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September 29, 2008

Welcome to Larry King Live Interactive!

Posted: 05:03 PM ET

Today, the $700 billion dollar Wall Street bailout did not pass in Congress, and the stock market tanked. What does this mean for your wallet, your 401k, and your job security?
How will the world financial crisis affect the U.S. elections, and who is to blame?
Suze Orman, Ben Stein, and others join Larry. Ask our experts, and chime in with your opinions. We might even use your questions and comments on air!

Filed under: Ben Stein • CNN • Larry King Live • Suze Orman


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lklmoderator   September 29th, 2008 5:10 pm ET

Please feel free to join in the discussion. Due to the volume of comments we receive, not all comments will be posted.


Sir   September 29th, 2008 5:27 pm ET

Sen McCain Keeps complaining that Sen. Obama will not say the surge worked in Iraq. I believe that the surge was not needed in Iraq. It was needed in Afghanistan. Our brave soldiers died for our country and Sen. McCain doesn't understand that we need to get Afghanistan straight. Victory in Iraq has been accomplished in Iraq be the country taking a bigger part in it's own security. It was already on it's way to doing that before he decided to send in more of our brave soldiers and Money that should of been spent Else were. Sen. McCain, Once again you don't understand the meaning of victory. There is many ways to achieve victory bet you are only stuck on one way, and that way is for the people of Iraq drop on their knees and that name you the great one but that will never happen. We have already achieved victory in Iraq, Please don't turn it into a failure because of your neediness visions. Our soldiers served proud and gave us honor. You are dishonoring all they work and all of our fallen hero's. God Bless America and BRING OUR SOLDIERS HOME.


Regina Corsaro   September 29th, 2008 5:28 pm ET

We as Americans were lead to believe that Terrorist from foreign countries were the REAL threat to our country.That was true to a certain extent. wHAT WE DIDN'T REALIZE IS THAT THE BIGGER
THREAT TO THE AMERICAN PEOPLE WAS THE GREED OF CORPORATE AMERICA AND THE WEALTHY MINORITY ALONG WITH THE GREED OF SOME OF OUR ELECTED OFFICIALS . THEY SOLD THEIR COUNTRY OUT TO LOBBYISTS AND
SPECIAL INTEREST GROUPS. WAKE UP AMERICA VOTE FOR CHANGE

We the American people have been deceived and manipulated
by our politicians. It is time for us to CHANGE WASHINGTON
We can only do so peacefully by voting on November 4th


Jeannie Williams   September 29th, 2008 5:37 pm ET

If we gave each US citizen an equal portion of the $700 Billion instead of Wall Street. Think about it. Each person would receive enough money to become consumers and put it right back into the ecomony. No more foreclosures, no welfare, food stamps, delinquent bills, etc. The money would boost the ecomomy instantly. The government could tax the money before it is sent out and all the money flow this windfall would cause would keep businesses from going under, start new business, and bolster sales in all kinds of ways. Instead,, we are going to give that horriflyingly large sum of money to just a few people not even knowing if it will help the situation. This would put every American on a level playing field...why, as long as these guys on Wall St. who started this are US citizens,we would even give them their fair share. Think of the possibilities!


Sir   September 29th, 2008 5:41 pm ET

Is it me or does it seam that everytime Sen. McCain gets involved with the negotiations on this bailout everything goes haywire. Last week the parties involved were close to an agreement, Then he goes to Washington and everything gets put off. Then today, After working the hold weekend, It seams that everything is finally worked out. He makes a phone call and the houe Rep. back out. Is this a political stunt because you are falling deeper in the polls. Stop playing these political games and work this out. I was an undesided voter but after the things that has been going on and also the discusions that I'm hearing when I go to the malls and Walmart, Alot of people, Republicans and Independent voters like myself are starting to see that Sen. Obama is looking like the person who has a better grip on the pain that we are going through. Your campain says America First but it looks like the Obama and Biden campain is putting us all first and is looking out for ALL of us and not just a few Mavricks.


Sir   September 29th, 2008 5:49 pm ET

Sen. McCain the fundamentals of your campaigning is not strong. why don't you monitor the situation like Sen. Obama is doing and keep the presidential politics out of the way. If needed that have your phone number. Stop trying to use this as a campain ploy


lindsay allison   September 29th, 2008 8:43 pm ET

what I want to know is, why is everyone so hyped up on the fact that the " partisan" speech supposedly "made people change their vote". what they should really be concerned about is what was written in the bill that should be revised. then they could simply change those terms and move forward. they need to brainstorm ideas that they can all agree upon, and hopefully middle class taxpayers won't absorb those costs seeing that they are the ones that already suffer the most.


Mike from Rhode Island   September 29th, 2008 8:50 pm ET

Quite frankly,many of the Democratic leaders are demonstrating that they aren't taking this seriously as they are still talking partisan politics at every opportunity. If this crisis were sobering enough- then Pelosi, Frank, Dodd, and others would respect and welcome the concerns of both parties in an urgent time of American need.

Putting lipstick on a partisan doesn't make one a statesman. It's time to stop attempting to lay blame, stop promoting Obama, and instead- continue to work to find common ground. The opposite of a good bill is a perfect bill.

Mike B. from Rhode Island


Karen   September 29th, 2008 9:04 pm ET

Ask Suze this: I am retired. Debt free. Money in Bank CD's as I am conservative and a non risk taker since retirement. How does this affect me.


Fernando F.   September 29th, 2008 9:08 pm ET

I read and heard that most of the 700 billions is going to foreign banks, including China. How good would that kind of bail-out could be? Isn't it better to reject it?


Mitch Koep   September 29th, 2008 9:08 pm ET

Sir,
Instead of bailing out the large companies
Why not issue vouchers to every person over 18 in the
USA and allow them to apply the voucher to each individual home loan
If I calculate correctly $750 billion works out to about $103,000.00 per
person over 18.
We can reduce the amount of the bailout even further by issuing a voucher for 50,000.00 to each person over 18. Not only would this reduce the expense by 50% and allow all the people to benefit as well as the companies that need
the help. It would allow those who lost their homes to get back into or buy
a different home. It will also decrease the debt ratio for the average home and
increase the amount of money available in each home to spend, which would increase
the cash injection to the economy. If a husband and wife had a $100,000.00 loan and was
paying $1000.00 per month, this voucher, for a couple, would reduce this payment to 0.00 per month
and allow the home owner an additional $1000.00 per month to spend elsewhere.
These voucher should be used for home loans only and then the balance, if any, would return back to
the people if it is more than needed to pay off the loan.
This would be an across the board solution regardless of income and a very
equal solution for ALL the people.
Let the people make the cash injection......
Mitch Koep
Candidate for City Council
Henning, MN


KL   September 29th, 2008 9:08 pm ET

Susie needs to realize not everybody out here is as stupid as she makes us out to be....


Maurice from Quebec   September 29th, 2008 9:10 pm ET

If we lost 1 trillion today, you got it !!!!!


Michelle Spaulding   September 29th, 2008 9:10 pm ET

Is Suze Orman serioulsy trying to persuade America that we need to pass the bailout so we can continue charging up our credit cards?

We obvioulsy have a major debt problem as a nation and individually. Weaning ourselves from it will be painful, but it's necessary. Ever increasing debt is not a sustainable economic policy.


Sam (Alabama)   September 29th, 2008 9:10 pm ET

should I keep sending money to my 401k?


Jeff DuShane, Flint, MI   September 29th, 2008 9:10 pm ET

Hi Larry,

What does this mean? It should mean that every incumbant is voted out. This partisan bickering is beginning to look like a grade school squabble. People are sick and tired of it and truly want CHANGE. The change everyone wants is to see politicians work TOGETHER.


CindeePhoenix   September 29th, 2008 9:10 pm ET

I do accounting & have been unable to find a job in Phoenix AZ for over 1 1/2 years! Even if there is an accounting opening – they are only offering about $15 per hour (aprox. $31000 per year). I would love to see any one of the failing company CEO's live off of that income!

What people on Wall Street, politicians, and upper management just don't get – is we hard working underpaid, underinsured, overworked, overtaxed, overstressed people are trying extremely hard to get those people to understand is we DO NOT want to bail out these upper management & CEO's who perform poorly & get fired yet they walk away with million of dollars!!!!!!!!!!!!!!!!! Just think of how many employees they could keep on the payroll with just their unearned bonuses, overpaid salaries, and bonuses galore going to – to keep the employees. Just think how many employees would be able to eat, make their mortgage payments (or at least partial payments), take care of their families, etc. with all of this money. Also, we would not need $700 billion to bail out these overpaid people! The CEO's and anyone else in a failing business need to give back the unearned money they received (or will receive) – how much longer could these employees been able to work? Apparently many people just don't get the fact that if consumers are working and making a decent paycheck – they will buy products!

Also, the companies get a bail out – yet no taxpayers get NOTHING!!!!!!!!!!!!!!!!!! We get no bailout! Yet they have the gall to ask us underpaid employees to pay them again! Why don't any of these people get it????????????????????

Every company I have worked at – the upper management & CEO's just sat around discussing where their next golf game business meeting will be – Hawaii {paid for by employees & consumers} discussing how they can con their customers to buy more of their product. They recognize the sales people, but not the people who make their product, deliver their product, collect payment from the customer, and provide customer service for their customers! Without employees they have no company to run, no one to buy their product, and no stock holders!

Upper management & CEO's just don't get that the consumers keep the majority of these companies in business by buying their product and/or their services!

Employees wages are going down & everything is going up in price. Our small pocket books can only handle so much!

Obama, Biden, & Kerry spend so much time wanting to blame someone for the problems – they just need to say – we don't want to blame anyone – lets just fix the problem! Just think about all the time they are wasting – they act like little kids who can't play fairly. Bullies!!!!!!!!!!!!!!!!!!


Sandra Hill   September 29th, 2008 9:10 pm ET

I think the vote today was a good thing. Suze is right that our country charges everything today. Not just our citizens but our government is a joke. Will people be denied home and car loans? Will their credit limits be reduced? Will they be FORCED to live within their means? It's about time if you ask me.


Dinesh Achria   September 29th, 2008 9:10 pm ET

my feelings are hurt that the the bill was rejected

i am a main street person who understands the connection between wall street and main street – all my life i have been a republican / conservative – but today the republicans were a disgrace – i spit on the republicans


tim swank   September 29th, 2008 9:10 pm ET

Would it be a good thing maybe to invest in Gold bars ?


Kevin   September 29th, 2008 9:10 pm ET

Assuming we don't have the real money ($700B) to actually do this we must be either borrowing it or printing it. Which is it and how much is the interest costing us? What/when is the breakeven on the interest alone?


Hatem   September 29th, 2008 9:10 pm ET

with whats going on with the bailout, will we see interest rates go down?


Bliss   September 29th, 2008 9:10 pm ET

What"s Suze Orman talking about??? The best thing that could happen to individuals is to quit using their credit cards to continually buy things they can't afford! This isn't a credit crisis – it's a debt crisis!


brenda   September 29th, 2008 9:11 pm ET

What happens to my mortgage if my mortgage company fails? Who do I owe then?


Kim   September 29th, 2008 9:11 pm ET

From someone who has never gotten in to the stock market whatsoever, would now be an okay time to buy in when things are low?


Stefanie Craig   September 29th, 2008 9:11 pm ET

Hi Larry,
What our country is going through now needs to be a tremendous wakeup call to all of us. Americans in general over living lives well outside of our means and it simply strains our economy. On top of that, banks let us! Fortunately my husband and I, 29 and 24 respectively, have only a student loan in debt and pay our credit cards off each month, but as Suze says, how common is that?

I hate to see our country take on more debt and bail us out like a parent bails out a child who's gotten himself in trouble. However, I don't want to see families out on the street either. What's the story? How many people might end up homeless and/or jobless from this? Can we get by without a bailout?

With much appreciation...


dale duke   September 29th, 2008 9:11 pm ET

When I was young I traveled across Utah's Salt Flats with my Mother and Aunt. My Aunt was a big woman and she sat in the backseat, hovering over the "ice chest" before car air conditioners. As it got hotter, she finally said, "Somebody JUST HAS TO DO SOMETHING!" The House could learn from her.
dale


Chuck from Austin   September 29th, 2008 9:11 pm ET

Business as usual = High Interest

High Interest = Foreclosures

Foreclosures = Wall St Bailout

Wall St Bailout = Business as usual

Business as usual = High Interest

High Interest = Foreclosures

Foreclosures = Wall St Bailout

Wall St Bailout = Business as usual

Business as usual = High Interest

High Interest = Foreclosures

Foreclosures = Wall St Bailout

Wall St Bailout = Business as usual

Do you see where I'm going with this?

We need a national interest rate of 3% on ALL BORROWED money. This will immediately start the flow of money into the economy at street level nation wide. instead of into the banks where it sits for years until it "trickles down". ...And a WINDFALL PROFITS TAX on the oil Companies.


michael perry   September 29th, 2008 9:11 pm ET

ok larry i jus want to get this out to the public. america has paid 10 billion a month for this farce of a war in iraq. at the upcoming 7 year mark that will be over 840,000,000,000$ american tax dollar to go "fix" a country that does not want us there. these billions we have spent we will never see again. now when the american government can sve its own people it says no? does anyone else besides me see a problem with this?


Annie   September 29th, 2008 9:11 pm ET

What is it exactly that the House Republicans, and 40% of the Democrats want in order to get their vote for the 'Wall Stree" bailout?


Parag   September 29th, 2008 9:11 pm ET

This is WMD all over. One after one expert came and sold us Iraq war. I think there is no WMD at wallstreet.


Nate C.   September 29th, 2008 9:11 pm ET

Suze,

I'm 31 and I hate my 401K. Luckily I started hedging my investments this year by moving funds and future contributions my companies stable asset fund. I am only 31 and I have a long time, but with 75% of my 401K in stocks I'm not sure if I should hold, sell and get back in later. I am comfortable with ups and downs, but not like this and I don't feel like taking my 401K to 8000 DOW land.


Ralf   September 29th, 2008 9:11 pm ET

Hi Larry
I am 39 yrs old, from Newark,NJ
And currently I am collecting unemployment. It seems like the job losses are going to increase, will there be extensions for an extra six months if the first six run out and people have not found a job?


Donna Perkins   September 29th, 2008 9:11 pm ET

I am so sick of Ali (whatever his name is) saying that the average American doesn't understand this situation. He has done that repeatedly in the last few days. Please let me know what his degree is. I beg to differ, and I am just an average one of his "dumb" Americans who, he thinks, doesn't have a clue. Let's create a bill that the "dumb" American people can examine BEFORE it is passed, even is he thinks it can't be understood by us mere mortals. Please encourage him to stop saying this. His manner is demeaning and rude!!!


Tony Bedford   September 29th, 2008 9:11 pm ET

Today the members of Congress once again behaved like children.
Let's throw the bums out!
I've just changed my party affiliation to Dem.


michael acree   September 29th, 2008 9:12 pm ET

It looks like Nancy had a deal for at least 100 Republican COngressmen to vote for the bailout package so that they couldnt make a campaign issue out of it.

The Republicans reneged aand only 66 or so showed up. I think the Republicans felt that th eDemocrats would cave in and vote for it anyway, but the stratewgy or tactic backfired.

The next time this hits the floor, by thursday, it will have at least 100 Republican backers.


tina   September 29th, 2008 9:12 pm ET

Michigan knew 2 years ago that we were in a depression. However eveyone said it was product specific (cars)...I said no...its greed, now look at you...i hope all the ceo's that made money saved some...they are going to need it...do not help them they wont help you....did they pass a bill to help the foreclosured people? no ...will they reevaluate the price of your house and readjust your mortgage...no...so screw them...we already have lost jobs...I am tired of them crying wolf...its already bad from two years ago...and most of the ARMS arent due yet...they took out 1-5 yr arms....this is just the beginning.... when you go to the casino and lose do you go to the government and ask for help no....wall street assumed the risk now pay the price for your decision.....


sue   September 29th, 2008 9:12 pm ET

"" Can I afford " "to continue feeding my 403B or 401K. ? Would it be better to sideline or change into bond funds rather than stock funds ?


Paris(Pittsburgh Pennsylvania)   September 29th, 2008 9:12 pm ET

Im absolutely appalled about the failure to pass the bailout this afternoon. Im a 21 year old college student who is looking to obtain loans to get to grad school but that doesnt look like its gonna happen with the credit markets frozen. Everyone needs to wake up and realize that we are all connected to Wall Street whether we like it or not. Get it together house republicans!


sharron simpson   September 29th, 2008 9:12 pm ET

Regardless of whether or not the bailout is justified or passes, if we owe China $500 billion, why are we giving billions of dollars to ANYTHING OR ANYONE ELSE?

China will own us, sooner than we think, the way we're going.

Why can't we have one government who is FOR us, instead of fighting with and AGAINST each other? How can we trust that any of them care about US? Why should we trust either side right now??


Barbara Robinson   September 29th, 2008 9:12 pm ET

Does Suzie Orman favor the bailout bill voted on, and voted down, earlier today? Why? Why not? Which parts?


Paulene   September 29th, 2008 9:12 pm ET

Please have Suzi stress to these idiots how important it is to get something passes. They don't seem to get it!!!!! Their money is soon to be gone, from 401K's and any/all retirement accounts, not to mention their credit limits like she just mentioned. Have her say it over and over until they understand. Have you read your other comments, how they are jumping for joy it didn't pass? They must be the ones that are voting for Sarah Quaylin.


Carolyn   September 29th, 2008 9:12 pm ET

Question: Where will the bailout money come from? Taxpayers? Then how can Obama and McCain be talking about tax cuts? Isn't that like a family's being overextended in their finances and then cutting their income?


Larry from Atlanta   September 29th, 2008 9:12 pm ET

The bailout should only cover home mortgage securitties.
It should not cover commercail loans, auto loans, personal unsecured loans nor credit default swaps.
Save peoples homes.


Karen Piacentini   September 29th, 2008 9:12 pm ET

Suze Orman is absolutely correct – we need leadership and we need to understand the impact of the issues. She outlined the issues perfectly


Austin   September 29th, 2008 9:12 pm ET

This was a moronic move by the congress. Tomorrow the stock market will crash even further and many people will lose thier jobs. They will not beable to support their families and widespread panic will occur. MORONIC MOVE BY PELOSI.


Kathy Smith   September 29th, 2008 9:12 pm ET

Hi Larry and Suze,
I have a sizable amount of money from a life insurance policy at Metlife in a Money Market Fund that allows me to write checks off of it whenever I need to. (It's approximately $725,000.00) Is this "safe" or do I need to do something with it? I worry that it's over the FDIC amount of $100,000. I'm a disabled widow with a 17 year old daughter that will enter college next fall.


Ryan   September 29th, 2008 9:12 pm ET

How much money does the FDIC have to insure my deposits? If a lot of banks go under does the FDIC have enough to cover all banking accounts across the nation? If they don't how would they get more money?


RJWilliams   September 29th, 2008 9:12 pm ET

Too many people are asking the government to not sign off on this bill. However too many Americans are not qualified to make sound judgement on such a massive issue. I think we need to listen to the advice of Paulson and Benenake. I'm going for a 4 yr. economic degree and this is hard for me to graple with, can we really listen to a majority that have no experience in economics, decide the outcome?


PAULETTE EISEN   September 29th, 2008 9:13 pm ET

What is Suzie Orman saying...that we should bail out these institutions so that people can keep purchasing goods that they can't really afford? It isn't only the financial institutions that are responsible for this mess, it is also the consumer who thinks they can spend money that they don't really have and abuse the credit card system and it is also the homeowner that buys a home that they can't really afford and it is also the homeowner that uses his/her house market value as a bank account. This is going to be painful but it needs to be if anyone is going to change their behavior and practices.

A bailout such as the current proposal is not the answer. We have to come up with something better.


Garry Conn   September 29th, 2008 9:13 pm ET

Today I am proud of my American people, we see injustice and are standing up together to stop it at any cost. That's my America! We still have our pride and integrity and will not compromise. I am ashamed of my government, they have lost all of theirs.


Kim (Lithonia, GA)   September 29th, 2008 9:13 pm ET

I'm scared to death of the outcome of this bailout failure...unemployed (like so many others), barely feeding the family, limited savings, no gas in Atlanta. I'm afraid that the economy is only going to get worse and worse and the lack of livable wage jobs will have us in a depression in no time at all...SCARY! SCARY! SCARY!


Brian   September 29th, 2008 9:13 pm ET

Why not spread the $700 billion out to the american tax payers! that would solve all the problems with forclosures and jobs!


Karen   September 29th, 2008 9:13 pm ET

I have been poor my whole life. So I can't feel sorry for the wall street jerks, nor the politicians, hustling to save their careers. This bailout is BS....... I'm just a high school graduate, but even I can balance a check book. So I don't believe any of this bail out nonsense. It's all a lie. This did not just happen over night. This has been building for years. We the poor saw it coming. Where were the highly educated ones while this was happening. OH, thats right, on the golf course, spa's, eating lobster and steak. NOOOOOOOOOOOOO BAILOUT.


charlotte   September 29th, 2008 9:13 pm ET

If the Economy suffers doesn’t that favor the Democratics? Why would they vote to solve a problem that might help the economy, and favor the Republicians in this election. They would rather win the election then solve the nations problems. Nancy Pelosi is a total jerk. Why would you slam the opposing party when you need their votes?


jeff stevens   September 29th, 2008 9:13 pm ET

Larry and gang,

Did this legislation mandate a temporary moratorium on foreclosures.
This immense acquisition of illiquid assets us "already foreclosed upon properties, isn't it?


CAROL LANDBERG   September 29th, 2008 9:13 pm ET

I have been screaming this question for days: where is the $700 billion coming from? America is broke. We are borrowing from foreign banks/countries/international banks to underwrite the cost of the Iraq war....with China holding a large proportion of our IOUs.

So, is the money coming from Social Security, from the federal workers' pension plan, or from foreign loans?

I want.....no, need.....to know.
Thanks.


chris   September 29th, 2008 9:13 pm ET

I want to ask Susie, what do YOU have to gain from the bailout?

After years of you complaining about people using their credit cards, you are trying to scare them into wanting the bailout by saying they will not be able to use them.


John Bay   September 29th, 2008 9:13 pm ET

This stock market decline looks really bad. I'm no financial expert but even can see the severity of our current situation (Congress' inability to help is also troubling). One question though, how does this effect college students and the average minimum wage worker?


Kelly   September 29th, 2008 9:13 pm ET

For Suze Orman: My goodness. Does this mean my debt to credit ratio will increase (if they cut our credit limits)? I'm a broke college kid trying so hard to get out of my credit card debt before I graduate. This will take a toll on on my soul. Sigh. I really hope Washington gets their act together. They're taking too long to get something done.

–New customer of JP Morgan Chase


Kevin   September 29th, 2008 9:13 pm ET

Why hasn't anyone proposed this option or a hybrid of it?

Why don't they just slash what people own on their mortgages (acquired from 2003-2008) across the boards by 30% thus decreasing mortgage payments for many (and taxes), which in turn would put more money back in the economy (less foreclosures) as people would have disposable income again and money to pay their mortgages. This is what I would call a "trickle up" approach and would assist those who are in dire need now.

And then the banks could absorb the 30% hit to them on the mortgages that they should not have extended credit to in the first place. This would allow for the decrease in home prices to be more tolerable and fair and close the gap between what people paid for homes and what they are worth. It would also help the banks to the extent that they could have fewer future forclosures possibly.


glenn guidry   September 29th, 2008 9:14 pm ET

After Charlie Rangel skipped out on his taxes how can he be a credible guest on your show talking about the economy?


deb   September 29th, 2008 9:14 pm ET

Someone needs to held accountable for this crisis. We fell prey to the sub-prime mortgage. We feel it more due to 1/2 of our income coming from the construction trades and now due to this crisis, 1/2 of our income is now coming from unemployment. Somehow there needs to be something done, but not at us middle class workers expense.


Michael   September 29th, 2008 9:14 pm ET

Dear Mr. King,

Will your network tell the truth about who is responsible for this? Will they play for the American public the house committee hearings of 2004 where Democrat after Democrat says there's nothing wrong with Fannie and Freddie and the Republicans warning of the impending fallout? Will your network reveal to your viewers that it was the Democrats that forced banks to loan money to people who couldn't afford it through the Community Investment Act, a quasi-socialist attempt at giving people things they didn't earn? And will your network do the journalistic and intellectually honest thing by revealing how many Democrats received money from the Macs (Fannie and Freddie), Barack Obama being number two on their list? It would be a shame if you didn't tell the truth.


Tracy   September 29th, 2008 9:14 pm ET

Suze, talked as if its a bad thing that people wouldn't be able to charge up their credit cards with stuff they can't afford to pay for....maybe its time that we actually start acting / living like we can afford....


H H P   September 29th, 2008 9:14 pm ET

What about all the Wachovia stockholders. When are those people in congress going to wake up??? What does it take for them to have a backbone.?? Just because Bush lied about the war, do they think he is lying now??? Why don't they listen to financial people who know.?? None of those who voted nay today should be re- elected. To say they voted no because speaker insulted them is past childish
GROW UP OR GET OUT!!!


Stefanie Craig   September 29th, 2008 9:14 pm ET

M. Kostic I agree, it is our nation's greediness that has lead to this problem.

This needs to serve as a big clean up. Get rid of excess debt and "luxury" that we haven't earned.

We need to focus on eliminating national debt and make it our top priority. Of course that involves a number of things, such as the fuel alternatives you mentioned.


April   September 29th, 2008 9:14 pm ET

It seems to me the average person will feel the worse part of this crisis with the lost of all the jobs. With all these banks and institutions going out of business all the job losses with effect ALL of us!

A quick question...
When someone is late on their house payment WHY will a bank NOT take a partial payment. They are complaining about foreclosures however if someone can pay part of their monthly payment why will they not accept it?


connie   September 29th, 2008 9:14 pm ET

Larry I put my schedule around your show and have done for years. Your have one of the very best talk shows on television. You are sincere, you care and you are fair in your comments. I don't know enough about what has happened to bring this about so I am still forming my opinion. I respect President Bush very much and know he only wants the best for America. Once again Thanks!


Michael   September 29th, 2008 9:14 pm ET

I respect your guests however, I feel this bailout is a stupid idea, all we are doing is rewarding greed. I refuse to reward greed with my tax dollars. If the markets fail then they fail, if the banks fail then they fail, it is their fault we are in the mess to begin with. I can tell you that I will not support this bill, I wll not support any candidate that supports this bill. I belive America will survive this without going into sometype of socialist enconomic fix. Let Wall Street suffer like we do, let the rich suffer like we do, let the big business CEO's suffer like we do.

Wall Street, the rich and big business made this bed now let them sleep in it. Do not reward greed and stupidity with my tax dollars.


Pavan   September 29th, 2008 9:14 pm ET

Can the govt. not ease the credit situation by floating a temporary lending entity. Instead of inter-bank lending, banks which meet a certain regulatory criteria should be able to borrow from this govt. entity? That way we keep the economy going while we clean up the mess with the banks and everything that contributed to it.


B. Southcarolina   September 29th, 2008 9:15 pm ET

My observatioin of the various blogs is that there are a lot of closet middle class Democrats trying to get out of their crusty old Republican shell.

Everyone, settle down and let the market settle.

Assign security to monitor the market until the Executive Branch is replaced. Democrat or Republican.


Pria   September 29th, 2008 9:15 pm ET

The govt. wants to "give" 700 billion dollars of our money. Why can't the government settle the middle class people's loans & credits instead.Middle class? I think we are "lower class" citizens now in this country. Why doesnt the govt. send out another stimulus bill? What exactly was George Bush waiting for?? Why did he wait till this 11th hour and is now almost instilling fear in us-so that this bill goes through.
Suze says we will be in trouble for using credit cards.But, she did not say how will it affect us.Will only credit lines cease to exist or does this have higher interests stuck on us? What more do we need to do to ensure things are OK for us.
This is such a mess!
If a country has 2 depressions to face – then there is something fundamentally wrong with our system and we need to learn a tough lesson from our mistakes and CHANGE!!!


Shant Ram Gurumani   September 29th, 2008 9:15 pm ET

Many congress people are talking about more debate on this issue. If you want to bail out something then we should have more regulation to avoid these problems in future. I think it makes sense. Stock market is speculative (hence naturally risky) and it will revive in no time. Once resolved the same market will revive.

Probably a good chance for new guys with some money to enter the market. Over priced and mismanaged companies have to be wiped out.


31407ladygodiva   September 29th, 2008 9:15 pm ET

Does George Bush Suffer From Schizophernic Personality Disorder? Does he think he is Nancy Pelosi? WHAT IS GOING ON?
Kudos to the House Republicans for SHOOTING THIS EXCUSE OF A BULL DOWN, 700 000 million dollar RAPE THE TAX PAYER bill.
"Obama Biden 2008" – Does George W Bush Approve THIS message?


Brett   September 29th, 2008 9:15 pm ET

I think Suzie is full of Dodo Doo-Doo


William   September 29th, 2008 9:15 pm ET

This is really terrible. Why the heck didn't someone do something before this happen? It's not like this wasn't obvious. They just didn't care because they have money and it doesn't affect them. One of my co-workers was thinking about retiring and now has to rethink her options. Why aren't our retirements protected? They are so interested in saving these BIG companies instead of the American people. If McCain and Palin get elected God help us all.

Obama '08 ... I hope I hope I hope... Smile... Let's face it he sure can't do any worst than what we have now. smile


Joel in Iowa   September 29th, 2008 9:15 pm ET

what happened to the energy crisis? ... where is the gas in Atlanta?

Is anyone pushing an energy solution?

we've lessened our carbon foot print 4 tons' for this winter! Wood pelets... what are the rest of the country going to heat with?

J


mark lawrence   September 29th, 2008 9:15 pm ET

Larry,
Barney Frank (D, Mass) stated he supported Freddie Mac and Fannie May, that they were strong, sound, and a good idea and helped people get mortgages. HE WAS WRONG. Why in the world would be go along with anything he thinks is a good idea? All of us Americans are proud, and willing to suffer to get this country back on track. If you can't afford to buy something, don't buy it, save first.


Jwms   September 29th, 2008 9:15 pm ET

I believe that McCain and the Republicans probably want the focus to be on this bailout this week to keep the attention off of the Biden/Palin debate this week.


Diane   September 29th, 2008 9:15 pm ET

If you have more than 100000.00 in the bank and you are over the limit and not insured...to bad. You take that chance. It is posted at every bank window what the limit is/


Dan Gale   September 29th, 2008 9:15 pm ET

I think instead of bailing out the banks with 700 Billion Dollars. They Should Give Every American That Has Been A US Citizen For 10 Years Or If They Are Under The Age Of Ten Then They Must Have Been Born In The USA A 2Million Dollar Check. That Would Be Alot Cheaper Than 700 Billion And Would Help Out The Economy More.


JBP   September 29th, 2008 9:15 pm ET

This bail out bill was completely flawed. I believe the America people want to see a solution, but without perks going to the perpetrators of this debaucle and the special interest vultures wanting a piece of the action. The bill needs to be written straight forward, to the point , as not to reward the corruption that has been allowed to take place.


microBetty   September 29th, 2008 9:15 pm ET

No accountability is irresponsible. Also, there needs to be a pre-agreement (maximum) $ in how much the CEO are going to walk out with.
Knowing the Bush administration, he either is going to find a way out of this without the house-congress support or it is his way (without hearing, supervision, accountability or approval of that $).
Remember what happened the last time congress compromised and gave power to the Pres. without restrictions? ...a trillion $+ in Irak.


Lisa   September 29th, 2008 9:15 pm ET

I think the house did the right thing today. So what if people can't get money on credit cards, that says you pay as you go. America needs a wake up call and this is it. Quit borrowing. We need reform on wall street. I have watched this stuff so much and I can't believe people arn't talking about all the money going to foreign banks. I ask why should Americans pay this when their own countries should pick up the tab. Wall street is the problem and they need to fix it.
The market has dropped & I hate that for everyone but giving billions away isn't the answer. We've been in a recession for a couple of years and we are just now saying that we are headed into a recession? Where have all of these people been? Apparently not on Main Street.
I don't want any more give aways. I think the Republicans & the Dem's that voted against this bill scored today. Regulate the industry.


Paul Shelton   September 29th, 2008 9:15 pm ET

Larry, I think Ms. Orman is giving bad advice to your viewers. saying they will be hurt this credit mess, because they will not be able to run up debt on there 24% credit cards is a bad thing for them. On the contray may be they will be able to climb out of their debt hole they will not be able make deeper.


Lee   September 29th, 2008 9:15 pm ET

Sorry, No Sale!!!

Your scare tactics aren't working.

Lenders will continue to lend because thats their business. They may be more selective in who the lend to, but how is that a bad thing. If they don't, other businesses will open who will. Use the money to support them. Protect retirement packages. Work programs to put people back to work.

The bailout is just more supply side economics. Sorry, but No Sale!!!


Patrick Keeley   September 29th, 2008 9:15 pm ET

Those who voted against performed a great disservice to America. They are out of touch with reality and the consequences will be disastrous. The Republican's have put the country second


Barbara Neil   September 29th, 2008 9:16 pm ET

Hi Larry,
I believe Suzie is wrong when she states that the banks do not want to work with their borrowers on mortgages that are falling behind on payments. I know of several homeowners that have worked, or are working with their lenders. I feel the government should make the lenders settle their mortgage accounts with the homeowners. If the lenders approved their file in the beginning under the subprime guidelines, then the lenders should lock the homeowners in at a rate then can qualify for and not foreclose because the rates are changing. The lenders should be held responsible for approving these subprime loans.


susan weaver   September 29th, 2008 9:16 pm ET

I as a taxpayer demand accountability from somewhere...............I have to be accountable and pay my bills in full and on time or else I am denied electricity and gas and put out of my home if I do not pay. Sorry I struggle with 2 jobs 60 plus hours a week for the last 5 years. I am single woman with 2( now) adult children living with me whom are trying to find steady full time work. I am sick of struggling while the rich do all these wrong things and oh well lets give them the money they need. I however do agree something probably will have to be done


Vivian   September 29th, 2008 9:16 pm ET

Fear permeated the vote on the Patriot Act, with the devastating long lasting results for America. Fear spread by Ali or your guest is being spread again. Although it is real that some action has to be taken, learning from the lessons of the past would be of great value and a time tested policy. Roosevelt's in his inaugural address warned against that fear factor. He put in place a plan that put America back on track starting with addressing the real issues and making the hard decisions. More than one Nobel Prize winner in Economics said this plan is wrong and a band aid that there is a way to turn our financial woes into a new beginning for our system and for our people.


Nate Uchida   September 29th, 2008 9:16 pm ET

Larry,

America needs to wake up. Get past the politics and get informed of how this crisis is going to affect them.

