Bailout Bill Passed: NOW WHAT?

[Florida Cindy]

Bailout Bill Passed: NOW WHAT for Americans?

[Chreamps]

:pray

[Heather Manning]

:pray

I'm thinking that's about it. :)

My mom called me as I was picking up my 4 year old from preschool and she was listening to Glen Beck, which I wasn't listening to because when my DH took my van to the mechanic, oh a month and a half ago, they took my face off my radio so it wouldn't get stolen in the parking lot at night. And Pato forgot to get it back. His best friend just went and brought it back to me this afternoon. :clap Sorry, OT, I've been going crazy with nothing but fighting children in my car. LOL

Anyways she said he was calling for people to stock up on food (she wants to buy a side of beef), leave your money in the banks though, don't panic. I just went to his website (http://www.glennbeck.com/), it looks like he was talking about a NY times article, which I now need to find. Heck if I can find it right now when I want to. Something about how the US now has a section of our troops ready just for here in the states, how the sales of guns and ammunition are going up. Anybody listen to today's show, that could fill me in? Because by the time she was done telling me about it, I was ready to move back home. (:lol - kinda :()

[tsaria]

Good thing we already planned to go grocery shopping tomorrow.

I admit this has tempted me to buy a house already (and one closer to family at that) but we're just not ready to buy a house yet. How I wish this stuff was happening in 2 yrs, not now.

[mlpieters]

i definitely don't think Americans should think this is going to solve our problems. Word from the White House is that this was just to stop the downward spiral.

pondering what our next financial decisions should be...

[Microferk ~ Miki Ferkul]

I'm thinking that's about it. :)

My mom called me as I was picking up my 4 year old from preschool and she was listening to Glen Beck, which I wasn't listening to because when my DH took my van to the mechanic, oh a month and a half ago, they took my face off my radio so it wouldn't get stolen in the parking lot at night. And Pato forgot to get it back. His best friend just went and brought it back to me this afternoon. :clap Sorry, OT, I've been going crazy with nothing but fighting children in my car. LOL

Anyways she said he was calling for people to stock up on food (she wants to buy a side of beef), leave your money in the banks though, don't panic. I just went to his website (http://www.glennbeck.com/), it looks like he was talking about a NY times article, which I now need to find. Heck if I can find it right now when I want to. Something about how the US now has a section of our troops ready just for here in the states, how the sales of guns and ammunition are going up. Anybody listen to today's show, that could fill me in? Because by the time she was done telling me about it, I was ready to move back home. (:lol - kinda :()

I like Glen, but he can be quite an alarmist- remember his show after 911?

[ccubed]

This American is hoping that it does not cause the value of the dollar to plummet. For some odd reason beyond my comprehension, the dollar has slightly rebounded since the beginning of August and has hung tough during the past weeks of financial turmoil. Color me very confused.

Anyway, I need the exchange rate to stay steady or get better so that we will not lose a big portion of our house down payment due to a nasty exchange rate - - a downturn in the dollar could blow us right out of our house. :mad

[Heather Manning]

I like Glen, but he can be quite an alarmist- remember his show after 911?

Thank you for reminding me of that. LOL I'm just kinda freaking out. 3 kids, pregnant. My DH's work is in the restaurant business, not exactly a necessity for most people. More a luxury to go out and eat right now. He just went to Ohio last month for 3 months to work with his uncle before we and he (his uncle) invest in a restaurant.(get throughly taught on how to own a restaurant so we don't go down.) I'm starting to think now is not the time. Though the restaurant we want to buy is already open and doing well. I'm worried about the timing, the economy, $$. This was supposed to be a good thing. With the baby coming we were looking forward to it. With what the restaurant is making now, it would triple our income pretty much, that's not counting our hopes of having it really take off with ideas Pato has, we could FINALLY buy a house.

He's been saying there is not a lot of business at his uncle's restaurant where he is at right now. It's an established restaurant that was doing really well. I'm just cringing right now at things getting worse, because we're really tightening down ourselves because of this.

[HLWalter725]

Did you see all the additions in that bill? The sweetening of the deal to get everyone to sign is making me sick.

