How are you venting constructively about failed bail-out bill?

From reading your email, “The Publicity Hound’s Tips of the Week,” I really appreciate your ideas. But, may I offer you some advice??

I’d turn off MSNBC and MSN if you’re looking to eliminate your non-head exploding drivel.

Couldn’t disagree more with Ms Simonds. The idea of a recession is some months off – saying THERE WILL BE ONE is only adding to the problem.

Notice where the markets ended today (up). The majority of this problem has been caused by accounting rules that can be changed by executive order from the SEC – something that does not require any legislation.

Jim in Atlanta

/soapbox

Why would something like this work for the current bailout?

I didn’t create this idea but it sure sounds pretty good to me…somehow practicality never seems to raise it’s hand when we need it….

I Think This is brilliant!

I’m against the $85,000,000,000.00 bailout of AIG.

Instead, I’m in favor of giving $85,000,000,000 to America in
a We Deserve It Dividend.

To make the math simple, let’s assume there are 200,000,000
Bona fide U.S. Citizens 18+.
&nb sp;
Our population is about 301,000,000 +/- counting every man, woman
and child. So 200,000,000 might be a fair stab at adults 18 and up..

So divide 200 million adults 18+ into $85 billon that equals $425,000.00.

The plan is to give $425,000 to every person 18+ as a
“We Deserve It Dividend”.

Of course, it would NOT be tax free.
So let’s assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes.
That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket.
A husband and wife has $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family?
Pay off your mortgage, housing crisis solved.
Repay college loans, what a great boost to new grads
Put away money for college
Save in a bank, create money to loan to entrepreneurs.
Buy a new car, create jobs
Invest in the market, capital drives growth
Pay for your parents medical insurance, health care improves
Enable Deadbeat Dads to come clean, or else

Remember this is for every adult U S Citizen 18+ including the folks
who lost their jobs at Lehman Brothers and every other company
that is cutting back. And of course, for those serving in our Armed Forces.

If we’re going to re-distribute wealth let’s really do it…instead of trickling out
a puny $1000.00 ( a vote buy ) economic incentive that is being proposed by one of our candidates for President.

If we’re going to do an $85 billion bailout, let’s bail out every adult U S Citizen 18+!

As for AIG, liquidate it.
Sell off its parts.
Let American General go back to being American General.
Sell o ff the real estate. Let the private sector bargain hunters cut it up and clean it up.

Here’s my rationale. We deserve it and AIG doesn’t.

Sure it’s a crazy idea that can never work.

But can you imagine the Coast-To-Coast Block Party!

How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion
We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC.

And remember, The plan only really costs $59.5 Billion because $25.5 Billion is returned
instantly in taxes to Uncle Sam.

Ahhh…I feel so much better getting that off my chest.

PS: Feel free to pass this along to your pals as it’s either good for a laugh or a cry or a very sobering thought on how to best use
$85 Billion!!

Being we are in the midst of an economic breakdown crisis, where capacity to service credit securities with wealth generated from real physical output is hopelessly deficient, I did the only decent thing one can do — I told the truth.

Stock Market Not Hostage To Congressional Bailout

Joan, you asked for a tip on what to do. My advice right now is hold tight. There is good technical reason to expect a nice bounce in the stock market. Don’t get suckered here and sell.

(Per “good technical reason” I assess measures helping me discern what investors are doing with their money, which in the grand scheme of things is all that really matters.)

Longer term, though, there is [OBVIOUSLY] considerable reason to be concerned with your investments. Time will soon come when you will be wise to batten down the hatches and switch your speculative positions (in stocks and bonds) into a safe money-market fund investing in short-term U.S. Treasury securities.

Bear in mind… this would be only a temporary posturing. Once trouble has passed — once there is “blood in the streets” — you will want to re-establish your speculative positions (I advocate these exclusively be in the stock market — forget bonds — because historically stock market investments vastly exceed the performance of all other financial assets).

Bottom line, managing a 401(k) or an IRA requires just a bit more active management than is necessary for a bank savings account (but only just a bit more; there’s no reason to actively trade). The simple truth of the matter is this: sometimes the stock market sinks by 30-50% or more for whatever reasons suit the moment. This sort of thing is as natural as the sun rising and setting.

January 2000 I got out of the stock market. 100% out. A little early, yes. But I avoided a bloodbath.

February 2003 I got back in the stock market. 100% in. At the time it was fairly clear a floor of support was building under “the market.”

June 2006 I cut back my stock market exposure 50%.

January 2008 I got 100% out of the stock market. And here I remain.

Again, since it sounds like you’re in. Hold tight. Over the weeks ahead look for a bounce allowing you to trim your exposure.

I am assuming your investments are in a tax-deferred savings account (401(k), IRA, etc). You are aware when you sell an investment in these, there is no capital gains tax? So, if you fear there’s too much risk here (and may 20+ years watching these things closely concurs your fear is warranted), then reduce your exposure and lock up the proceeds in a safe money-market fund. Better to make 2% than lose 50%, wouldn’t you say? That’s the risk. And I am not shooting darts…

Dian, unfortunately your math is wrong. When you take 85 Billion and divide by 200 Million, you get only $425. Dollars. Not hundred thousand, just $425. It would take 85 Trillion with a (T) to give the 200 million 18+ citizens almost half a million dollars.

I know, I know, too many zeros. But I’ve seen this proposal before and tried doing the math then and it didn’t work out then, so I did it again. Drop all the zeros and divide 200 into 85,000 you get 425:

85,000,000,000 (85 Billion)
divided by
200,000,000 (200 Million)
=
$425

or done in reverse:

200,000,000 X 425 = 85,000,000,000

$425 isn’t much – not even as much as W’s tax rebate earlier this year…don’t think it’d stimulate the economy that much.

Even if you took the proposed $700 Billion and divided by the 18+ population of 200 Million you’d only give each citizen $3,500.

++++

Having said all of that, what actual signs are we seeing (other than headlines) of a catastrophic economic meltdown? The company I work for is doing well – we can’t keep enough people on to do the work we have lined up. I don’t personally know anybody that’s been downsized as a result. I have a mortgage refinance underway that started the day of the big appearance by Hank from the Treasury Dept – and so far there’s been no indication that I won’t be able to borrow the money. In fact, I have at least half a dozen lenders vying for my business.

Everybody buys into a panic; the media perpetuate it; more people but into it and it’s a self-fulfilling prophecy. I think if you choose not to participate in the scatterbrained thinking, take stock of where you’re at, make prudent moves, you’ll be okay.

Yeah, I know stock market values have decreased, unless you’re a day trader you should be in for the long term – and chances are the cycle will turn and your value will come back, and probably increase from it’s earlier high.

2 cents

You may find this harsh but anyone investing in the stock market deserved any losses incured. It is no secret Wall Street is a risk. This is only a way of payback for all the years and mills made before the drop. The only advise I have for you is do not hold on so long, it’s not like you could see this coming. Greed makes logical people do risky things in hard times.

I came to the conclusion I was going to be poor and even that is becoming hard. Learn the word budget and stick to it. Welcome to the otherside.