The middle class will be affected the most by loss of jobs from small businesses not able to make their payrolls. Elder people who thought they had enough money to retire will need to go back to work. Who is going to hire a 65 year old person? With this crisis freezing credit, large companies will not be able to access their huge lines of credit for operations. Which will lead to more unemployment. The one thing I am curious about is how will this affect unemployment checks. If unemployment gets too high I don't we believe we have a financial money chest to support this or do we.
The government needs to put people first before politics.


Mary Woldering   September 29th, 2008 9:16 pm ET

Just heard Suze Orman and realize I and my family are those people she thinks don't exist. We saved for and paid for our house so we have no mortgage have always paid for our cars up front, use credit cards, but pay off our bill every month and NEVER carry our balance. Our children worked hard and earned scholarships to college and have no loans to pay. People always thought we were crazy to deny ourselves all of this free money. What bothers me is that we will be forced to pay for our less penny wise society.


Brant Patton   September 29th, 2008 9:16 pm ET

We need to have air tight management of this money and that will require more than a part time once a month oversight meeting. And, we must demand CEO's do not receive a penny of our money. The bill voted down today isn't good enough. Get tough, get it right and then and only then, get it done.

Charlotte, NC


Becky   September 29th, 2008 9:16 pm ET

Bail out the banks? The House did the right thing today. Who would bail ME out? This all boils down to simple greed. The people in the banks and in congress need to come up with another solution. Its simple – you do something wrong you pay the price. You can't tell me they didn't see this coming. I am so angry about all of this mess and I don't want to clean up some one else's mess. When will it stop and who else will we bail out?? No thanks.


kate   September 29th, 2008 9:16 pm ET

If the mess we're in is a result of a free market why not let things play out. Yes, I completely understand what Suz and others are saying and I know that my 401k may suffer, but who's to say, one, that this will work and two, we won't be doing this again and again everytime the free market doesnt work right? Is the free market the best we got? And, if so, then leave take the bad with the good. It is not fair to the rest of us and I will not vote for any politician who votes to pass this bill.


Natacha Audouin   September 29th, 2008 9:16 pm ET

I don't think that the house is seeing the overall big picture. They are so focused on trying to let Wall Street fail, but in reality, it's the middle class people that they are failing. I lost a lot of hard earned money from my 401k plan and what little I had left, was transferred to a money market account. With the direction that the economy is heading Larry, how safe are hard working ordinary people like me ? I feel if they passed this bill, the middle class people would still suffer by having to pay back this money, and if they didn't pass this bill, it would only be worse for the middle class people. Damned if you do and damned if you don't !!!! Let's be honest, I don't think that our money is safe anywhere anymore. What do you think? Thanks


Lou Duquette, Mass   September 29th, 2008 9:16 pm ET

I heard on Lou dobbs today that a reporter said that he researched the Republicans that voted against the bill, were up for reelection and were afraid of not getting reelected. So it was a political vote.,


Israel   September 29th, 2008 9:17 pm ET

I am discouraged that the markets are tumbling BUT wallstreet and high powered, extremly well paid CEO's that drove their companies to failure should not get bailed out. This is a free market let those that fail to fail and those the prosper to prosper and when I say that I am talking about high level executives and wall street crooks. I am in favor of a solution to the credit issues but I think it begins with criminal investigations of executives and wall street .


john   September 29th, 2008 9:17 pm ET

the consumer credit rating field needs to be leveled. that way decent interest rates equals decent house payments which equals stimulation of the economy. if these banks were not allowed to set these outlandish interest rates there would not be as many foreclosures.


Cee   September 29th, 2008 9:17 pm ET

just a quick question,.. or comment, our govt is so out of touch with the american people, they wonder why were all up in arms over this, were out here working 2 jobs, just to put food on the table for our kids.
they say its our fault because spending is down, of course its down... we have no money left to spend! there worried about people being able to buy new cars, student loans... were just praying we have enough money at the end of the week to put gas in our old car to get to work... and they say doing whats best for american people regardless of what the american people say there going to end up doing what they want. what about us? if were losing our house, and our debts .. even just our living expense is more than we have did anybody bail us out ? no! who is speaking for the avg american people, the ones being crushed by the american dream.. and how many in congress stand to lose money if this bail out never goes through...?
frustrated in mass


Dick   September 29th, 2008 9:17 pm ET

Solution:

Limit CEO compensation (all inclusive) to 100 times that of the lowest
paid domestic employee. Bonus option: 150 times (all inclusive) that of the lowest paid domestic employee if 80 % of all corporate employees are U.S. based.

If nothing else, one heck of a lot of people on the bottom rung will be getting BIG raises.


Eddie - Lebanon IN   September 29th, 2008 9:17 pm ET

Hello,

The bottom line here is that the American people have instructed their employees (Our Representatives) NOT to vote for this Wall Street bailout. The people have HAD IT with saving the rich, and ignoring the REAL PEOPLE of the United States of America. Wall Street has to accept their failures, and accept responsibility for it. The market will cleanse itself of these poorly run firms, and correct itself.

BTW, isn't Paulson worth something like 500 Million Dollars? Why would we believe that he has OUR best interest in mind, instead of his friends in Wall Street?


Cindy Lancaster   September 29th, 2008 9:17 pm ET

What about the people who do pay off their credit card bills each month? I am a NC school teacher and the state had NO PROBLEM taking 1/3 of my AYP bonus this year. What about the people in congress that we voted to put there? How about giving up 1/3 of your salary just like the NC teachers did?


Kay Jerns   September 29th, 2008 9:17 pm ET

Question for Suzy Orman: Would you suggest that you take whatever cash reserve you have and pay off credit cards now, or hold on to cash for the short term and continue paying on the credit cards.


Sue Kaplan   September 29th, 2008 9:17 pm ET

Why is no one discussing the elephant in the room?

The Federal Reserve is a private banking cartel - similar to OPEC in the oil industry. The Fed is the 4th central bank in US history and came into effect in 1913. Despite the name it is as related to the US government as private industry Federal Express.

The owners of the Fed have the right to print (out of thin air) $10 for each $1 the US government wants to borrow from them. Do the math on how much they make on the government's proposed $700billion loan.

Help Americans understand the real issue – Interview people like David Korten, Ron Paul and Aaron Russo who know that we should ask our politicians to abolish the Federal Reserve and return control of the money supply to Congress.

Otherwise Americans may 'storm the Bastille' !


Robert   September 29th, 2008 9:17 pm ET

As a 31 year old physician, I have never been more SCARED in my life. The reasons i've heard to reject the bill have not reflected a true understanding of the gravity of the alternative – letting our economy crash and rebuild from there. The US Congress has never been more publicly disappointing. I read this 110 page bill today! Where is it so egregious that we should wait for our economic collapse to rebuild and restructure?


Anita Schmidt   September 29th, 2008 9:17 pm ET

To Suzy Orman: So what of those of us who actually have paid our bills and not taken out the huge interest credit cards...those of us who live within our means? We shouldn't bail out anyone.


Dale   September 29th, 2008 9:17 pm ET

Everything I've heard is if you live off of credit then the failed bailout can be bad. But I don't live off credit. I live off of cash what does it mean for folks like me?


Joanna   September 29th, 2008 9:17 pm ET

My husband and I are very middle class- we are "County Road", not Main Street... We have followed Dave Ramsey's plan and paid off our debt, created an emergency fund, and we have no car payment or credit card balance. I am now a stay-at-home mom, and my husband's job is... let's just say very secure. Our credit score is well over 800, and We have 30+ years before retirement. I don't care about my credit limit on a single card that sits in my drawer. Tell me exactly how this "bailout" is going to make our particular situation better?


Robert   September 29th, 2008 9:17 pm ET

My comment has to do with how this bail-out will not positively impact the military members that are being forced to relocate on a every 3-4 year cycle. Many of us in the active duty service will be given military orders to move and will be forced into foreclosure. The military members are not given the luxury to hunker-down and wait-out the storm. We have to move when told to move. We are all on a 4-year cycle. For all of the military members that were reassigned in 2005, they will be forced to move within the next few months. Most be forced to foreclose, will sacrifice their life-savings that they sunk in the downpayment and home-equity loans to get them in the house, they will likely lose their security clearances because of the foreclosure (poor financial stability), and many will lose their families due to the hardship. Where is the protection of the military members? They have been protecting this country all of these years, where is the payback?


paul gruber   September 29th, 2008 9:17 pm ET

why does'nt the goverment just order the mortgage lenders to extend all the mortgages done in the last 7 tears for 10 yeras or more and fix the rates @ low interest rate ( ie;4.5 %) and than instead of giving the money to wall street , they can just insure the performance of the mortgages ,and also give teh american people more of a chance to gain equity in thier homes and suceed in paying thier loans

they can also issue a tax free bond for all whom want to buy @ 4.5 % interest to securitize this goverment insurance


MotherLodeBeth   September 29th, 2008 9:17 pm ET

The Democrats never believed President Busg before and now they do?

I am 100% against the Government bailing private businesses out. Let them fail and let us as a country learn the hard lessons we need to learn from it all.

I do find it interesting that all those wellllllll educated better than the rest of citizens, men/women on Wall Street and in Washington D C have gotten us in this mess.


Gayle   September 29th, 2008 9:17 pm ET

What is the status of VETERANS home loans? Will the govt be keeping that promise?


bill haxton   September 29th, 2008 9:17 pm ET

Part of the blame for the failure of today's bill rests with the media, which characterized the rescue of our financial system as a "Wall Street Bailout." This turned the voting public against it. Had voters known the bill was going to keep them in their jobs and keep food on their tables, they probably would have pressured their congressmen to vote for the bill rather than against it. If the media rrefuses to accurately inform us on matters of national import, we are doomed to vote out of ignorance, and that can't be good.


Scott   September 29th, 2008 9:17 pm ET

With all due respect to Suzie; she's a multimillionaire who probably lost tens or hundreds of thousands of dollars today. I don't see her as impartial on this. I don't use credit and don't want to bail out those who do or the crooks on Wall Street who share responsibility. I think it's time for normalization of these markets, as painful as it might be


pat levin   September 29th, 2008 9:17 pm ET

How do I find out if Wachovia Securities is going to go the same way as their Bank ? > I have mutual funds/stocks in Wachovia Security Co. and unable to get any information on the company....

I am sick at heart over the people we pay in Washington DC that are only concerned with whether they get re -elected and for their own financial situation.
They come to Washington DC as regular folks and leave as millionaires.
Same with the CEO's and all those who are only concerned with self.
This should wake up the U.S.A. – perhaps limit all of them to a ONE TERM so they cannot entrench themselves in corruption and forget who they are really there to serve and help!

Also the U.S.A. needs to stop living on credit – and not spend til we have the money.


Teresa Touey   September 29th, 2008 9:17 pm ET

How would you regulate collaterlized debt obligations?


Doug   September 29th, 2008 9:17 pm ET

President Bush and his staff should be held accountable for this crisis.....where do we go from here.

Suzie- give us solutions, stop talking negative.


Donna   September 29th, 2008 9:17 pm ET

Quit pointing the finger! LOOK AT YOURSELVES!

Living outside your means, CHARGE! CHARGE! CHARGE!

House now has to be 5000 SQ FT – KEEP UP WITH JONES'

America loves to skapegoat!


bill hall   September 29th, 2008 9:18 pm ET

You know, maybe if the ceo's and big corporate executives weren't sitting on such a big compensation package or such a big golden parachute the taxpayers wouldn't have so much animosity.


Larry from Atlanta   September 29th, 2008 9:18 pm ET

Suzy,

Why can't the bailout just include home mortgage related securities?
Why does the tax payer have to pay for bad auto loans, and over inflated credit default swaps?


Kevin   September 29th, 2008 9:18 pm ET

If over 90% of all mortgages are still being paid on time, why should those of us who play by the rules, who pay our mortgages month after month, who stayed in starter houses despite the fact that it would have been nice to move, who did not overextend ourselves, and who maintained our own fiscal houses in order be forced to pay a single penny for those who mixed up good and bad mortgages ? Why are we being asked to help sort it out.

I have 30 years to make it up. Let them sort it out without my money.


jERRY BISHOP   September 29th, 2008 9:18 pm ET

let the banks fail, take the 700 billion open a new 'Yankee bank" have the fed loan the money to those that need it . My credits good , i don't need a car, a home loan, i spend only what i have, those who borrow to survive , paycheck to paycheck need a wake-up call. yea we lost a trillion what trillion , it doesn't exist anyway.


Gina Upchurch   September 29th, 2008 9:18 pm ET

Quick question for the show. Some folks (I would like to know the percentage – maybe 50%) depend on "the market" to help support their retirement. Others (what %) – invest and earn in stocks, etc. outside of their retirement because they have the resources to "risk." Money makes money. Is there anyway – the bailout can be supported primarily by the folks who have most to gain by the market? In turn – the person who can barely put 3% of their salary in a retirement account doesn't feel like they are paying for golden parachutes.


Rat   September 29th, 2008 9:18 pm ET

I have been following this bailout from the start. Today I sat through show after show of politicians and hosts chatting the issue up. What kills me is that there are so many guests on these shows who really believe that the average American is that stupid, pardon my honestly, to believe that this will not affect them. Is it that hard to believe that people are willing to bite the bullet on this in order to try and rebuild what this country was founded on? With little to no trust in the government and the American people losing their jobs and homes for years, is it any shock that they have had enough and are willing to say "If we are going down for this... why not bring big business with us." Advice to the speakers over the media. We are not stupid, we are just tired and for once have found that WE have a say in something for once and our representatives are listening.


Karen   September 29th, 2008 9:18 pm ET

For those of us who have good credit and can qualify for loans, will higher interest rates be charged on those loans? In other words, will there be higher interest rates as a result of this financial debacle and why?


Marty Gilbreth   September 29th, 2008 9:18 pm ET

Take money from hard working responsible citizens and give it to people less deserving...they deserve it. Raise taxes to promote laziness and create programs to reward those who won't work. Say yes to gay rights and destroy family values. Say yes to abortion. Or, just vote democrat, same thing. Air this one Larry.


Ann   September 29th, 2008 9:18 pm ET

In this crisis situation, can a troubled mortgage lender call in your home loan if you are not behind in payments or at the least 30 days?


Winnie McCormick   September 29th, 2008 9:18 pm ET

I couldn't even get through to my Congressman, Peter Welch to tell him how much I disagreed with his vote rejecting the financial bill. To think that at midnight an agreement was reached, but when it came time to vote the bill was defeated! I do hope he will reconsider! Vermonters may think that ,since their banks are conservative that they are ok, but no one is. I received a notice from JC Penney today that rates and time frames for paying credit had changed. And Peter Welch is a Democrat who paid no attention to Nancy Pelosi or the congressmen who had the credentials to explain the intricacies of the situation. It is essential to take command of this dire situation now. Winnie McCormick, Barre, Vt.


Jeff DuShane, Flint, MI   September 29th, 2008 9:18 pm ET

Suze,

I'm about to start a 401K at a new company. Is now the time to get into one? Or shoud I be putting the money under my mattress?


Paul Fleck   September 29th, 2008 9:18 pm ET

I don't live on credit cards or huge home equity loans, I live within my means. Irresponsible bankers, politicians can join George W. Bush in jail. A poor person steals a loaf of bread and gets jail time, a politician commits crimes, bankers lie and steal.....and we bail tehm out even pay them!!!!!

If the over inflated market looses value, so be it.

We will never learn from our mistakes if we keep bailing out criminal behaviour.

Thanks...


Hugo   September 29th, 2008 9:18 pm ET

McCain is to blame for his intervention earlier in the week in blocking the deal in an attempt to be the HERO. This rescue plan should not have political and yet the PEOPLE saw just that. I thought that McCain and his Republican party were going to put COUNTRY FIRST. Please STOP LISTEN TO THE REPUBLICANS, THE DON'T KNOW THE ECONOMY... and yes I am a republican but not after tonight.


Lisa Wilk   September 29th, 2008 9:19 pm ET

Aren't we going to see businesses going out of business because people are scared to spend money? When can I feel comfortable about buying things besides food and gas?


Chad Ford   September 29th, 2008 9:19 pm ET

What will Wall Street ultimately learn from this if the government does bail them out? Yes, the Everyman wants to see these people punished for what they did to our economy. If I went to Las Vegas and lost my life savings, would the government be there to bail me out?
Why should we believe that this will really affect us? We've been lied to about everything else over the past 8 years.

Although this situation may be bad for we the people in the long run, we need to know that justice will be served to those who got us here.


Becky Brock   September 29th, 2008 9:19 pm ET

I watched Lou Dobbs tonight with his rigid attitude about the free markets and that they should be allowed to do what they do. That's what's been going on now for 7 years, isn't it? He criticized everyone out there who has come up with a plan to deal with the resulting mess, and talked about leadership failures in Congress and the White House. My question: If he knows so much, where is his plan? All of us out here who are about to be impacted in unknown ways by all of this would like to know which "expert" Lou Dobbs thinks has any answers. It won't be the Wall Street big rollers who suffer here, the pain will trickle right on down to those of us who are trying to sell our house or buy a car or keep a job, while they collect all the big bucks.


Joshua Wertheim   September 29th, 2008 9:19 pm ET

That congresswoman seems to be very happy taking her time to come up with a comprehensive solution. Baloney! How many more daily trillion dollar losses can the average American's 401k and other investments stand to lose? Forget who's at fault here – Nero can't fiddle any more while Rome burns!!!!


S.Gallegos   September 29th, 2008 9:19 pm ET

Its amazing that while the people of America are facing a serious crisis our elected official are mincing words and having petty finger pointing arguments. The problem isn't completely that that they didn't vote the bailout through, but that they have no other plans to fix this. They're to busy arguing rather then doing their jobs and serving us the American people. Someone needs to step up and take charge and get something done about this.


Michael   September 29th, 2008 9:19 pm ET

Today, we called our financial planner and mentioned the idea of cashing out some holdings and buying treasury bills. He scoffed at the idea and instead suggested that we just stay in our diversified portfolio of funds and ride out the storm. Any feedback on that?


jackie   September 29th, 2008 9:19 pm ET

Dont listen to Suze Orman she doesnt know the difference between the bank money markets and financial instituion money market. Only bank money markets are insured. Money market mutual funds are not insured however they are more conservative then bank money markets. ONLY one money market fund Prime Reserve has broken the buck. And that was due to the massive redemptions out of the fund and that it was invested in Lehman brothers. Now financial institutions money markets are more conservative, please dont panic about those.


Karmen Zsofia   September 29th, 2008 9:19 pm ET

Why should the average American pay for the greed-based mistakes of overpaid CEOs and their entourage that have led to this economic meltdown? There are millionaires and billonaries among them. Surely the government could seize THEIR assets–opulent mansions, equally opulent second and third homes, summer villas in Bali, private jets, yatchs, Jaguar and Bentley collections,jewelry, $25,000 handbags, etc.–and come up with the $700 billion. Why should they–those who contributed to this disaster, including Bush and his self-serving, dumb policies–continue to live in luxury, sporting $500 haircut,; playing golf in exclusive clubs on week days while we work; their kids going to Harvard, Stanford, Yale, driving BMWs and living like celebrities? Shouldn't the corporate superstars who caused this mess break a sweat and show they're worth a tenth of their salary? Why should I or you bail them out? Who's bailiing me out? That bill? I don't buy it. It's immoral to demand the victims of this catastrophe to pay for the reprehensible acts of the perpretators.


Joel S Matthews   September 29th, 2008 9:19 pm ET

You don't help a plant grow by flooding the top with water. You help it grow by feeding the roots. When they author a bill that will put the emphasis on the root of the problem which is the failing mortgages. Then will America listen. Yes I will take a loss in my retirement fund. I still have few years to recover. (I am 50) Real Americans can survive on little or no credit. Families who are buying grocieries and gas with credit also need to learn the same lesson as corporate america as well as your "financial experts". If you at least keep the families in their homes the economy will rebound strong over time.


Gayle   September 29th, 2008 9:19 pm ET

My son-in-law was wounded in Iraq in July and they need to plan their military transition to civilian life now. VETERANS Home Loan will it be available?


marge   September 29th, 2008 9:19 pm ET

I think suzie is over the edge. Somebody stop her hysterics.


RJ Silver   September 29th, 2008 9:19 pm ET

If you're 401-K and retirement are significantly placed in stocks, is it worth the fees to pull out and reinvest if you have 9 years left before retirement?


Detrach Williams   September 29th, 2008 9:19 pm ET

Will this affect me getting my student loan in January for Graduate school?


eric   September 29th, 2008 9:19 pm ET

I have $150,000 in my 401K in stock mutual funds. I'm 58 and expect to retire in 7 years. Should I move the money into a stable money market fund within my 401k at least until Wall Street calms down and/or rebounds?


joan gottfried   September 29th, 2008 9:20 pm ET

I was appalled to hear suzy say that congress should vote for a bailout so that the average american can go on charging on their credit cards for dinners out etc.


Cee   September 29th, 2008 9:20 pm ET

you and them complain were gonna lose our money? hello!! the avg american isnt, because its allready been taken away from us and theres nothing left to lose


Jay   September 29th, 2008 9:20 pm ET

Do you think the crisis would be as bad if the big banks weren't so big? We let them keep buying each other and getting bigger, so when there is a problem, it rocks the economy. Is that a good idea? Maybe they're not a monopoly, but it seems just as dangerous to the economy. And now we just let them get even bigger! We let them get to the size where the government can't afford to let them fail, and they know it.


Sammy Q   September 29th, 2008 9:20 pm ET

I must say that there is something special going on with Obama ....I mean you cant script what Mcain has done in the last weeks to his Campaign and Im so happy to see these Republicans Squirm. They are the biggest crook. Mcain is a millionare you think he cares for Main st....LOL thats like saying Donald Trump will talk to main st.. Obama was raised on welfare, Mother pass from Caner and argued with health Insurance companies on her hospital bed...I think he understands fully Americas stuggle..


Jay   September 29th, 2008 9:20 pm ET

Hi Suse,

What do you mean by, $1 T is gone. Does money vaporizes? Haha!
Congress cannot do anything about it. As one of the comments above says, if the Government invests this money on some Public Service, it does provide job opportunities locally!


MR   September 29th, 2008 9:20 pm ET

We are at war. Sacrifices must be made during a time of war. Our President said so...

And, of course, our gov't has cried "wolf" too many times.


Alice   September 29th, 2008 9:20 pm ET

Help!

I am in trouble. I have a student loan in default. The creditor is asking me to take all my loans out of in-school deferement and consolidate my loan through a governmental loan at a higher interest rate.

Should I take all my loans out of in-school deferment and consolidate my school loan in default or should I just make payments which will take me 3 years to pay off?

I also have credit card debt that is about $12,000 in collections. It's about 1.5 years from 7 years which I hear is the amount of time it takes for it to "fall off" my credit.

What should I do???


Jeana Kingsley   September 29th, 2008 9:20 pm ET

For Suzy,

If bad mortgage debt is the root cause of the problem on wall street, why can't the government implement a bailout plan that helps struggling Americans pay their past due mortgages? Would that work?


Lyn in Scottsdale Arizona   September 29th, 2008 9:20 pm ET

This message is for Suze Orman: Suze, I pay my credit card bill off every month, always have. I don't live beyond my means, was not brought up that way. I am a saver, always have believed in FDIC-insured bank deposits. I'm over 50, so when I say always, I mean decades. I want to ask you why I should care about the people who lied on mortgage applications to get a home loan they couldn't afford and who used the over-inflated equity in their homes as an ATM to "shop until they drop." If we bail them out, we will never get past the "society will always bail me out" mentality. I am for helping people with medical problems but not for bailing out irresponsible people. The entitlement mentality will increase exponentially if we bail them out. I'm going to quit paying taxes and leave this country if we become as socialist as you suggest we should become. We need to learn to do without. We are a nation of spoiled whiners. I have had to learn the hard way, and it's time others do as well.


antonio   September 29th, 2008 9:20 pm ET

I know that financial institutions are much to blame for this crisis. But what about the irresponsibles buyers that in an effort to live above their real possibilities adquired loans that now they are not able to pay? Are we the tax payers going to help them pay for their houses and reward them for being irresponsible?


Haris   September 29th, 2008 9:20 pm ET

I would like to know what other countries are going through right now, how did today affect the world markets?


Jerome - Miami, FL   September 29th, 2008 9:20 pm ET

If the Markets keep tanking like they did today, and the Congress keeps taking its time to approve a Bail Out to "Preserve the US Tax Payer" shouldn't they worry that the more they wait the more out of control this situation is going to get?

Is $700B turn into $2T?


Monday   September 29th, 2008 9:20 pm ET

What happen to all the Mortgage Insurance Premium collect for the high risk home loans for the last 20 years. Lets use that money to pay for part of this bailout.


Garet Hartshorn   September 29th, 2008 9:20 pm ET

Look,
I'm studying for my series 6 and 63 license. When shorts are called there is a procedure for payments or sieze assets and people have legal problems. Show me that procedure in action and then come to me for my tax money to save the markets. If rules exist enforce them for god's sake, if not then don't test me about how the investor is protected. Let me have my financial advisory license out of my cracker jack box so I too can steal from honest people!


cathy white   September 29th, 2008 9:20 pm ET

Suszi Orman has it wrong. Today losses are paper LOSses.
Microsoft still there . Stock is just a papers


Jose   September 29th, 2008 9:20 pm ET

Hi Larry,

Great show!!! –

Don't you think that having Immigration Fix will help the economy by adding about 12 million apprx. to our economy.? These people would have to pay back taxes to enter the system. I think that the ball is running!!!


Larry   September 29th, 2008 9:20 pm ET

It saddens me to see a country like America can fall for the personal egos of politicians. Whatever may be the cause but at this time there had to be an unanimity in the house of representatives to help the economy from melting down which has a direct impact on the American people and also the world markets.


chris   September 29th, 2008 9:20 pm ET

What about people that have to use their credit cards to buy simple things like gas and food???? We have a son and another baby on the way, my wife has to quit her job, because we will not be able to pay for the day care for 2 children. Why would I care about wall streets multi-billioners that might have lost just a few millions today....


james gargan   September 29th, 2008 9:20 pm ET

I'M TIRED OF PEOPLE SAYING THAT ARE ELECTIVED DI D NOT DO WHAT THEY SHOULD OF . BUT THEY DID DO WHAT THEY WHERE SUPPOSE TO DO. NOBODY WANTS THIS BILL TO PASS. THE AVERAGE CAR IS 2500.00. A 2 BED RM.HOME 200,000.00 WHY WOULD WE WANT TO MAINTAIN THESE PRICES. ARE THEY ARE AT THE POINT WHERE THEY HAVE TO COME DWN. WHY THROW GAS ON A FIRE THAT IS READY TO COOL DWN. AND THEIR ARE TO MANY PEOPLE WHO HAVE 2 HOMES AND 4 TO 6 CARS AND WITH MAX OUT CREDIT THAT HAVE NO WAY TO PAY BACK. AND JUST SAY THEY;LL FILE BANKRUPT AND 3YRS. GET ANOTHER CREDIT LINE GOING AGAIN. THAT JUST BULL


marlon   September 29th, 2008 9:20 pm ET

I think that we as Americans should be allowed to know HOW and IF our economy works and if our way of living is sustainable, this is a fork in the road and we should stop and check the map to be sure we take the correct path.


Peipei   September 29th, 2008 9:20 pm ET

Larry, I wish you had not invited Suz tonight; I think her comments regarding that the Dows will go down to 8000 was very inappropriate; I wish she had not injected another round of panic into the public.


JJ   September 29th, 2008 9:20 pm ET

If we the taxpayers are going to foot the bill WHY NOT BAILOUT THE MIDDLE CLASS!!!!!!!!!!!!!!! Anyone who earned less than $250,000 a year,payoff there mortgage. Banks get their money,people have money to now spend or payoff credit cards and the economy bounces back.Then start bringing back jobs to the USA.This solution seems pretty elementary.CAN SOME PLEASE TELL ME WHY IT IS NOT HAPPENING?????????


Lori   September 29th, 2008 9:20 pm ET

So if credit is drying and our credit limits on our credit cards starts to decline, OMG people will actually have to learn to live within their means. Any fallout along with this making the government operate within its means?


Joey   September 29th, 2008 9:20 pm ET

What is wrong if anything, with keeping your cash in a safe deposit box?


GM   September 29th, 2008 9:20 pm ET

1. The Democrats control the House. If they wanted to pass this, they had the numbers to make it happen.
2. Bad behaviour cannot continue to be rewarded on Wall Street, nor anywhere else.
3. If Wall Street can be bailed out, why can't we bailout all student loans too?


Al   September 29th, 2008 9:20 pm ET

Larry: I and I think the American Public woul be more inclined to sign on to the bailout plan if we saw punishment of the managers who caused this mess. They talk about a cap, we want punishment. Take all of the assets. These people are criminals and shoud be treated as such!


Bobby Lowe   September 29th, 2008 9:20 pm ET

being feared into a financial "rescue" plan backed by Bush isn't smart in the long run just look at the last eight years but we must find a solution that will work for the person on main street

that will be the best for wall street in the long run


Patricia Schmidt   September 29th, 2008 9:20 pm ET

My 401K in part went South today.
I don't have a couple of days for Washington to stop fighting and finger pointing when Middle Class America is loosing everything...
Jobs, savings and more.
Greed to me comes in many forms – wall street has it's greed but so does our elected officals. If the House and Senate lost there jobs or money to retire I bet they would not wait 2 or 2 days to take in trying to save it.
Give Me A Break !


divyajit   September 29th, 2008 9:21 pm ET

goverment should buy new asset not toxic one


Joe Clodfelter   September 29th, 2008 9:21 pm ET

All I have to ask or say is a simple: why should we bail out wall street, lets get another round of stimulus checks then the stocks will go up because of increased spending.


bill   September 29th, 2008 9:21 pm ET

I'm listening to suzie blather on about 1 trillion dollars lost today. What a bunch of crap. That was all on paper – no one was going to spend that money. The market is STILL over inflated. With suzie's way of thinking we should just keep artificially inflating the market and then we will be creating trillions of dollars. What an idea!!


Marty Gilbreth   September 29th, 2008 9:21 pm ET

You don't pay for your stuff, you deserve to lose it. What ever happenned to discipline? Your kid screws up? Bail'm out. Yeah that works. Ever think of covering both sides of the news?


Earnest   September 29th, 2008 9:21 pm ET

I think the government needs to stop their bi-partisanship, stop pointing fingers, stop trying to out do one another and do what needs to be done for this country, Stop acting like my 7 year old and fix this mess before something else major happens...


Andrew   September 29th, 2008 9:21 pm ET

The economic situation our nation is facing is already worse than the start of the Great Depression in 1929 and the circumstances that led to the depression are very similar. To make matters worse we again have a lame duck president as we did in 1929. Luckily, unlike in 1929 this is an election year so we do not have to wait three or four years for a president to make changes. This election is the most important election in U.S. history and in 26 states and Washington D.C. the voters will actually be electing the president directly due to changes in the electoral college in those states. GET OUT AND VOTE TO CHANGE OUR FUTURE BEFORE IT IS TOO LATE!


Daniel Rueda   September 29th, 2008 9:21 pm ET

what would happen if you gave that 700 billion to the people that need it in the form of low interest loans. Alot of people dont like susan right now , how can we take her commentary as unbiased.


KMoffett   September 29th, 2008 9:21 pm ET

I have one thing to say and this goes to you too Larry King. You Republicans can screw up a "free lunch"...I've never seen anything like it. Broadcast this one!


Catherine Arinaitwe from Los Angeles California   September 29th, 2008 9:21 pm ET

It was very critical to have this bill passed, without it we can not move passed the current economic crissis. Larry we have to understand that we just lost more money in the stock market than we would have if this bill had passed. It is common sense that we are a credit based society and we need credit to run business.
Thanks indeed!


Terry Ray   September 29th, 2008 9:21 pm ET

Larry, why didn't you press Rengel on the 2005 and 2007 bills that the Dems killed that would have put more accountability and regulation on Freddie and Fannie? Musgrave made an excellent point in bringing that up when Rengel tried to lay this all at he feet of the republicans.


hammerhead57   September 29th, 2008 9:21 pm ET

Newscasters on CNN all day long and throughout the last few days keep making the comment that the American people have lost confidence in our government. While this is obviously true do they understand that for the most part this happened right after we stopped trusting the press! Larry thanks for telling it like it is!


Susan   September 29th, 2008 9:21 pm ET

At some point, consequences must be paid.

Bailing out a system only confirms the constant attitude sold by the "savvy" and readily bought by a uninformed public that CREDIT is a right and it's okay to go on using someone else's money. It merely states that all is right when one owes more than one has or ever will have! "The one who dies with the most debt wins" must stop. It'll hurt less now than later.


Mick   September 29th, 2008 9:21 pm ET

Why is Suzy crying "the sky is falling" It's an insult to the american people who have clearly spoken on this issue: no bailout today and if bailout is right coure of action, we can take the correct measures to review it, if we haven't collapsed yet, we can print all the new bills next week.


Louie   September 29th, 2008 9:21 pm ET

Hi everyone
My question is that “I found a foreclosure house for good price to buy. It’s going to be my first time to own a house. Is it the right time to invest my saving in house of value 250,000 and my savings are 40,000?

thank you
California Valley Glen


chris, baltimore, md   September 29th, 2008 9:21 pm ET

I think Congress did the right thing. I believe the people of the United States would rather have the 700 billion of THEIR tax dollars come back to them than bail out the big banks and corporations that were so quick to foreclose on their homes. If these companies fail than so be it. This is supposed to be a capitalism and in a capitalism a company can either succeed or fail. If they succeed, its for a reason and if they fail, its for a reason. if we start using tax dollars to bail them out we are going to slip into socialism. And that will be a problem.


Susan Williams   September 29th, 2008 9:21 pm ET

I am a 53 yo rural social worker who DOES pay my credit card bill in full every month. I stand to lose all my retirement and my investments in rental properties in this crumbling market. But I can accept that if we will use this as a lesson to restructure. Oversight of powerful institutions IS a valid role for federal government.


chris larson   September 29th, 2008 9:21 pm ET

I did not sign a mortage that was too expencive for me to afford.
I do not live on credit. If I don't have it in the bank I don't spend it.
I am not sold on the idea that I should bail out people who use their credit cards to buy gas, food, or pay their bills because they got in the habbit of spending money they don't have.
Maybe taking the credit "addiction" away is a good thing.


JBP   September 29th, 2008 9:21 pm ET

Suse Orman is speaking to the audience as if the AMERICAN PEOPLE ARE STUPID. Her condescending attitude is nauseating. Americans just don't want to reward criminal behavior in the banking industry by bailing these CEO's and their compamies out.


Roger Hernandez   September 29th, 2008 9:21 pm ET

I just watched Suze Orman and screaming in her style to the camera, that we are all in deep $^%$t.