Here's the list I pulled off Yahoo quickly:

There are also some four dozen small provisions. Among them, with projected costs over 10 years:
_Extending an expired provision that gives Puerto Rico and the Virgin Islands a rebate against excise taxes charged on imported rum. The rebate, at $13.50 per proof gallon, helps finance local infrastructure projects. The cost is $192 million.
_Establishing a new tax credit ranging from $2,500 to $7,500 for purchasers of plug-in electric-drive vehicles. Cost: $758 million.
_Extending tax credits that expired at the end of 2007 for certain domestic corporations involved in American Samoa economic development. Cost: $33 million.
_Extending a credit of up to $10,000 for the training of mine rescue team members. The credit expires at the end of this year and the one-year extension costs $4 million.
_Enacting President Bush's proposal to erase the debt of the black lung disability trust fund at a cost of $1.3 billion.
_Extending for one year a seven-year depreciation timetable that NASCAR and other motorsport racing facilities have had for some years, the same tax break that amusement parks enjoy. Without the extension, the tracks would have to depreciate the cost of their improvements over 15 years, raising their taxes by $100 million.

_Extending for five years a program that reduces import duties on some wool fabrics. The tariff relief benefits U.S. worsted wool fabric producers that use imported fibers and yarns. Cost: $148 million.
_Increasing the single-year deduction in production costs, from $15 million to $20 million, that film and TV productions may take if the costs are incurred in economically depressed areas. In an effort to keep film and TV productions in the U.S., it also allows more companies to use a domestic production deduction. Cost: $478 million.
_Allowing commercial fishermen and others hurt by the 1989 Exxon Valdez oil spill in Alaska to average out damage awards over three years rather than taking a one-year hit from the IRS. Cost: $49 million.
_Extending two programs that fund rural schools and rural communities that have been relying on declining income from logging on federal land or have low property tax bases because they are located on or next to federal lands. This is a major issue in the West. Cost: $3.3 billion.
_Exempting wooden practice arrows used by children from an excise tax of 39 cents per arrow. Oregon's two senators and two Wisconsin representatives previously introduced legislation calling for the action, saying the tax was meant for more expensive archery arrows and is untenable for makers of toy arrows that may cost only about 30 cents apiece. The bill would affect about a half-dozen manufacturers nationwide, including one in Oregon; the Oregon senators said they didn't seek its addition to the bailout, however. Cost: $2 million. _Allowing employers to exempt from taxation what they spend on some fringe benefits for workers who commute to work by bicycle, for example reimbursing the cost of parking the bikes. Cost: $2 million.

[[michele]]

U.S.News & World Report
Bailout Will Help, but Pitfalls Remain
(http://biz.yahoo.com/usnews/081003/03_bailout_will_help_but_pitfalls_remain.html?.&.pf=banking-budgeting)Friday October 3, 4:29 pm ET
By Rick Newman
The mammoth financial bailout plan is finally in place. But don't exhale just yet.


The $700 billion rescue bill that Congress finally passed will limit panic in the markets, since it gives the government vast new authority to take over sclerotic securities that have clogged the credit system and already brought down some of America's biggest companies. With the feds stepping into the bloodbath, the hemorrhaging should stop. But the economy is still in precarious shape, and unrealistic expectations about the bailout could end up disappointing consumers hoping for some kind of immediate relief.

Here are some likely developments for which consumers should prepare:
Less volatility. One thing the bailout will do is give investors some clarity and predictability, which will help calm the financial markets. With a clear plan for handling troubled companies--instead of the ad hoc approach applied to Bear Stearns, Lehman Brothers, and others--the government will abide by a consistent set of bailout rules, which will prevent the wild swings in the stock markets that made September a heart-stopping month.

But beware a sucker's rally. With the congressional melodrama over and the bailout in place, the markets will be reacting once again to ordinary economic forces--which are weak, at best. A few other big financial firms, and a lot of regional banks, are expected to take a hit next, especially if the credit crunch persists. Even if the government manages those problems smoothly, shareholders could get wiped out or of suffer deep losses. The global economy is cooling, too, which means less demand for American exports--a rare economic bright spot until lately--and lower profits for American multinational firms. All of those factors are likely to weigh down stocks.

Safe banks. There will probably be more bank failures, but the bill makes it clear that depositors don't need to worry about their money. The bill raises the amount of deposits covered by the FDIC from $100,000 to $250,000. That makes an implicit guarantee explicit: Until now, the FDIC has covered all deposits, including those over $100,000, to prevent "walks" on banks by people withdrawing everything over the insured limit. Now, the government will guarantees that higher amounts will be covered, even if banks fail.

