The other day I was listening to NPR and they were discussing the fact that Japan went through a similar financial crisis (to our current one) back in the 1990's. The country ended up going from around 30 national banks to the 4 they have today (my facts may be slightly off, but this is the gist).
Anyways, I was relaying this information to a friend who said something about that being a scary thought - only 4 banks in a country. Well my thought is that with a bailout of this magnitude, aren't we basically creating one bank - run by the government? I may be wrong here, but that just seems ridiculous. I am not a financial analyst and there are many things I have no clue about, but I have a hard time knowing that if this bailout passes, we, as taxpayers, will be footing the money for the high risks these banks took.
Below are some interesting links I have read recently. One is an alternative plan that Dave Ramsey is proposing. I really like Dave Ramsey and his view on money management and I think he may be on to something.
http://www.daveramsey.com/etc/fed_bailout/index.html
The other is a commentary by Jeffrey A. Miron, senior lecturer in economics at Harvard University. I whole heartedly agree with his commentary - if any other company was in this type of situation, they would declare bankruptcy (think the airlines in recent years). Our economy needs help, but I can't help but feel that more government, at the cost of the tax payers, is not the best solution.
http://www.cnn.com/2008/POLITICS/09/29/miron.bailout/index.html?iref=mpstoryview
Addendum: These are my thoughts as a taxpayer. In terms of the positive effects that the bailout will hopefully have on the company I work for and companies across this nation, I know that it is important for something to happen soon - many jobs are dependent on it...
Anyways, I was relaying this information to a friend who said something about that being a scary thought - only 4 banks in a country. Well my thought is that with a bailout of this magnitude, aren't we basically creating one bank - run by the government? I may be wrong here, but that just seems ridiculous. I am not a financial analyst and there are many things I have no clue about, but I have a hard time knowing that if this bailout passes, we, as taxpayers, will be footing the money for the high risks these banks took.
Below are some interesting links I have read recently. One is an alternative plan that Dave Ramsey is proposing. I really like Dave Ramsey and his view on money management and I think he may be on to something.
http://www.daveramsey.com/etc/fed_bailout/index.html
The other is a commentary by Jeffrey A. Miron, senior lecturer in economics at Harvard University. I whole heartedly agree with his commentary - if any other company was in this type of situation, they would declare bankruptcy (think the airlines in recent years). Our economy needs help, but I can't help but feel that more government, at the cost of the tax payers, is not the best solution.
http://www.cnn.com/2008/POLITICS/09/29/miron.bailout/index.html?iref=mpstoryview
Addendum: These are my thoughts as a taxpayer. In terms of the positive effects that the bailout will hopefully have on the company I work for and companies across this nation, I know that it is important for something to happen soon - many jobs are dependent on it...