I can understand how she says (and it is true) that millions of Americans live on credit cards. Some get another credit card just to do the minimums in their others. Some other got home equity lines to pay those credit cards.

To this I have to say.

A business that operates in credit, is operating in the red. It is an artificial black but in reality is operating in the red and operating in the red is something you can do for only so long. Can't be eternal. If a Business consistently operates in the red, then it needs to close it doors and restructure or close their doors forever.

Same goes to the microeconomic level of a private citizen. You can not come and tell me that people pay for food, gasoline, milk for their baby with a credit card and there is not something intrinsically wrong with the whole picture.

If a citizen can not pay for his fuel, basic living costs with his income, then the whole economy is wrong from the root. You can not keep putting in money in the fire trying to stop the problem. You will stop it artificially until the money runs out again.

Furthermore, we can not as a nation approve a bail out on tax money for private institutions that got into that mess for the lack of oversight from the government.

A capitalist free market has to work in both ways. For the good and for the bad also.

If institutions and companies fail, they have to fail. Period, this is capitalism 101.

If we loose jobs due to the overspending and terrible management of companies, then it might be time to level everything and start all over with safer, sound and better designed foundations.

We learned some from the great depression, but apparently the lesson was far from over and this is the second semester of such lesson.

So what if I can not get a car loan... maybe it is time to catch the bus.
So what if I can get another house, maybe I couldn't afford it in the first place.

Many countries live with super tight credit standards and keep existing.

We might fall, but we will prevail.

I am not scared. I am concerned, yes, this is logical. But I am not scared, I trust in my ability, training, education and the decisions I have made in the past.

A country that bases its economy on credit, is living on a dream that can puff in a second, and this is just what is happening right now.

Maybe it is time to wake up.

Good luck to you all.


John Hoerschgen   September 29th, 2008 9:21 pm ET

I know that the economy is in turmoil and is bankrupt. But, I'm not sure I want the taxpayers to bail out Wall Street.

After the Iraq War and now this financial crisis, Wall Street, Congress and espeically the president has no credibilty. They are bankrupt!

And for eight years during the Bush Administration's trickle down economic policies many Americans didn't see the fruits of prosperity. We kept falling behind. I don't know if I will be any worse off without the bail out.

Isn't it time for Wall Street and the executives of Wall Street show their patritism and be of service to this country (especially in regards to executive perks). I just hear them asking for more handouts.

When business gets bailed out it's called subsidies. Acutually, it's called state capitalism. When those at the bottom of the economic pie get assistance it's called welfare or socialism.

Fool me once.... fool me twice!


Christina   September 29th, 2008 9:21 pm ET

Hi, I am not working cause I attend law school full time. I live entirely off of scholarships and student loans. Is the crisis likely to affect my ability to pay for law school?


Bill in WA State   September 29th, 2008 9:21 pm ET

When the republicans say "We have to work together", we KNOW it is a code for "My way or the highway". We've learned this from the last eight years, and we won't be fooled again. The Republicans had a chance to show today that they can work with the Democrats – obviously, they can't. On their heads be the blood of America's economy that will flow in the streets.


A young Boy   September 29th, 2008 9:21 pm ET

Look,

What do Obama say about Helping people in the middle Class area in money. How is gonna Bail me out? My parents are struggling because of this. The Goverment shouldnt interfere with the Stock Market. Seriously. This Bailout should have been Passed. Even our own President voted for the Bill to Pass.

And Everyone, why pull are troops out if Obama becomes president? Hes going to lower Security on America and we are going to get ATTACKED. AGAIN!!!


john woodle   September 29th, 2008 9:21 pm ET

all these banks keep going under first WAMU and now today i get home and my personal bank here in florida is bought out. (wachovia) how will this affect me? is my money secure or are these changes internal and not affect me?

john w

florida


Brian   September 29th, 2008 9:21 pm ET

😦 This is our OWN FAULT.As a point of fact this really has little to do with politics and more to do with how our country handles money as a whole. PAY BILLS FIRST THEN GET A NEW TV/CAR/HOUSE/BOAT/ WHATEVER SILLY THING YOU CANT AFFORD!!! DO THAT AND PROBLEM IS SOLVED. DUH!


Roxanne   September 29th, 2008 9:21 pm ET

I agree that Suze's comment was not helpful.


Dianne Cardinal   September 29th, 2008 9:22 pm ET

Why couldn't the government give AIG etc. enought money to keep them afloat for a few months and in the meantime split the rest of the 700 billion among all the US taxpayers and send us script to buy stock(not money) that would have to be invested in our favorite companies and could not be sold for 5 years...We would have five years for the government to recoup through our tax dolloars but we would all have a guaranteed stake in this fiasco which could bring very positive results.
Dianne Rush City, MN.


yvonne   September 29th, 2008 9:22 pm ET

SEVERAL OF YOUR INTERVIEWED POLITICANS ON ALL CNN SHOWS, HAVE STATED, WE SAW THIS COMMING. MY QUESTION IS, WHY DIDN'T THEY FIX IT THEN?


Ivanildo Trindade   September 29th, 2008 9:22 pm ET

I don't believe that Congress can actually do anything "in a bipartisan manner" anymore. Just watch the two congresspeople who were just interviewed: they sound like little kids bickering in the play ground - "You did it!" "No YOU did it!" No one who watches these talking heads anymore believes that bipartsanship is even a possibility. Congress is a dysfunctional house and whatever they come up with will be by nature dysfunctional. Tell me why I am wrong.


WALTER   September 29th, 2008 9:22 pm ET

Hey Larry, I want to know why the nake short issue in the stock market is being played down during this financial crisis. Millions of dollars were allegedly stolen from investors. CMKX


Lisa   September 29th, 2008 9:22 pm ET

> I'm against the $85,000,000,000.00 bailout of AIG.
> Instead, I'm in favor of giving $85,000,000,000 to
> America in a We Deserve It Dividend.
> To make the math simple, let's assume there are
> 200,000,000 bonafide U.S. Citizens 18+.
> Our population is about 301,000,000 +/- counting every man,
> woman and child. So 200,000,000 might be a fair stab at
> adults 18and up..
> So divide 200 million adults 18+ into $85 billon that
> equals $425,000.00.
> My plan is to give $425,000 to every person 18+ as a We
> Deserve It Dividend.
> Of course, it would NOT be tax free. So let's assume a
> tax rate of 30%.
> Every individual 18+ has to pay $127,500.00 in taxes. That
> sends $25,500,000,000 right back to Uncle Sam.
> But it means that every adult 18+ has $297,500.00 in their
> pocket. A husband and wife has $595,000.00.
> What would you do with $297,500.00 to $595,000.00 in your
> family? Pay off your mortgage – housing crisis solved. Repay
> college loans – what a great boost to new grads Put away
> money for college – it'll be there Save in a bank –
> create money to loan to entrepreneurs. Buy a new car –
> create jobs Invest in the market – capital drives growth Pay
> for your parent's medical insurance – health care
> improves Enable Deadbeat Dads to come clean or else
> Remember this is for every adult U S Citizen 18+ including
> the folks who lost their jobs at Lehman Brothers and every
> other company that is cutting back. And of course, for those
> serving in our Armed Forces.
> If we're going to re-distribute wealth let's really
> do it...instead of trickling out a puny $1000.00 economic
> incentive that is being proposed by one of our candidates
> for President.
> If we're going to do an $85 billion bailout, let's
> bail out every adult U S Citizen 18+!
> As for AIG – liquidate it. Sell off its parts. Let American
> General go back to being American General. Sell off the real
> estate. Let the private sector bargain hunters cut it up and
> clean it up.
> Here's my rationale. We deserve it and AIG doesn't.
> Sure it's a crazy idea that can work.
> But can you imagine the Coast-To-Coast Block Party!
> How do you spell Economic Boom?
> I trust my fellow adult Americans to know how to use the
> $85 Billion We Deserve It Dividend more than the geniuses at
> AIG or in Washington DC .
> And remember, The Family plan only really costs $59.5
> Billion because $25.5 Billion is returned instantly in taxes
> to Uncle Sam.
> Ahhh...I feel so much better getting that off my chest.


Lisa   September 29th, 2008 9:22 pm ET

Larry, I disagree with Suzy. People in America know where we are headed. So these markets loose a trillion dollars whose fault is it? One trillion dollars hum.. I don't know maybe it's greedy investors? Or maybe it's all these foreign investors who are not required to live by the same rules that American investors live by hum.... I would think that terrorists could manipulate our economy thru wall street. One wonders about all this business with futures and how when the bill was going to be passed a barrel of oil went up. Why is that? These banks just have to own up to their own mistakes be they national or foreign and fix their own problems.


deanne k   September 29th, 2008 9:22 pm ET

Today, when the US Rescue bill was defeated, banks in Belgium, Germany, Holland and the UK failed and were rescued by their governments in various forms (49% buy out, nationalization, 35 billion dollar rescues…). Global economies held their breath, waiting for US leadership and then European governments took action. It took a day. How long will it take for the US to step out of its state of denial and take action?

a Canadian observer
(as our Toronto Stock Exchange plummeted over 800 points today too)


carolyn   September 29th, 2008 9:22 pm ET

I find this situation unbelievable. The democrats and republicans ought to be embarrassed. We ask the experts what is required. We get an answer. And we spend a week debating and then cast a vote that suggests there is no crisis. Would we have done the same thing if we were told 2 airplanes were going to crash into the twin tours in 7 days??? Washington quit whining, quit politicing, and LEAD!!!!


donnat   September 29th, 2008 9:22 pm ET

As Suze has said forever, "use your credit wisely and pay your balance off monthly." This is what people have failed to do. Not only the idiots on Wall Street (overloading themselves with bad credit) . Its time for us to let free market clean itself up. Everyone will suffer to some extent. Perhaps to the extent they abused the free enterprise system. It's just not right to spend our grandchildren's money. They deserve the right to do that themselves. It's our responsibility to teach them responsibility. Let's not give them this type of "leadership"??? Lets just show them how the free enterprise system can really work. We will just have to take the consequences! And by the way, let's make sure we don't continue oversight by those who have been "nearsighted" to this point like Paulson. Let's ask our representatives to have hearings presented by the brillant teachers of economics in the leading institutes of higher learning and some of the successful business people. The people on main street have been having to figure this kind of thing out for a long time know. You have heard of "Making ends meet"? Maybe the fatcats need to talk to the mainstreeters, they might learn how to take the hits and get up fighting, instead of crying MOMMY to the government. Get over it. I find it quite unbelievable wall street finally Needs mainstreet. When trillions of dollars in profits have been being made, they didn't need us, why now?


Kat Thomason   September 29th, 2008 9:22 pm ET

The Bush Administration lied about the war. How are we supposed to believe they aren't lying about this? How does a private sector problem become a public responsibility? How in good faith can we trust this Administration to do right by us?


atoosa biglari   September 29th, 2008 9:22 pm ET

why can't we give this money back to the people who need to pay up their morgatges and they can pay back the government


Kira Johnson   September 29th, 2008 9:22 pm ET

Why don't the oil companies and the drug companies with their enormous profits contribute to the Bailout?


Robin   September 29th, 2008 9:22 pm ET

Suze commented that almost no one pays off their credit cards each month. We do. And perhaps if everyone else (including big businesses) lived "within their means" we wouldn't be in this mess. And if crooked lenders didn't make bad loans and if the secondary mortgage market wasn't buying up these crooked deals (etc...) then we wouldn't be in this mess.
TIme to let some folks fall. Can't go to Vegas & lose and then ask for your money back. And if the bailout doesn't pass, maybe things will get back to being more manageble. The world will not end if there is no bailout.


Clint Moser   September 29th, 2008 9:22 pm ET

So what does this mean to you?

• Your purchasing power is being destroyed
• Your savings are being decimated
• Your investments are in jeopardy

Almost all money today exists in the form of paper issued by central banksters.

They claim to be regulating inflation, but in fact, they are actually creating it. The more dollars they pump into the system, the less each individual dollar is worth.

This is a highly profitable mechanism through which your wealth is transferred to an elite few – and it can happens fast !

Since passage of the Federal Reserve Act of 1913, a privately controlled banking cartel a.k.a "The Federal Reserve", has acted as America’s central bank.

The Central Banksters have dramatically reduced the worth of the U.S. dollar to approximately 4 cents of its original value.

Truth be told, today’s “fiat” money is not backed by the same intrinsic value it once had. Now it only has value because the government says it does – and because people believe it what the government says.

The only form of honest money the world has ever known is Gold and Silver and Gold and Silver is the only money authorized by the U.S. Constitution ! Stop Believing the Lies ! For the Salvation of this Great Country the Federal Reserve Banking Act of 1913 Must Be Repealed or Congress Must be Held in Contempt of Constitution by the American People !


Michele Washam   September 29th, 2008 9:22 pm ET

With all due respect to Suze, the speech about how Americans are going to suffer becuase we can't use credit cards is disturbing. What she basically said is that When you don't have money to pay for what you want or need, USE PLASTIC. So basically, your saying it;s OK to charge groceries, gas, etc. that we'll be paying for a year from now at 17% interest? It was after this statement that Suze lost all credibility with me.

If a trillian dollars a day is gained on Wall Stret each day, why don't normal Americans like myself ever benefit from it? If I don't benefit from it being there, I imagine I won't miss it now that its been lost.

If this is the mentality we;re dealing with on Wall Street then thank GOD the bailout failed!


Nancy   September 29th, 2008 9:22 pm ET

I would like to ask susi how this disaster will affect my husband's pension. Will he still get it or are we going down the tubes. I mean that is the only money we have so I would really like to know how this is going to affect us.


Dennis Novickis   September 29th, 2008 9:22 pm ET

Good evening Larry , wall street,Congress and the president
are the root of this problem , we as americans have very little control over these politicians, the need for drastic change is confronting us,
The rules have to change, here is some sugestions.in the bail out plan include the following
eliminate all adjustable rate mortgage.
eliminate equality loans
maximum % rate for all loans 7%
maximum points to aquire mortage 1%
maximum closing costs $ 2000.00
make funding direct to the homeoner

This would help the main street american.

Dennis Novickis
Phoenix AZ


mike   September 29th, 2008 9:23 pm ET

larry
the banks are not the peoples problem.


Bill   September 29th, 2008 9:23 pm ET

We are retired (age 69 and 65) and rely on our IRA's and Social Security for income. In order to generate enough income the IRA's are all in stocks and mutual funds which have suffered greatly in recent weeks. I'm concerned that we'll be wiped out soon if Congress does not pass a bill to protect us. Should we move our IRA funds out of the stock market and into more secure bonds or CD's?


Judy   September 29th, 2008 9:23 pm ET

There is no doubt that a bailout of some sort is necessary, but why should the American taxpayer be the one to pay the tab? Let those financial institutions that are solvent buy out those that made poor financial decisions. Will there be a backlash on Main Street? Probably, but who will be hurt? As Susie pointed out, it will hurt those who buy their gas and groceries with a credit card. These are the people who should be hurt. Why should people be rewarded for being so heavily in debt that they can't even buy groceries without a credit card. Give up the lattes, the $100 Nikes, the cell phones for every member of the family, new cars for 16-year-olds, and all of the other foolish spending. People need to learn to live within their means. There are PLENTY of us out here who pay the mortgages on houses they could afford in the first place. There are plenty of us who are not head over heels in debt, who pay for their groceries in cash, who don't have a dozen maxed out credit cards. Why should we have to pay for the fool-hearted choices of those who don't know the meaning of self-control. And finally, you talk about massive layoffs if companies are not bailed out. Who will be laid off? Will it be those workers in Mexico, the Philippines, Vietnam and every other nation to which greedy American companies have shipped good American jobs, jobs that would have allowed Americans sufficient wages to pay their mortgages and buy their groceries with cash. I think that what we are experiencing is a long overdue reality check. Perhaps if we go through a stiff recession people who have thought there was no end to living the high life will realize that there is a tomorrow and it is the responsibility of every American to think about it and plan for it.


Hector Franco   September 29th, 2008 9:23 pm ET

The Titanic is sinking and something needs to be done to save thousands of lives. However there are still those that don’t believe it is sinking and those that are still discussing who is at fault. Is this the typical human behavior?


Terrence   September 29th, 2008 9:23 pm ET

Is it me or is it really that our elected officials act like the children that I here morning on their way to highschool? It time that 'We The People' take back our government by not affiliating with a particular political party and elect those that are going to truely represent us as a whole instead of their petty inner-circle arguements!


JP   September 29th, 2008 9:23 pm ET

The congress voted nay today for 700 billion and what happened the stock market's losses were 1.2 trillion. So we paid more today than what was proposed!!!!!!!!!!!!!!!!! What's up with that?????


Al Johnson   September 29th, 2008 9:23 pm ET

The bailout was a big mistake and it was good it didn't pass. Why do we think we have to help the large corporations like this for THEIR fault? Would we do the same for a small corporation? If large companies fail, good! Perhaps the executives should do jail time instead. All the bailout would do is put our economy MORE in a deficit; it's not a fix- we need a long-term strategy and stop patching up the mess. I am sure that there is a better answer, but the bailout by the government is not it. This couldn't happen at a better time. I do not believe either McCain or Obama can help- it's like, too late. What frustrates me, aren't we smarter than this- why did this even happen? This couldn't be anything new– someone saw this coming long ago- like perhaps a year or so. Personally, I believe this is a sign of the times (the end times– watch my word).


Judy   September 29th, 2008 9:23 pm ET

I will not be voting REPUBLICAN this year because of the nonsense in the house today. They just assured my vote for Obama. They are playing russian roulette with this craziness. Our future is in their hands and they are fiddling while Rome burns. Saudi Arabia will come in and buy us all out. Only the oil rich countries have money right now.


WOW   September 29th, 2008 9:23 pm ET

I can not believe Suzie just said the money just vaporized [the $1 trillion]!!! Poof!

What!? Please explain this to me....JUST VAPORIZED!!!???

Come ON!!! LoL


Yuri Campos   September 29th, 2008 9:23 pm ET

Why is so hard for the american people to understand that we are in serious trouble and something has to be done and done soon, i agree is not a easy thing to bail out the people that got us into this but is a small price to pay considering what is going to happen if they don't do it. I personally believe that i 2.599 dls is a small price to pay than loosing it all.


Michele   September 29th, 2008 9:23 pm ET

have been wondering what happened to the PMI for risky mortgages? On the bail out I think the market should be left to correct itself. I know people are going to suffer with or without a bailout, Why risk the tax payers money?


D. Muscarella   September 29th, 2008 9:23 pm ET

Of course congress should have passed the bill! This is let's save america bill and we need to pass this asap.


Jerome - Miami, FL   September 29th, 2008 9:23 pm ET

Shouldn't all US Representatives be able to cast a useful vote for his country beyond his/hers feeling toward a speech by Madame Speaker?


TH   September 29th, 2008 9:23 pm ET

Typical liberal comments posted. I guess it shouldn't surprise me. Both sides are at fault. The crooked mortgage problem started 10 years ago not during the Bush administration. In the meantime, both sides ignored the issue while Barney Franks, Chris Dodd and crew were getting "donations" from Freddie Mac and Fannie Mae. For some reason, the media is not really talking about the two formal Freddie Mac and Fannie Mae executives working on Obama's campaign. Funny how that part is not discussed. Bottom line is that we lost our focus and priorities. I think we need a real third party to keep the other two straight. Who's to blame? At this point, who cares. I think both are to blame with more on the Dems. You think the Republicans with no blame on the Dems.


Red   September 29th, 2008 9:23 pm ET

If the stock market lost 1.2 trillion dollars today, then do we now need a bail out plan that's worth 2 trillion (1.2 trillion + 800 billion) to save Wall Street?


Ray Lowe   September 29th, 2008 9:23 pm ET

I want to see fingers pointed. I want to know who is in charge of the banking committee. I want to know why the congress did not act when President Bush asked the congress "12 times to fix this problem." I want those who did not act to be punished. Are we going to let the people who caused the problem, "FIX THE PROBLEM?"


Kay   September 29th, 2008 9:23 pm ET

Sometimes suffering sooner or later is the only choice. Living on credit has to end somewhere down the line. Placing blame right now is not going to help anyone. The records and information are all available for anyone that wants to do the research. Just knowing who started the fires in Ca, did not save the forrest.


Karen   September 29th, 2008 9:23 pm ET

Why does the bailout have to be $700. Is there a way to do something with less money then take the time to write a workable bill?


Dean   September 29th, 2008 9:23 pm ET

With all of the current problems with the United States, financial "EXPERTS" want the government to bailout financial institutions. We have retired people that have worked their entire lives, paying social security and medicare during their careers and still have to decide whether they want to eat or buy the medications! The united States healthcare system is a farce, but it is not seen as a crisis! People and children are starving but it is not a crisis! The stock market lost a trillion dollars today but how much has it gained in the recent years? The stock market always goes up and down but the government shouldn't have the responsibility to BAILOUT the companies; that it a risk of doing business. If the government dumps $700 billion into these institutions, are they going to be required to repay the money once the market improves, as it always does, or is it going to line the CEO's pockets further?


Shelia Perry   September 29th, 2008 9:23 pm ET

How do we find out how our representative voted on this issue so we can vote them out if they voted yes?


Jan   September 29th, 2008 9:23 pm ET

why doesn't the government employ the services of financial gurus such as Suze Orman and/or Warren Buffet to come up with a solution to this financial crisis, instead of relying on those in the House that are not economic specialists


Dan in Philadelphia   September 29th, 2008 9:23 pm ET

Like a pusher threatening to withhold a fix, now the despicable politicians say "If we don't pass this bailout, your credit card limit will be rolled back and your bank won't give you a car loan."

Says who?

Are banks just getting more careful and (Holy Cow what a concept!) lending only to those who have a reasonable chance of paying it back?


Marie McGarvey   September 29th, 2008 9:23 pm ET

Instead of borrowing from the Chinese for funds to bail out our system , why not offer American citizens a chance to invest in our country through a special issue SAVINGS BOND at a fair rate of interest, guaranteed by FDIC or other insurance?
.


bill   September 29th, 2008 9:24 pm ET

Peipei is right Larry. Suzie is so damn stupid and you allow her to spout off. She was talking about credit cards. Is she so stupid that she doesn't understand what she is saying? If someone is in trouble with $3000 dollars doesn't she realize it is ludicris to let them run up $5000 they can't pay? Bettor off stopping them at $3000.

We should do absolutely nothing. Let capitalism work.


Jane   September 29th, 2008 9:24 pm ET

It is disgusting that both parties are unable to rise above their own self-serving interests and fears about their OWN jobs and do what needs to be done for the greater good. The time wasted by trying to fix blame is going to finally run out. It's revolting. Stop acting like big fat Congressional babies and suit up and show up and do what you were hired to do!


chad   September 29th, 2008 9:24 pm ET

so why should all this matter to me? i don't have any credit cards and i live pay check to pay check like alot of pepole.


jen   September 29th, 2008 9:24 pm ET

As a hard working, dual income, sometimes two jobs per parent family finding a way to make it work...I'm frustrated that so many folks live a life of credit, deliquency, and seem to suffer few real consequences for financing their mcmansions with an interest only-balloon payment mortgage. Government bailout costs me money for others irresponsibility. Let the credit crunch. As much as I hate to say it, America may need to learn the lessons of the depression again. And please all stop living your life maxed on on credit. Americans and american businesses all maxed out.


norm reid   September 29th, 2008 9:24 pm ET

No State/Federal government hands out money to save a mom and pop company ,when they get in trouble , they are allowed to fall by the way side ,so how does anyone justify saving the large companies/banks and the like when they make errors on running their companies. If the Companies/Banks are not solvent then they should just fall to the way side and let the new Companies , that will fill the gap , not make the same mistakes as did the old one's. N.J.Reid


Clint   September 29th, 2008 9:24 pm ET

I am amazed that the very same Republicans that justified spending 3 trillion dollars (taxpayers dollars) on an unjustified war in IRAQ would suddenly turn their back on spending 700 billion to save their own country!!! It is not about the economy stupid! It is about getting re-elected to their respective seats! Hypocrisy at its finest!

Clint
Montreal Canada


john woodle   September 29th, 2008 9:24 pm ET

i wish they would stop blaming nancy peloski for what happened today. her comments had nothing to do with the outcome of the votes today and if they did those people really shouldnt be in office as they took an oath to do what is right not to get in the middle of the dart throwing.


GM   September 29th, 2008 9:24 pm ET

Mr. King,
Ask Ms. Orman what she thinks about a student loan bailout. Thank you.


C. Strong   September 29th, 2008 9:24 pm ET

Legislation was passed to make it harder for individual consumers to file for bankruptcy (which is a financial bailout of sorts). Credit card companies lobbied to have these consumer protections limited in order to protect their own interest. As usual money carries weight in Washington and the government of the people backed the corporations. Now with this current financial crisis that was primarily caused by unscrupulous predatory business practices fueled by greed and propped up by government de-regulation, you have Washington telling the average consumer that we should use are tax money to bail out wall street. Why shouldn't they have to bite the bullet the way the average citizen is always asked to do? When has the government stepped in to help the average Joe prevent financial collapse? It's funny how when it comes to the ordinary citizen the government believes in capitalism which has somewhat of a dog eat dog mentality. When it comes to wall street the government responds in more of a socialist type manner with corporate welfare.


joseph f yearty   September 29th, 2008 9:24 pm ET

I have a home credit card car loan. I was in the building industtry my job tanked. I had to change careers I survived. Here is how I did it congress I bought a house I could well afford a car I could well afford
and paid off my credit card every month, I also saved 10% of my pay
I couldnt have all I wanted but I had what I needed. I don't trust congress. I am sick about all bickering in congress by both parties


Nep form Phoenix AZ   September 29th, 2008 9:24 pm ET

Balme us ,yes us, the ameican people we all alow this to hapen
for depending on credit almost for everythig ,and that includes the cup of coffe we buy every morning shame on us .


Don Yound   September 29th, 2008 9:24 pm ET

I don't agree with your guests that the bail out should be passed.
If wall street can't keep track of their money, why should the public give them even more money to lose! I have been unable to find permanent work for over 12 years because this feasco has been happening since before 1996. It finally hit the fan.

This is happening because, businesses have been mistreating their workers for decades. If they lay-off more people, they will be at risk of going under, I think. The reason why companies have been using the layoff of employees so often is because this is the way of beefing up their profits and share value and now, without the stock market behind them, that ploy is no longer profitable. Things have been bad for too long and the public have been lied to for a long time and they are tired of the lies and deceit to the point where, it's best to start from scratch and remove the thieves, liers from power and the hyprocrites


Kat Columbus, OH   September 29th, 2008 9:24 pm ET

I have one question: I've worked for state government for 10 years, I don't pay into SS but I do pay into a public employees retirement system. Is my retirement money safe because it is ran by the state or will this crisis affect it?


Chris   September 29th, 2008 9:24 pm ET

Watching all of this unfold noone has yet stated the truth. The truth is all of wall street and their supporters want this bail out so they can keep middle class america sinking in a sea of debt. As long as the so called credit keeps flowing there is no life jacket big enough to save us.


John Pinzini   September 29th, 2008 9:25 pm ET

I don't think the government should help these people who bought homes they couldn't afford.


Ravi   September 29th, 2008 9:25 pm ET

Lets see.
We get into trouble because nobody is watching on the Presidents watch.
The President and the Treasury Sec say we hate this, but insist that we absolutely NEED to do the bail out.
The democrats swallow hard, and bring the bill to vote making the best of a questionable plan
The house republicans sink the bill putting self/re-election above party and above country gambling with ordinary peoples savings and lives.
Now the house republicans want to run in Nov against people who showed courage and voted for the bill even if they did not like it 100%!
This may not have been a perfect bill – but one thing is clear – as far as house republicans are concerned, it is my re-election first, NOT country first!!


Patricia Rose   September 29th, 2008 9:25 pm ET

However we got to where we are is neither here nor there at this point. I don't like to think of giving institutions $700 billion in tax payers money any more than that next American, but it is naive to think that what is happening won't affect every one of us in the coming months. These institutions already have influence over our money whether we know it or not. Look at the stock market's reaction. I trust the free market economy that is reflected in the stock market more than I trust politicians at this point.

I think as the "bailout" bill came together it seemed to have reasonable conditions and provisions (ie buying mortgages and renegotiating them w/ homeowners keeping families in their homes, greater limits on salaries/golden parachutes, jproviding the necessary liquidity to credit markets, etc.) which could have stabilized the system. I agree w/ Suze Orman, we are fooling ouselves and without immediate action more pain is yet to come for every American.

Last, it is interesting to me that representatives in the House who had difficult re-elections recently voted against this legislation and those who had easy re-elections voted for it according to NBC's political analyst. Are they concerned about me or thier own political futures? Unbelievable! I say re-elect no one, not one of them in November! Perhaps it's time for another American Revolution!


F.B. Hendrick   September 29th, 2008 9:25 pm ET

Larry,

While everyone is busy in Washington posturing for election year political gain over the current financial crisis, I thought a historical perspective would be helpful. Please see the below NY Times article indicating the origin of our problem. It seems pretty clear where a large part of this problem originated.

Thanks

Fannie Mae Eases Credit To Aid Mortgage Lending
By STEVEN A. HOLMES
New York Times
Published: September 30, 1999

In a move that could help increase home ownership rates among minorities and
low-income consumers, the Fannie Mae Corporation is easing the credit
requirements on loans that it will purchase from banks and other lenders.

The action, which will begin as a pilot program involving 24 banks in 15
markets - including the New York metropolitan region - will encourage
those banks to extend home mortgages to individuals whose credit is
generally not good enough to qualify for conventional loans. Fannie Mae
officials say they hope to make it a nationwide program by next spring.

Fannie Mae, the nation's biggest underwriter of home mortgages, has been
under increasing pressure from the Clinton Administration to expand mortgage
loans among low and moderate income people and felt pressure from stock
holders to maintain its phenomenal growth in profits.

In addition, banks, thrift institutions and mortgage companies have been
pressing Fannie Mae to help them make more loans to so-called subprime
borrowers. These borrowers whose incomes, credit ratings and savings are not
good enough to qualify for conventional loans, can only get loans from
finance companies that charge much higher interest rates - anywhere from
three to four percentage points higher than conventional loans.

"Fannie Mae has expanded home ownership for millions of families in the
1990's by reducing down payment requirements," said Franklin D. Raines,
Fannie Mae's chairman and chief executive officer. "Yet there remain too
many borrowers whose credit is just a notch below what our underwriting has
required who have been relegated to paying significantly higher mortgage
rates in the so-called subprime market."

Demographic information on these borrowers is sketchy. But at least one
study indicates that 18 percent of the loans in the subprime market went to
black borrowers, compared to 5 per cent of loans in the conventional loan
market.

In moving, even tentatively, into this new area of lending, Fannie Mae is
taking on significantly more risk, which may not pose any difficulties
during flush economic times. But the government-subsidized corporation may
run into trouble in an economic downturn, prompting a government rescue
similar to that of the savings and loan industry in the 1980's.

"From the perspective of many people, including me, this is another thrift
industry growing up around us," said Peter Wallison a resident fellow at
the American Enterprise Institute. "If they fail, the government will have
to step up and bail them out the way it stepped up and bailed out the thrift
industry."

Under Fannie Mae's pilot program, consumers who qualify can secure a
mortgage with an interest rate one percentage point above that of a
conventional, 30-year fixed rate mortgage of less than $240,000 - a rate
that currently averages about 7.76 per cent. If the borrower makes his or
her monthly payments on time for two years, the one percentage point premium
is dropped.

Fannie Mae, the nation's biggest underwriter of home mortgages, does not
lend money directly to consumers. Instead, it purchases loans that banks
make on what is called the secondary market. By expanding the type of loans
that it will buy, Fannie Mae is hoping to spur banks to make more loans to
people with less-than-stellar credit ratings.

Fannie Mae officials stress that the new mortgages will be extended to all
potential borrowers who can qualify for a mortgage. But they add that the
move is intended in part to increase the number of minority and low income
home owners who tend to have worse credit ratings than non-Hispanic whites.

Home ownership has, in fact, exploded among minorities during the economic
boom of the 1990's. The number of mortgages extended to Hispanic applicants
jumped by 87.2 per cent from 1993 to 1998, according to Harvard University's
Joint Center for Housing Studies. During that same period the number of
African Americans who got mortgages to buy a home increased by 71.9 per cent
and the number of Asian Americans by
46.3 per cent.

In contrast, the number of non-Hispanic whites who received loans for homes
increased by 31.2 per cent.

Despite these gains, home ownership rates for minorities continue to lag
behind non-Hispanic whites, in part because blacks and Hispanics in
particular tend to have on average worse credit ratings.

In July, the Department of Housing and Urban Development proposed that by
the year 2001, 50 percent of Fannie Mae's and Freddie Mac's portfolio be
made up of loans to low and moderate-income borrowers. Last year, 44 percent
of the loans Fannie Mae purchased were from these groups.

The change in policy also comes at the same time that HUD is investigating
allegations of racial discrimination in the automated underwriting systems
used by Fannie Mae and Freddie Mac to determine the credit-worthiness of
credit applicants.


Terry   September 29th, 2008 9:25 pm ET

This is an absolute travesty. The problems in this country are many. Part of it is that we do not make anything in this country anymore. So many jobs have been outsourced to other countries for cheap labor so board members can see their portfolios rise. This economy has been propped up by credit and horrible, horrible leadership in our government by letting corporate America get away with highway robbery. But why wouldn't they? They(our polititans) couldn't get relected without their donations to their respective party. Most of our Politians are in the top 1% therefore voting for their own taxbreaks. Until everyone realizes that our economy is a consumer based economy and the more the merrier, all inclusive and the more people who have money to spend the more our economy will thrive, and even the stockholders would realize that they could do quite well with everyone involved. The trickle down economic policy feels like I am being urinated on.

Terry


Clay Prewitt   September 29th, 2008 9:25 pm ET

How about our country taking over a failed bank such as Wachovia. One fear regarding the failed $700 billion bailout was would the money be used to actually unfreeze the credit markets. If "we the people" invest in a major bank or two, we will know the money will be used for the intended purpose. This government owned bank could deal more directly with potential foreclosed property owners and work deals to reduce the foreclosure rate. Of course, since we are not interested in becoming a socialist state, we would have to sell it back to the private sector once this crisis was over and credit markets were again sound (probably at a profit). If we allow things to continue, there will be even larger financial institutions holding us hostage years from now.

Please remind our Congress and Senate that the country is hurting and the rest of the world is watching as our Democracy is "caught in irons".


Shant Ram Gurumani   September 29th, 2008 9:25 pm ET

HOW COULD YOU FINANCE INDIVIDUALS?

Shant
Urbana, MD


William Hutchinson   September 29th, 2008 9:25 pm ET

Stock Market lost a Trillion Dollars today. That is almost twice what the bill would cost. The republicans have really screwed up! They backed out of their own deal. Each party was to guaranteed 50% of the vote. Get with it!


