If the bailout doesn't pass
Question: Lonnie asks Dave to explain what it will mean to the average person making $35,000 a year if the bailout bill doesn't get passed.
Dave Ramsey's advice: No one knows is the truthful answer. I'm just speculating like everyone else, and I tend to be more optimistic than a lot of people. Maybe that's knowledge of the stock market history or maybe it's because I've been through bad times myself. My best guess is that the bill not getting passed won't affect your trip next year, or buying a baseball glove or ballet lesson.
It would potentially affect the stock market. Its hissy fit may evolve into a seizure and you may see some drops in your mutual funds. If you panic based on the news, you're being silly and making a bad judgment call. When they didn't pass the bailout on Monday, the market threw a fit. The stock market is emotional on the short term. On the long term, the emotion is ground out of it. Companies are worth more as they make profit over the years. Your investments will recover.
I think the lending landscape has changed completely. It's good that people who can't afford to borrow money can't get a loan. That's GOOD! You can buy a $20,000 car today, but you can't finance 140% of it. You're going to be fine, and if they don't pass this bill, then in a year, your 401k will probably be worth less, but it will come back over time. Some industries will struggle because they were based on subprime lending and they'll go away, and that's good!
subsidiaries. Bank of ShangHi could transfer all the US debt to Bank of ShangHi Los Angelos. LA subsidary will then sell to Treasury and then transfer funds
back to ShangHi Wow, way to protect the foreign investors over US citizens.
I saw you on Neil Cavuto's show and you make more sense than the entire incompetent Congress. It would be benficial to Americans if you and Neil can identify the amount of $ in the bailout which is intended for pork and the real amount going to solve the stated problem.
Thanks and please continue intelligently informing the public.
I was the first caller on tonight's show where you appeared w/Neil Cavuto. I had two comments and in my effort to be brief,instead of allowing you to reply to the first, I rushed on w/ my second comment(sorry--my first time doing anything like this) I don't understand why the language of this bill and all important documents are not written in a language that we can ALL understand. Trying to make sense of the version I read a couple of days ago -no way. Is it done purposefully so that we will throw up our hands and leave it all up to those in Washington to figure it out for us? Thank you.
I choose this country to live permanently. Living here since 4 yrs now. When I started living here, I fount that the Credit Card is the Devils Web and is the greatest curse on the people here.
I CONGRATULATE YOU THAT AT LEAST ONE PERSON - YOU, HAVE REALIZED IT.
I sincerely pray that people realize that the "Intrest & easily Loan" in the form of CREDIT CARDS is the mother of all financial troubles.
The say the banks have a liquidity problem that is causing a tightening of credit. But, we are going to borrow $700 Billion from the banks that they create as a book entry. Then we are going to 'gift' it to the banks. Then, we are going to pay it back to the banks with interest.
Let's address the root of the problem. We do not need the banks for liquidity. We can create new money just like banks do when they make loans but we can create it and 'spend' it into circulation for production that benefits all society mutually (roads and Bridges)rather then 'lending' it into circulation. The money supply increases with production. No new debt. No new Taxes! High-paying jobs! Liquidity! We should 'own' our medium of exchange not 'owe' it. National and State legislation has already been written to do this.
Arzoo is right. Americans are so tangled in debt they don't even see the spider is coming.
the same time, there is only one instutition
that can afford to take on that debt and that
is the US Gov't" - Warren Buffet. The credit
crisis is real and it is getting more severe
every day. The lasting effect will not be Wall
Street but instead Main Street. LIBOR is
trading at a 450 basis point above Fed Funds
Rate, which means that the average american can
now not get a loan. When companies are forced
to lay off employees because they can't make
payroll then Main Street may wake up to the
problem.
This is not a bailout, it's a buyout and there
near certainty that the Goverment will not lose
a penny. The Mark to Market changes being
proposed is nothing more than an artificial
scam, just ask any accountant (the value is
what the value is). As for me, I will put my
vote with those considered the best economists
and investment people in World, including
Warren Buffet, Bill Gross and Ben Bernake.
These gentlemen believe the credit crisis is
real and the effects will be more than just
some losses in your investments, like
significantly higher unemployment. This bill
will not solve all our economic problems but it
will avert the immediate crisis, which is the
worst since 1929. Unprecedented times call for
unprecedented measures.
Concerned christian and republican that believes
the uninformed electorate needs to be
communicated with more appropriatly.
Why can't we create money? The banks create all the money all the time. They lend it into circulation. Interest is what causes what you call "inflation" by causing a constant and growing spread between the price of raw products and the price of finished products. In every case you study, if you look close enough you will find that when they had inflation by creating money is was because they 'loaned' it all into circulation.
Governments do not print money. In America, the Bureau of Engraving and Printing simply does a print job for the banks when they want Federal Reserve Notes. The only way you and I can get them is to 'pay' for them with book keeping entries in our checking account. We write a check for cash. Economic Slaves owe all their money. Free people own their money.
Money is sterile. It has no natural reproductive capability. It must be manufactured like cars, sofas, etc. then put into circulation. There are only 3 ways to put it into circulation. It can be 'gifted' in which eliminates the incentive to produce. It can be 'loaned' in which causes spiritual, morel, ethical, legal and social destruction or it can be 'spent' into circulation as a debt-free representation of wealth that benefits and serves all society.
vote for congressman that don't less to the people that voted them in office. It's not fair that as senior
citizens we play by the rules but others are not held to the same standards.
The bailout is a sham on the American people.
The only crisis is that people need to learn to stop going into debt.
Dave is right.
OK, if the government takes money as taxes and lends it back to me, do I benefit? Or is the government that benefits, when it says the economy is doing better when its just a reshuffle of debt?
If the government borrows from the future to make things look better today, what will the future be like?
What if the debt is not repaid- is it theft by deception?
Say hello to the new dollar, worth 25cents.
By banker spanker @ 03/10/09 11:51:33 PM
If the government borrows from the future to make things look better today, what will the future be like?
What if the debt is not repaid- is it theft by deception?
Say hello to the new dollar, worth 25cents.