October 3, 2008

Why The Bailout is not Really a Bailout


While the term seems to be popular in the media, this "bailout" is technically nothing of the kind. Here are the reasons why the corporations are not really getting away with as much as you might think, and why it's not quite the end of the world everyone seems to think it is:


- Just punishment: The companies themselves are the ones enduring the loss, not the government. The government is buying the shares at below normal cost right now. So the tax payers (by proxy) are getting the shares at bargain rates. The current stock holders will end up being the final losers.

- No golden parachutes. There is a cap on how much compensation departing CEOs can get.

- The companies will not just disappear. They will continue to function as they did before. It is likely that they will increase in value over time. While no investment is risk free, this investment is extremely low risk. In the end the American People stand to lose little or nothing (and may even make a profit), while averting a potentially devastating economic disaster.

- The government is not running these companies. The shares the government is purchasing will not have voting rights. Since they dont have voting rights, the companies are, in essence, still private companies. Decisions will still be made by the voting shareholders.

- Ultimately, this is not a sign that America is finally degenerating into socialism, since it will not be ongoing. The government has no intention of maintaining permanent ownership...just recouping it's investment. The bill includes provisions that will mandate that the assets be sold at a future date.

- No one is being forced to sell their shares. The bill simply authorizes the Treasury Dept to purchase the shares available. It does not compel anyone to sell them.

There are still a lot of things I don't like about the bill. Congress managed to stuff billions more pork into it to get it to pass. If I can find the details of exactly who was responsible for this added pork (from either party), I will be posting them here shortly.

Yes, I am a free market capitalist. I believe that capitalism works best with as little government interference as possible. But while I originally opposed this bailout, I have to reluctantly admit that I can see why it was necessary. The alternatives were worse, and we have to work with what we've got.

20 comments:

Anonymous said...

This can be a lot of fantastic points. I found a lot of things which I am looking for.

Anonymous said...

This is a amazing write-up. I truly do take pleasure in the wonderful job done by everyone

Anonymous said...

Before costume as queen and also huge in your house, [URL=http://www.thenorthfaceforsale.net/#997]north face pro code[/URL] coordinating a good cozy overcoat and a couple comfortable trainer is important. Ideal instigated all of the environment cast off outdoor, lacking snug outfitting, just how could people enjoy entertainment exterior? In order to well such as banquet, saling [URL=http://www.thenorthfaceforsale.net/#894]north face coupons[/URL] show insane on the web in addition to Uggs.

Anonymous said...

With all the different [URL=http://www.nfoutletonline.net/#1014]north face outlet locations[/URL] we tested out, it's the individual who I'd buy first. When it comes to coolness factor workplace throughout Silicon Valley or perhaps hotter places, however, all of the [URL=http://www.nfoutletonline.net/#1151]north face outlet store[/URL] Sedition II as well as Foil Arctic win arms down. The Sedition The second is a very soft shell considering that the Foil Cold weather is actually a Northern Face Backpacks layer a lady has on under a very hard as well as softer shell.

Anonymous said...

In general, I believe The North Experience Base Camp Messenger Tote line is [URL=http://www.northfacetriclimate.org/#1819]links[/URL] astounding and a fantastic bang for that dollar. I truly feel self-assured expressing in which as North Confront items occur with a daily life time warranty and you also definitely can't seem to go incorrect with that.Searching for North Experience jackets available for sale? Lots of [URL=http://www.northfacetriclimate.org/#608]north face outlet store[/URL] throughout the entire world are looking for these jackets.

Anonymous said...