Troy R. Shafer   September 29th, 2008 9:25 pm ET

America did not lose 1 trillion dollars on Wall street. Just the 15 percent od thwe wealthiest busineeses and people in America.

I vote NO on the bail out. For all of the corruption, that is going on where the middle class is getting screwed anyway, I believe we need to learn to live within our means, and save our money in order for to see the American dream ourselves when the of homes fall down to where we can afford them ourselves.

For the rich in America who your money while screing the middle class, all I can say is, "Sucks to be you today".


carolyn   September 29th, 2008 9:25 pm ET

ooops...make that twin towers.


June   September 29th, 2008 9:25 pm ET

If Suze Orman will run for Vice President I will vote!


Anton   September 29th, 2008 9:25 pm ET

Why is Suzie insisting that credit cards, and other consumer loans are tied to the performance of the stock market? There is no direct correlation between the two. It's this playing on average American fears that is unacceptable, not the rejection of the bail out plan.


Sebastian   September 29th, 2008 9:26 pm ET

Congress no longer trusts President Bush because the last time he had a critical world-changing request that required nearly $1 trillion, he invaded Iraq and it turned out that his administration was intentionally misleading the public.

This time around, there is a legitimate threat on hand. We can see it and feel it. Yet congress has failed to act. The entire congress should be made to re-apply for their jobs this November by requiring ALL of them to seek re-election or get fired.


victor   September 29th, 2008 9:26 pm ET

it's extraordinarily difficult for me to listen to the wealthy preach about how we must act now when they probably stand to gain the most. There are a lot of people in america who are usesd to having nothing for a long time, and I kind of get the feeling that they are apethetic at best towards this bailout plan.


nlss   September 29th, 2008 9:26 pm ET

I am utterly disgusted with the members of Congress....most of their constituents do NOT understand what the rescue of Wall Street really means. They are just angry that money is going to help faltering financial firms that let their greed run wild and created the mess we have today. I don't like helping greedy fools any more than they do, but I've got the sense to know that we just have to hold our noses and do this so that this fiasco does not find its way to our local banks and destroys our savings. There is nothing worse than working and saving for years, only to see that savings be cut in half or wiped out entirely (except for the $100,000 that is FDIC insured). The members of Congress need to LEAD, not be lead by their know nothing constituents. They are supposed to be smart. Better they should put the economic well-being of the country above their selfish desire to keep their butts in congress!


Chris Prather   September 29th, 2008 9:26 pm ET

Why wouldn't you just give the American people the money? Americans over the age of 18 who make less than 250,000 pay them the 700 billion. A stipulation is to pay off all your bills first then use the rest of the money to stimulate the economy? Plus after this you could raise the taxes in the future thus paying off the hugh defecit?


jackie smith   September 29th, 2008 9:26 pm ET

I am sick OF THE BLAMgame that both political parties are playing!!
No More....... no more blaming each other,. This is life threatening for our country....it is not a political foobal!! Sol.ve the problema and quic the political attacks and building up of your party. The American people are sick of both parties and for good reason!!


tony jenkins   September 29th, 2008 9:26 pm ET

Taking the banks bad investments off their hands and giving them new money to loan, won't that just put more americans and the country further in debt? And how do you know the banks won't make the same greedy mistakes with their new money?


john bischer   September 29th, 2008 9:26 pm ET

My roth ira with fedelity in cash reserves is not fdic insured should i cash it out an take a tax penaulty or transferr it ? or leave it Thanks


Richard of Austin, TX   September 29th, 2008 9:26 pm ET

I am thankful God opened the eyes of those that opposed the deceit by our president as he leaves office. For 8 years he claimed the economy was strong; and now we must turn over $700 billion to him and his cronies; claiming the sky is falling (remember WMDs?) . Please remind them all of Mathew 19:24
Again I tell you, it is easier for a camel to squeeze through the eye of a needle than for a rich person to get into the kingdom of God. Why don't we turn it over to Him and beg his forgiveness.


BJ from CA   September 29th, 2008 9:26 pm ET

I recently got my BS degree and working on getting my pharmacist license. I'll be looking for a job very soon. Would it be tough to get a job in the health care industry in this economic situation?? Which business sectors are going to affect most by this economic situation?

Thank you


WOW   September 29th, 2008 9:26 pm ET

Mr King, please do not let your guess go unchecked. Thanks.


Robert   September 29th, 2008 9:26 pm ET

Rob's personally developed Plan: I call it the:

American Housing Defibrillation/Stabilization Plan

Problem: Home valuations (American’s largest investment) are down and declining. People are hoarding the money that they do have because they are not confident in the economy and are continuously conserving. Economy is on a downward spiral. Throwing money at the problem will not fix it. Defibrillation of the process will!

Cause: Banks/lenders have used unethical lending practices, have padded their pockets financially, while putting homeowners on a path to disaster from the start of their creative home-loans and have put our nation in a recession.

6 Month Proposed Plan: To Bail-Out Americans (Not Banks or lenders) caught in the over-zealous bank/lender-trap and subsequent declining market situation. We need to defibrillate, stabilize, reform, and then stimulate our housing market. This plan does not promote the idea of throwing money at a broken system. Please do not Bail-Out the Banks who caused the problem in the first place. Hold them accountable by making them embrace the plan and become part of the solution.

The Federal government should in-act a “Defibrillation/Stabilization Plan” that would allow all homeowners that have purchased a home in the past 5 years the option to sell their home back to the bank at the same price at which they paid for the home. Allow this plan to run for 6 consecutive months all across America. This needs to be a quick jump-start “Defibrillation” action.

An Example- A homeowner bought a home for $350K and put $50K down for a Trac-home in 2005. The same Trac-home is currently selling at foreclosure/shortsale prices of $200K right now (Sept 2008) in the middle of the recession. The seller is now upside down $100K in the home. With the new “Defibrillation/Stabilization Plan” the seller would be allowed to sell the home back to the bank for $350K (this is the “shock” to the system). This process is promoted all across America and the home values quickly bounce back up to 2005 values (all/most home transactions are fixed at 2005 values). All of the home inventories are selling back to the banks at these revived value levels. The Banks now take the action to resell the homes to the public at the best price through auction or otherwise (please understand, all of the other houses on the market have been resuscitated to pre-recession, initial purchase-price values). If the home sells for less than $350K, lets say $330K then the Federal Govt reimburses the bank for the difference of $20K. This is where the $700B proposed funding that is on the table should be used. It should be used to help the banks recover all of the small $20K differences across all of the bank-owned sales that would promulgate over the next 6 months across America.

The Federal government should use the $700B payout to the banks only AFTER the Americans who are upside down in their homes (due to no fault of their own) have been given the opportunity to take part in this plan.

**Insert all necessary and appropriate caveats here**
1. Home must be primary residence (lived in it for past 2 years). Not investment property.
2. Purchase of home at $500K or less.
3. Home must be appraised as being in the same or better condition than at the time of purchase.
4. If home purchase price was over $500K, then bank pays seller same price minus 5% per $100K over the $500K limit (round to the nearest $100K)
5. Homeowners that have foreclosed or short-sale homes within the past 12 months should have credit scores restored to pre-foreclosure numbers and given the option to take advantage of “first-time homeowner” opportunities.
a. Caveat – foreclosure must not be caused by 2nd and 3rd mortgages and frivolous spending habits of the owner. The foreclosure or short sale must be directly tied to home valuation and purchase/sale prices out of alignment.
b. Insert all appropriate caveats here, to screen those people who this directly applies to.

Intended Results:

1. Foreclosures due to failing housing market economy will immediately cease.
2. A moderate portion of homes (5-10% of home inventory) would be sold back to the banks. The housing market would realize instant increases in valuations due to property values reflecting higher sales amounts across the nation.
3. Buyers would have properly-valued homes to chose-from within the available inventory.
4. Banks would then be required to sell the inventory of houses at the current (enhanced market conditions). Banks would then be required to track the individual losses on each home as the difference between “buy-back” and “later sold” prices.
5. The Federal Government steps in at this point and bails-out the banks based on their loss numbers while Americans are fairly reimbursed for their home values and are stimulated to go out and repurchase other homes.
6. Once Americans have been able to sell their house, they will most certainly re-purchase homes in other areas and perpetuate the positive housing value and economic trends.
7. The market would become stabilized due to the increase in home sales at proper values.
8. Prevously-foreclosed individuals would then start buying homes with their “revised” credit scores and stimulated opportunities.
9. Average Americans would begin buying and selling homes as before.
10. Overall economy will be stimulated.
11. Next step would be to place tighter regulations on the banks and lenders to avoid another myocardial infarction of our housing market.

Side Notes:

1. Homeowners will not realize a profit from this plan.
2. Homeowners will likely have to pay the closing costs and do the legwork to make the plan work.
3. Homeowners that purchased (e.g. in 2005), for the first time in history, will not realize a growth in their investment, but at least they will not sacrifice their entire life-savings and retirement to save their credit score.
4. Americans served by this plan will retain their credit scores that they have worked hard to build and be able to reinvest in future homes…Economy will be stimulated.


Mary   September 29th, 2008 9:26 pm ET

Listening to Mr Rangle spout his comments about "the past eight years...." I am sure he is referring to the Bush Administration. I am not a fan of Bush....he is one man....how many people are in congress? You mean that the congressmen and women who represent this country were not able to vote or enact legislation that would benefit their constituency. Where were the congressmen and women when this mortgage crisis started happening? Where are the safeguards? STOP the finger pointing and blaming.....congress is part of the problem....not the solution.


Wayne Rogers   September 29th, 2008 9:26 pm ET

Every time a Republican and a Democrat are interviewed and are asked for a solution to the problem, they start out as if concerned then they start blaming each other. Is there anyway you could restrict politics from coming into the interview at least all the finger pointing. I feel like the bail out would have passed had Nancy Pelosi not brought the blaming of the current administration for the mess we are in. The whole country now has to suffer because of her comments.


Glenn M.Chamberlain   September 29th, 2008 9:26 pm ET

Maybe another look at the plan on Thursday will result in elimination of many of the objections like the percentage of the payback going to left wing origanizations like ACORN.


kathy   September 29th, 2008 9:26 pm ET

Here we go again- the politicians not thinking at all about the average citizen. they are only concerned with special interest groups. my suggestion get rid of them and start over with real people, not professional politicians. let them take part of their money and put it back into the system. also, make the CEO's give up all their fanciness and put it back into the system. then have them come down and live on what some of us live on $30,000-$50,000 a year. make them join the ranks of the under middle class. they do not keep in mind, that we vote them in and we can easily vote them out. on the capital gains issue, older americans are being punished when they have to sell everything when it is time to go a nursing home.

i say no bail out, but restructure and make the guilty pay for their mistakes not the average citizen.


carolyn   September 29th, 2008 9:26 pm ET

John...I agree....what happened to "country first"...Come on ...these legilators need to stand up and be counted as leaders....I am so angry about this!!!


Sammie   September 29th, 2008 9:26 pm ET

No bailout for Fanny and Fred. They should be on their own. Who bailed out all the middle class americans who lost their homes? No one. We the people say no! It is our tax dollars, our country.


Jay   September 29th, 2008 9:26 pm ET

Is it possible from what Ben Stein said for the money to go the the tax payer/homeowners rather then the top down? Isnt that another way to stimulate the economy?

How feasable would that be for something like that to pass?


Alicia   September 29th, 2008 9:26 pm ET

Question for Suzy:

If you have paid your mortgage and bills on time with a great credit score and find yourself living from pay check to pay check, how will I benefit from this plan?

I may be going into foreclosure in a few months if I do not get any direct relief. Why not bail out the American people who are in foreclosure or close to it along with giving a percentage off of the mortgages that are being paid on time?


lynne   September 29th, 2008 9:27 pm ET

We are watching this in Canada and are dismayed and worried about this financial crisis happening in your country. Canada loves Obama, and the actions out of John McCain this past week are not worthy of a person hoping to be the next President of the United States.


charles janjigian   September 29th, 2008 9:27 pm ET

suze orman misguided desparation. what does she want from the bailout?


Godlove Ntaw   September 29th, 2008 9:27 pm ET

Larry,

Most Republicans don't trust the Bush Administration anymore and are afraid to lose their congressioanl seats come November if they support him. That is fair politics, however, would you rather be mistaken this time around with Bush when he says the economy is in trouble and support his bailout plan or risk seeing the collapse of the economy? That is a though call and only people who have the American middle class at heart would risk their political careers to vote with Bush. It so happened that the Democrats care more about those on Main Street than the Republicans. I hope their courage is rewarded in November. By the way, where was Senator MCCain's leadership in all of this? All the drama of suspending the campaign only for 65 votes for and 133 against?

The American people deserve better


Tony Parr   September 29th, 2008 9:27 pm ET

The failure of the bailout bill is a major victory for the American people. We do NOT want a bailout of any kind. Please stop promoting a bailout or putting out "hopes" that one will come soon. People have had enough. The Wall Street elite can take their bailout and stick it where the sun doesn't shine. Also Larry, please put someone on who knows something about how economics works. No disrepect to your current guests but none of them hold a candle to the knowledge and sage advice of someone like Congressman Ron Paul. If you want a good plan for recovery, look to the US Constitution and the wisdom of the Founding Fathers. There is no moral or legal authority for the government to bailout anybody. We need to open up the Federal Reserve to scrutiny. No more of their easy credit and inflationary policies. Twice before in American history, two past Presidents have thrown out the Central Bank. Jefferson and Jackson had the courage to dump the strangle holds of the bankers. We need to send Mr. Bernanke and the Fed packing.


Rebeca   September 29th, 2008 9:27 pm ET

Agree with Mr. Stein, Congress should work regardless of the holiday. We all work on holidays when necessary.

I suggest a tax holiday for the balance of 2008 for all income earners at $250,000 /yr or less.
Puts money in the economy instantly, and gives Americans something back from having to endure the economic crisis.


Craig Little   September 29th, 2008 9:27 pm ET

I understand that the credit situation is dire; however, I am not convinced that by injecting $700 billion worth of credit into the banking industry will resolve the issue. Convince me that in 6 months to a year we will not be asked to inject another $1000 billion. This is not a rescue plan, it is a delay plan, and with every delay we make the correction worst.


anne murray   September 29th, 2008 9:27 pm ET

This is rather an 'academic' view, I'm sure. I think every billionaire who resides in the US, like Warren Buffett, Oprah, Bill Gates and even John McCain should 'donate' to the $700 billion deficit. Mr Buffett donates his wealth to charities, what better charity then his own country?There are over 946 Billionaire's across the world, 30% of them reside in the United States alone! That means these poeple represent 11% of of the Gdp. So, all the money In the USA was once touched at one point of time or another by one of these billionaires, There are few Americans in control of such wealth. So let them stand up and put their money where it counts. Also all the CEO's who bilked thousands of Americans out of their entire savings, due to their greed, FREEZE IRA's, savings and bank accounts, make them pay for robbing the poor, to feed their own greedy pockets.


Mick   September 29th, 2008 9:28 pm ET

Giving the Treasury Sec power under the proposed bailout would have made Alexander Hamilton smile with pleasure; has Congress forgotten?


Bob Gleason   September 29th, 2008 9:28 pm ET

I am a 87 yr old widower who has beel living in part on Wachovoa stock dividens.

Am I washed out Permanently.


Roxanne   September 29th, 2008 9:28 pm ET

The die was cast before Nancy Pelosi spoke. Its unfair to blame her. Surely, the big bad Republicans aren't that thin-skinned and wimpy.


Charmin Olion   September 29th, 2008 9:28 pm ET

I want to hear more practical advice about what we (the hard-working middle class) should be doing to prepare for a potential depression. We don't have much savings, but we do have some emergency funds. We live below our means; no car payments, no credit cards – our mortgage is our only debt. We live this way to minimize worrying about money and yet, thanks to the greed of others, we are now worried! We are ok unless we both lose our jobs. I think I would feel a little better if I had a plan b. Any advice??? Should we consider starting a small business, plan for a career change? What are some businesses and/or industries that can be successful during a depression??? How did people survive the last depression?


Carole Leuer   September 29th, 2008 9:28 pm ET

the only people upset about not giving the bail out , are the people with a lot of money in the stock market. That is way Suzy is so upset. I have my money in a guaranteed savings accout because I was always aftraid the stock market was too risky. I have several hundred thousand dollars in different banks. I have not made as much money on savings as people did on the stock market. But I knew it was safe. That is the risk you take when you invest in the market. When it goes down...you goi to. Nobody made you invest. I say NO Bail Out. Their are small banks that will take over. Maybe we will get our middle class backi.


Cee   September 29th, 2008 9:28 pm ET

the bailout didnt work because as an american im tired of the govt shoving there bills down my throat, im tired of paying there bills...


William   September 29th, 2008 9:28 pm ET

Mr Stein,

I love your idea... I read an article yesterday that said if the government gave the money to each person over 18 it would mean approx 245000.00 per person. That would definately stimulate the economy. At least I think so...


wendell tarbor   September 29th, 2008 9:28 pm ET

Larry, the lady who is on your show tonite, 9/29/08 tell her to stop
trying to make (we the people) responsible why this bill didnt get
passed! let her know.. THAT WE ARE NOT FEARING WHAT THERE IS
TO LOOSE BECAUSE THE AMERICA THAT WE LIVE IN, WE DONT HAVE MUCH OF A DAMN THING ANYWAY!!!!! SO PLEASE SAVE
YOURSELF!! STOP WITH THE VERY STOOPID SCARE TACTICS!
WE AINT BUYING THE B.S. THE ONES WHO ARE SCARED IS
OBVIOUSLY THE ONES WHO HAVE SOMETHIN TO LOSE!! AND
WANT THE TAXPAYER TO SAVE THEIR SORRY ASSES!!!!!


PHIL   September 29th, 2008 9:28 pm ET

Hi Larry,

Suzie stated 1.3 trillion dollars was vapourized. Now is that from actual transactions and real losses or just market value. Tomorrow will gain 800 points and back where you were? Oct 1987 all over again.

Phil, Toronto Canada


E Roland   September 29th, 2008 9:28 pm ET

I am a middle class single woman and at this time I'm furious at the Republicans. To me it sounds like the bill was not past because of what someone of the opposite side said. So what, with the threat of losing more jobs and indiviual's 401 K's, there is no question, you vote yes to bail Wall Street out!!!! In fairness neither presidential candiates are responsible for the bill passing or not, its really the Republicans in The House!!!!


dreamer   September 29th, 2008 9:28 pm ET

I am currently laid off now going in the 5th week. I have been looking for employment and there is not a lot happening here. I live in a rather poor county in NC, who suffered from many factories closing under the fair trade act, leading to many companies going to other countries. Knowing that the un-employment numbers are sure to rise even more, how will this affect those like me that are currently laid off or will become laid off? Will there be any money to keep drawing our benefits and how long will that last. Not only is that a concern, I have not yet heard mention of the domino effect it will have on those families that lose their jobs or incomes then may depend on the social services to help them out with such as food stamps. How will this crisis affect those area?


Juan Carlos   September 29th, 2008 9:28 pm ET

I believe someone need to explain the pros and con of this congress decision. Clearly, why that happen? Because the people took credits and they can not pay them? because the government push the people on that way?
I believe the capitalism is in crisis, look, we the people have our investment, we tried to get as much as possible, the CEO will fire a lot of workers to high the stocks, and the workers who has the investment in his own company, lost the job but the stock go high.
On the other hands the only way to be positive on the economy is when we add value to things. All our goods came from foreign countries. Why don pay double tax in order to compete with the american industries?
I pay tax, I work hard, adding value to things. And I feel guilty if the congress pass this amount of money, It is not in my pocket the losses, why I need to pay for them?


Teresa Touey   September 29th, 2008 9:28 pm ET

Mr. Krugman,
We can do better than a banana republic with nukes. What plan do you propose? How can House Republicans think that doing nothing will help at the ballot box? How would you regulate collaterized debt obligation? Why do the Republicans keep using Freddie Mac and Fannie Mae as smoke and mirrors?


Rose   September 29th, 2008 9:28 pm ET

We are so tired of the Blame Game. Here I am 70 years old, and it's the first time in my life I do not know who I will vote for as my next President. This Financial Crisis is unbelievable. We vote and put all of our trust in these politicians who promise to work for us. WHAT A LAUGH...I hope they can put their act together and come up with a solution that will benefit the taxpayers and not the Big Wigs.


atoosa biglari   September 29th, 2008 9:28 pm ET

i think what Nancy P. said on the floor was deliberately to get Republicans not to vote. If this is true it was smart move on her part this way they can show the democrats are united. Go Nancy P.


Troy R. Shafer   September 29th, 2008 9:28 pm ET

America did not lose 1 trillion dollars on Wall street. Just the 15 percent od thwe wealthiest busineses and people in America.

I vote NO on the bail out. For all of the corruption, that is going on where the middle class is getting screwed anyway, I believe we need to learn to live within our means, and save our money in order for to see the American dream ourselves when the of homes values fall to where we can afford them ourselves.

For the rich in America who made your money while screwing the middle class, all I can say is, “Sucks to be you today”.


Linda   September 29th, 2008 9:28 pm ET

Why is this plan being constructed by politicians instead of by some of our country's most brilliant economists, financial experts? You have a Princeton economist saying it is a terrible plan, what does he propose?


Larry from Atlanta   September 29th, 2008 9:28 pm ET

The plan failed because of the lack of credidability of the current administration. Have the proposal come from another source. Congress should provide a counter proposal.


Judy   September 29th, 2008 9:29 pm ET

I agree with Peipei that Suze has only added unnecessary panic by making the Wall Street loss comment. She, as much as anyone who follows the financial markets, should realize that this market is very likely to rebound in 1-2 days. What will her comment be then? Wall Street recovered so the bailout isn't necessary. Stop using the stock market as the only way to gauge what is happening. Car manufacturers have been facing major losses for over a year and the sky hasn't caved in. They are still functioning and so will the financial markets.


Karen   September 29th, 2008 9:29 pm ET

For those of us who have good credit and can qualify for loans, will higher interest rates be charged on those loans? In other words, will there be higher interest rates as a result of this financial debacle and why?


Robert P. Schmeltz   September 29th, 2008 9:29 pm ET

The the bothers me most about the Tax payer protection on the bailout bill (ie Buying stocks , litagation after 5 years,etc) is it all seems to be based on the assumption that these companies will still be there.If a company goes bankrupt the stock is worthless and how do you litatagate against something that no longer exists?


CharlieO   September 29th, 2008 9:29 pm ET

It was a lousy bill. There are better alternatives that don't reward the bankers. Try loans, try guaranteeing the mortgage payments. I'm not the expert, listen to some of the leading economists and Harvard Business professors. There is a better way.


Vanessa Scocchera   September 29th, 2008 9:29 pm ET

I'm confident they will pass the emergency bill soon.
There is any way to know if the bil will make sure those 700 bilion $ will not go in the hands of terrorist organizations and government with a dictatorship or guilt of a genocide?


Suresh   September 29th, 2008 9:29 pm ET

Can anyone gaurantee that if the "bailout bill" had passed or is passed on Thursday, the markets would simply turn around and America would have avoid the recession?


Bob   September 29th, 2008 9:29 pm ET

People should take some time to think about this crisis. Some potential approaches are noted below.

Proposals:
1. Government to insure mortgages. Mortgage holders should pay for their decisions.
2. Create incentives to renegotiate problem mortgages to make them affordable. A possibility is to present value the interest rate reductions and to add this to the principal. This gives the home owner a chance to keep their homes, reducing the rate at which home values are dropping.
3. Put limits on the bank's ability to sell the loans they issue. They should bear the risk of the loans they approve.
4. The governments should insure overnight money. That way inter-bank loans will start again.

Underlying principles: Banks should bear the risks of their decisions. Homeowners should also bear the risks of their decisions.


MyJesse   September 29th, 2008 9:29 pm ET

What about a $7 trillion WPA project for our infrastructure and electrical grid...........


Cee   September 29th, 2008 9:29 pm ET

right on ben... from the bottem up... will pass!!


Bud Nolan   September 29th, 2008 9:29 pm ET

What we need it the resurrection to the WPA-CCC-OPA of the 30 generation to put people back to work while at the same time re-building our infrastruture. Have been in politics Local -State- and National fo over 25 years in t e 40-60- generationwhat we need now is to run all s4 house and senate leaders out of town and the American people to go to the polls this year and vote out everey incumbent -Democrat and Republican as thy are unfit to serve.


H. Richard Peto   September 29th, 2008 9:29 pm ET

A different solution is needed! Consider the following:

The proposed bailout is a banker's dream. We need a citizens dream.

Why not let the federal reserve have the authority to purchase from selected requesting banks $700 billion of preferred stock which pays interest and carries warrants to purchase common stock. The banks will have their capital increased the same as was intended under the bailout plan.

The federal reserve can sell the stock at some future date. The offending banks are not bailed out. They are left to take their gains/losses without passing them on to the pubic.


charles janjigian   September 29th, 2008 9:29 pm ET

i agree w/comment stop blaming nancy pelosi (spell check).


Tony   September 29th, 2008 9:29 pm ET

I am sad that know one understand that Bush has destroyed our country. First of all anything done in this country should be done in the name of Jesus, we should all keep in mind that this country was founded in God we trust. I don't know that Bush is in contact with our Lord and Savior Jesus Christ. He is the only one that can bail us out of the mess that the republican has gotten in to over the pass eight years. Our country has lost our focus and until we turn back to God we will forever have these problems.

First seek the Kingdom of God and all its rigtheousness and all shall be added unto you. I have yet to here anyone say lets pray and wait on God. By Him being the creator surley He knows how to get us out of this mess.

IN HIS SERVICE,
Tony


Sandy Ploth   September 29th, 2008 9:30 pm ET

I am very sick of the finger pointing. Please tell them to stop the political bickering. The American people are really fed up. I want to hear that both sides of the aisle are going to sit down, weigh all the options and come up with what they honestly believe the best possible bill realizing you it's a difficult situation and there are going to be hard choices. I also want them being more explicit to what it means to the average American. Because we're paying & you need more than sound bites and short 2 min speeches from the President to get a buy in from the tax payers. I was originally for the bill but do agree that this bill could certainly be improved.
I am an independent who leans Democratic and I'm sorry to say, I was extremely disappointed in Nancy Pelosi's leadership today, making paritsan speeches when they were trying to get bi partisan support. And I certainly don't want to hear from Congress Charles Rangle who' s being investigated for his own abuses of office.
At this point Ralph Nader is beginning to look better!!! Put him on these shows for a third point of view which we rarely get!


carolyn   September 29th, 2008 9:30 pm ET

Dean...you are missing the liquidity crisis that is worldwide. Did you not see what the banks had to do to infuse capital into the system. The retirees are going to be in a world of hurt when their investments are worth half what they were last month. Everyone is focused on getting "wall street". Forget them...it's done. The questionis what is necessary to move the economy forward.


Lisa DeWitt   September 29th, 2008 9:30 pm ET

Right on Ben Stein!!! Someone is finally making sense.

I am sickened by the politicians and newscasters shoving this bailout down the throats of the American Middle class.

I do not support this bailout and I don't want my government representatives voting for it on my behalf. In this election year I will vote accordingly.

I have never agreed much with Ben STein before but he deserves a kiss tonight.


Amanda   September 29th, 2008 9:30 pm ET

I lost money in my 401k today due to the market. Do you suggest taking the money out of my 401k and tranfering it into an IRA that is backed by FDIC?


tom meaker   September 29th, 2008 9:30 pm ET

Handing the money to people who can't pay their mortgage is dumb.They are the ones who shouldn't have received the mortgage in the first place.T hree months from now we'd be sending them 700 Trillion more.


Kay Hill   September 29th, 2008 9:30 pm ET

I don't care who caused the problem I just want to stop them blaming each other and solve the problem. I am seeing all my retirermnet money going down the drain


Garry Conn   September 29th, 2008 9:30 pm ET

The bill was turned down and they are still trying to pass it? I thought when you took a vote it was over? This is my corrupt government at work! Now they will bribe and blackmail everyone until they get their way? Why bother taking the vote? Why bother having an election? Stop the drama and dictate my next dictator please.


MILAN   September 29th, 2008 9:30 pm ET

HELLO LARRY . I THINK SO THAT SUZY TALK IS SOMETHING WE ALREADY KNOW. JUST TO TO INFORM YOU THAT 401 K DOESNT EXIST ANYMORE. TODAY EVERYBODY RECEIVED LETTER THAT 401K IS $0. ALSO REGARDING YOUR MONEY , IF YOU TRY TO TAKE FROM YOUR ACCOUNT MORE THAN $100,000.00 EVEN BANK OF AMERICA WHICH IS CONSIDERED IN STILL GOOD STANDING WILL NOT GIVE YOU MORE THAN THAT. THE REST YOU CAN FORGET ABOUT. AS I SEE EVERYBODY IS TALKING HOW THIS IS TERIBLE THING AND CRYING ABOUT $700 BILLIONS. WHY DONT YOU GIVE TO PEOPLE 60YR LOAN TERM ADJUSTEMENTS WITH LETS SAY 15 YR BALOON (INTEREST ONLY). THAT WILL DEFINITELY LOWER FORECLOSURES IF NOT STOPING THEM.
MAYBE THAT CAN BE SOME TEMPORARY SOLUTION.

ALSO MANY FORECLOSURES DIDNT START OVERNIGHT.
THEY ARE CAUSED BY LOSS OF JOBS , TRANSFERING AMERICAN INDUSTRY TO OTHER COUNTRIES FOR THE SAKE OF CHEAPER WORKING FORCE WE LOST INDUSTRY , QUALITY AND PRODUCTION. HONESTLY , WHOLE WORLD IS PROBABLY LAUGHING AT US.


B. Southcarolina   September 29th, 2008 9:30 pm ET

I'd like to know how many Republican's are out there, who have lost or are losing their jobs / homes are depending on the very social programs they have condemned, until things get right?


Adrian   September 29th, 2008 9:30 pm ET

I do not believe that we should support the bailout of Wall St. or the irresponsible consumer who took out loans that they could not afford.

Sue has been a long time proponent of responsible use of credit, and has warned that something like this could happen. Maybe now, consumers will look at how they spend and save their money.

As for Wall St., let it fall so that future financial leaders can learn a lesson and not get us into a mess like this ever again.


Dan   September 29th, 2008 9:30 pm ET

If credit availability is being squeezed, why do I continue to get bombarded with credit offers both in the mail and on-line? I get offers for consolidation, mortgage, and general consumer credit on a daily basis.


amber schur   September 29th, 2008 9:30 pm ET

They need to quit bickering like my 2nd graders and fix the problem. If they gave the tax payers the money to pay off their mortgages and credit card debt then the banks and financial institutions would be flush again. I guess that would make to much sense. Of course that is assuming that we would use the money responsibly. Yes I know what assume makes both of us. How is it that little old me can use some common sense to solve this problem but Congress has to make it so difficult. It is like watching my 8 year olds trying to learn to solve problems. The Dems and Repubs need to grow up and get along. They are their for me/us not for their egos.


Kristina   September 29th, 2008 9:30 pm ET

Why should the government have any thing to do with the business sector. Why do we disapprove of bills that allow the government to pay for everyone to have health insurance, but then we want the government to support the banks and institutions that weren't managed correctly. Americans shouldn't need all that credit anyway, they aren't responsible enough to stay out of debt. It used to be you spent what you had and you had gold or some other valued commodity backing it, today it seems like we are playing monopoly.


Michael L.   September 29th, 2008 9:30 pm ET

I have a solution! Five things…
1. Let’s pray
2. Allow the tax payers to choose/vote
3. Rid all negative talking
4. Believe in yourselves and this great country
5. Allow distress home owners to take out home loan assistances from the feds at a low rate without closing fees (negotiated loan with the former lender and/or owner)


Nic   September 29th, 2008 9:30 pm ET

It is time to stop politics! It is time to focus on the economy as a whole! Republicans voted against the bill because this is their last bet to win the election, as we all know quite a large number of the public is against this bill. This is a bet to win the support of the public! But the public has not enough in-sight of the consequences of rejecting the bill than the economists! It is our tax money to bail out for sure, but in this situation, we have no choice! Either bail it out or lose your jobs, lose your credit limits, lose your house, lose your savings in 401k. Hello! Come on!


JBK   September 29th, 2008 9:31 pm ET

A lesson I learned the hard way. There's less trouble when living within your means. Expensive doesn't mean it must be bought. Bail outs are as silly as pyramid schemes. The rainy days are here, how's your savings, hmmm? Best Regards!


Ellin   September 29th, 2008 9:31 pm ET

Ben Stein brings up a good point (re: bottom up). How about this?
The AIG solution

I'm against the $85 BILLION bailout of AIG. Instead, I'm in favor of giving $85,000,000,000 to America in a "We Deserve It" dividend. To make the math simple, let's assume there are 200,000,000 bona fide U.S. citizens, aged 18+.

Our population is about 301 million counting every man, woman and child. So, 200,000,000 might be a fair stab at adults 18 and up. Now, divide 200 million, 18+ adults into $85 billion – that equals $425,000.00 each! Yes, my plan is to give that $425,000 to every adult as a "We Deserve It" dividend.

Of course, it would NOT be tax free. So, let's assume a tax rate of 30%. Everyone would pay $127,500.00 in taxes. That sends $25.5 billion right back to Uncle Sam! It also means that every adult 18+ has $297,500.00 in their pocket. A husband and wife would have $595,000.00!

What would you do with $297,500.00 to $595,000.00?

Pay off your mortgage b housing crisis solved.
Repay college loans b what a great boost to new grads.
Put away money for college b it'll really be there.
Save in a bank b create money to loan to entrepreneurs.
Buy a new car b create jobs .
Invest in the market b capital drives growth.
Pay for your parent's medical insurance b health care improves.
Enable Deadbeat Parents to come clean b or else.
Remember this is for every adult U.S. citizen, 18 and older (including the folks who lost their jobs at Lehmann Brothers and every other company that is cutting back) and of course, for those serving in our Armed Forces.

If we're going to re-distribute wealth let's really do it! Instead of trickling out a puny $1,000.00 economic incentive.

If we're going to do an $85 billion bailout, let's bail out every adult U.S. citizen!!

As for AIG b liquidate it.


Tony   September 29th, 2008 9:31 pm ET

Republican and Demorcrats are blaming each other. The Democrats blame the Republicans but the Democrats didn't need any votes from the Republicans to pass the 700 billion dollar bailout. I am sick in tired of all of this. I have been a small business owner for around 15 years and trust me either way this will not effect me one bit. I don't know what you are talking about when your uest talk about who will suffer. It is big business that will suffer not business like myself. Trust me all the big shots have been crooks for years and it probably will not change.