A recession. Unfortunately, a more stable financial system probably won't prevent a sharp economic downturn, which already seems to be underway. Economists will probably continue to argue about whether it's technically a recession. But for many consumers and a lot of big industries, it doesn't matter what you call it: Times are tough, and getting tougher.
Job cuts in September--159,000--were the most in five years. Most economists are betting that additional jobs are going to be cut in coming months as companies hunker down. Worried consumers are likely to cut spending, deepening the dismal cycle.
There's already a recession in the auto industry, for example, which accounts for a big chunk of Americans' economic activity. Sales in September plunged to the lowest levels in 15 years. Deep worries--and profit-crunching discounts--are spreading to other sectors of the retail economy, too.
The bailout might help contain the damage. Theoretically, the feds' shock therapy will lessen the risk that a lot of companies will go bankrupt, which should motivate nervous bankers to start lending once again, with less fear that their money will vanish. If that actually happens, it will help big and small businesses alike continue to meet their payrolls. But there's nothing in the bill that forces banks to lend money, and they could just keep sitting on their cash for a while. And even if money loosens up, that's still no guarantee that consumers will spend. So any economic boost from the bailout will be indirect and probably take a while.

Minimal tax relief. A tax increase to pay for the bailout seems unnecessary, since many analysts think that the eventual sale of troubled securities could cover the government's costs. But added short-terms costs means that tax cuts anytime soon look less likely. Both Barack Obama and John McCain are pushing tax breaks, a perennial campaign promise. Obama wants to cut taxes for most Americans earning less than $250,000. McCain's plan calls for cutting capital gains taxes and corporate income taxes and extending other tax cuts that are set to expire soon. But don't bank on much relief: With the soaring costs of the federal bailout--plus added expenses, like up to $50 billion in loans for the Detroit automakers--anything that adds to the federal deficit next year is going to be hard to slip past budget hawks in Congress. A smaller set of tax cuts might be possible, though.

Scarce consumer loans. Banks have cut back on virtually every kind of loan to consumers, whether it's for cars, homes, vacations, or small credit-card purchases. One new government provision may help some homeowners who are at risk of defaulting, through a program that allows certain homeowners to renegotiate their loans with the bank. But it's not clear how effective that program will be.
While the bailout is supposed to ease the "credit crunch," it will probably be a while before relief reaches consumers. For one thing, the government will focus first on freeing money for banks and businesses so they are able to keep their operations humming and meet payroll expenses.
If banks do loosen up, the money flow may eventually trickle down to consumers. But stringent lending standards are likely to be in place well into next year, because banks are still digesting defaults on mortgages, car loans, and credit cards. And default rates are rising, not falling. Until those losses are covered, banks are going to say no more often than yes. For the next year or two, many Americans may have little choice but to save for a sunnier day.

[Gina.Maria]

I think we're all in agreement that this was a horrible solution and that there were other options. Unfortunately, no one could agree on an alternative in time to make a difference. I'm just appalled that $5.066 billion in spending was attached in order to gain votes. Seriously, NASCAR can afford $100 million.

[Amy Sumrall]

I have no idea what this means, but I will say that we bought our house 2 1/2 years ago and the values started plummeting right after that. Now our home is worth $100,000 LESS than it was when we bought it. At the time, we thought we were getting a good deal on the price of this home and now homes like mine are selling for up to half that price, if they are selling at all. Down here in S. Florida, almost everyone is resorting to short sales now. We feel truly stuck. We would love to move actually, now that we have since added to our family, but looks like we are just going to have to stick it out. It's so depressing.

[Barb Speck]

The problem with the bailout is that it really has nothing to do with the Stock Market. What will happen is that America will no longer be the Financial Capital of the world and New York City will be in a world of hurt. London or Paris will probably get that distinction. I think there is now only one Investment Bank left in America.

What the bailout will do is allow businesses to find money to borrow against. Example given was a lot of Senators and Representatives were getting calls from their constituents that things were so bad they couldn't even get small loans to pay their employees which would mean more businesses would fail putting even more people out of work. Car dealers, etc who depend on being able for their buyers to get loans were hurting even worse then before because there were no loans to be had. Forget buying a house because finding a mortgage has not been easy and so this puts a strain on everything. The bailout will put more money out there for loans but in saying that people will not get credit until I think I read you had a 700 or above credit rating which means that car dealers will still be hurting and mortgages will still be harder to come by. It will revert back to many years ago where you could only get credit if you had the income to afford it. I grew up that way and that's kind of the way I think it should be.

