“Bailout” — Or Something Else?
EmailOur business correspondent Betsy Stark blogs: Is what we have here a failure to communicate? Beyond the populist outrage and political self-interest that sank the House vote, some are making the argument that the Administration just hasn’t done a very effective sales job persuading Main Street America that it has skin in this game. Sure, there are small businesses and consumers that are feeling the pinch of tighter lending, and lots of people are going to get their quarterly 401k statements and see that the value of their nest eggs has dropped some more, but what Paulson and Bernanke were pitching was Apocalypse Now. And that moment — thankfully — has not arrived. Public relations professionals, including Stan Collender of Qorvis Communications on TalkingPointsMemo.com, say this has been a bungled effort from a PR point of view: "From a communications perspective, this has been done about as wrong as is possible. There have been no credible spokespeople, the messages about the plan have been wrong or incomplete, the plan’s supporters failed to understand the different audiences that had to be reached, and few people validated the claim that the plan was needed…" It hasn’t helped, as others have noted many times, that the Treasury Secretary, the chief salesman (widely revered right now for his deep understanding of financial markets), is a former Wall Street titan. Some have suggested his experience as former CEO of Goldman Sachs has made him unduly sympathetic to the interests of investment bankers over ordinary homeowners and depositors. Whatever the reality is, the perception is a problem. And then there’s mind-numbing complexity of it all. Finance professionals have confessed that they didn’t really understand some of the arcane products their firms were selling before it all went wrong, so how are regular folks, who may not be investors at all, supposed to wrap their heads around the risks to them of soaring LIBOR rates? LIBOR? No wonder they’re suspicious. Economist Jared Bernstein of the Economic Policy Institute told me earlier this week he had wondered if maybe there was some "fear mongering" going on here. P.S.: he now believes the scary pictures Bernanke and Paulson have been painting. But he has a Ph.D.
RSS
Twitter
Facebook
Watch John McCain closely. He uses sarcasm, combativeness, and anger – dismissing any opposition, all are character traits of Power and Control. McCain is a scary guy. ……….
Posted by: Ohg Rea Tone | October 1, 2008, 12:02 pm 12:02 pm
Look at the approval ratings; it says it all. Congress and the President’
s office, are filled with liars, untrustworthy individuals, whop are more concerned about their own hides, and good public opinion then they are about serving.
Do you trust them? I don’t.
Posted by: Thinking | October 1, 2008, 12:06 pm 12:06 pm
As in every work enviroment these days the “Bail Out” is quite a topic…
My boss told us of an idea that we all think is the perfect solution to the problem.
In stead of saving the butts of the people that tried to take advantage… The XXX Billions of dollars that the government is thinking of using to “bail out” these institudes… take that money and devide it amoung each natural born citizin (must be born in the US) that is over 21 years of age and can prove at least 3 years of income where they paid taxes.
With that money they are taxed at 30%.
Most people will take that large of amount of money and purchase the one thing that is REAL value… Real Estate!!!!
This would create the banks to finance the loans… The government would be able to recoupe moneys in taxes on the money that they give to the citizins and on the property taxes….
Seems that everyone would be a winner in this type of “Bail Out”
This would be a long term solution, not a “get out of jail free” for the one’s that caused the problem.
I really feel that if you know you can not afford it, stop dreaming and live with reality!!! Be responsible and take responsibility for your actions!!!
I rent my home because I knew back then that I could not afford to purchase. Why should I pay in the long run for something others did???
Posted by: Teri | October 1, 2008, 12:36 pm 12:36 pm
The “Bailout” for banks is wrong and unconstitutional. These bankers and investors didn’t care if people were able to pay their loans; The bankers greed and buyers desire to have the American dream is what has caused this problem. Instead of foreclosing they should have tried to work out a workable payment plan for the the people.
As for our elected officials saying this country needs this; everyone one of them have a lot to lose and there fore want this Bailout. They are liars; why should we trust them. And media pushes their opinions around swaying many people.
Bailing private sector business is wrong, banks and automakers need to do business better. Did our government ask the American people if it was okay to use our taxes to do this.
We need to keep our government from the banking business.
I want to urge very American to vote current incumbants out of office. And then maybe they will understand they are suppose to be working for the people.
Free enterprise means the freedom to succeed and the freedom to fail and these business have failed in leaps and bounds while the CEO’s walk away with millions.
Posted by: Gail-independent | October 1, 2008, 2:26 pm 2:26 pm
This “”Golden Umbrella”" crap has to stop and stop immediately. We the poor taxpayers are giving to Robin Hood a/k/a the Government to give to the rich CEOs of this country.
I don’t like it and I am tired of the Repubs fighting each other all the time. It is time to stand up and be counted and vote what the people want and not want the “GANG” or the party wants.
I am angry with our politicians but I am not angry with my Country. I am proud to be an American and I love America.
It is time to be working together, loving each other and work for our country. Anything divided against itself will fall.
I worry about my country falling, like Gorbochev said at one time, (I cannot quote exactly) but, we will not destroy you, you will be destroyed within. I think the man could have been right.
Please, Government, work together and stop fighting like two football teams. We the people need to feel safe in our homes and in this country.
Posted by: ILgrannyof3 | October 2, 2008, 2:11 pm 2:11 pm