Sandy   September 29th, 2008 9:31 pm ET

Could the failing banking industry be holding out for a .50c on the $ bailout for their assets as opposed to the .20/c they would get with no federal bailout? There's a tremendous amount of risk for all concerned no matter what the outcome, but personnaly, I believe a bailout will do nothing more than provide more opportunity for companies to make even more impudent and reckless decisions.

Time and thoughtful consideration is, by far, a better solution than holding a gun to taxpayers' heads.


atoosa biglari   September 29th, 2008 9:31 pm ET

this might be a crazy thought but today 9/29 which adds up to 9/11 is this an unlucky number for us?


charles janjigian   September 29th, 2008 9:31 pm ET

where was paulson last year?


PHILIP ERICKSON   September 29th, 2008 9:31 pm ET

At last the Republic is working. Congress listened to the electorate and voted down the bail out plan. The plan was designed by Paulson, ex CEO of Goldman Sachs. The plan would have saved his old company, which caused much of the mess we are in. Don't listen to the pundits, listen to the people!!!


bill hall   September 29th, 2008 9:31 pm ET

I just have to say that the taxpayer has lost all confidence in the government due to the deceit that we taxpayers have experienced throughout the past.It's the same,the rich stay rich and the middle class get poorer.I bet the top dogs of these corporations don't lose any sleep or their house(or houses).You can bet the taxpayers will be on the hook for the total mismanagement of these corporations which ultimately have the government in their pockets.


Lisa DeWitt   September 29th, 2008 9:31 pm ET

Right on Ben Stein!!! Someone is finally making sense.

I am sickened by the politicians and newscasters shoving this bailout down the throats of the American Middle class.

I do not support this bailout and I don’t want my government representatives voting for it on my behalf. In this election year I will vote accordingly.

I have never agreed much with Ben STein before but he deserves a kiss tonight


Wayne   September 29th, 2008 9:32 pm ET

If we need BILLIONS of dollars for a economic bailout,why not take all the BILLIONS of dollars we are spending on a useless war and use it for the bailout?


anne murray   September 29th, 2008 9:32 pm ET

One more point to address:
More than 8.4 million people in the USA have that type of money and there are a lot of people who hide behind corporate entities which in term would make the number over 20 million individuals. That explains why America is probably the world's most powerful country and home of the most powerful military. The lives of billionaires and their hefty net worths, might have some very dirty, hidden secretsm as to how they derived their wealth.


TH   September 29th, 2008 9:32 pm ET

John- Why did Peloski feel it necessary to make stupid partisan comments in the first place. Talk about lack of leadership.


Louise Trucks   September 29th, 2008 9:32 pm ET

Should we have cash stowed away? If all of the banks fail, how will there be enough money for the FDIC to bail eveyone out? What about groceries, will they go up higher or be hard to get?


ardee   September 29th, 2008 9:32 pm ET

These two guests Ben Stein/ Paul ???? made sense. How about some type of voucher for home onwers who make less than????? some amont. The republicans have ignored the middle class for 8 years and they need now to fess up!


jasper haynes   September 29th, 2008 9:32 pm ET

i feel that the nonbinding provisions added by the democrats that lay the ground for an accounting over time of the efficacy and appropriate use of the bail out $s and possibly requiring restitutions after five years by benefiting corps were the issue . This republican request is a usual suggested only as something that we must do , not something we are allowed to evaluate over time or have any authority about . They forget the phrase we the people , they are subject in their own minds only to their own interests which are patently not the will of the majority nor in any way for the benefit of the majority , the state of our economy speaks for itself . economic deregulation has led to profiteering and abuses that must be brought to the light of day .


Danyil   September 29th, 2008 9:32 pm ET

Once upon a time, America didn't have credit or credit cards.
Makes you wonder how our forefathers survived, not being able to swipe a piece of plastic through a machine and pay for waht they wanted.
Truth is, they didn't buy "stuff" per se. They bought what they needed. You didn't see such overwhelming evidence of financial abuse like you do today. They were frugle, and even more important, they understood that they shouldn't overspend. America has become fat and lazy, having confidence in its "superiority" over other countries, whether it be economically or otherwise. The rejection of the 700 billion dollar bill gives the US a much-needed chance to trim the fat, as it were. God knows we need to get ourselves back in shape, in more ways than one.


Michelle   September 29th, 2008 9:32 pm ET

I agree with the vote congress passed today. Wall Street needs to feel the pain as the rest of us have felt most of our lives. The bottom up theory would be a better plan for most Americans.


Kirsten   September 29th, 2008 9:32 pm ET

My husband is 50, I'm 48, we have all the money we've saved in accounts with Edward Jones, I find it hard to keep it there, (give me a reason) we've already lost so much money we'll never get back in our lifetime, it was put there to fund college for our 3 children, we've probably lot at least 1 yrs' worth of tuition already, say nothing about what was lost today! The reckless, ruthless behavior of the people in charge, that caused this crisis should be held accountable.
As for AIG – liquidate it.
Sell off its parts.
Let American General go back to being American General.
Sell off the real estate.
Let the private sector bargain hunters cut it up and clean it up. This from an email circulating about a "We Deserve It Dividend" What is the middle class to do??


Teena Webster   September 29th, 2008 9:32 pm ET

Ben Stein needs to shut up about McCain...I would rather be tied under a train by OilCan Harry!!!


Kitty Myara   September 29th, 2008 9:32 pm ET

I sit in my Canadian home and worry non stop about a few congressmens' decision and how it will affect me... the fact that congressmen are playhing politics at this very dangerous moment where ,as Barack Obama said, it is not a time for celebration B UT it is a time to act.

The world will have to pay for the actions of the Wall St. greedy and, now, the Americans who are more interested in playing politics than they are in saving their country.

I have just finished listening to a Republican pcongresswoman exhort that she would be willing to work 'constantly' to repair the problem... Where was she for the last 8 years??? Her, and others of her ilk, might yet be the bane of the much needed rescue of the US financial system....

What aggravates me is that I am a Canadian, I have worked all my life and now live on basic pensions have great pnhysical disabilities... and the actions of all lthe above will probably affect my last years...

American politicians need to "be right" is a very dangerous commodity that must be dealt with.. along with your American never ending Presidential campaign...


Lindy Smith   September 29th, 2008 9:33 pm ET

I have little to no faith in our government to helping us struggling homeowners at all. If our mortgage was just $400 less each month we could live better and make our payments every month never late. For crying out loud, just modify our loans and we would be doing better! Why is this so hard to see? As for the big business stuff, make the multi- billion dollar CEO's pay for their mistakes, not us. They made their own bad decisions.


chris, baltimore, md   September 29th, 2008 9:33 pm ET

Sure, the market lost a trillion dollars, but i would rather lose money in the stock market than use my tax dollars to bail out greedy corporations who care nothing for the American people.


Kamal   September 29th, 2008 9:33 pm ET

Government needs to use the John F. Kennedy’s tactic, like he order an investigation into the Big Steel company in the 60s, to force them to bring down the prices for steel government should open investigation in to all the CEOs, CFO and upper management of companies, who are crying for help, when they are the one who made the big bucks. Start putting CEOs behind the bars; problem will be solved in less than 72 hours.


D KLEA   September 29th, 2008 9:33 pm ET

FINALLY CONGRESS DID THE RIGHT THING IN VOTING AGAINST THE BAILOUT! WITH NO LIMITS ON SALARIES FOR THE TOP EXECUTIVES AND NO SAFEGUARDS TO KEEP US OUT OF THIS MESS AGAIN. THE PROBLEM IS THAT AMERICANS HAVE BEEN ENCOURAGED TO GET IN DEBT ABOVE THEIR LIMIT. I PAY MY C/CARDS OFF AT THE END OF THE MONTH AND I DO THAT BY LIMITING MY SPENDING. ONE OF YOUR COMMENTATORS SAID THAT EVERYONE USES THEIR CREDIT CARDS EVERY DAY JUST TO KEEP AHEAD. SOUNDS TO ME LIKE SOMEONE DID NOT TEACH THEIR KIDS THE VALUE OF MONEY. I AM RETIRED AND ON SOC SEC AND I HAVE TO USE COMMON SENSE TO STAY AHEAD OF THE GAME. CONGRESS SHOULD HAVE TO RETIRE ON THE SAME INCOME THAT "WORKING" PEOPLE GET, HOW MANY OF US CAN VOTE ON OUR OWN RAISES AND MAKE THE TAXPAYERS PAY FOR IT. WHAT A LIFE!! GAS TWO YEARS AGO WAS $2.19 A GALLON AND WE WANTED A "CHANGE" SO WE GOT A SPEND-THRIFT CONGRESS WHO HAS SPENT US INTO THE POORHOUSE. THE LAST THING WE NEED IS A DEMOCRATIC CONTROLLED CONGRESS AND A RUBBER STAMP DEMOCRAT PRESIDENT. NO ONE SEEMS TO BE ACCOUNTABLE IN CONGRESS, BECAUSE THEY THINK WE ALL HAVE A SHORT MEMORY.


john   September 29th, 2008 9:33 pm ET

This is ridiculous, we spend so much time and money in iraq, and now our own economy is on a downward spiral. I would think our goverment which regulates everything would make sure that this sorta thing wouldn't happen. Everyone said George Bush would cause world war 3, but never imagined he would give us another great depression.
This next election you have to ask yourself, who are you going to vote for, The douch bag or the douch bag?


Chris Olayokun   September 29th, 2008 9:33 pm ET

Hello Larry
Thanks for your time and effeort, but this is not what the pundits on TV are telling you. It is not what the newsmen at the nations nationally recognized newspapers are saying, it is not what the FED or the US Treasury Department are saying... publicly.

But they know it just the same. Anyone with access to a computer can find out just how bad things really are. The Federal Reserve has been printing money like there is no tomorrow and yet financial pundits act as though this is simply not important enough to report.


D. Muscanell   September 29th, 2008 9:33 pm ET

Free enterprize, is free enterprize. let them worry about themself's.
Ben right
We should help the ones that are losing their houses. Why

Because most have 2 paychecks per household and will be working for a long time. Let just increase their tax rate until they pay the government back.


anna brady   September 29th, 2008 9:33 pm ET

probably,not too bad it got rejected the 1st. time around.theyll have to come up w/ a better plan-more protection for lower/middle class americans.the problem is global.obama has the savvy/idealism..to fix it.dont get klein-he agrees w/ obama on most issues-but is supporting mccain.why are jews-savvy,sane,idealistic-out front on most social issues.fighters-so apparently,so slow to declare for obama?i dont get it.for that matter,i dont get the hostility towards blacks,from jews-in nyc where i live-at CUNY where ive worked for 30+ years.my jewish friends wont discuss this-ive tried.nor will they discuss the nor will they discuss americas failure to play fair in the MIDDLE EAST.while understandably ,historically,this wrong-politically,morally-policy works against the legitimate interests of the Palestinians.as did the special relationship between britain and america-also,understandable-historically.but it worked against the catholics in n.i.clinton went out on a limb-aided by edward kennedy,and strong congressional leaders-bucked the state dept.-gave gerry adams a visa-sent over george mitchell-the rest is history.obama-w/your help,larry,could do the same in the israeli/pal.struggle.the rest of the world GETS it.the world CANT AFFORD the waste of lives/treasure.mise le meas anna brady


Dr. Robert Megaffin   September 29th, 2008 9:33 pm ET

What the hell did Lou Dobbs mean when he said that the rejection of todays bill was a victory for the American People?. I live in Canada and its affecting not only Canadians but people around the world. Isn't the market fall today a good indication of the necessity of a rescue plan, not to mention the credit implications.


Troy R. Shafer   September 29th, 2008 9:33 pm ET

America did not lose 1 trillion dollars on Wall street. Just the 15 percent od the wealthiest busineses and people in America.

I vote NO on the bail out. For all of the corruption, that is going on where the middle class is getting screwed anyway, I believe we need to learn to live within our means, and save our money in order for us to see the American dream for ourselves. When the of value of homes finally fall to where we can afford them ourselves, then I can say that the market has adjusted correctly for the average american.

For the rich in America who made your money while screwing the middle class, all I can say is, “Sucks to be you”.


Art   September 29th, 2008 9:33 pm ET

If it is basically a credit crunch problem, why not just forget the bail-out purchase of toxic paper, and have the $ 700B create a fund for qualified business credit needs?. Banks can be the loan processors


victor   September 29th, 2008 9:34 pm ET

maybe its a good thing that america's financial system fail. that way it can be rebuilt in a more reliable fashion.


Karen Cacciapuoti   September 29th, 2008 9:34 pm ET

Mr. Stein is observant enough to suggest that the windfall to bail out America could start from the bottom up. I had a friend describe that 700 billion dollars distributed to the taxpayers of the United States would equal approximately 40,000.00 per taxpayer. Doesn't this sound very similar to the economic stimulus package enacted this year yet packed with a very significant punch? I am not intersted in rewarding America's addiction to credit nor am I interested in forgiving corporate greed, however it seems to me that if you want to get Americans to feel secure, pay their bills (current expenses as well as past debts) and stimulate economic growth give them some money to do just that. Additionally, distribution should be spread equally so that we are not just bailing out the individuals who made serious financial mistakes.


Jillian R   September 29th, 2008 9:34 pm ET

To the politicians:

Stop the pointing fingers – it doesn't matter what party you belong to, this is affecting everyone.

Get the politics out of the way and for once make intelligent decisions that can get us out of this mess.

Everyone across the board needs to make better decision from politicians to lenders to consumers.

I think one of the requirements of this is to require all children to take classes on business ethics, bill paying and living with their means before graduating HIGH SCHOOL.

The world is looking at us and laughing – and they very well should! Super power indeed. Stupid power is more like it!

Larry I love your show. Thank you!


Lohnne Shady   September 29th, 2008 9:34 pm ET

Why should the american people carry the burden of the deregulation of the financial institutions that were supposedly going to be so much better at managing the countries financial interests, but now in less than 5 years "WE THE PEOPLE" are being told that we need to step in and bail out the very institutions that "knew how best to manage the PEOPLES money". The financial fall out from the poor choices of government that were spurred on by their financial gains from big business, is going to be a very hard pill to swallow, but should not come as a "reactionary treatment" in the form of this bailout that will only sooth the rash from big business. If this is allowed to play out it will get more to the root of the cause and "ROOT OUT" the poisons that infect the financial machine of American business and not give benefit to those that were the brains that put us in this spot.


Lord Jastem   September 29th, 2008 9:34 pm ET

I am a representative of the poor people in America's population, and those who have been terrorized by the white-supremicist infrastructure of the United States government. Personally we are happy to see the market crash as it has never benefited us in poverty, homelessness, and discrimination. I hear the term upper and middle class thrown around alot, but never nearly as much about the poor. We have come to understand that they do not care about us, so we don't give a damn about them!! Face your own christian theology, it was already written it would go down. Deal with it.


Patrick   September 29th, 2008 9:34 pm ET

how is it that no one is going to jail there had to be criminal activity in all of this?


urwatuis   September 29th, 2008 9:34 pm ET

the way this "bailout" was written it is a bad deal....what is a good deal..... I said it to co workers today and Ben Stein said it on the air......the problem needs to be solved from the ground up. Giving the money to the taxpayers so they can pay on their defaulting mortgages. This will help the people and help the financial sector. We have been ripped off, and raped by the moguls on Wall Street and now they need to pay for their sin.


Robert Lowrance   September 29th, 2008 9:34 pm ET

Although a "bailout" may assist the country in the short term, the true answer is let it crash so that America will learn to live within its means instead of being over inflated and over extended.

Many Wall Street commentators are saying we lost over 1 trillion in the market today.....big deal.....the market fluxuates continously and should not be a critical part of life in the United States.........instead of focusing on the market for relief why do we not cut foreign aid loans that have never had an attempt of being repaid, and let our military be an occupying force instead of being a U.S. funded police force that the taxpayers are footiing the bill for with no chance of compensation......if we are occupying a nation and funding that occupation act like it and acquire the resources of that nation in order to fund our actions (this has been the standard of war for thousands of years.)

In some ways this is teaching us a valuable lesson our nation needs to re-learn in order for us to survive and prosper in the future both as individuals and as a nation.

On a final note partisan flingiing of poo has to stop, it no longer matters how we got iinto this mess but how we need to come together and recover from it.


Freda Hall   September 29th, 2008 9:35 pm ET

I was shocked by the failure of Congress to act in the matter of fixing this mess. I agree with Suzy that unless some agreement is reached and soon we will all be feeling the pain. I believe that the Financial Organizations and Wall Street have been given free reign for too long and sooner or later something of this nature was bound to happen. I believe that there does need to be protection for the victims of the predatory policies of some of these groups .Encouraging people into these mortgages and credit deals that maybe some of them would have avoided had it not been for the enticements to borrow more than they could afford now, on the belief that in 5 years or how ever long it was before the balloon payments came due that they would be better off financially so the bigger payment would not be a problem. Safeguards and limits that will at least give taxpayers a chance to recoup some of their losses should also be a part of the package. Lack of regulation of these corporations is what is underlying much of this problem. Republican politicians seem to be of the opinion that we are all too stupid to see the need for intervention even though none of us like it. Hopefully they will all stop playing word games and sit down like grown ups and work out something that even if we don't like it we can live with. The only thing that trickles down in this country is the trouble. These C.E.O.s and top execs should not be allowed to profit from this mess while the rest of us suffer.
Once this crisis is over, which one day it will be, they need to get busy and regulate the day lights out of the financial industry.


Carole VAn Ness   September 29th, 2008 9:35 pm ET

I do not understand why these reporters and financial pundits being interviewed are constantly saying, " this financial bailout must be passed, the lives of the average person will be basically over, if we don't give all this money to the crooks on Wall Street. Let them suffer. Let us suffer!! It is about time for all those loaded with millions to understand what the lower middle class has been going through for the past 4 years. We cannot travel because of the price of gasoline. All the jobs have been sent to India and China, so there is way more unemployment then is officially reported!! We have been lied to all the way in every area, every statistic put out if fraud.


Bob Dando   September 29th, 2008 9:35 pm ET

Larry I own a kitchen cabinet business in Seattle Washington. I'm totally against the bailout. But I've been in business long enough to know that this is one of the biggest fiascoes I've seen in my business career. I've been in business for over 40 years up until about three months ago I had over 125 employees. I'm now down to around 60 employees. I have cash reserves that might have gotten me through the next couple of years. I'm now very seriously thinking about running to the bank and withdrawing all of the cash we have built up. Put all of my equipment in storage. Everything our business has is paid in cash. But why should I gamble on continuing losing money every month. It doesn't matter whose fault it is. I personally think the blame lies with the Democrats. And especially Nancy Speaker of the House. She hasn't done anything to improve business capital. The Democrats feel that we are all equal. Me as a business person has worked very hard and gone through two marriages to keep my company going. I started working when I was 10 years old. I don't believe in unions. I think a person should get paid what he's worth. I pay my employees far more than any union scale. The Democrats feel we are all equal and should be paid the same. That's a total injustice to the harder working people in this country. Most people don't realize what is going to happen. In some ways I would love to see it happen. If I only had a few months to live I would get a kick out of sitting back and watching all of our stupid people struggle. Just too much greed and the feeling that someone else will take care of them. This definitely is a crisis. Something is better than nothing. And this will do us in. I understand Campbell Soup's is up today. Our new soup line.

Thanks Larry

Bob Dando


Chris   September 29th, 2008 9:35 pm ET

Suze,
People who live on credit cards are part of the problem. You hear so many ads that tell how to run up this credit card and not pay it back! Maybe if they took credit away from people we could get back on track.


Lee Cameron   September 29th, 2008 9:35 pm ET

There is a time for reflection and honoring tradition. That is should be done as much as possible. But when we have a market drop like we did Monday there should be no reason for stopping this process of trying to come up with a solution. What I want to see is some people held accountable for where we are. Unless our representatives can come up with a plan soon and stop arguiing I think we all have to take a long hard look and ask ourselves if we want these same individuals representing us the next time they come up for election. I also have a feeling that any hope the Republicans had at getting John McCain in as President is completely over. Do you really believe the average person is going to vote for a Republican on November 4th after seeing what has transpired in our financial markets in the last month.


Marie LaRocque   September 29th, 2008 9:35 pm ET

I was shocked when I saw that this did not pass today.

This will affect the world economy. Not just the US. In my country, we have a surplus and our banks are regulated – the economy is (or should I say "was") solid – yet, with this in the US, it will most certainly affect our economy.

I think you should tank the upcoming election and bring back Bill Clinton! Get some leadership in there!


Collin   September 29th, 2008 9:35 pm ET

LArry, with all the crisis & the credit FREEZE. Will your FICO score be affected in anyway??


WOW   September 29th, 2008 9:35 pm ET

The music "Artist" aka once said, "777 (The Dow)...93...11. Did he know something our government didn't? LOL

Laughter is good for the soul folks.

Everything will be okay. We all just need to "real". The markets need to get "real". Let it all bottom out so we can build America stronger, with golden bricks.


linda bunney   September 29th, 2008 9:35 pm ET

this is greed mr bush has done a fine job at bankrupting the country like he did every company he has ever run,
Congress needs to quit arguing and do the job that us voters sent them there to do.
Why don't they close the stock market like 9-11 until they get this deal worked out so we don't loose every bit of our 401k's My husband is disabled and he has lost almost half of the money he has worked his whole life for and that was going to be our retirement . Now I'll never be able to retire.
Why don't they restore our 401k's and help the people loosing their houses instead of helping bail out corperate AIG CEO's


Gray Walker   September 29th, 2008 9:35 pm ET

You are not speaking for anyone who lives from paycheck to paycheck. Your advice is only for those who make 100 grand a year or more., yet the bulk of the taxes you would throw at the problem come from those who make a lot less, the taxpayers that are being screwed out of Social Security. You want to sell 401ks as the only way to retire, because the government doesn't want to payback the funds with interest, that Pres. Johnson balanced the budget with in the sixties. So , no "Main Street" will not care to help the rich stay rich since it does not impact those of us who are living within our means as all of us should!


William   September 29th, 2008 9:35 pm ET

Mr Stein,

I used to not like your comments but today you are the man.. Hey run for President... Well next time... I want Obama this time.. smile... Good job...


Sandra Hill   September 29th, 2008 9:35 pm ET

Did anyone feel the earth rumbling? No, it's not an earthquake. It's our founding fathers turning over in their graves.


charles janjigian   September 29th, 2008 9:35 pm ET

lou dobbs an educated non-partisan cnn commentator, glad bailout was rejected. that must stand for something.


William Collins   September 29th, 2008 9:35 pm ET

Please ask Larry to invite Ravi Batra. He is an econimst who has been on the show a number of times.

Do you think a depression is imminant?

Thanks


Dik Delhotal   September 29th, 2008 9:35 pm ET

If we have $700BIL to bail out these big companies, why can't we invest that money in the people who are going to pay the bill anyway. I believe we should adopt a trickle UP policy. Take that money, divide among all the TRUE American taxpayers, legal residents that have payed their taxes over the last 10 years. What would that amount to? Perhaps $250,000 per taxpayer? A husband and wife would get $400,000. Thay can pay off their mortgages, as the stock market stabilizes, they will invest in the companies that are well run and survive. They will spend the excess on purchases they could not otherwise afford, creating jobs. They may even decide to start their own business to replace those that will not be there. It will take a lot of the big speculators that have gotten these banks in trouble, along with some banks themselves. The middle class spoke today, telling congressmen and women, you vote for this thing, hit the street. Let's get rid of the big bailout and get behind the middle class, the BIG owners of this money. Mr. Stein is definitely right.


Dean   September 29th, 2008 9:36 pm ET

It was said a few minutes ago that people living off credit cards will not be able to survive; well that is not what credit cards were designed to do; if people are relying on credit cards to survive then they are already in financial peril!


Mike Tardif   September 29th, 2008 9:36 pm ET

I'm very disappointed with the House of Representatives. Over half of the Americans who have retirement mutual funds will suffer terribly at the hands of our representatives. The "stock market" affects over 50% of Americans "old and young" who have mutual funds. Wall Street versus Main Street? Bah! This isn't an issue of "them versus us". When banks fail due to poor lending policies, it does affect Americans whether we like it or not. Just wait and see what happens when the Market drops to 8,000 and more banks fail. ..........................


Zoey del Rio   September 29th, 2008 9:36 pm ET

Larry,

What do we have up there on Capital Hill – a bunch of kindergarten children! They get insulted at the Speaker of the House comments so they vote against something that would not let the bottom of the economy drop out. Everyone up there should be fired!!!! I'm sick of hearing ever one of the pols talking about what happen in 2006 and 2007. They should have to deal with what is going on right now.


Andrea Daniel   September 29th, 2008 9:36 pm ET

Suze makes excellents points. The market lost a trillion dollars today and our politicians just bicker. Nancy Pelosi's speech may not have been the only problem but it certainly didn't help get votes to pass this bill. Where is the leadership?

Andrea Daniel


Joe   September 29th, 2008 9:36 pm ET

if for one minute i thought that letting these companies fall flat on there face would not affect main street I'd say let it happen. keep your hands out of my pockets. sadly i know that is not the case. so congress better be watching my back this time out.


Dawn   September 29th, 2008 9:36 pm ET

Having been in mortgage banking for over 20 years – I am outraged by the manner that our government is addressing the problem that is suffocating our economy.
Bailing out the Banks will not stop the slide in home values as the foreclosure rate acceralates.
It appears that the people are no longer the reason that are government governs. It appears whoever is paying their campaign funds are the allegiance they salute these days – as evidenced by the language in the Bail Out Bill and other recent actions...
The people need to stand up and say to their representatives get in touch with the people and stop the madness.
Who is going to stand up and lead?
Which one of the canidates will actually take a stand in reality to give a real plan and provide an explanation to the public on how it works for Main Street USA.
God Bless Our Country and Keep Us Safe!!!


Katie   September 29th, 2008 9:36 pm ET

Regarding our current financial crisis we have two options.

Option 1) We allow the banks to fail.

The FDIC is designed to handle isolated bank failures, but the current problem in our financial system is systemic. There are 117 banks listed as troubled by the FDIC. As they all fail, the FDIC will run out of its own money and will have to borrow from the federal budget – aka the tax payer..

Meanwhile, the credit markets are completely seized up, and when employers cannot get enough credit to make payroll – many people will lose their jobs. Some experts estimate unemployment will go up to 20-30%.

Option 2)

We stabilize the banks and stave off the massive business failures that will follow the destruction of our banking system that would eventually lead to a depression.

The American people have to decide if they would rather pay up front to stabilize the banks, or pay in the end when they all fail. Either way, we are all going to pay


carolyn   September 29th, 2008 9:37 pm ET

So... my question is do you all believe that the financial system is in crisis? Do you believe there is a liquidity problem, that credit is close to frozen and that this will have a serious impact on the economy??


Dr. Robert Megaffin   September 29th, 2008 9:37 pm ET

Suzie Orman's comments that it will be till 2015 before we see any relief are inappropriate and only cause more panic in the investment sector.


Pamela, Beaumont Texas   September 29th, 2008 9:37 pm ET

We the american people have heard over and over about U.S. debt, still like a ship spinning in the middle of an ocean, going no where. I'm sure there's a group people and organizations that knows about NESARA (National Economic Security and Reformation Act), which would greatly benefit the american people econmcally, and government would have to agree with the restructuring of the economic. 🙂

"Alas, alas, that great city Babylon (U.S.), that mighty city! for one hour is thy judgment come". Rev 18:10


joe   September 29th, 2008 9:37 pm ET

as a republican I think the correct thing to do is to look very closely before you pull the lever come november. if you have an option between voting for an incumbent or voting for the new guy, pick the new guy or gal. Our current leaders are disfuntional and are too busy blaming each other to do what they think is right.


john woodle   September 29th, 2008 9:37 pm ET

thanks for that link seems that most of the florida reps voted against that bill today. thank god we did something right for a change. but of course we are more famous for throwing elections here in florida.

i totally agree with ben stein who said thats a load of bull that we have to wait to resume negotiations for the next two days because of jewish holidays. thats not our religion here. and certainly no reason to put a crisis on hold that they say needs action NOW. something dont add up.


Ricky   September 29th, 2008 9:37 pm ET

Hi, Suze
What amount of money do you think it will take to bailout the trouble
markets? I just don't believe the 700 billion dollars is enough money to get the job done. What kinds of terms should congress look for in the deal to get America back on track for everyone. Suze , when will you be running for President of the United States. Why haven't congress asked for your help to get them out of this mess. Why is the congress acting like children that don't get the big picture, and that play time is over.


Dave Spicer   September 29th, 2008 9:37 pm ET

Why not just repeal FAS 157, the "mark-to-market" FASB rule that started this problem in Nov 2007? No bill would be required.

Dave


B. Southcarolina   September 29th, 2008 9:37 pm ET

Settle down Suzie. You are scared out of your wits. Trust. That's what this is all about. See my blog at 9:15.


Susan   September 29th, 2008 9:37 pm ET

Larry, this is insanity. I agree with people on both sides of the fence here – and the outrage that we feel as Americans is almost a mutiny against a Republican overlord who has constantly LIED to us. How the heck are we supposed to believe this load they're handing us now?

And Suzie – we lost a trillion dollars today? That's outrageous – and normally I love your advice. Most Americans don't HAVE stocks. Most of us have been suffering for a LONG TIME. When MCI/WorldCom dissolved and took our ENTIRE LIFE'S 401K, where was a bailout then? This alleged trillion dollar loss is only on PAPER. If I had an over-inflated stock....and now my stock isn't worth the overinflated $100....it's only worth an overinflated $50....so what?

Get with the program – most of us are clinging for dear life in the dingy.


kimberly   September 29th, 2008 9:37 pm ET

My 401K and retirement portfolio is tanking daily, I have worked very hard and followed the rules to retire and now because of greedy Wall street I am quite possibly not going achieve my dream.. I am beside myself that Congress cannot argee on what to do and is more interested in bailing out Wall street that hard working Americans who are suffering.. The people who gave out bad loans have made their money and are doing just fine.. Who is going after them to pay the bill? i think we all know where the blame lies and at this point I believe it is MUCH more important to find answer to the problem you can blame whoever you want later.. Please let's deal with the problem!!


Jack Lane, the Real Estate Guy   September 29th, 2008 9:37 pm ET

In the real estate meltdown, the real culprit was supply - overbuilding when times seemed golden and money was too easy.

Here's an out of the box solution - when a house is foreclosed on, KNOCK IT DOWN (and recycle what you can). You'll eliminate the flood of supply that has killed the market. At the end of the day, the vacant land would be worth nearly what the downward spiraling values are bringing to distressed mortgages, today.

The result would be nearly as much money to the banks while boosting responsible homeowner's real estate values back to where they belong - if not higher.


Bill   September 29th, 2008 9:37 pm ET

Is there a record of whom voted how, on the bailout bill in congress today? if so, where can I find it?


Darcy   September 29th, 2008 9:37 pm ET

Larry,
On a lighter note, taking this up Thursday, will probably take the heat off of the VP debate.


Vanessa   September 29th, 2008 9:37 pm ET

Today's vote was all about politics. When are our elected officials going to stand up for what is right and put their own selfish motives aside. Anyone can see that we have to have government intervention to get out of this crisis.


Kristina   September 29th, 2008 9:37 pm ET

Dean, total truth there buddy!!!


ken   September 29th, 2008 9:37 pm ET

Why is it that Suzie and Ali, feel that America is against this bill because it bails out the rich? Why don't you realize that we understand that the Federal Government has to get involved, and what we would like to see are more options other than a rushed 700 billion dollar bailout? Are there no other options? Why do some some at the capitol say there are already institutions in place that can help, for example the FDIC? Why does the public have to buy these high-risk securities? Why can't we insure or lend money to the banking system to ensure liquidity and confidence? It seems ridiculous to us "naive" citizens that this is the only way to bring market stability.


Sue   September 29th, 2008 9:37 pm ET

We just put our house on the market and are targeting first-time homebuyers. Do we have a chance of selling in the current state of the economy?


Tim   September 29th, 2008 9:37 pm ET

I am supprised that no one is addressing the value of the dollar. I think that the bailout will cause the dollar. What will te real worth of our investments be?


Don   September 29th, 2008 9:38 pm ET

I guess Larry lied. He said on camera that I could post my comments. NOW I'm told not all comments are posted. Won't be back. thanks.


Al from California   September 29th, 2008 9:38 pm ET

Taxpayer money should not be an option to prop up a failing financial sector. Throwing money at a problem that is not fixed will only create other problems. How about inflation for starters. They say it will be harder to buy a house, buy a brand new car, and take out a loan for my kid for college. I guess we all have to start doing this crazy brand new thing called SAVING. A credit crunch will force american familes to start saving thier money. How is that a bad thing again?


Vanessa H.   September 29th, 2008 9:38 pm ET

I am a Democrat 46yrs of age married 26yrs and follows a lot of Suzan Ormans advice Nice savings, 3 homes oweing 8yrs on 2 the other I have the deed. Low credit balances and NO CAR NOTES .I 've been listening in horror all day at the dow -777 and possibly having to bail out car dealerships in the future. A trillion dollars today and POSSIBLY Tomorrow. I'm very afraid that should the McCain camp win Sarah Palin doesn't seem to have the same knowledge here that she has in Alaska. While she's making fun of Senator Biton's age McCain is older and I'm afraid for the country for her to make a sound decision. Let's LOANWallstreet the money but while paying 20 Million dollar severance package at Wamu. Do something for the struggling middle class What do you think ? Suzanne should we have money in banks and 2-4mos of expenses (cash hidden) in our home?


tim nolan   September 29th, 2008 9:38 pm ET

It hurts to see my 401K lose what it has over the last couple months. Now I will hurt more to see the value after today's drop. The worst is that Wall Street has a hold on my retirement, so as an indirect investor, if they fail we fail.

Congress has got to stop fighting like divorce lawyers and get the Wall Street machine working again.


marisa sarmento soares   September 29th, 2008 9:38 pm ET

from the day(last week) that your Producers put DONALD TRUMP live,and he showed remorse for his "rich, rich,very rich, " friend he has that played on AIG...We hope his misereable friend lost EVERYTHING.....We hope the Trumps and people like him go to Jupiter.......Live the US. in peace....Live us alone.....We , Americans, want to shut the mouth of this idiot for good and for all....Donald Trump is despicable and we the majority of Americans, KNOW THAT!!!!!!! Mr. King, DO NOT DO THAT TO US AMERICANS, AGAIN!!!!!!!!!! Keep your Donald Trump... friend, locked in your CLOSET!!!!!!!!!!!!


