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Can someone explain this Bailout?

I have tried and tried to follow this bailout. But I am getting so confused. I DO NOT understand it one bit!

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Anonymous

Asked by Anonymous at 8:24 AM on Oct. 2, 2008 in Politics & Current Events

Answers (2)
  • First they are going to borrow 7 hundred million dollars from the American people. Then they have given Paulson the ability to take up the many mortgages, and other bad debt(credit cards, school and other loans) Then they will try and sell them. They will do this by making up a worth for them since no one really knows how much they are worth. There are many things wrong with this, mostly it's a crap shot. We have no idea if the money will be made up by the sales of these items. They have a provision in there that says something about if the money is not made up within 5 or so years the businesses who benefited from the bailout will have to pay some fine. (If they are still around).
    It's complicated and hard to explain in this short space. Its a bandaid and our problems are not going anywhere. They are trying to scare people into thinking it has to be done. I say when it's done you need to be scared.

    itsmesteph11

    Answer by itsmesteph11 at 10:16 AM on Oct. 2, 2008

  • OUr government is borrowing money from foreign countries, (with the AMerican Taxpayer as the co-signer) to bail out an industry the givt forced to make loans to a segment of people who they knew would not be able to pay the loans off. Thus it is basically to save the butts of people who should have known better but were forced by govt. regulations to comply........ Does it have to be done---no, but that means we would be in for several years of recession/depression like economy as the market corrects itself. It isn't pretty but neither is such debt. What would we do as a Nation if China calls in their loans to us???
    Anonymous

    Answer by Anonymous at 11:20 AM on Oct. 2, 2008

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