Consumer credit bailout - Economists help me out

[LAisntsobad]

First, let's not make this a partisan argument because both sides seem to be for this stimulus deal.

So this morning Lurch Paulson was talking about making more credit available to consumers. Car loan, credit card, student loan (education is something that's always ok to borrow for so that one's fine - in fact I wish they'd spend it on the world's worst K-12 education that breeds all these Myspacetards).

Anyway, isn't overborrowing by consumers and not being able to pay it back what part of what got us into this mess in the first place? I'm all for consumers getting a piece of the bailout. But I don't know if extending their credit is exactly the way to go. Wouldn't bigger tax breaks for those earning less be much better? Give them real buying power rather than buying power on credit?

Also where in the f*ck is this money coming from? You never open a credit card to pay off another one, and that's bascially what we're doing. I don't get this one <img src="/forum/images/graemlins/confused.gif" alt="" />

 

[misterhat]

Didnt they say the first 700 billion were for consumer credit?

 

[Lankameese]

if its got the word bailout in it, you're guaranteed at least 400 BILLION....

my kids kids kids kids kids kids will be paying for all this bottomless checking account
<img src="/forum/images/graemlins/toilet.gif" alt="" /> does not do it justice

 

[LAisntsobad]

Didnt they say the first 700 billion were for consumer credit?

Actually no. I don't think they specified any amount for consumers in the beginning. I think they expected that bailout banks = automatic credit increase to consumers. But that didn't happen so now their trying this.

I dunno but I'm signing up to learn Mandarin.

 

[Awe F'shore]

It seems to me that "we're" now bailing out MC/VISA/AMEX. Pure bullshit imo.

 

[LAisntsobad]

It seems to me that "we're" now bailing out MC/VISA/AMEX. Pure bullshit imo.

I agree. Actually one of the good things about this credit crunch is the retards are finally learning that you shouldn't spend beyond your means. Giving crackheads more access to crack ain't gonna help.

 

[TxOutlaw]

First, let's not make this a partisan argument because both sides seem to be for this stimulus deal.

So this morning Lurch Paulson was talking about making more credit available to consumers. Car loan, credit card, student loan (education is something that's always ok to borrow for so that one's fine - in fact I wish they'd spend it on the world's worst K-12 education that breeds all these Myspacetards).

Anyway, isn't overborrowing by consumers and not being able to pay it back what part of what got us into this mess in the first place? I'm all for consumers getting a piece of the bailout. But I don't know if extending their credit is exactly the way to go. Wouldn't bigger tax breaks for those earning less be much better? Give them real buying power rather than buying power on credit?

Also where in the f*ck is this money coming from? You never open a credit card to pay off another one, and that's bascially what we're doing. I don't get this one <img src="/forum/images/graemlins/confused.gif" alt="" />

You hit the nail right on the head. could of not said it better myself. What I feel we should do as a country is understand that the "Golden-Age" of consumerism has come to an end. Every day we are becoming less and less of the lone super power in the world. With that said it is our responsibility as Americans to start learning self-control when it comes to our place in not just the American economy, but the World Economy. We are interdependent on each other and until citizens of the USA understand this, we are only destined for failure.