Charles in Aventura, Florida   September 29th, 2008 9:38 pm ET

Question for Suze, what should we do with our mutual fund investments in our 401K? Should we leave our investments as they are or should we move our mutual fund investments to bonds or other investments?


victor   September 29th, 2008 9:38 pm ET

suze,
what about home owners who may go into foreclosure in the future if and when this bill gets passed. sense some employer may overreact and layoff more employees. what's in the bill for those taxpayers.


sara   September 29th, 2008 9:38 pm ET

where were they those conservetive republican last 8 years, now all the sudden they are thinking about people, it is shame even at this time they are playing politic to help an save mccain, instead of thinking about people.


sid   September 29th, 2008 9:38 pm ET

HI LARRY. all of our leaders both party's say there looking out for the middle class and all americans. ? -[HOW MANY WORKING PEOPLE LIKE THE MAN WORKING ON THE ROADS -THEPERSON IN A LITTLE OFFICE-PEOPLE CLEANING FOOLS FOR ALIVING -THE PERSON TRIVING A TRUCK -THE PEOPLE THAT MADE YOUR SUIT.-]-ECT. HAVE MONEY IN WALL STREET MOST DONT EVEN HAVE HEALTH CARE OR SAVINGS. IF YOU WANT TO BLOW YOUR MONEY IN VEGAS-IE. WALLSTREET and you loose that your falt. thanks


Jungleman   September 29th, 2008 9:38 pm ET

There seem to be some supernatural powers,against the united states of America,and the Bush administration due to too many unjust deeds, around the world. If America gets out of this,they must respect and treat other nationalities with some dignitie and equality.
Only OBAMA can get America out of this mess.If America likes what they feeling,then vote for MCain.But remember that no one is above the law of nature.No one.
I love America too much, to be silent.
To Larry King: Keep up your good work and your unbiasenes.and never try to be like Mr. Dubs


linda   September 29th, 2008 9:39 pm ET

Why would the financial advisers suggest the American public buy bonds? We just lost $15,000 in a Lehman Brothers bond that our financial adviser said was a good risk. We are retired and do not have that much money to lose. No one is looking out for the little guy, only the irresponsible bankers and politicians. I wouldn't trust this administration or Mr. Paulson.


Arnie Ami   September 29th, 2008 9:39 pm ET

I understand that all of this basically started on Sept 11th 2001; from there on, the Bush administration keep saying everything is getting better, and the stock market as well as the housing market kept going up. But in fact, I believe their was a Conspiracy between wall street and Washington, is unraveling, in a scary analogy, as fast as the twin towers fell after a few hours, so fast. So has the market within a 10 day period. Whereby, no one new the twin towers would crumble to dust; firemen, police and everyone, volunteers, etc. tried to help immediately, but had no chance to save it. The Wall street, banking, housing etc. no one ran to help, even though few new what was happening; instead of helping; the corporate raiders just raped the U.S. economy by saying everything is good, but at the same time taking off with their golden parachutes. It's Ironic to see this analogy.
In the 21st Century with Big Brother, Traffic light camera's, why is it not applied to Wall street and Washington? I thought the crash of Oct 87 forced Wall street and Washington to have put t a transparency in place. Am I wrong??????????????????????????????????//


Brad   September 29th, 2008 9:39 pm ET

Why can't the FDIC limit be raised to $1Million from the $100K limit set in the 1930s? If $100K was appropriate level back then wouldn't something much larger make sense for the size of our economy now?


Mark Morris   September 29th, 2008 9:39 pm ET

Larry,

On November 1, 2004 Osama BinLaden made the statement that the new plan was to bankrupt the USA. Why isn't anyone in the news addressing this?


Patrick   September 29th, 2008 9:39 pm ET

im not a finacial genious but i really belive that the sugesstion to give an equal share of the bailout to everyone to payoff there homes instead of giving the money to the same people that put us in this position in the first place.


Robin   September 29th, 2008 9:39 pm ET

Thank good I don't have a credit card 🙂


Ward   September 29th, 2008 9:39 pm ET

Comment: Problem solved...
The government giveth to big brother, big brother taketh from tax payer that SUPPOSEDLY big brother is to protect...
Government gave BIG OIL BIG BREAKS< BIG OIL made BUCU BUCKS, dam near killing the Taxpayer.
Govenment and Big Brother royally screwed up, taxpayer is soon to get a ream job again.
SO heres the solution, Governments screw up AGAIN!
Oill came off clean and extremely profitable, so let Governments misscarriage to the tax payer cover the screw up.
Then I bet if it does go South, Oil takes the hit, if it doesnt the taxpayer saves a bundle.
Its called giving back. BUSH...
Not to your friends but to the citizenry who mistakenly gave you the White House.
Pass this on o John McCain and Obama also.


chris, baltimore, md   September 29th, 2008 9:39 pm ET

we are a capitalism not a socialist republic. If these corporations fail then so be it.


edwin walker   September 29th, 2008 9:39 pm ET

what is the worse case scenario? if approved can this be avoided? Did SOX help?


gregory   September 29th, 2008 9:39 pm ET

i wish they stop pointing fingers and stop being like children. all it takes is both sides putting the the middle class first. we are the ones who lose the most. we live check to check and now they want to take or hard earned money and bail out wal street. wall street dont put money in my pocket. the job i work at i get little more then 7 dollars a hour barely can pay rent, and now they want to take what i put in 4 a rainny day.
may god help us all


Judy Jennings   September 29th, 2008 9:39 pm ET

what is wrong with everybody?? The American people are saying, "this plan does not work... go back to work and come up with one that does!" I'm proud to be an American. Yet, all we here is doom and gloom... trying to shame? us into passing the bill? Yes, the stock market will go down and down... but when the best bill (in the interest of the people) is passed... the market will go back up!!!


Alice Davidson   September 29th, 2008 9:40 pm ET

If you caught Rudy's interview (so conveniently "cut off" due to tech problems (yeah sure), I think that said it all. HE WILL MAKE MONEY, as will thousands of others based on this crisis, on the nearly broken backs of us main street people.
love ya Larry!!!


Lisa   September 29th, 2008 9:40 pm ET

I think Suz hurts instead of helps. All these people are saying basically panic. I want caution. Normally, I agree with Suzy but tonight she seems to be causing panic. I watch the news and stay up on all of this and these experts on the economy and wall street wants a bill rushed thru that is just giving money away. You don't understand that $700 Billion dollars is a lot of money to normal hard working Americans. I don't want my daughter & son to foot the bill of wall street. This makes me angry that you want us to bail them out.


Diana Beckman   September 29th, 2008 9:40 pm ET

Hi Larry:

Why is it that Congress cannot write the Bill to include all the tools they need to protect the American people?

I understand time is of the essence, but what good does it do if they don't get it right.

The Executive Branch will have oversight – that is like giving the fox the key to the henhouse.


Kamal   September 29th, 2008 9:40 pm ET

Suze,
Don’t you think the CEOs, who made big bucks should pay for their mistakes?


charles janjigian   September 29th, 2008 9:41 pm ET

ms. orman,

american express is advertising unlimited spending, why are you so upset? the bill will go through with the proper adjustments,


Sunita   September 29th, 2008 9:41 pm ET

Please explain what happens to the money that is invested in a stock. When the stock value goes down, who gets the the difference between the money that was paid for the stock and the current value?


Cristina   September 29th, 2008 9:41 pm ET

Suze,
My credit is great. I have a large home mortgage and successful business. However, I use credit for my business. I would perhaps recover if my business went under, but would NOT want to lose my home. Should I consider paying off my home with my great credit? Then later, worry about how to pay the credit cards.
PLEASE let me know your thoughts; I value your opinion.
Many thanks.
Cristina


Kathleen Hefferon   September 29th, 2008 9:41 pm ET

Are we also to fear the loss of any pension I may be getting now? I am worried about losing my pension.


Judy   September 29th, 2008 9:41 pm ET

I have lost all respect for Suze Orman. Suze, what are you thinking!! You have been preaching a rational approach to personal finance for years. Are you now recommending that this bailout be approved so people can continue to live from charge account bill to charge account bill?


Sheri   September 29th, 2008 9:41 pm ET

Question:

My husband has recently retired ( one year ago) from Carpenters Local – He has now received a letter stating that his pension is not secure and it can be lowered – unless he has had it for 60 months. We are very insecure about our future income. Will something be done to make his pension secure?


ann Short   September 29th, 2008 9:41 pm ET

Bernake was an expert in The Great Depression. When you read about the 1929 Depression seemed almost identical to today. Deregulation, over extended investment, fraud malfeasance and so many other things- How did this expert in the depression let this happen again. Also Greenspan said there was a glut of new houses and the market would not get better til they were done away with


Godlove Ntaw   September 29th, 2008 9:41 pm ET

Larry,

With Congress not likely to vote tomorrow on this bailout plan, what happens if the markets continue to decline? At what point would trading be suspended and how would that affect us and the rest of the world?

Godlove Ntaw


Maria delarosa   September 29th, 2008 9:41 pm ET

I think Ms Ormon may consider herself an expert in her own right but she is using the same scare tactics the Republicans use.
I have to wonder if perhaps she does not have investments with the credit default lines folks.


Mike   September 29th, 2008 9:41 pm ET

This whole debate over whether this is the right thing or not is all mysterious to me. Neither side has stated exactly how this will or will not fix the current financial situation the country is facing. How did they come up with the magical figure of $700 billion? Capitalism is a financial system that rewards the smart and penalizes the ignorant. Banks gave loans to subprime borrowers and created loan packages that only hammered those very borrowers for every last penny. I am having a hard time understanding why the banks did not have the foresight to realize that this method would crash. Aren't they supposed to be smart? My friend's child wouldn't allow another child to play with his toys. As a concerned parent, he asked why. The child responded with the other child has broken all of his own toys and I don't want him to break mine. It's good to see our future five year olds are smart enough to understand the value of a track record. Too bad the bank execs don't understand this concept. And will the bank execs learn from their mistakes if the government bails them out???


Garry Conn   September 29th, 2008 9:41 pm ET

We do not bail out criminals, It's that simple. The American people are demanding justice at any cost. Stop the scare tactics, we are ready for the ride.


Darcy   September 29th, 2008 9:42 pm ET

Gambling in the stock market, (I hate to call it gambling, but that is what is has turned out to be) caused this.

So why not a National lottery?

Park all the bad worthless paper in one fund, and let the players bid it up and down and short it to their hearts content.
Get the gamblers out of the part of the market that needs to be regulated and protected.


don   September 29th, 2008 9:42 pm ET

Larry, ANY chance of getting bin Laden to fly a plane into the Capital and HQ's of the RNC and DNC SIMULTANEOUSLY?

It doesn't seem that our problems are financial, rather they're the petty bickering of the partisan politics on the hill that has us stalled and is killing us financially!

Time to clean house on the hill...clearly they all saw this coming and didn't do anything to prevent it! This is totally shameful!


Canadian_Guy   September 29th, 2008 9:42 pm ET

Avoiding the "bailout" is a hidden blessing.

Cant Wall Street seek funds from Dubai, China, Japan?

Or

Is this situation so bad foreign investors are avoiding it?


bill Alberta Canada   September 29th, 2008 9:42 pm ET

I am certain that congrees will reconvene and on a second vote and pass the $700 BILLION get out of jail free card. This first turn down was just a scare tactic to make you feel better about being on the hook as a taxpayer. Sorry the cards have been played.


anne murray   September 29th, 2008 9:42 pm ET

This is rather an ‘academic’ view, I’m sure. I think every billionaire who resides in the US, like Warren Buffett, Oprah, Bill Gates and even John McCain should ‘donate’ to the $700 billion deficit. Mr Buffett donates his wealth to charities, what better charity then his own country?There are over 946 Billionaire’s across the world, 30% of them reside in the United States alone! That means these poeple represent 11% of of the Gdp. So, all the money In the USA was once touched at one point of time or another by one of these billionaires, There are few Americans in control of such wealth. So let them stand up and put their money where it counts. Also all the CEO’s who bilked thousands of Americans out of their entire savings, due to their greed, FREEZE IRA’s, savings and bank accounts, make them pay for robbing the poor, to feed their own greedy pockets.


Sybil Raitt   September 29th, 2008 9:42 pm ET

If the Republican Party announced that there were many renouned economists that did not think this was a good solution at all; why doesn't Washington invite these economists to share their expertise with Congress?


MILAN   September 29th, 2008 9:42 pm ET

THE GENERAL IS GREATEST IF HE KNOWS HIS WEAKEST SOLDIER . THE PRESIDENT IS BEST IF HE KNOWS HIS LOWEST CITIZENS . IF YOU REALLY DONT KNOW YOUR PEOPLE AND THEIR NEEDS , HOW YOU WILL KNOW YOUR COUNTRY.

IN THE NEAR FUTURE I DONT SEE PEOPLE WITH GOOD CREDIT .
WELL MAYBE IT WOULD BE BETTER THAT CREDIT REPORT NEVER EXISTED .

AMERICA NEEDS TO ORIENTATE TOWARD AMERICA ,
NOT TO INVOLVE IN WORLD AFFAIRS. WE NEED TO CLEAN PROBLEMS AND GARBAGE IN OUR YARD .


Chris Murphy, Ennis, Mt   September 29th, 2008 9:43 pm ET

Do you think that land could be a good/safe investment, and I am not asking about single family homes?


Susan   September 29th, 2008 9:43 pm ET

Not the politicsof finance...it's THE FINANCING OF POLITICS that fuels this mess!


James Thorne   September 29th, 2008 9:44 pm ET

We should be applauding the Congressmen that said "no" to this fundamentally flawed plan being foisted on the american taxpayer.
I66 economists including 3 nobel laureates sent a letter to the president pro tempore of the senate and the speaker of the house, opposing the Paulson plan because it isn't fair and would be used to bail out his friends. He would pay much more than the toxic assets are worth. The bill would likely be left for our children to pay. They suggested government guaranteed loans to troubled firms with provisions that they not issue dividends or pay bonuses until the debt is paid. They said the government could guarantee credit lines with provisions also and that these methods would be much more direct than the Paulson plan and much easier to administer and oversight.


Linda   September 29th, 2008 9:44 pm ET

Why can't Congress make some concessions to fund this bill such as cut the billions of dollars we are spending every month on the war? Why can't they stipulate that 50% of the bill will be financed by budget cuts? They don't have to determine where the cuts will come from now to get the bill passed. This economy is forcing Americans to make tough choices with their budgets every day. Why can't we reprioritize how our tax dollars are spent?


DSheets   September 29th, 2008 9:44 pm ET

What exactly was included in the bill? I know there are always two sides to every arguement, if it was declined there must have been things that people didn't feel was acceptable. What were all the parts to the bill?


Darin Lewis   September 29th, 2008 9:45 pm ET

While I do not want anyone to suffer...I feel that this could be good for the country. We use credit too freely and need to live within our means. Giving a $200K loan to someone making $35K/year does not make sense...using credit cards for gas and groceries does not make sense...tax payers should not bear the cost of Wall Street.


Andrea   September 29th, 2008 9:45 pm ET

Chris when these corporations are allowed to fail, the American people will pay (one way or another). Why not develop a plan that will make money (like Clinton did with Mexico- We made 600 million). This is a much larger scale but the same model could apply. Ben Stein you are right- McCain has the right stuff to take on wall street.


Denis   September 29th, 2008 9:45 pm ET

Give me a break! What happened to using cash for the things you need? I have been following this BS for a long time now and I keep hearing these oh so wise financial leaders saying that this is going to keep corporate America and people from being able to get the credit they need for daily operational expenses? Payroll has been mentioned more then once being one of the needs of business. Borrowing the money for PAYROLL? What happened to the idea of making the money and pay your bills from what you make? Then what is left over is called profit from which, then you can reinvest into the company/family for the things you want for the company/family. People and business all too much seem to be following the example of the government by spending money they don't have. Problem is only the government can print it, and the more that gets printed the less value it has.


charles janjigian   September 29th, 2008 9:45 pm ET

snl on sarah palin, unfortunately too true.


Curtiss Sanders   September 29th, 2008 9:46 pm ET

Larry, Of all your guest I would like to hear one of them tell us where the chrisis began. Never does one say that the problem started when the Real Estate??? appraisers and agents started appraising properties at a much greater value than the Cost of Replacement. These people are as guilty as anyone, along with the ones that used thier homes as a bank card. I think they are all guilty with the big little guys. I am a very small fish in an ocean of sharks but all of my investment properties were paid off as soom as possible. If anyone reads this I thank You.


Lindy Smith   September 29th, 2008 9:46 pm ET

OMG, Larry. Tina's parody of Sarah Palin, is hilarious. I am laughing out loud even though I am deeply depressed about life these days.


Eric   September 29th, 2008 9:47 pm ET

I hope our Congress does come around and make the right decision. If they think we have problems now, just wait until more banks start failing and the FDIC becomes overwhelmed and needs to ask for Congress from more funds to make good on deposit insurance obligations.


Teena Webster   September 29th, 2008 9:47 pm ET

I want on the same ship with Dean and Kristina...if you are using credit cards to pay your monthly expenses and purchase groceries for your family..you had already fell victim to this round of VooDoo economics.


Wayne   September 29th, 2008 9:47 pm ET

Where is George Bush's leadership with GOP members of the Congress? How many of the 200+ GOP members did George Bush call personally to beg for their vote? With this bill being so important, he should have called each on Sunday and again Monday. Not a staffer but himself. I have heard he called just a mere few, fewer than ten. This is another example of GOP and RNC failed leadership.

It is obvious that George Bush can no longer lead our country as President. Time is today for him and his staff (Secretary of Treasury and his economic advisors) to be out of the White House once and for all.


John Carter 818-268-9950   September 29th, 2008 9:47 pm ET

I have been struggling for years to pay off loans that are killing me due to high interest rates credit cards and consolidation loans. The system the way it is now sucks! I say kill the old Dog and get a puppy! What I mean is I can pay off my debts but I will never use a credit card again the way this economy is now! The housing market is a joke, the rich get richer and the poor become the majority. I think this is a great (bail out not passing) thing because now this rich have to survive off of Top Ramen and have a lot of recipes that work (without the high sodium packet). I think Wall Street needs to learn how to grovel for a little while and if it affects me so be it it’s not like I don’t know how to survive but at least they can relate to my life on a daily basis! Maybe then maybe the next sucker whom wants to get rich can relate to the middle class worker before he creates a get rich scam of mass destruction. In conclusion I don’t agree with Suze Orman I think she needs to see a Top Raman diet for a little while as well. You that can afford to play the market oh well welcome to Vegas baby where the chips fall where they may! Work hard save what you can and stop trying to get rich quick, bottom line.


Susan   September 29th, 2008 9:47 pm ET

Another poster said it quite well; Suze – where is your head? If people are using credit to get by then they need to go cold turkey.


Dan Gale   September 29th, 2008 9:47 pm ET

Would Starting From The Bottom Let It Work Up Be Better?
What I mean by this is give every american 2 million dollars and tax it, let people pay off cars, morgages, credit card debt, and the people that do not have those debts could go out and buy a house, buy a car.
That would reward those that are responsible and not into massive high intrest debt.
Of course the people that have mortgages, high credit card debt etc.. Their debt would be deducted and the rest would be sent to them.

Putting 400 Billion into the economy from the bottom would that be better then starting from the top?

Is This A Possibility? Has Then A Thought?

What do you think the end effect would be?


Garry Conn   September 29th, 2008 9:48 pm ET

It appears my Government has under-estimated the American people. We are people with Pride and Integrity and will not stand for injustice. Surprised?


don   September 29th, 2008 9:48 pm ET

Hey moderators, what's taking so long?


Shannon Tefft-Janes   September 29th, 2008 9:48 pm ET

I believe folks are misunderstanding a few items:

1) The bailout bill was not $700 Billion. That is just the 'line of credit' that Paulson would have control of at any one time. He purchases assets at "mark" value (100%) and then sells them at a discounted value (to those he bought them from, presumably with the money they got from selling them in the first place). Rinse and repeat – cost to the taxpayer well over $1.3 Trillion and absolutely no guarantees (in fact, much evidence to the contrary) that it would work.

2) The stock market run was build upon this fallacy of 'wealth'. Credit is not wealth. It can be used to build wealth, but it in itself is not wealth. The value lost (and will do some more in the future) is because of the credit bubble. Yes, oh, it's a real number for certain, but look at it another way – your 401k, etc. is that much higher because of the bubble; this is (a painful) adjustment back to what it should be.

3) America cannot afford to keep on propping this bubble. It is unreasonable to have housing more than 2-3x our average incomes. It is unreasonable to have new cars every other year, consumption based on maxing out credit cards and endless 0% for 12 months deals. It is not sustainable and the foreign investors who have been willing to purchase our debt before are RAPIDLY becoming less willing to do so. If we add to our debt in an effort to bail out market inefficiency, not only do we lose the opportunity to invest that money elsewhere (such as a real domestic energy plan), but we lose financial credibility and can seriously and irreparably harm the US AAA credit rating and sovereignty.

This correction will be hard and it will be painful. A bailout will only provide, at best, temporary relief but the correction (crash) will resume and it would be even more severe. The Congress people who are willing to take this hard medicine and not give into what is 'easy' should be applauded.

The Government has to restore confidence in the system – by insisting on financial transparency (no 'off book' mark-to-myth' accounting), regulating derivatives (to make sure that there is actual money behind these insurance-like investments) and reining in excessive leverage. There are sound financial institutions out there and there are companies willing to lend, but the US Government does not encourage fair play and it has been changing rules mid -stream. Consistency, fairness and transparency, along with other measures (see economists such as Nouriel Roubini for an example) will return stability to the market.


Ann Short   September 29th, 2008 9:48 pm ET

I wish someone would play the speech where President Bush was (about 2 -5 months ago) telling us the social security money should be put into the stock market. He asked "wouldn't you all like to retire with a million dollars- wouldnt you like to be a millionaire." Republicans seem to have an unrealistic view. Deregulation for banks mortgage ,real estate and everything would be fine – Monitor babysitters and undertakers but not the bank that has all your money.


Kay   September 29th, 2008 9:49 pm ET

I think Suze said earlier today that it may take until 2015 for this to work itself out. Everyone keeps saying America does not understand. I submit many people already can not get loans, many people are already living without credit and the chances of them getting is impossible. So for them, they may be wrong, but they don't see, or believe giving tmore money to a group of people that have already reaped the best part of the credit landscape could get much worst.


Terry Ray   September 29th, 2008 9:49 pm ET

For the poster Clay Prewitt, we didn't take over wachovia. Citigroup did. And only partially!


James Thorne   September 29th, 2008 9:49 pm ET

When someone tells you that they have the only possible solution to a problem that they were responsible for all along, but, by the way, it will cost a trillion or so, and you don't have any time to look for a more prudent plan because doom is near. DON'T BELIEVE IT Paulson has told us he supported a strong dollar policy too. While he and Bernanke and Greenspan did nothing but reduce the value of peoples savings for the last 8 years. Paulson wanted no oversight at all and this plan would be impossible to oversight because he wants to value assets by having reverse mortgages which amounts to firms just telling him how much they want. It couldn;'t be administered fairly and shouldn't be something the government gets the taxpayer involved in.


candy donnelly   September 29th, 2008 9:49 pm ET

Do we need another 9/11 for the republicans and the democrats to work together and put this country back on it's financial feet ?


Hal   September 29th, 2008 9:49 pm ET

This situation really seems to be the "old rock in a hard spot" for everyone, but someone show me where it says that anything in the stock market is guaranteed?
News flash for everyone that doesn't know yet, but the stock market is the worlds largest casino.
Part of the problem is the disconnect between people in general and the bottom-line about the market & gambling is that they don't seem to realize the are gambling, but the investors on Wall Street use traditional terminology of such as "were investing".
The only difference between gambling in a casino, horse race or sporting event is that stocks are liquid (were you can take your money out if the stock loses price or time and still be able to get some of your play back out but at a lost of some money) and in casino, horse race or sporting event once you in your in all the way to the end and can't buy out of your bet half way.


Dik Delhotal   September 29th, 2008 9:49 pm ET

Also, I believe this should be taxable income so the government would retrieve roughly 30% right away.


Option Next Inc   September 29th, 2008 9:49 pm ET

If this bailout is ever approved what is to stop these institutions from stretching out the value of the assets. Wouldn't that be terrible if they ending up practicing the same valuation practices they have always approved of... inflating the value of mortgage notes?


Andrea   September 29th, 2008 9:49 pm ET

CNN, Why don't you allow posts that agree with Suze?
I followed the comment policy and you haven't allowed the post.


charles janjigian   September 29th, 2008 9:50 pm ET

j. mcain how did you find ms. palin? her greatest desire is to start/continue a war. the woman is not smart, there are much more capable female running mates.


Diana Beckman   September 29th, 2008 9:50 pm ET

I say NO on the Bail Out. I am a Dem but I agree with the Repubs on this one. Get a Bill that we all can live with or no bill at all.

If it dont feel good...you probably shouldn't do it. The fact that Bush sent such a ridiculous Bill to the Hill ought to tell you something!

Don't give in! GET THE Bill Right!


don   September 29th, 2008 9:50 pm ET

Chris, it was stated a very long time ago that the time would come in the US that those that had a house in the country that was bought and paid for would live like kings and queens...perhaps that time is now.


Robert   September 29th, 2008 9:50 pm ET

Remember your oath....

"...I will support and defend the constitution of the United States against all enemies FOREIGN and DOMESTIC."

That being said .... where does the constitution say we need to bail out the market?


Ed Hamilton   September 29th, 2008 9:50 pm ET

Larry SNL is one of the worst programs on tv. I cannot believe that you and all these media outlets refer to its poor taste of entertainment as your source of information on a political candidate . Please find a new source of information to pass onto the American people especially in such rough times.


Andrew   September 29th, 2008 9:52 pm ET

after working in this country for 23 years (and working hard may i add) I find myself without a job and seen my 401K evaporated in two weeks. what other country can do this it is citizens?
there is something wrong, if people tolerate this kind of government.


Henock   September 29th, 2008 9:52 pm ET

I think the best way to take care of the situation we are in now is by wisely spending the 700b as follows:
It is safe to assume that homeowners facing foreclosure can actually take care of their mortgage if some of the 700b is used to buy down their newly reset mortgage interest rates back to the original rate. In exchange for that the homeowners should be required to pay higher sales tax when they sale their home for profit. This will restart the economy since homeowners will be paying for their mortgages.


kathy Sheman   September 29th, 2008 9:52 pm ET

I'm a 58 yr. old single woman, resident of Columbus Ohio, a self employed artist for over two decades, own my home and a rental property . THE "RESCUE"??...lets call a spade a spade, it's a bail out that's intending to make me buy and own the bundles of junk properties no one else can manage or sell....HEY ..If I wanted to own junk properties I'd have done so 5 yrs. ago and flipped a dozen back then...Being a cautious risk taker, I WAS PRUDENT and SMART... unlike the "EXPERTS" and co-horts in crime from Washington who have put us into this train wreck.....I didn't want the risky biz back then and surely don't want to be a part of it now...DON'T MANDATE MY TAX DOLLARS TO 'INVEST" in this Bail out..... VOTE NO...and KEEP VOTING NO till it takes the burden off of US to fix this.... Haste makes waste...SLOW IT DOWN and GET IT RIGHT, NO MORE WASTE!


Fahim   September 29th, 2008 9:52 pm ET

hi,

i m watching the show, someone asked that where that money gone. I have an suggestion that either that money is bearing loss or people liquidated the money. if it's due to liquidation then it must b in the banks. so banks must come forward to help the financial markets.


Lisa   September 29th, 2008 9:52 pm ET

They turned their back on this Larry because we the People called and told our Representatives to say NO! I think enough voters are paying attention and we know that the gov't does not bail out the little guys. It's the big guys.
They want to give money to foreign banks. Why? Why is it the American Taxpayer having to bear this burden?
Quit all the blaming guys. I think I might need to turn the channel.


Garry Conn   September 29th, 2008 9:53 pm ET

A great president once said "WE HAVE NOTHING TO FEAR BUT FEAR ITSELF" I'll stick with a winner, not a looser! We will fix America WITHOUT a bailout to all the crooks on Wall Street and in goverment!


don   September 29th, 2008 9:53 pm ET

Charles,

I'd like to know what kind of an epiphany that Biden had that SUDDENLY made Obama such a great candidate when Biden skewered him in the earlier debates for being too young and inexperienced. Either Biden was lying then or he's lying now...imho...either way I don't want that kind of waffle for a VP...

The other side of the coin that scares me is that Palis hits me ALOT like Quayle! And THAT is scary!


charles janjigian   September 29th, 2008 9:53 pm ET

snl good program or not the truth is truth. that is the truth about ms. palin.


Joe   September 29th, 2008 9:54 pm ET

Larry, voting NO today to a bailout was an act of courage. The people don't want a bailout.
And, by the way, small businesses DON't borrow money to meet a payroll.


Charlie   September 29th, 2008 9:54 pm ET

Suzy, What's wrong with making people live within their means? No more easy credit might just be a good thing. Making people have a job before lending them hundreds of thousands of dollars to buy a house was just plain stupid and those companies that lent them the money should be bailing out wall street. Not main street folks who pay their bills and work hard. That CEO who worked for WaMu for less than a month and walked away with millions, Shameful!! The people crying the loudest are the white collar fatcats who got us into trouble in the first place. Let the chips fall.


J. Whale   September 29th, 2008 9:54 pm ET

This is the "Katrina" of party leadership in Washington.

Resignations are the order of the day and they should be IMMEDIATE for Pelosi, Reid, Boehner, and Hoyer. They should not wait for the electorate to decide for them....stand up and admit that you do not have the leadership that the nation requires at this time!

Please, Please, NO MORE EXCUSES!


Razz3r   September 29th, 2008 9:54 pm ET

Hey Suze,
Are you a socialist or a fascist?
Also, do you really think all Americans a dumb? You speak to people that way.
The plan sucked, the people shouted! How did you ever get anyone to take you seriously? The people want this fixed right! Spending 700 Billion of the people’s money in a rush is most defiantly irresponsible. Grow up. Fear, fear and more fear. I wish I had a magic wand to make you disappear.
“OMG, I can’t spend money I don’t have on my credit card” Time to pay the bill America.


BJ   September 29th, 2008 9:55 pm ET

Seemingly the "bail out" is necessary. So why not let the Democratic party put in all of the items they want in the bill to protect the American people and regulation on BIG Banks and businesses. Forget about the damn Republicans playing games!


Dawn   September 29th, 2008 9:55 pm ET

The 700 Billion Dollars should go towards Our Country Re-Tooling the Auto Industry and assist in reducing our Foreign Energy Dependency; so We Invest in Our Future. We are all Tired of Investing Good Money after Bad in the Banking System That Has Failed The People.
The Banks have never given the people anything without making a fee, a point, a margin or interest; so Why would we not approach it in the same way with the Bail Out Bill.
Credit Reform should begin with the credit reporting system that has been broken for years. Automated Credit Underwriting has been based on a flawed credit reporting system – so no surprise that fraud and risk could not be accurately accessed in determining mortgage value. The Fair Credit Reporting Act is a outdated law code that should have been modified years ago to manage idenity theft and to actually provide a true measure of risk in lending.


don   September 29th, 2008 9:55 pm ET

HEY MODERATORS!

Why aren't you posting my comments!? You politically correct WIMPS!


Charles B. Watkins, Sr   September 29th, 2008 9:55 pm ET

According to what you said about the credit card industry, Is the American Public being held hostage by the credit companies to get this bail-out passed? FICO was created by the credit industry for the benifit of the credit industry. We need some legislation passed to control the credit scoring game.
This is all a game were the rules were created to profit the owners not the players on the field.
They are going to get away with it and "We The People" will be the ultimate sufferers.


Lisa   September 29th, 2008 9:55 pm ET

"Why not just repeal FAS 157, the “mark-to-market” FASB rule that started this problem in Nov 2007? No bill would be required"

What is this?


Kris Marinelli   September 29th, 2008 9:55 pm ET

Hello,

The perfect solution would be to start a USA Bank. They would be able to lend to the qualified people that needed the money and possibly refinance some of the people that have bad loans and want to be saved from a foreclosure. This would work.


Sue Prize, from WA state   September 29th, 2008 9:56 pm ET

Why is no one discussing the elephant in the room?
The Federal Reserve is a private banking cartel — similar to OPEC in the oil industry. The Fed is the 4th central bank in US history and came into effect in 1913. Despite the name it is as related to the US government as private industry Federal Express.

Those who forget their history – are doomed to repeat it!

The owners of the Fed have the right to print money (out of thin air) $10 for each $1 the US government wants to borrow from them.
Do the math on how much they will make on the government's proposed $700billion loan!

Help Americans understand the real issue – Interview people like David Korten, Ron Paul and Aaron Russo who KNOW that we should asking our politicians to abolish the Federal Reserve and return control of the money supply to Congress.

Until we control our money, we do not control our destiny.


atoosa biglari   September 29th, 2008 9:56 pm ET

I disagree with Ed , we need programs like SNL to show what kind people these parties choose to run this country. If it's going to be done thru humor so be it.


Kay   September 29th, 2008 9:56 pm ET

Even though Nancy got some flack for her speech, I don't beieve the votes were there from the start. There were Dems and Reps that voted no. This was never presented as anything other than a bailout/rescue for the market banks.


Ravi   September 29th, 2008 9:56 pm ET

Mr. Bush must come clean here! His admin is trying to push this significant in 3-4 days, which was impossible to start with.

I believe we witnessed democracy for the first time.


Chuck   September 29th, 2008 9:56 pm ET

I'm so tired of lawmakers saying they are responding to their constituencies' calls to vote against the bailout. I vote for a candidate, not because they will do what I want, but because I trust them to do the right thing. A good lawmaker is much more informed than I, and while they might not do exactly what I want, they certainly are more familiar with the issue. If we ran the country based on doing what constituents want, dissolve Congress and put a button in everyone's house.


Dan from North Carolina   September 29th, 2008 9:56 pm ET

Would someone answer this : the main purpose for the bailout then was not to buyout wall street or Fannie & Freddie, but to allow businesses to borrow money to meet their payroll.
1 ) Isn't this a bad idea to start with ?
2 ) is this business speak for a loophole? ( if you borrow money to make payroll, do you somehow get a tax break ? )


Kris, Novi, MI   September 29th, 2008 9:56 pm ET

Suze and people like her doing a disservice to this nation. The financial crisis is overblown. Banks are in business to lend. I still get two credit card applications a day and unsolicited mortgage loan invitations. Easy credit is the problem and if this crisis stops it, then its a good thing.


Len Trinagel   September 29th, 2008 9:56 pm ET

Why is no one talking about the fact that the 700 billion is a fictitious number and the real number is an unknown but greater one. Once we get sucked in for the first amount we would certainly look stupid if we do not continue to fund what really is a black hole disguised a quick fix. We need to put the brakes on and fix the car before we end up rolling off a cliff.