I remember when my son went to college, there were several companies at registration offering credit cards. Now what 18 year old really needs a credit card. Many got into playing internet poker or thinking the card was like play money and getting themselves into massive debt which they had no way to repay ruining their credit before they ever really started their adult life and probably were the ones getting their mortgages from the predatory lenders. What we did with our son was I put him on one of my credit cards so it was just the two of us and not DH and he built his credit with my credit. He also had to let me know when and how he wanted to use the card and it was more for emergencies then anything else. It also helped him establish credit without actually having to rack up a large amount.

This bailout is only a bandaid. People will have to start living differently. Don't know what your gas prices are but yesterday I saw gas for $3.29 and $3.09 why because a lot of people were not taking vacations, many started taking other transportation to work etc and prices are now falling because the demand for gas is less. Businesses will now have to adjust and bigger businesses will fare better then small businesses.

I think the telling thing was that one of our Senators stood up and told of the 90 year old woman who shot herself in the chest whlle the sheriff was at her door with an eviction notice. The government forgave her mortage with Fannie May but her house was sold at a Sheriff's Sale so I don't know what good that really did. She still won't have a home to go back too if she even survives.

Thank goodness this has gotten rid of all the predatory lenders. My daughter lost the condo left to her by her grandmother by being forced into bankruptcy after having gotten a loan through a predatory mortgage company. I think they all should have been charged and put in jail.

Will this solve all the countries woes absolutely not but hopefully it is a wake up call for our government and the greed that was out there with the banks and lending institutions. What's the saying just wait and history usually repeats itself. Luckiy it hasn't come to a 1930's type of depression but it has come pretty darn close.

[txmusicmom]

Bailout Bill Passed: NOW WHAT for Americans?

We totally got messed up! They added so much PORK to this blasted bill-

We didn't want the 700 billion bailout- much less all the STUFF they added so the 700 billion part would pass.

I think we should all throw a huge fit...........Shame on them........

We need change-- CHANGE IN CONGRESS!!!!! TERM LIMITS!

Did the stock market respond? Yes -- they went down........now what's with that? :shrug :shrug :shrug

[txmusicmom]

I'm just appalled that $5.066 billion in spending was attached in order to gain votes. Seriously, NASCAR can afford $100 million.

AMEN SISTER!!!! I'm just spitting mad!

[txmusicmom]

Did you see all the additions in that bill? The sweetening of the deal to get everyone to sign is making me sick.


Yes I heard that they specifically added things that would pull in remaining democrats and things that would pull in republicans-- it was well planned and thought out- JUST TO GET THAT stinking bill to pass

This has GOT TO STOP!

We need to vote them all out-- : ) :) :) :) :) :yahoo

Well the ones who voted for it-- my representative- Chet Edwards included.

[lorig]

Did the stock market respond? Yes -- they went down........now what's with that? :shrug :shrug :shrug

The stock markets dropped because this bill undermines the confidence of the market because it changes all the rules. No one knows now which companies will get help and which won't. I've also been hearing rumors of inflation concerns and even wondering at the possibility of hyperinflation.

[lunafaerie]

I think the telling thing was that one of our Senators stood up and told of the 90 year old woman who shot herself in the chest whlle the sheriff was at her door with an eviction notice. The government forgave her mortage with Fannie May but her house was sold at a Sheriff's Sale so I don't know what good that really did. She still won't have a home to go back too if she even survives.

I heard it was Congressman Kucinich. If he wasn't such a nut I would have voted for him in the primary. That story made me cry yesterday :(

[Scorpiosue1102]

The pork added to that bill was disgusting! So we had a bill for $700 billion that failed, but they pass one for $840 billion???? NASCAR, rum??? Unreal!!

Also, how about the $25 Billion given to the automakers too? That kind of snuck by everyone last week. If we can give $25 billion to the automakers how about $25 billion to insure that any child that wants to go to college can? or repave roads? fix bridges? school books for all classrooms? computers for all classrooms? Don't get me started :madness:angry:lol

[Gina.Maria]

I'm just sick about it and really can't even stand to think about how much worse it can get...

[Chreamps]

simonetta rossi posted: [Also, how about the $25 Billion given to the automakers too? That kind of snuck by everyone last week. If we can give $25 billion to the automakers how about $25 billion to insure that any child that wants to go to college can? or repave roads? fix bridges? school books for all classrooms? computers for all classrooms? Don't get me started :madness:angry:lol

That would just make too much sense. Totally agree with you.

[kjbstevens]

Seriously looking at the stuff it shows you where they have their priorities. Just like all of this wonderful stuff we're being told they'll do if they get elected. It'll talk so long to debate, add junk onto, or fix anything that unless they have 2 terms expect 10% of it at most and so many extras will be added on that it will cost so much that it just ruins us even more. They should never have to sweeten any deal that is meant to help people. Either do it or don't. This is ridiculous.