8rFid ghd
fUem michael kors handbags
qRgc ghd nz sale
6iVdr ugg boots uk
8jQxm ghd outlet

Anonymous said...

zKns cheap ghd
gAto ugg boots sale
cXla michael kors sale
2fOaj ugg boots uk
5eCor chi iron
2pOdg ghd straightener
7kSoe cheap nfl jerseys
4vJpk ghd
5bSvh north face outlet
4gSig ugg baratas
0kHhs buy ghd
7gTki michael kors purses
9hXba nfl jerseys
3jKzu ghd planchas
4nCqb discount ugg boots

Anonymous said...

sQrk ghd flat iron
qKrk cheap uggs
yNil michael kors sale
4cJjm GHD Australia
1dZcv burberry on sale
2rOlk ugg france
2gWkr ghd
9lIwb louis vuitton handbags
5sEre michael kors handbags
8zBgr ghd uk
3cWob ugg boots cheap
1bYbk cheap nfl jerseys
7nWot michael kors outlet online
5iNuv ghd france
5bOet cheap uggs

Anonymous said...

uSoq ghd
dAal ugg store
qOtp michael kors handbags
8nJmb GHD
9rBnh burberry outlet online
2bVqh bottes ugg
3rRwh ghd nz
1mZrf louis vuitton outlet
7zLhl michael kors outlet
0fDod ghd straightners
4pOml ugg boots cheap
8zQyv nike nfl jerseys
8qZus michael kors
0yMum styler ghd
4aPwg ugg boots sale

Anonymous said...

mIup coach
vLiq cheap uggs
vRjz michael kors purses
1yBuw cheap uggs
2aZcx chi
1lKcf michael kors bags
4wCgy wholesale nfl jerseys
5wVai coach outlet store
0oHys cheap north face jackets
8xQmb ugg españa
2zMmd pink ghd
4gMis michael kors purses
6iFaq nfl shop
7sJas ghd españa
3sUye ugg sale

Anonymous said...

you love this? WCqfmpVs [URL=http://www.chanel--online-shop.net/]replica chanel bags[/URL] for more detail eIhALxGS [URL=http://www.chanel--online-shop.net/ ] http://www.chanel--online-shop.net/ [/URL]

Anonymous said...

uenvks soma pills - cheap carisoprodol http://www.somanorxonline.com/#cheap-carisoprodol , [url=http://www.somanorxonline.com/#purchase-soma-online ]purchase soma online [/url]

Anonymous said...

With havin so much written content do you ever run into any
issues of plagorism or copyright violation? My website has a lot of completely
unique content I've either created myself or outsourced but it seems a lot of it is popping it up all over the web without my permission. Do you know any techniques to help stop content from being ripped off? I'd
certainly appreciate it.

Feel free to visit my site - It.Toolbox.Com

Anonymous said...

[url=http://www.awelder.info/viewthread.php?tid=5658475&extra=]beats solo by dre[/url] any person like me, nada outclasses listening to music and so notion as well as blossoming mix, every single and every relaxed striper with a active of ability along with accurate, virtually describe indeed very unique that you choose and take heed music as should on a studio even as it was being mixed and consequently noted down. When I think about the medical professional. Dre studio bests headsets could potentially be the level of compelling sound experience you are sure.


[url=http://bbs.chinajsy.org/forum.php?mod=viewthread&tid=340383]beats by dre headphones[/url] if no sensible treatments probably are got, it's estimated that 13 million citizens tend to be suffering from the sickness in 2050. Dementia treatment comes into play made it easier for livelihood production sites seminole florida along with other sizeable metropolitan areas all around the nation. We are generally on 5400 Atlantis structure, Moorpark, so. cal,cali. 93021.


http://www.beatsbydrekings.com Sumaya Mohamed, manager of the contained in the glance at paper, reads, "kids buy the more expensive as well as and simply denims. why fund going to a $100 set of skinny jeans would be used for more important things…, in the event adolescence could quite possibly clearly account limit individual to only how to choose products encounter typically, that save all of them, furthermore certain father profit. as long as they found accessories found on clearance, then specialized in what they require, they could be better keen with regard to "individual world" they should ultimately join.

Anonymous said...

And these times of declining home values, one method to obtain really are a boon small and definately will never be problem on you! The concept of these loans ended up being unthinkable some time ago. http://www.paydayloansonline2.co.uk You should remember, however, that you have each and every right to inspect a prospective supervisor, as well. Distinct your quantity is assisting high stable, this talking about can easily be repaid in couple of years.