Larry D   September 29th, 2008 9:57 pm ET

i havent heard anything about what could happend to my disabililty check !!! are they in danger too


charles janjigian   September 29th, 2008 9:57 pm ET

debate biden vs. palin, be careful senator biden you have more to lose.


dean   September 29th, 2008 9:57 pm ET

I find it alarming that the public is against the 700 billion cost when this administration has added 4 trillion to the national debt. For the last year the debt has increased 2.42 billion/day. You do the math, in less than 1 year we have lost over 700 billion!

If we are against 700 billion, why aren't we screaming over the 4 trillion?


mark casey   September 29th, 2008 9:57 pm ET

Comment

Whether or not the "bailout " is good for America, the public is MAD and they want to know who is responsible, and they want them to " pay". If some mechanism is added that reviews the extent of the abuse in bonuses paid by these financial institutions in trouble, and some attempt to recover the most obscene of these bonuses, I beleive the public would find the bill more pallitable.

Thank you for listening.
Angry


Daniel H. Kapuniai   September 29th, 2008 9:57 pm ET

Dear Larry,
What Nancy Pelosi stated was the truth and if the Republicans can't take the truth and used this as the reason to vote against the bailout bill then they should not be in the House of Representatives. This shows how small and petty Republicans are and should not be there doing the business of the people. How crazy is it a Republican President can't get his own party to vote for the measure. They say that both parties are at fault, wrong the republicans are at fault for making the mess (deregulation) in the first place and now they are going against correcting the problem how nuts is that. Do you think that these nay voters are thinking about being reelected next term. You have the Democrats at least two thirds of them voting for the bill while you have 133 Republicans against the bill. What the Democrats should do is tell the Republicans to get their act together because, to the people like myself it makes them look like idiots. They can't agree with their own President how are they going to agree with the opposite party!! How can they work with anyone if they are unable to work within their own party!!!
Thank You,
Daniel H. Kapuniai Jr.


Madhuri   September 29th, 2008 9:57 pm ET

Hi Larry,

I do feel Sarah Palin so not Vice-presidential PROSPECTIVE, for get being Vice-presendential. In her interview with Katie Couric, she uses good guys & bad guys, so not vice-presedential like, does she think she is telling a bed time story to her little baby. SHe just looses her point & just does not make sense. She appears very vicious, she comes out as a very revengful person and what 's with McCain, he was so unprofessional, so rude during the debate – did not even have an eye contact with Obama. I think I was taught & we teach our kids today that we should not be revegeful, we should always have a eye cintact when we are talking to somebody. But seems like McCain has forgotten all that. He is just palying BAD Politics.


Ed Hamilton   September 29th, 2008 9:57 pm ET

Hopfully there will not be anyone in a wheel chair there. Sorry I forgot Biden gets a pass on that comment. What a joke.


joe   September 29th, 2008 9:57 pm ET

Candy – you're wrong. we don't need to wait for another 9/11. this is another 9/11


Da Costa   September 29th, 2008 9:57 pm ET

Is it sane to keep 401k invested money on stocks/agressive target or move to a stable or bond investiment?


Shari   September 29th, 2008 9:58 pm ET

I agree with Ben Stein let it start with little people. What make you think we want the same people that put Us in this position to handle it after we give the 700 billion. We don't want this maybe unless they take the money and until every penny with over site is paid back or else let it fail and it goes to the government and we make the profit. But to hear some head is going to make 15 million who has only been running the company for 3 months is absurd. We have told you what we want. Many times over we know we should have no more electorial vote One vote One person. Enough of this you won by poplar vote but electiorial vote too over and you lost...Enough. I rec. this email and it is something that should be concidered. We don't what to bail out anything unless it belongs to us. Or that we are PAID Back...

Tongue in cheek or is it?
>>
>>
>> I'm against the $85 BILLION bailout of AIG. Instead, I'm in favor
> of giving $85,000,000,000 to America in a "We Deserve It" dividend. To
> make the math simple, let's assume there are 200,000,000 bona fide
>> U.S. Citizens, aged 18+.
>>
>> Our population is about 301 million counting every man, woman and child. So,
>> 200,000,000 might be a fair stab at adults 18 and up. Now, divide
>
>> 200 million, 18+ adults into $85 billion – that equals $425,000.00
>> each! Yes, my plan is to give that $425,000 to every adult as a "We
>> Deserve It" dividend.
>>
>> Of course, it would NOT be tax free. So, let's assume a tax rate
>> of 30%. Every would pay $127,500.00 in taxes. That sends $25.5 billion
>
>> right back to Uncle Sam! It also means that every adult 18+ has
>> $297,500.00 in their pocket. A husband and wife would have
> $595,000.00!
>>
>> What would you do with $297,500.00 to $595,000.00?
>>
>> * Pay off your mortgage – housing crisis solved
>> * Repay college loans – what a great boost to new grads
>> * Put away money for college – it'll really be there
>> * Save in a bank – create money to loan to entrepreneurs
>> * Buy a new car – create jobs
>> * Invest in the market – capital drives growth
>> * Pay for your parent's medical insurance – health care improves
>> * Enable Deadbeat Dads to come clean – or else
>>
>> Remember this is for every adult U.S. Citizen, 18 and older
>> (including the folks who lost their jobs at Lehmann Brothers and every
>
>> other company that is cutting back) and of course, for those serving
>> in our Armed Forces.
>>
>> If we're going to re-distribute wealth let's really do it!
>> Instead of trickling out a puny $1,000.00 economic incentive.
>>
>> If we're going to do an $85 billion bailout, let's bail out every
> adult U.S. Citizen!!
>>
>> As for AIG – liquidate it.
>> * Sell off its parts.
>> * Let American General go back to being American General.
>> * Sell off the real estate.
>> * Let the private sector bargain hunters cut it up and clean it up..
>> We deserve the money and AIG doesn't. Sure it's a crazy idea, but
>
>> can you imagine the coast-to-coast block party?!
>>
>> How do you spell Economic Boom? W-e D-e-S-e-R-v-e I-t
>> d-I-v-I-d-e- n-d! I trust my fellow adult Americans to know how to use
>
>> the $85 Billion "We Deserve It" dividend more than I do the geniuses
>> at AIG or in Washington, D.C. .
>>
>> And remember, The Birk plan only really costs $59.5 billion because
>> $25.5 billion is returned instantly in taxes to Uncle Sam.
>>
>> Ahhh...I feel so much better getting that off my chest.


Garry Conn   September 29th, 2008 9:58 pm ET

Thier is a lot of Democracts that will not see a Democratic President if they do not start defending me and stop this bailout of Wall Street! What part of this do they not understand?


Andrea   September 29th, 2008 9:58 pm ET

Kay,

You might be right but there is no way Nancy Pelosi's speech helped get the votes for the bill. Where is the leadership? Senator Sam Nunn knew how to get the job done. As Obama said "get the job done."


charles janjigian   September 29th, 2008 9:59 pm ET

j.mcain a pathetic attempt to show off leadership.


TheDolphinFan   September 29th, 2008 9:59 pm ET

Where is George Bush’s leadership with GOP members of the Congress? How many of the 200+ GOP members did George Bush call personally to beg for their vote? With this bill being so important, he should have called each on Sunday and again Monday. Not a staffer but himself. I have heard he called just a mere few, fewer than ten. This is another example of GOP and RNC failed leadership.

It is obvious that George Bush can no longer lead our country as President. Time is today for him and his staff (Secretary of Treasury, VP Dick Cheney, FRB Ben Bernanke, and all of his economic advisors) to be out of the White House once and for all. And any politician talking to Phil Gramm for economic advise is not qualified to be President as John McCain has done.

Could it be time for a massive civil war?


chris, baltimore, md   September 29th, 2008 9:59 pm ET

@ Charles Janjigian: I am a Obama/Biden supporter but what you said is very, very true.


vannjerome   September 29th, 2008 10:00 pm ET

I believe the Republicans are playing politics with this whole mess. By several Republicans getting on CNN and making references that the Bush administration messed this up and Mccain is making the corrections and now we are leaving Bush and sticking with Mccain. And Mccain was in Washington doing all this and that to make things right. It's all about winning the White House and screw everyone else.


Daniel Leiter   September 29th, 2008 10:01 pm ET

The root cause of our current financial problem (If we have any) can be directly attributed to the interfering in the country’s natural finances by the Federal Reserve Board.
The Discount Rate (That determines the value of the currency) (Your Saving) is arbitrary set by the Federal Reserve Board.
In December 2002 the Federal Reserve Board reduced the Discount Rate to 0.75% (Down from a high of 14% in the 1980’s)
This was done to “stimulate the economy” (By devaluating the currency our exports become cheaper relative to other country’s currency)(And by reducing the earning or value of your savings, it allows borrowers to enjoy the value of your saving to buy over valued things with meager benefit to you)
That meant that our currency (The value of your savings) was substantially devalued. Real estate prices sky rocketed. Not because real estate was any more valuable but because the use of our currency (Your savings) was so cheap (Mortgages)
The Federal Reserve Board has (Was forced by the “Real World”) to raised the Discount Rate to 2.25%. This has caused all kinds of problems. Forecloses of overpriced properties and “interest only deals” where the “owner” were paying less to “own” than they would have had to pay if they were “renters”.
Now we are asked to assume a 700 BILLION hit that will devalue our currency (Your savings) further.

I SAY NO!

The answer to this problem (If there is a problem) is for government to step back and let the capitalist system run its course. Yes, some people will be hurt but the county and economy (The value of your savings) will be stronger. Home ownership programs can be established in poor neighborhoods where foreclosed on homeowner and others who meet guidelines can buy or re-buy their homes or other properties in their neighborhood at realistic prices with subsidized interest rates. The cost to the county for localized programs such as something like that would be small compared to the proposed $700 BILLION


James Thorne   September 29th, 2008 10:01 pm ET

The Paulson plan was a continuation of the Bush policy of the powerful rewarding the wealthy for ruinous management of their responsibilities at the expense of the middle class. Bush, Bernanke, and Paulson have been suborning panic in the markets for over a week now. The media has been helping them by doing the same thing. I think this is much better dealt with by using government guaranteed loans and credit guarantees. The government is not good at being a real estate investor.
I think the best thing for the people is to avoid believing anything Paulson or Bernanke suggest would be a workable solution. They have been wrong at every turn and, a month before the election, they come up with a trillion dollar expenditure and expect everyone to believe it would work. I just am amazed how the media is so ready to believe them even if their plan doesn't work, we wouldn;'t have another option left because we wouldn;t have any more funds. Oh , right, we didn;t have the money they intended to use for this plan either.


Jim Campbell   September 29th, 2008 10:01 pm ET

People are saying that this problem started in the 90s. I don’t think so!! It started in the 60s. A slight change in thinking that has become inbeded in our culture. Our children are exposed to it in sports, grades, social situations , in short everything they do or in this case did is infective bye it.
When I was growing up an expression that was a major life goal was modified. [From], it’s not weather you win or lose it’s how you played the game. [To], it’s not how you played the game it’s weather you win or lose.

That thought has become a part of our sub consious now so there is no remorse, other than being caught. When the next bubble happens it will again catch peole with their guard down and once again we will be in crisis.

The problem has become iv'e got mine the hell with everyone else. We have forgotten we are all on the same boat. when my neibhor can't pay his bills it's just a matter of time before I can't pay mine


deborah   September 29th, 2008 10:02 pm ET

gOD HELP US ALL. SIGNS OF THE COMING OF CHRIST


Kay   September 29th, 2008 10:03 pm ET

Andrea, I think this is one of the few times the House decided to listen to the voters, because they don't want to lose their next election.


Darcy   September 29th, 2008 10:03 pm ET

Maybe Sarah Palin should have been charged with the responsibility of bringing the conservative base over to provide the needed votes to get the bill passed...


Niv   September 29th, 2008 10:03 pm ET

Larry, Palin will be alright in debate since someone would have written for her and coached her. It is just a matter of delivering the speech which has done well before. She is expected to talk about energy, children with special needs and women rights. Although she is expected to do well, voters should not vote for her since one must know that her depth of knowledge is irritabely shallow.


Kerry Osborne   September 29th, 2008 10:03 pm ET

I think McCain supporters might want to rethink that leadership claim regarding McCain's involvement with the bailout plan. That he was willing to show leadership is not as important as his failure to effect leadership. Those whom he would lead refused to follow. The result is what's important when you talk about leadership.


Danny   September 29th, 2008 10:04 pm ET

The congress did the right thing. Mccain was in fault for this. You keep blaming Obama when Obama was the one that wanted to stay and have the debate. Mccain went and got in the middle of this mess and made things worse. Were was Obama... SITING ON THE SIDE LINE LIKE YOU SAID. watching Mccain Messing up.


John   September 29th, 2008 10:04 pm ET

Larry.
Even IF this bill is lousy, who's to say that if they manage to pass it this week, that it can't be changed or appealed down the road.
Like maybe at the end of January '08 🙂
Who's to say it Must be set in stone forever????


MotherLodeBeth   September 29th, 2008 10:04 pm ET

You know if this were China a lot of CEO's and politicians would be before a firing squad.

Look at what happened in China when they found lead in toys, and melamin in baby formula.


Rocky   September 29th, 2008 10:04 pm ET

If these corporations fail then they fail...and we still need to start putting folks in jail for it... Let’s go ahead and set some examples with these executives. American is too credit bound and has become too addicted to instant gratification. Tuff adjustments, hard and frugal decisions must be made now or the America and the American tax payer will become the slaves to Wall Street and foreign lenders. Kind of a scary thing when you consider who the lenders really are....China, sovereign funds etc...........better too take the hit now and learn some lessons instead of risking American freedom as a whole instead of just some portfolios and investments.
By the way, tell Susie she should run for politics, she and her thoughts and portfolio would fit right in with the Washington and Wall Street mindset.


Elle   September 29th, 2008 10:05 pm ET

One problem with the bailout is that it did not mention ANYWHERE that ceo's, brokers, banks, any of the people responsible would be held accountable. People lose their homes and file bankruptcy and now have bad credit. These companies and ceo's go on with their big fat wallets and don't give a damn. They should ALL have to pay and the bailout shoudl be a loan that in one year the payments will go up and keep going up every six months after that until they pay back the 700 billion! Hold these people accountable. It's not our damn problem!


J. Robinson   September 29th, 2008 10:05 pm ET

I agree with Regina. We are over due for a change. Out with the Republicans and in with the Democrats. McCain is more of the same, and after today's reality no one wants to look at Bush, let along a Bush want to be. I say let the chip fall where they may. When you come from the lower class and you end up with the lower class then the reality is that you really haven't lost anything, but for those who are not accustomed to such a lifestyle I suggest they make adjustments accordingly. I believe that it is those who stand to loose a great deal of money are the ones who are worried and fearful of what could be and this is only the beginning. So for all those who are on the bottom there is only one way to look at things and that is up, and unfortunately those who have been on top are very afraid of looking done, because eventually they might find themselves in the same position as the rest of American. Like crabs in a bucket, not one of them who made it to the top ever thought about reaching back down to pull up one of us. Instead, they just took advantage of the economy and kicked us while we where down. Now that the tides have turned they want us to bail them out. You do the math, honestly do think that McCain's ideas of helping the economy from the top down will benefit the average American, I think NOT!.......Bye the way it is very crowded on the bottom, but I know plenty of people who are willing to give up their way of living to allow the elite, investment bankers, republicans etc. to see how the other side have been living.....


John   September 29th, 2008 10:05 pm ET

Everybody is playing the blame game and who did what. Could we stop this cacophony and get some economic experts to propose a solution if there is any? Even after so many hours of the bill failing nobody in the congress or the senate has come forward to seek a solution from economic experts? Where's the guy who won the Noble prize for economics this year..


Fati   September 29th, 2008 10:05 pm ET

Hi Lary,
I hope you read this mail
I try with Jack twice but i don't have response.
Lary,
the days are going bye.
The nigths are flying in their perpetual silence.
Lary,
Are we always in fury an in action,
Are we pass through in this world,
Lary,
Only God knows.
Lary,
The harricane is near bye,
It will heat deeply for many future generations.
Lary,
About my #5.00,
About your speech,
About Anderson C, Jeffrey, John K. Dana, Gloria, Martin, Brian W ect...,
Lary,
About all those persons who can reach in 1 seconde all the american people.
Lary,
america is a great country.
iAnd i know in my deep heart the american people will come over this crisis.

Lary,
About,
PLUS $1.00 FOR EACH VOTE,
Just thing about that,
We can make Lary.

Thank you Lary , thanks to CNN STAFF


John   September 29th, 2008 10:05 pm ET

I meant January '09 of course...


Richard and Rosalind Beaty of Houston, Texas   September 29th, 2008 10:05 pm ET

I say no to the bail-out. Let the oil companies and Walmart or Martha Stewart loan the money to this Bush-inspired greed fest.


Judy   September 29th, 2008 10:06 pm ET

Kay,
You are absolutely right. The news reports that Congress knows this is a "difficult vote." And it is for the very reason you stated. For the first time, or the first in a long time, Washington has our attention and we are WATCHING them. We want to know who voted how. Now that we are paying attention to what is going on, it makes the voting for unscrupulous deals more difficult to do–especially for those who are currently up for reelection.


sony   September 29th, 2008 10:06 pm ET

There is only one way to describe the action of congress "irresponsible". They not only failed in educating their constituencies about how this affects everyone of us but also in putting country first in such a crucial moment. McCain has again demonstrated he puts "Politics First" and NOT "Country First" .
I would also like OBAMA to show a bit more accountability and leadership when it comes politically difficult choices.


Rizwan   September 29th, 2008 10:06 pm ET

Amaizing how House voted and stood behind President Bush for the war in Iraq. Now when it came to save country they voted no. Some thing is not right with our country.


Evan D. Lewis   September 29th, 2008 10:06 pm ET

Coming from a teenager's perspective, I think everyone is acting like children. Blaming each other will not get the job done. We need to come together like mature adults and work this out. This is a serious problem and fighting will not solve anything.


rebelgenedot org   September 29th, 2008 10:06 pm ET

We at rebelgene.org have a solution for this financial mess. here is some simple math: Instead of giving $85,000,000,000 to Wall Street, let's give it to America in a 'We Deserve it" the dividend program. To make the math simple, let's assume there are 200,000,000 bona fide U.S. Citizens, aged 18+. Our population is about 301 million counting every man, woman and child. So, 200,000,000 might be a fair stab at adults 18 and up. Now, divide 200 million, 18+ adults into $85 billion – that equals $425,000..00 each! Yes, my plan is to give that $425,000 to every adult as a 'We Deserve It" dividend. Of course, it would NOT be tax free. So, let's assume a tax rate of 30%. Every one would pay $127,500.00 in taxes. That sends $25.5 billion right back to Uncle Sam! It also means that every adult 18+ has $297,500.00 in their pocket. A husband and wife would have $595,000.00! What would you do with $297,500.00 t o $595,000.00? * Pay off your mortgage – housing crisis solved * Repay college loans – what a great boost to new grads * Put away money for college – it'll really be there * Save in a bank – create money to loan to entrepreneurs * Buy a new car – create jobs * Invest in the market – capital drives growth * Pay for your parent's medical insurance – health care improves * Enable Deadbeat Dads to come clean – or else Remember this is for every adult U.S. Citizen, 18 and older (including the folks who lost their jobs at Lehmann Brothers and every other company that is cutting back) and of course, for those serving in our Armed Forces. If we're going to re-distribute wealth let's really do it! Instead of trickling out a puny $1,000.00 economic incentive. If we're going to do an $85 billion bailout, let's bail out every adult U.S. Citizen!! As for AIG – liquidate it. * Sell off its parts. * Let American Gen eral go back to being American General. * Sell off the real estate. * Let the private sector bargain hunters cut it up and clean it up. We deserve the money and AIG doesn't. Sure it's a crazy idea, but can you imagine the coast-to-coast block party?! How do you spell Economic Boom? W-e D-e-s-e-r-v-e I-t d-I-v-I-d-e- n-d! I trust my fellow adult Americans to know how to use the $85 Billion 'We Deserve It' dividend more than I do the geniuses at AIG or in Washington, D.C. . And remember, this plan only really costs $59.5 billion because $25.5 billion is returned instantly in taxes to Uncle Sam. You can mail this letter to Speaker Pelosi from rebelgene.org


maryannepavlik   September 29th, 2008 10:06 pm ET

I am so sick of the Republicans I want to vomit!!! They are trying so hard to blame the democrats for all of this. They must be so frustrated to know that there politics has put us in the worst crisis ever financially.
They were the ones that don't want regulation and Mccain cannot go back and deny that he has agreed with Bush politics all along.
Maverick my ass! I will not vote on a Republican ticket this time and Obama is looking like the man for the middle class!!


Michael   September 29th, 2008 10:07 pm ET

1.) The Stock Market was at this level just days ago. It will be a rough market for some weeks to come.
2.) Neither Party delivered today – and both should be ashamed of their performance.
a.) Republicans ASKED Congress for this bailout and failed to bring the votes for their measure to the floor!
b.) Democrats should NOT have brought the measure to a vote without a clear count of votes to ensure they bill would pass.
3.) The majority of Americans don't want to use additional deficit spending to try to fix this problem. Facts are that that not enough options have been examined to find the most cost effective way to address this problem.
4.) The greedy, fraudulent and foolish practices that created this mess must come to an end, which means forcing the management of these firms OUT of the Industry. This will happen as these instituions go out of business. The proposed package will leave them in power to continue to make bad decisions.


Josh   September 29th, 2008 10:07 pm ET

I have one question, and sorry if someone has already asked, I apologize, but I’m simply wondering what a dollar is worth back in 1929. The three days the stock market was crumbling in 1929 (that week in late october) they lost $30 billion. Today we lost $1.2 trillion… thats a big difference, but I’m wondering if it really is, because if you convert that $1.2 trillion to 1929 days and it compared to $30 billion in a week, that could actually mean something for the future…

So whats $1.2 trillion worth in 1929?


Jacquelyn   September 29th, 2008 10:07 pm ET

Shame on the Republicans! Blaming Nancy Pelosi for telling the truth. The truth hurts, doesn't it?
They don't mind spending billions for a war we shouldn't be in, but Americans be damned!!
They better wake up and vote for to save our country. Time is running out.


Garry Conn   September 29th, 2008 10:07 pm ET

I can't believe my government is using scare tactics against me to allow an injustice! My American PRIDE is worth more than my house. I will not sell myself out.


Dario   September 29th, 2008 10:07 pm ET

I am against the bailout but if there is anyone to blame, I would blame McCain. His photo shoot on the red carpet derailed the negotiations and it back fired on him...

He wasn't needed there and his only purpose was to try to get votes. After all, he admitted economy is not his strong point. What was he doing there anyway.

He is over doing this patriot stuff. If he was so patriot, he would have selected a VP in the interest of the country, someone that could run the country if some was to happen to him, instead of selecting someone with no experience just to get a vote . I don't see patriotism there at all.

McCain is not good for this country..If he can betray his wife, mother of his kids, he can betray us and the country if the right deal comes up.

McCain is a mad man and a lier, looking out for himself and out to prove he can become president with no intentions to fix this country, a war minded man with his finger always ready to push the red button.

McCain, wrong for this country.


Brian Amos   September 29th, 2008 10:08 pm ET

This shows that the conservative Republicans (who were very pro deregulation and caused this mess) would do anything to keep government away from doing their job regulating and taking control of the financial system. They would do this even if it means the world markets, small businesses, banks, the mortgage industry, and ultimately the average Americans lose. Vote everyone who voted against this out of office as fast as you can! McCain was right there all for deregulation and now lies about it. He is a disgrace!!! LOOK AT HIS RECORD if you do not believe this.


sam   September 29th, 2008 10:08 pm ET

Larry, the bill should have passed, but it did not because they don't care if some of us eat dirt or sleep under the bridge


MotherLodeBeth   September 29th, 2008 10:08 pm ET

Len Trinagel you are 100% correct. 700 billion is just a rough guess. They already spent something like 300 billion bailing out Freddie and Fannie and other financial entities. I bet this mess costs us trillions. And lets not forget the politicians will vote themselves another raise and there will be some loop hole as in section 111 of the bail out plan where CEO's can still get a golden parachute. I didnt read in the proposal anything about prosecuting Wall Street criminals and sending them to jail.


Mike   September 29th, 2008 10:09 pm ET

This bailout is to protect the wealthiest Americans at the expense of the tax payers. People need to take responsibility for their actions. We will not need to regulate the pay of CEOs when they don't have a job.


Dean   September 29th, 2008 10:09 pm ET

What do the candidates have to do with congress not passing the bill; there were to many questions about the bill, how to manage it and ensure that the money is used appropriately. Poor management should not be a reason tp give money to companies. What was the actual reason for the drop in the stock market? PANIC! Everyone speculates that without governmental intervention that we are headed for a depression. Sounds like the same thing that happened with oil prices; since everyone had speculations that the prices would increase dramatically; the oil companies were happy to oblige and raise the price of oil.


lindal   September 29th, 2008 10:09 pm ET

From what I followed all day, the package was formed by a bunch of tired, people who got very little sleep all weekend, then sat up all night with their pizza boxes cluttering the tables. The results were that it was a poor package, with loop holes and totally not complete. From the first time out the insurance lobbiest were applying pressure so many issues could slide by, such as nice big pay checks for CEO's not necessarily the golden multi million packages but probably close.


Lisa   September 29th, 2008 10:09 pm ET

McCain says he sees the future of this country from a political view as well as a military view. Then he needs to answer why he votes eighty percent of the time against veterans health care. I think McCain needs to meet with Iraq Veterans Against the War and see what is truly going in Iraq and help our veterans get better health care. That is the least we can do for our brave young men and women fighting this war.


Andrea   September 29th, 2008 10:10 pm ET

Kay,

The repurcussions of not passing this bill will cost a lot of politicians their elections. As folks lose their jobs and their friends lose their jobs because their companies can't continue to operate because they can't get credit people will realize what a mistake they made not to pass this bill. A lot of small businesses operate with lines of credit and do so responsibly. This is a mistake not to pass this bill. Obama and McCain know it and the leading economist know it. Buffet has warned congress. The American people as a whole really aren't aware of how to fix this issue. If all the wealth were redistributed in a matter of years we would be back at the same point. The leadership in Washington is poor. Nancy Pelosi's speech didn't help today.


Ruth Lutzke   September 29th, 2008 10:10 pm ET

Dear Larry,
We could stop all foreclosures TOMORROW if we wanted to. Let struggling homeowners modify their mortgage into affordable payments. They would start paying again and money would start flowing. MAKE the banks do loan modifications. Once a house is foreclosed upon, it will be sold for far less then the homeowner owes anyway+ the cost of the foreclosure. Why not help the homeowner and help the economy. Get them paying again and the problem is solved!! These loans were crazy, would you pay 12% on a loan? Wake up Washington, we can stop all foreclosures IF you want to. Loan modifications is the answer.


Lydia Howard   September 29th, 2008 10:11 pm ET

I'm not an expert in the government or the economy or wall street. But it seems very strange to me that these companies want little or no Government interference or regulation or oversight. OK , so why is it our responsiblity to bail them out? When they were making the billions we weren't getting to help them spend it. Why isn't someone going to jail? There has to be some laws broken if not there really is too little government oversight. To me this makes a good case that too little government gets you into big trouble.


Marsha   September 29th, 2008 10:11 pm ET

Does anyone know the link to review the entire plan? I think we should all review the contents before making up our minds on it's viability or lack thereof. If our elected officials (both Republican and Democrat) refused to vote for it, there had to be issues. I'm wondering if Suze Orman has reviewed the bailout plan in its entirety.


Ralf Newark,NJ   September 29th, 2008 10:11 pm ET

One of the unfortunate effects this country is going to see is an astronomical increase in crime, maybe even from ordinary americans that have never commited one crime in their lives, just to put food on the table for their families. If things get desperately bad. I only pray to god it does not get that bad.

Is it possible to invision that? given the situation and what is being said on the news about the grave consequeces if this pathetic government dont stop with their 8 year old behavior and act like the leaders they took an oath to be, AND BE!


Anton   September 29th, 2008 10:12 pm ET

Why does Suze Orman insist that credit card limits, and other consumer loan availability are tied to the performance of the stock market? There is no direct correlation between the two. It’s this playing on average American fears that is unacceptable, not the rejection of the bail out plan.


Etta Hamilton   September 29th, 2008 10:12 pm ET

I read a really innovative idea saturday. It was that instead of giving 700 billion dollars to companies to bail out wallstreet, that we should instead give it to the people of the united states. If we gave everyone in the country who is over 18 years old and older 2 million dollars. they could tax it at say 30 % which would help the government balance it's budget and the housing crisis would be solved because there would be no more forclosures because they would be able to pay off their homes. It would spark building and investing and in effect bail out the very institutions that we are trying to save while making it easier on the american people who have been saddled with ever increasing health costs, stagnant wages, and loss of buying power while the rich get richer. It would put money into failing institutions and investing the right way. It would significantly stimulate the economy. It would also cost significantly less than 700 billion dollars. It would only cost about half as much and there would not be the problems of making sure that overpaid ceos do not get those golden parachutes. GIVE IT BACK TO THE PEOPLE YOU TOOK IT FROM IN THE FIRST PLACE.


L. Milton   September 29th, 2008 10:13 pm ET

I've sold my house and close tomorrow. Should I use a fair percentage of the capital gains to pay down on my credit cards (2) or hold on to my money for several months and simply make larger payments for a while?

Suze mentioned that credit card limits will start going down and effecting FICO. If I pay half the card down now and the CC company latter reduces my limit (which is fine) that large payment I made to help keep my FICO score good, will it be just for nothing?


Hoku, HI.   September 29th, 2008 10:13 pm ET

This fiasco may make the Chinese socialist-capitalism look like the way for a country to oversee their economy.


Rizwan   September 29th, 2008 10:14 pm ET

I have solution for these crises , We have immigrants coming to this country no matter what. Why not offer USA residency to anyone who buys the home in USA . Bring all the rich from all over the world here and their money. Dubai is doing exactly this and look how their real estate is best in the world a of now.


Dawn   September 29th, 2008 10:14 pm ET

In Business, if work needs to be done, no one goes on vacation or takes breaks...Why does the House and Senate have this luxury? Especially, given the emergency nature of the economic health of our country. Additionally, as an employer, I would have fired those who were not working as a team. Together, Everyone, Achieves, More...
Lastly, I laugh at the Democrats that cry that they did not get what they want, but their overall delivery in explaining the Bill to Main Street USA has been lame.
Good Communication is the key to swaying people to your ideals...Why not just spell out in a language we all understand what the Plan is All About. I dont give anyone money without understanding why and how I am going to be paid back and when! Why should the American People get anything less???


George Roese   September 29th, 2008 10:14 pm ET

I'm so grateful & proud of how the House of Representatives handled themselves today. They didn't "fail" as so many want to believe. They succeeded in tossing back a White House proposal that was as foolish as it was condescending.

So where from here?

It's simple. We'll take the time necessary to collect all the information then make a thoughtful decision that will be best for the American people.

The real issue here is JOBS. Pelosi had the brave idea that we should take the same $700,000,000,000 and invest it in projects in America: rail, street & infrastructure work that's been overlooked.

It's impossible to outsource this work so the monies are guaranteed to stay in our economy, guaranteed to filter through and help everyone.

One final item. Everyone is clamoring about "the largest daily drop". Who cares? When you compare that drop to the 1987 S&L fiasco on a percentage basis that drop is LESS THAT ONE-HALF (1/2) the drop then.

It's worthing noting that in that situation we didn't solve it by bailout at all. A much larger loss was handled by the process that absolutely must occur here: collect all the information then after we understand the problem fully, act with assuredness.

And Larry, could you please ask Suze to take her pill ... she was litterally screaming into the monitor tonight. That's not the type of leadership or influence I want.

I welcome your comments.

George C. Roese
310 545-5656


Beverly   September 29th, 2008 10:15 pm ET

Larry,
With all of this mess that is happening right now, when are you going to interview a common person, that can tell you what is really going on in the world. Such as retail sales for instance and how they have been down for sometime, how people have cut their spending with the fuel prices rising like they have.


Terry Ray   September 29th, 2008 10:16 pm ET

Niv, a debate is not speech driven. The moderator has a list of issues from which he/she will ask each candidate to respond. Apparently you have already made up your mind, I think I will wait just a little longer.
Oh, and did you hear that FDR went on TV and told the country what he would do fix the 29 stock market crash? Joe Biden told everyone he did. Talk about depth of knowledge!


Jessica   September 29th, 2008 10:16 pm ET

Hello Larry! As a 27 year old this is really the first recession I have observed. As an individual with historical context, could you please put the present situation in perspective for those of us that are young and in experienced? I watch the news and read the articles, all I see is mass hysteria over the present situation. Is it really that bad or is this a bump in the road? Thanks for your help!


sid   September 29th, 2008 10:18 pm ET

HI larry. if i throw my money away in vegas and cant pay my bills. WILL THE -[GOV. ] BAIL ME OUT. when you invest your money in wall street its the same. YOUR GAMBLING. OUR COUNTRY HAS BEEN THROUGH THIS BEFORE AND IT CAME OUT FOR THE BETTER. --no pain no gain under these conditions. our so called leadership are running around like chicken –[ THE SHY IS FALLING.]


Graham   September 29th, 2008 10:18 pm ET

This fiasco makes me wonder what the difference is between a sub-prime mortgage lender and Osama Bin Laden. For me the main difference is that the former wears a suit and lives in a fancy house and employs non-violent tactics. Both are very similar in their capacity to ruin the American Economy, but I had not realised how tame Bin Laden is in comparison.


Steve   September 29th, 2008 10:18 pm ET

I watched this mess on TV all day and I'm amazed that at a time of world crisis that our so called leaders are using this as a platform to bash each other. Please get over yourselves and get down to the business of finding a solution to this problem that is affecting us "middle America" and if nobody is held accountable for this I will crime i will have lost all faith in our justice system. I also have a thought on this so called bailout, if you don't put in regulation, checks and balances in place and give anyone unlimited power to do as they wish with our hard earned money is just as stupid as not regulating these banks that put us in this mess in the first place- there must be better options. In closing, the choices for president put most of us under the table, I can't even say there is a lesser of two evils. These two must stop fighting like school children and get down to the real issues, like "TODAY"


Tia   September 29th, 2008 10:18 pm ET

Bravo, finally congress did what they were told to do by the people they work for.

Fortunately you can always count on Pelosi opening her mouth at the worst possible moment for her cause.

I'm ready to start over so let's let it crash and get on with rebuilding.


Heather   September 29th, 2008 10:18 pm ET

MCCAIN FAILED! Today was McCain following in Bush's "MISSION ACCOMPLISHED" footsteps when he tried to take credit for the passing of the bill before it failed.

I am so happy to hear your guests really acting responsibly like bi-partisans since we know they have their respective sides.

I was very disappointed that I come from a Democratic State and our House Representatives (Neil Abercrombie & Mazie Hirono) voted NO. Obviously they don't understand the gravity of the situation and are easily swayed by the House Republicans. I'm not quite sure who they are listening to!