[Chreamps]

Yes, unfortunately, this is politics "at it's finest".

[April Staker]

Well, I am certainly going to look into my representatives. If any of them are running again and they voted for this I am voting against them. This just infuriates me. Our economy is not worth what they "think" it is and that is obvious. And the only way to fix it is to let things like those big biz companies fail like a regular biz would. Then another one can buy them up at what they should really be valued at. And then maybe things around here would go back to what they are really worth and all this over inflation would stop or slow down. Thank you congress. Thank you all of Washington for having your wallet where your brain should be.


grrrrr.

[Scorpiosue1102]

I don't mind that my rep voted for this because she voted for the first one without all the add-on's. Something needed to be done, but not to this extent.

[Barb Speck]

I heard it was Congressman Kucinich. If he wasn't such a nut I would have voted for him in the primary. That story made me cry yesterday :(

Yeah Tania it was him. I read that in today's paper. He really is a nut case but I think he does really care about people he just doesn't necessarily do it in the right ways. The woman is recuperating and they say she will be ok. At 90 years old who knows. That she was even able to shoot herself was quite something in and of itself. Poor thing.

[lunafaerie]

Yeah Tania it was him. I read that in today's paper. He really is a nut case but I think he does really care about people he just doesn't necessarily do it in the right ways. The woman is recuperating and they say she will be ok. At 90 years old who knows. That she was even able to shoot herself was quite something in and of itself. Poor thing.

Such a sad story, I'm happy she is going to live. I can't imagine the desperation she was feeling.

That caring about people is what strikes me the most about Kucinich. A politician who's not in it for himself, but genuinely cares. So rare and probably why he'll never be more than a representative :shrug

[kjbstevens]

I'd seen that story too. I'm glad he is trying to put a face to this mess to these people because I don't believe most of the others get it since they are all so well set themselves. I give him major credit for that.

[JCSimon]

I don't mind that my rep voted for this because she voted for the first one without all the add-on's. Something needed to be done, but not to this extent.

Exactly....my greatest anger is reserved for those who voted against it the first time but caved the second time BECAUSE of all the added pork. My rep from Michigan was one of them....you can be sure I'll be campaigning against him for the next 30 days.

[Gina.Maria]

I'm just angry that they caved to Bush and Paulson. I really think we should have done something that wouldn't involve a huge initial cash outlay that Paulson gets to play with like Monopoly money. We've got some of the most brilliant minds in our country centered around Washington D.C. - someone should have been able to come up with a more reasonable plan. Or are we more capable of fixing this mess here at DST? Shannon for President? We'll be the Cabinet and corps of advisors?

[meganmecrazy]

I'm so so so upset that they passed this! In case anyone was curious as to who voted what, you can view the VOTES HERE (http://clerk.house.gov/evs/2008/roll681.xml)!

[Hollie]

I'm just angry that they caved to Bush and Paulson. I really think we should have done something that wouldn't involve a huge initial cash outlay that Paulson gets to play with like Monopoly money. We've got some of the most brilliant minds in our country centered around Washington D.C. - someone should have been able to come up with a more reasonable plan. Or are we more capable of fixing this mess here at DST? Shannon for President? We'll be the Cabinet and corps of advisors?

You know, there were people giving other ideas. But I guess that didn't matter. I seriously don't understand this measure, and I really hope and pray that I'm wrong about it. But I've also kinda "gotten over it" so to speak. I mean, it's been passed and was signed by the President. Done deal. I can complain and be upset, or I can just get on with it. At this point, I've chosen to just get on with it. But I don't think I'll ever understand what the heck happened on Capitol Hill. At least one of my congressmen had the good sense to vote no.

[Chreamps]

Dow plunges as much as 800 before closing down 369. Yahoo news (http://news.yahoo.com/s/ap/20081006/ap_on_bi_st_ma_re/wall_street)

[NellieRose]

Dow plunges as much as 800 before closing down 369. Yahoo news (http://news.yahoo.com/s/ap/20081006/ap_on_bi_st_ma_re/wall_street)


What's so ironic is that the market spiked on the hopes of a deal, fell when the deal was struck down, rallied again with the deal being reworked then crashed when it was passed and signed...the reason given by "Wall Street": the bailout lowers consumer confidence.

LOL, leave it to Wall Street.....