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Should the US government do anything about the financial crisis?

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Aloone_Jonez:
Should they allow the natural free market sort itself out or should the intervene?

Do you think the US government will respond in the long term by introducing more socialist economic policies?

It think the problem isn't free trade but that stocks and shares are traded to dynamically in stock exchanges, miliion doller deals can be carried out at the press of a key - something radical needs to be done to make investors more cautious when they play with money.

Lead Head:
I'm not entirely sure on this one. I don't think the people who ran these companies should be essentially be getting away with being a total dumbass, but on the other hand I'm not entirely sure how the economy would be fairing if they didn't help.

worker201:
I think some sort of bailout is necessary.  It's not the fuckheads who ran their companies into the ground that I'm worried about - I'm sure they'll have no problem funding their own early retirements.  It's the poor schmucks who invested in the first place who get fucked.  Since almost all of those, especially on the high-interest mortgage side, are low-income families (who probably shouldn't have been given mortgages in the first place), they'll be broken and homeless within a few months if we just allow these companies to fail.

Sure, the market would figure itself out eventually.  But it would leave a lot of dead bodies in its wake.  I think the government has a responsibility to lessen the collateral damage if it can.  Post the money for a bailout, but all the executives get minimum wage for 6 months.  That'll teach them.

The speculative hypervaluation of properties and commodities is the real fucking problem, and I don't have any idea how to solve it.  Set stock value at a percentage of the company's cash holdings, and limit speculative trading to 1 year in advance, maybe.

davidnix71:
I know someone who works at Wendy's (do you want fries with that?). He has a wife and kid and a $3k a month mortgage. I asked him "what were you thinking?" and he didn't have an answer.

Under the failed bailout plan, the government would become the landlord and would try to negociate a mortgage that was affordable, and would recover the money when the property was sold. That's probably the least messy way out.

Foreign investors who were scammed by US banks and brokerage firms should be protected some, too, so they will be willing to invest again. Locals who were scammed have an easier time suing. Otherwise, the firms who gambled with money that wasn't theirs to gamble with should simply be allowed to fail, and the principals held personally responsible to the full extent of their assets.

Fucking up the whole world's economy for personal gain should be treated as a war crime.

It's really a shame we don't have the old USSR penal model. Anyone who stole more than about $200k was simply executed.

All adjustable rate home mortgages as well as balloon (interest payments only at the start) should be absolutely outlawed.

Aloone_Jonez:

--- Quote from: davidnix71 on  1 October 2008, 01:09 ---It's really a shame we don't have the old USSR penal model. Anyone who stole more than about $200k was simply executed.
--- End quote ---
What a legal system that protects the state from its people rather than its people from the state?

You can't be serious.

You might as will suggest that the US govermnet should adopt marxism and drive the country down the road to socialism, communism and all that bad stuff.

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