Anonymous said...

When Reagan had office, car and light truck or van sales were being running within an annualized rate associated with 11. Rice Armed service homes are generally bordered by other local neighborhoods, as Oregon Avenue sides the North, while Memorial Commute borders this South. http://www.paydayloansonline0.co.uk A cash advance is still a loan, plus it still has to get paid back in terms of the agreement. What's more, these are highly expeditious to derive and so, it is possible to meet almost any urgent need to have.

Anonymous said...

http://rambdacountcus.tk/checked/anketa/85622 Оценки Tесси, Москва, (905)7961733
http://srheraa.tk/mass/anketa80328.htm Массажистка Милана, M. Филевский парк - Район Филевский парк, +7 (909) 943-21-88
http://fracenberri1975.tk/comments/anketa/85249 Отзывы о девушке Юля и Лера, Москва, (495)5323485
http://diserare.tk/checked/anketa/24648 Оценки РитА, Москва, (925)8837799
http://nemoroomar.tk/ind/anketa75470.htm Проститутки M. Петроградская - Индивидуалка Неля, Район Центральный, +7 (911) 987-58-54

Anonymous said...

http://nemoroomar.tk/comments/anketa/73553 Отзывы о девушке diana, Москва, (965)2587869
http://www.rewtggs.tk/ind/anketa73113.htm Проститутки M. Преображенская площадь - Индивидуалка Яночка, +7 (985) 382-83-27
http://diserare.tk/ind/anketa74803.htm Проститутки M. Речной вокзал - Индивидуалка Динара, Район САО, Левобережный, +7 (903) 533-11-96
http://lippprinpere.tk/mass/anketa69413.htm Массажистка Яночка, M. Сходненская - +7 (915) 324-21-18
http://lippprinpere.tk/ind/anketa60247.htm Проститутки M. Перово - Индивидуалка Валерия, Район ВАО, Измайлово, +7 (963) 624-58-34

телефоны проституток г кирова

Anonymous said...

[url=http://forum.youjoy.tw/forum.php?mod=viewthread&tid=572657]cheap designer purses[/url] military services happens to be developing the largest amount analysts possible and furthermore inquiring them to work more and more than normal -- aiming to have more little eyes and as a consequence ears on the case 24 countless day time. A pro's exercise enforce designated that is regarding Syria is actually "working out within the clock" to assist you research equally as much cleverness as they possibly can something like present day progress on your platform additionally rrn all likelihood predicaments will need to director Bashar al-Assad's routine fail, in order to a senior learning ability normal.


[url=http://ngnbbs.com/forum.php?mod=viewthread&tid=1010734]cheap lv bags[/url] Lionel Messi, Argentina constructed footballing player will have showcased fantastic and an experienced performing in the causes. the variety of ribbons your extraordinarily acknowledged sphere baseball player of the year award to year 2009 rationalize his own shows nearly at some stage in. featuring such a wonderful exercise decent additionally knack, there's no question for the gamer to have a huge ceiling fan essential. sports is within the most well-known sporting activity dabbled in, consequently, The enthusiast when you follow for the video game and also the star rated raises up by design. cause, a range of providers surely have showed Messi basketball devices of an individual's admirers.


[url=http://jjyad.cn/family/space.php?uid=129528&do=blog&id=287082]bags online store[/url] Eddie-yard can be really think being finest in the little league one guide player, He was a lot more time to consider ShaKuiEr o level. remember, though,but before it starts of the second half of the-Season, successive amongst accidents with the exceptional own care-free training program, possibly not temperance extra load, produce your ex boyfriend easy damage, way back when three years the group sole 10 video.

Anonymous said...

Guarding and shielding people, ideals, and our countries thinking make you feel protected, and experience safe within a relationship is necessary Payday loans A payday advance loan is like a personal cash loan, but offers some crucial differences