about the last two crisises. Paulson says the banking system is on verge of collasp so they pushed through a 750 billion bailout. Now Obama says if we don't act now the economy may never recover...now we are getting a 1.2 Trillion bailout (counting interest). The next crisis will be hyper-inflation. When the value of your savings drops in half every month you will be screaming mad. That will be the "crisis" that will move the Amero to the front. But the real crisis will be when China does not get paid with a currencey of any value. Will there be war? Will we have any money to pay our seniors social security? Will the drug lords in Mexico move in since our military will be so weak? We will be begging for leadership. I don't know if this will be the time for a "leader to come from the East" or if we will roll over and bow down to the UN. Maybe the super volcano in Yellowstone will blow since it is overdue and we can just start over.....anymore George Washingtions out there?