William A. Jeffries   September 29th, 2008 10:20 pm ET

After Congress "kitcked out" both McCain and Obama two days ago,
I felt very comfortable with the way they were handling the economic recovery, promoting a plan that looked after the little guy without giving any bailout money to the perpetrators. feeding the little guy from the bottom up, rather than the lender benders from the top down.

You won't wnt to hear this, but Waren Buffet came long and told congress to take the deal that Paulson and Bernanke had proposed, and do it immediately to save a crisis. Money talks.

Congress did an immmediate about face with the Recovery proposal, allowing free reins to the perpetrators to take what they wanted of the first $250 billion bailout package, exactly what they were trying to prevent. So when they voted against the package, They did Americans a huge favor

Pelosi and gang have been running a partisan gang. Instead of trying to ram a flawed document with the help of Bush, Paulson and Bernanke, down the throats of the Republicans and watching it fail, they should get off their partisan wagon and start talking to the Republicans about their plan in a bi-partisan effort to bring this to a conclusion. .


Edward Pedersen   September 29th, 2008 10:20 pm ET

Larry:

Has anyone considered or proposed sending the $700 billion to the state governments for the purpose of loaning the money and using it to evaluate and bid on the mortgage-backed securities Wall Street seeks to dump on the taxpayers? It would be easy to pass this propsoal through Congress, because it gives the money to the people at the state level, and could be apportioned on a pro rata basis based on the taxes paid to the US Treasury from the various states over a defined period of time. This approach avoids subsidizing the entities that erred in their loan underwriting criteria or purchase lousy mortgage-backed investment, while at the same time it infuses the capital the economists suggest is necessary for the credit markets, but distributes it nationally rather than sending the money to just New York. Seems like a brillant approach to me, and the states could be charged interest at a competitive rate so as to not give them an unfair advantage over Wall Street. Although I am not a politician and thus don't speak for my home state of Michigan, I trust Michigan could easily employ the people necesasary to administrate such a program. I am confident that other states governments could do the same.

Thank you for your anticipated cooperation,

Edward Pedersen,
Troy, Michigan


Kim Skues   September 29th, 2008 10:22 pm ET

I know this may sound naive, but I would really appreciate you exploring the real option with expert economists of bailing out the American taxpayers directly. If Congress distributed the billions of dollars proposed for Wall Street directly to us ordinary people we would rebuild this economy from the ground up. We would pay off mortgages, credit cards, student loans, car loans thereby replenishing the real capital of these lenders to be able to lend again. We would buy furniture, homes, tvs, clothing, be able to buy health insurance for ourselves AND the medicine we need. We would inject the money into small and large business alike while meeting our daily needs. Let the bailout start from the bottom up letting these greedy giants go without instead of us. Actually, they would become one of us and receive the bailout money the same as everyone else. I truly believe it is a viable solution that must be seriously considered by experts.


kent   September 29th, 2008 10:23 pm ET

I think it was one of the most outrageous and irresponsible of leadership. Great move by the Republican party! Looking to do good for the country! wow, a speech by Nancy P????Do they have any common sense? they are so politically blinded. Thanks McCain the (Maverick) and the Republican party for making history in your eight year in power. History to me, I will tell my grand kids about this day. the end of an era of scutiny in the republican party in their eight year in power.


Robert, NC   September 29th, 2008 10:24 pm ET

I’m guessing now I’m in the “Lower Class”. I don’t have stocks, 401K’s, credit cards, or anything else of the nature that could tie me anywhere to this mess that Wall Street/Mortgage Brokers have gotten theirselves into due to nothing less than stupidity. Yet, Orman is trying to say, in my opinion, that the consumers are responsible for this mess. How? By taking the carrot that these credit cards companies dangle in front of you (although this is and has been a proven weakness of the average consumer)? By jumping on the subprime rate they’ve been offering the last few years on mortgages? No sir/ma’am, not me, not in this lifetime anyway. With all this said, don’t expect me to agree to bail out anybody that has pulled the stunts these people have. Put the blame and responsibility where it needs to be: Wall Street and the Mortgage institutions that have let their greed get them in the trouble they’re in.


stephanie g.c.pickett   September 29th, 2008 10:28 pm ET

larry!!! we ,meaning most of us dont truely understand the depth of this bailout. ALL we hear is 700 billion dollars . These fat cats has got fatter at the cost of the american people.and too sorry to admit it.The
Rep. party wants a blank check and we the people would like them to fall on their ASSES and eat crow. First of all they needs to refinance these homes and put the american prople back in them at a rate they can afford. The house went on a 2 day break. Shows us this Rep. party will take a cane from a blind man when they know he aint got no eyes! WE are going to vote their rep.asses OUT of the WHITE HOUSE!!!!!!!
Sincerely a sad state of government affairs


Mike R.O. McCool   September 29th, 2008 10:29 pm ET

Dear Mr. King
I live in Canada,but my pension is in the states, so it will be affected.
Its seems that all our money that we spend on things in both countries is being used in stocks and bonds,in the hope that it will make money for these companies that we trust. Then they gain and grow, but we don't. They have used our money to make themselves more but we see a minimal if nothing return. Let it fall, because the rich should get down with the poor and maybe just maybe someone will learn a lesson. Heck if my money they used went down in stocks I would lose anyway. Both countries need to rethink about this free market way, anyway. Rome is falling,and let it.
When someone buys a car, maybe the company will use that money to keep jobs instead of using the money to make themselves money.
I'm watching TV now and I see people at an auction buying cars for two and three hundred thousand dollars, and that is discusting in the average persons eyes. The bail out probably will go through and that is sad. The person at the bottom will pay the most as usual. Take my pension, I would have probably never seen it anyway because of thier spending practices. Burn baby burn.
Please read on TV, as most people will agree.


John   September 29th, 2008 10:29 pm ET

Larry i would like to know why John Mccain keeps putting himself in the center of trouble.. He keeps acting like he's fixing things, but in all reaility he keeps messing thing up.


SHAWN   September 29th, 2008 10:30 pm ET

Threats to the kingdom have had a historical response of “pressing” the peasants into defensive service. After all it is for their own good. They need to protect their families and the wonderful life they have been afforded by the lord of the manor. It is their duty, responsibility.

“TO THE WALLS!” in this case Wall Street has sounded the battle cry and the Middle class to pony up middle class blood—Money. The threats to the kingdoms of old were primarily to the lords, the royalty of old, those holding property. Power changed hands but the general plight of the average citizen changed little. Taxes still had to be paid.

Yes everyone, the politicians and Wall Street tycoons are pressing this because they are worried your credit card limit may be reduced. I am sure it has nothing to do with their own massive investments in Wall Street or the dividends received from lobbyists in tribute.


Catherine   September 29th, 2008 10:31 pm ET

Any Republican who changed his/her vote on the (admittedly imperfect) rescue plan from aye to nay because of Speaker Pelosi's final word on the crisis acted irresponsibly and selfishly. This is not about her, or me, or any representative's feelings or reelection prospects.
Put your political egos aside, boys and girls, and do something other than whining. Grow up and deal with the facts–if you know them. That's another sad and tragic American story of our day–ignorance. Enough stupidity and grandstanding, please. Our rapidly declining economy affects the global economy. When Lehman Bros. went down it took with it pension plans from other countries and more. Think about the implications.
I'm hearing "the voters don't want it"... What about those of us who couldn't get through because voice mail is full or no one answers. The "Eric Cantors" of the H of R are not looking beyond their own self-interest and ideology. They appear incapable of understanding, referencing, and acting with collective will on behalf of the common good.
God help us as our once great nation continues to lose respect from without and within. As our (economic, political, social and moral) decline continues, so does our hope for the future.


Sandra Miles   September 29th, 2008 10:31 pm ET

I agree with the decision made today. As a small business owner I feel that the people should not have to pay for Corporate America's mistakes. The IRS went back five years and made me pay for extra income that I was suppose to owe that was reported to them that I had not turned in. If the Ceo's were made to reimburse the government if they made over 200 thousand dollars salary wise or in bonouses they should be required to repay all the excessive salaries back ASAP!!! The poor and struggling middle class have to pay why shouldn"t the slick CEO's be held accountable for having their hands in the cookie jars of Corporate America?


Dario   September 29th, 2008 10:32 pm ET

A bailout is like putting some extra money in CEO's wallet.

It was said on the air today, that the 700 billions they are asking for, was just a number they came up with, a large number that would cover the deficit and have some money left....Probably 600 billions to share among them, to add to the billions they already have and are not willing to share and boost the economy, they just want more..

Say no to bailout, the economy will bounce back. They are trying to scare you, when you say yes, they run to the bank., we will be exactly where we are now, broke and live goes on. Scare tactics on you!


Aloke   September 29th, 2008 10:33 pm ET

Larry,

Why should the Congress pass this bill? Won't it be like throwing good money after the bad one? And why would "not providing this money" freeze the credit market or economy?

There were no talks on any credit freeze till Paulson announced this $700bn deal ... and now everyone's talking like the sky is falling!!!

What changed in the last fortnight or so?


michael j turcotte   September 29th, 2008 10:34 pm ET

THIS IS SOME SOLUTIONS THAT ARE CIRCULATING ON THE WEB.
.I WANTED TO APPLY THE MATH ON THE FOLLOWING....... IN COMPARISON TO $700,000,000,000.00 PROPOSED BAIL OUT VS THIS CITIZENS PROPOSED "STIMULUS PACKAGE"
I REALLY WANTED YOU TO ASK THE ECONOMIC BRAINS THIS ? BUT I GUESS IT JUST MAKES GOOD SENSE..SO THE WEALTHY DON'T WANT IT !!!! ????LARRY OR WHOM EVER IS RUNNING THIS SHOW???WHAT IS YOUR TAKE??
I'm against the $85,000,000,000.00 bailout of AIG.

Instead, I'm in favor of giving $85,000,000,000 to America in a 'We Deserve It Dividend'.

To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up..

So divide 200 million adults 18+ into $85 billon that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a 'We Deserve It Dividend'.

Of course, it would NOT be tax free.

So let's assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes.

That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their po cket.

A husband and wife have $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family?

Pay off your mortgage – housing crisis solved.
Repay college loans – what a great boost to new grads
Put away money for college – it'll be there
Save in a bank – create money to loan to entrepreneurs.
Buy a new car – create jobs
Invest in the market – capital drives growth
Pay for your parent's medical insurance – health care improves
Enable Deadbeat Dads to come clean – or else

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back, and of course, for those serving in our Armed Forces.

If we're goin g to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ( "vote buy" ) economic incentive that is being proposed by one of our candidates for President.

If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!

As for AIG – liquidate it.
Sell off its parts.

Let American General go back to being American General. Sell off the real estate.
Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't.

Sure it's a crazy idea that can "never work."

But can you imagine the Coast-To-Coast Block Party!

How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion 'We Deserve It Dividend' more than I do the geniuses at AIG or in Washington DC.

And remember, The Family plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam. Talk about a stimulus package!

IN HIS SERVICE
Pastor Michael J. Turcotte


Yan   September 29th, 2008 10:35 pm ET

What I don't understand about this whole bailout plan is this goverment doesn't seem to really care about ordinary people.

IMHO, the real bail out should be the government spending this 700B money to offer low-interest-rate home load to QUALIFIED people through govenement-controlled financial institutions. That is the only way that will liquidify the bad mortgage assets and solve this huge sub-prime loan crisis.

Now, the government only wants to save those banks, who sharked around the market and really screwed up. And do you believe the government buying off those bad asset will really solve this sub-prime crisis? We taxpayers will still end up paying additional money to bail out those fore-closures.

And don't tell us that it's the end of the world if those banks collapse. Why can't the government take the role of those banks and take over their positions in the credit market?

Bottom line is, the government never explained why after the government buy off the bad mortgages, the sub-prime crisis will go away by itself!!!


Carl McFadden   September 29th, 2008 10:37 pm ET

I am a cocerned reciently retired Canadian . If the USA goes down we go with you however I think both our countries have been living on credit and this is left us vonerable. I cant see how making credit easy to get by ijecting 700 bilion into the system is helping. this is what got us there in the first place If large banks and coroperations need money to sustain them maby it is because they are to big and got that way because credit was to easy. If the gov. was to bye up 50% of there assets good and bad at fair market value and rather than have them fail lend them enough to keep them solvent. that would allow the gov. to sell the other half to solvent investers and retreve a lot of there investment and the remaining bank would be in a position to lend money and pay back there lone.


Yan   September 29th, 2008 10:37 pm ET

I have a better plan: let the banks fail and let the government take over their roles in the credit market. You can call this social-capitalism or capital-socialism. But at least it's not feeding our hard-earned tax-payer money to those fat cats on the wallstreet!


Leslie   September 29th, 2008 10:39 pm ET

I agree with all the financial experts that "something" needs to be done, but why is it none of the house reps or senators can or will address these issues?
1) Will the Wall Street CEOs and CFOswho decided that predatory lending to American consumers was not only OK but was welcomed with greedy glee, be allowed to keep their golden parachutes, their jobs, their rich lifestyles, and their personal credit and assets? Will they become accountable to the government once the funds are delivered to their firms?

2) Why should we, the American voters,believe that the bailout will be governed wisely? I personally think once the funds go out, the top figures will receive the most benefit and those at the bottom, the working people will receive no consideration. The behind the scenes wheeling dealing and under the table agreements will continue to be the forces that are in play and will do whatever they want.

Why can't there be a coalition of financial experts, healthy public and private companies, and government get together and share the burden? Offer a sale of government bonds specifically targeted to use for this purpose? Perhaps we can choose a respected and solid foreign banking entity to be used as an objective oversight "board". Shocking? We need to be able to trust somebody. Who can fill that role?

There has not been any transparency within these Wall Street financial institutions, no accountability, no reason why we the people should believe what our officials tell us? This response from the American people is really evidence that we just have been burned so often and hoodwinked so much, that now when government states it needs the taxpayer dollars to save our economy, we growl back and refuse to believe them.

It could be that the Republicans intentionally torpedoed the bill just so the market would drop like a falling rock, and the behind the scenes bigwigs can attend the American garage sale that will be left . I feel deeply manipulated, and I doubt that the bailout will fix our economy as completely as it is presented. I don't trust our government.


Nate Uchida   September 29th, 2008 10:41 pm ET

America needs to wake up. Get past the politics and get informed of how this crisis is going to affect them.

The middle class will be affected the most by loss of jobs from small businesses not able to make their payrolls. Elder people who thought they had enough money to retire will need to go back to work. Who is going to hire a 65 year old person? With this crisis freezing credit, large companies will not be able to access their huge lines of credit for operations. Which will lead to more unemployment. The one thing I am curious about is how will this affect unemployment checks. If unemployment gets too high I don’t we believe we have a financial money chest to support this or do we.
The government needs to put people first before politics.


John S   September 29th, 2008 10:42 pm ET

Bailout cause increase in money supply and will cause inflation which is a tax to people. Since 700 billion causes huge inflation, expecting a meal to cost an average of 10 dollars per meal. Poor people will not be able to earn enough to buy a decent meal. Everyone will have decrease salary.


Chuck   September 29th, 2008 10:43 pm ET

Okay CNN people, why is it that when people actually tell the truth and they can support that truth with factual data, their comments are "awaiting moderation" for over 30 minutes? Is it because I actually wrote the word bulls*$t? I honestly believe that people can handle the truth, or are you trying to protect your guests? Things that make you go "Hmmmm?"


SHAWN, fort mohave, arizona   September 29th, 2008 10:46 pm ET

Political pacifirers on sale now. Will you choose the hope and change binki or the smaller government binki. they are both just placebos for real substance. neither party is really offering any nutricious value to our society. The milk was gone long ago the last few drops have been spillt on the sand.

Don't give up hope just yet. I hear wall mart is having a 1/2 price sale on the "smaller government" binkis due to lax sales. Get'em while they're hot!


John S   September 29th, 2008 10:48 pm ET

How does poor people deal with inflation?

When a meal cost 20 dollars, who can afford it?


Jo   September 29th, 2008 10:59 pm ET

If I understand the bailout proposal it will help banks get rid of their bad paper (loans) so they can move forward and get more paper (loan money). These new loans will supposedly allow companies to buy new equipment and pay their operating expenses and payroll. These new loans are also suppose to help American buy cars, pay their rent or mortgage, buy gas and groceries. All this borrowing and buying is somehow suppose to make Wall Street investors feel better and have more confidence in the markets which will stabilize the stock market. This in turn will make the rich investor richer, large companies will make a lot of money and 401Ks will earn some money. I have several thought about this
1. If everyone lived within their mean and only spent money they have then Americans would not need to borrow money to survive. Anyone who carries a monthly balance on their credit card should cut it up and never use credit again. Get a second job or a room mate or do what ever you have to to live with in your means.
2. Any company that uses credit to pay their opperating expenses or payroll should either not be in business or downsizes so that they can afford to stay in business and survive within their means.
3. Banks and credit card companies that made risky deals should find their own solutions and if they can't then they should go bankrupt. The companies and their executives are the ones who caused this problem by taking high risks, sometimes risks don't work out and you can lose everything.
4. Americans who purchased home that cost more then they could afford or thought they could buy at a good rate and sell fast should have to suffer what ever consequence that happens. Everyone is responsible for their own actions.
5. The markets need to relax and stabilize; the sky is not falling. As long as Wall Street investors and other key players make good choices then the markets and the economy will survive.


Michelle   September 29th, 2008 11:06 pm ET

Why did the bailout fail? In a word – accountability, or the lack thereof. That's what the average American taxpayer wants to see in a $700 billion bailout package. Prospectively taking aim against Wall Street excesses is fine, but where's the accountability for what's already happened? We can't simply allow individuals to knowingly peddle bad debt disguised as legitimate securities, deceive their shareholders, sacrifice their employees, compromise the financial security of a nation and then jet off to the South of France with an IOU to U.S. taxpayers, all with no consequences whatsoever. Everyone appreciates the urgency to do something about the current crisis, but we shouldn't, in the wake of the panic gripping the nation, lose sight of how we got here in the first place.


Rizwan   September 29th, 2008 11:11 pm ET

Joe Biden should let SaraH Palin talk more.


J   September 29th, 2008 11:15 pm ET

In all honesty congress did the right thing by rejecting the bailout plan. People tend to forget that the stock market is a giant gambling machine "high risk". If I went to Las Vegas and put $20 dollars into a machine and lost it all, there is no one to blame but me. No one will come to my rescue and put the $20 dollars back into my pocket when I lost it fair and square. Why should the government bailout the companies? If your worried about your 401k, try putting your money into something more conservative. Companies exceeded their expectations, got greedy, expanded their network and now no one wants to buy their product. Bush is near the end of his term, this was his way of saying thank you to all the companies who supported his campaign. Putting 700 billion dollars into the economy would only hurt the face value of the dollar. The dollar is already at its all time low. Do we need to hurt it more? If we want to fix the economy again, we the consumers need to start buying American made products.


JOHN PAUL JONES   September 29th, 2008 11:54 pm ET

Has any of these lenders considered just restructuring these loan terms for these subprime and all mortgages? What about a 40 year loan? Seems like this should be sensible rather than having total losses.


Dena   September 30th, 2008 12:10 am ET

If I have money in the stock market, should I sell now? I don't have 10 years to wait it out.They should have bailed the market out.


christopher Freed   September 30th, 2008 12:11 am ET

Larry,
Since it is so difficult to get agreement when it is an emergency concerning a crisis of the economy, how will they get agreement to limit the bad practices regarding CDOs and all the bad banking practices if they give away the farm now. Really want to know!!


Kevin Rodriguez   September 30th, 2008 12:11 am ET

I am a law student in California. I do not own a home or any major stocks. Relative to my interest currently, the more the economy tanks the less a home will cost or services will cost in the future. Gas already went down today. In my opinion if we do not bail out wall street that will be good for young Americans who will have to pay off that bill (no pun intended:) if passed. God Bless America for not passing that legislation.

Best.


Aaron Cookerly   September 30th, 2008 12:11 am ET

Could you please show the video of Rep. Ron Pauls speech on the house floor?


Toni Delia   September 30th, 2008 12:11 am ET

Money CD question.

Wachovia bank was purchased by Citi.
My CD is at Wachovia and about to mature. Will I lose all of the past years interest that I have earned on that cd?
The cd is under 100,000
Thanks


abdelkarim abdelkarim   September 30th, 2008 12:12 am ET

where is all the money that wall street corporates made in the past 10 years?!! why should we pay them to get out of the hole, while us the people strugling with the interest rate we pay them everyday from house mortgages to credit cards, we are in the hole , i dont see the goverment giving me a million dollar, all i got is $600 and they went straight back to them by paying my sky rocketing realestate tax!


Ashok   September 30th, 2008 12:12 am ET

whether we gain back the trillion $ what we lost by passing the bill on Thursday....

If market still loose instead recovering then our loss will be near 2 trillion


James Dartnell   September 30th, 2008 12:12 am ET

Who is Suze Orman Kidding? She just sumed-up one of the major problems with this economic mess. People living on credit cards and not paying off the balances like they were originally meant to be!


dave evans   September 30th, 2008 12:12 am ET

The house members voting this trash down are patriots. They should be recognized as such. The fear tactic, and near extortion perpetrated on Congress and the public is vintage Bush. Let Wall Street have some savage capitalism from the rest of us.


elaine   September 30th, 2008 12:12 am ET

we are a young couple and in one years time planed on buying a home with approx 20k down, our credit score is going up. But with this credit crisis how will this affect us. Will we still qualify for a home . we make aprrox 50k together.


Noelle   September 30th, 2008 12:13 am ET

Just heard Suze Orman on LK say that we probably lost a trillion dollars today in the stock market drop and we couldn't pass a 700 billion dollar bill to start to fix the problem? All because some House Republicans got their feelings hurt by Nancy Pelosi's speech? How petty can you get. Too many selfish legislators worried too much about getting re-elected to do what's right for the country. It's all so surreal . I feel like I could cry.


Erick   September 30th, 2008 12:13 am ET

First of all I'm sorry to say I disagree with you guys this time I think you (CNN) all have it wrong. We (the people) know depression is a possibility and that our investments are going to go away as well as our jobs. The reality of supply of demand is here. The credit card limits to both us and the world economy should be lowered. The cost of living will never go down as long as we borrow money we don't have and this is the heart of the problem that no one wants to accept. The party is over and the world needs to start to cleanup the mess.


Jenny Pappas   September 30th, 2008 12:14 am ET

Suzy Orman is correct. The republican did us a huge disservice today.


Monica   September 30th, 2008 12:14 am ET

I do not understand why President Bush and his Administration allowed those extra income tax checks to go out if the economy was going broke, we should have seen this coming months ago.

Are we in this terrible Economy situation because of the war?

I do not trust the bailout and I am glad that it did not past.


Jane Wood   September 30th, 2008 12:14 am ET

Secretary Paulson CONFLICT OF INTEREST< GIVING HIM TO MUCH POWER AND NO ONE OVERSEEING HIM!!

PUTTING OUR MONEY IN UNTRUSTED HANDS WITH CONFLICT OF INTEREST AIG.

GET HIM OUT<<<<DO NOT PUT BILLIONS OF DOLLARS BACK INTO HIS HANDS WITH NO SUPERVISION.

Janie Wood


Will Ross   September 30th, 2008 12:14 am ET

Larry,

Where does the 700 billion come from when we just borrowed 1 trillion from china?


Jeff   September 30th, 2008 12:14 am ET

I know that something needs to be done. If they would get it right and regulate the pay of top execs and make them pay it back. What really makes me angry is that if you are in default and about to be foreclosed, the govt will work with you and may decrease the mortgage. What about people like me who have never been late once ever? Decrease my mortgage and/or decrease my rate! I'm tempted to quit paying my mortgage because they will work with me. We are helping the irresponsible! How about if you've paid on time forever, the amount gets decreased or the interest rate decreases by the govt to 3%. Thanks Larry,
Jeff


Inna   September 30th, 2008 12:14 am ET

I am trying to understand the consequences of today's vote, but I still feel glad that it did not pass. After all is said and done, aren't we heading toward what Suzy is always preaching? Don't buy it if you can't afford it and live withing your means. Where is the catastrophe if people can't borrow what they can't afford?


Marla, Rancho Cucamonga, CA   September 30th, 2008 12:14 am ET

As a struggling college student, I am afraid of what is going on. This has made it more difficult for me to take out educational loans to finish my degree. It is not fair that the Republicans punished EVERYONE just because they did not like what Pelosi said... This is not a popularity contest. This is the same party that McCain represents. What's his campaign motto? "Country First"... right? Well, in this case, this mavericks' own party did NOT put country first.. they put their own personal hurt feelings first.


mario krajewski   September 30th, 2008 12:14 am ET

Our politicians need to think more logically... Yes?

I'm against the $85,000,000,000 bailout of AIG.

Instead, I'm in favor of giving $85,000,000, 000 to America in

a We Deserve It Dividend.

To make the math simple, let's assume there are 200,000,000

bonafide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman

and child. So 200,000,000 might be a fair stab at adults 18 and up..

So divide 200 million adults 18+ into $85 billon that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a

We Deserve It Dividend.

Of course, it woul d NOT be tax-free.

So let's assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes.

That sends $25,500,000, 000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket.

A husband and wife has $595,000 .00.

What would you do with $297,500.00 to $595,000.00 in your family?

Pay off your mortgage – housing crisis solved.

Repay college loans – what a great boost to new grads

Put away money for college – it'll be there

Save in a bank – create money to loan to entrepreneurs.

Buy a new car – create jobs

Invest in the market – capital drives growth

Pay for your parent's medical insurance – health care improves

Enable Deadbeat Dads to come clean – or else

Remember this is for every adult U S Citizen 18+ including the folks

who lost their jobs at Lehman Brothers and every other company

that is cutting back. And of cou rse, for those serving in our Armed Forces.

If we're going to re-distribute wealth let's really do it...instead of trickling out

a puny $1000.00 ( "vote buy" ) economic incentive that is being proposed by one of our candidates for President.

If we're going to do an $85 billion bailout, le t's bail out every adult U S Citizen 18+!

As for AIG – liquidate it.

Sell off its parts.

Let American General go back to being American General.

Sell off the real estate.

Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't.

Sure it's a crazy idea that can "never work."

But can you imagine the Coast-To-Coast Block Party!

How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion

We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC.

And remember, The Family plan only really costs $59.5 Billion because
$25.5 Billion is returned instantly in taxes to Uncle Sam


Philip Gardner   September 30th, 2008 12:15 am ET

Suzie; Are exchange bonds more secure and how much?


David   September 30th, 2008 12:15 am ET

Hey Larry, Suze just said that banks don't care if you are in foreclosure and will foreclose on you whereas the federal government will be more willing to work with you. But to a certain extent, that's part of the problem – with the whole system of purchasing loans and banks no longer carrying the risk of having loans, there is no sense of responsibility on the part of banks. Our government recently passed a bankruptcy bill which was designed to prohibit people from being irresponsible with credit and then declaring bankruptcy to escape the consequences. Now all of a sudden that this principle applies to Wall Street, it's a totally different analysis. Even if it means I can't get future credit and others may not be able to get credit, maybe that's the medicine America needs to get back to the norm. Let the market forces work.


Amber   September 30th, 2008 12:15 am ET

While I don't believe there is an easy solution to our current crisis, I do think its a good thing that the initial bailout plan has been rejected. It is bringing much needed attention to the fact that Americans have been living in an extremely unsustainable way for far too long. We cannot expect to be able to purchase everything on credit. Maybe we should be forced to live within our means so we can relearn financial responsibilty. I understand not having enough to get buy and turning to credit but the majority of Americans are being driven by greed and a free market economy that says we are only successful if we consume, consume, consume. Why is it that we can only be deemed successful if our GNP is growing year after year? It is about time it all started to catch up with us!


robert   September 30th, 2008 12:16 am ET

why not give the taxpayers of america the 700 billion and let us inject the money back into the economy as we see fit. pay offf loans, morgatges ect.


FRED BLYDEN   September 30th, 2008 12:16 am ET

it will only take 200 million instead of 700 billion,give every taxpayer a million dollars to pay off all their loans, mortgages and invest,.

And forget those greedy investors making millions off the people.

Remember 90% of americans retire broke... with a million it will help all people especially the poor and middle class who is really struggling to make ends meet. as well as small business.

Remember we spend 10 billion a month for IRAQ.


Charles   September 30th, 2008 12:16 am ET

Why isn't anyone talking about: the loss of middle class jobs to overseas countries, the substantial foreign trade imbalance further eroding domestic middle class jobs, and the lack of control of lobbyists via fraudulant politicans and market manipulators as the cause of our financial market collapse? Doesn't anyone think the middle class would have paid for their balloon mortgages if they could have had the economy beneath them to make it possible?


Carol Bailey   September 30th, 2008 12:17 am ET

Suze -

With the bailout bill not passing today, does this mean we are headed into a depression – -especially if it doesn't pass this week? How safe are checking accounts in Credit Unions?

I'm a 32 year veteran of the US Army - and still currently serving. I have fought for this country and am proud of it. I'm very sad at what is happening to the country now and hope we can get out of this mess.

May God bless the United States of America.

LTC Carol Bailey


Rick Kangas   September 30th, 2008 12:17 am ET

Why wouldn't just simply giving money to banks so credit flows?


Libbye   September 30th, 2008 12:17 am ET

Can't reporters actually investigate anymore? Bush isn't a credible messenger, and frankly neither are Congressional leaders. Please, journalists, explain SPECIFICS to the American people! Otherwise, people just have a gut negative reaction to the bailout without logical, factual information to base their opinions on.


Mea   September 30th, 2008 12:17 am ET

I am a college student with a student loan (Sallie Mae). Will this affect my ability to borrow next semester or next year?


serse   September 30th, 2008 12:17 am ET

why washigton stop working for jewish hollyday but not for other religions
like muslims even if the number of jewish and muslims living in u.s is almust the same ..


John   September 30th, 2008 12:17 am ET

It appears that today's market reaction was the direct result of the financial powers manipulating the market to strong arm the American people into "putting all the money in the bag and keeping their heads down".


Brendan   September 30th, 2008 12:17 am ET

I am a canadian how would that effect canada and our markets here and around the world


George Barton   September 30th, 2008 12:17 am ET

It's amazing how little the members of Congress understands about the economy. I would give anything to go back to the days when our leaders worked together for the good of our country. The leaders today care more about their party and getting reelected than they do about our future. A lot of good people will lose their retirement in the next couple of days while the leaders of our country play politics...


Bryan in Chicago   September 30th, 2008 12:17 am ET

Shouldn’t insolvent and poorly managed businesses be allowed to fail? The government has never cared about individual Americans who can’t pay their bills or become unemployed by jobs going overseas as long as corporations made money so I don’t really believe they are looking out for us now.

If these corporations disappeared wouldn’t that be better for the economy and wouldn’t they be replaced by companies that are successful and the credit crunch resolve itself?


Mike   September 30th, 2008 12:17 am ET

Hi Larry,
Why should the government wait until Thursday to meet again for a decision just because of Jewish holiday when people's future are at risk? Are we leaving in Israel?


Jennifer   September 30th, 2008 12:18 am ET

Suzie makes an excellent point in that, as Hendrick Hertzberg of the New Yorker called them, "The Heartland" (as opposed as the "Brainland") does not understand Macro Economics. Why is it that people think this is a bailout for Wall Street CEOs and not a move to save the economy for everyone? These are the same small minded people who regard Sarah Palin as a "smart woman." What in fact has she said in the past three weeks that can be accessed as "smart"? She took six years to complete a B.A. with five college transfers, to achieve a degree in Communications. It's completely irritating that people complain that she is being "over-handled." What topic exactly do people actually think this woman would be capable of addressing without her handlers? I wonder how much of her academics were focused on Economics? If people are afraid that "Wall Street" is getting bailed out rather than being afraid that the entire economy is faltering, perhaps they could hit the books and become educated voters!


Valerie   September 30th, 2008 12:18 am ET

BAILOUT UNFAIR ! I think the dems and some repubs are pushing the panic button. Let Wall Street sit on this for a while and let the Market settle where it may. It's overinflated now anyway. They (liberals forcing banks to loan money to minorities – NINJA – caused this, yet Pelosi blames Bush?) They have been warned for years but insisted things were fine! Now it's payback time. Oil has already dropped $10.00 a barrel – DON'T BAIL OUT WALL STREET and oil will drop back to reasonable prices and the Market will stabilize. Personally, I do NOT want to pay for someone else's mortgage, regardless of the reprucussions – which I don't believe are as catastrophic as your guest, Suzy, and others want us to believe. Houses in my area are mini mansions with costs upwards of $900,000. No one told these people to buy over their heads. No one forced them to sign loan papers. Let them foreclose and be more careful next time. No one is here to bail out the average homeowner who's been struggling for years without help. Why help these people now? ANGRY NEW YORKER


Steve   September 30th, 2008 12:18 am ET

What Congress did today was pathetic! All those responsible for this bill not being passed should be impeached!!!!!!!


Mike   September 30th, 2008 12:18 am ET

No bailout! We need to live within our means outside of our credit world. American people need to understand that excess is not the norm, on neither Wall Street nor Main Street. In the long run, a belt tightening will benefit us. We need to return to a post WWII America that saves, not spends.


Lynn   September 30th, 2008 12:18 am ET

Re: Suze Orman's comments about Main Street's credit cards.

I've lived quite happily without credit cards. My philosophy has been....if I don't have the money for it, then I can't afford it and if I really WANT it, then I need to save for it. Simple. It's very difficult for me to have any sympathy for Wall Street or Main Street affected by this country's credit problems when both wanted the instant gratification credit provided. That was a choice. THIS, is the consequence of that choice. Pull your pants up and deal with it.


Di   September 30th, 2008 12:18 am ET

Like everyone else in the country, I'm sick of bailing out crooks! I know, however, that something needs to be done ... and that a lot of the indecision in Washington revolves around keeping 'everyone' happy ... especially in an election year!

There is an email going around that suggests the bailout billions should go to citizens instead of Wall Street fat cats! I like the idea, of course, but hear from the 'experts' that it would not 'fix' the problem “fast enough” !!!

Here's my thought ... why not give part of that money to Wall Street ... and an equal part to Main Street ??? That way the economy could be boosted from BOTH directions ... people wouldn't feel like their being held responsible for something they didn't do ... the Washington crowd would at least show they care about those citizens back home .. and hopefully, working together, we could pull out of this mess !!!

Just a thought !!!


Xavier   September 30th, 2008 12:18 am ET

Very informative! Thanks!
Suze,
I am married with not kids and am 45 years old and I was just displaced by Wachovia (end date is 11/24/08) and I have a 6-month severence after that date.
I have a 401K that lossed 5,000 in one day. My total fund balance is 46k. I have little credit card debt, one mortgage of 43K.

What should I do with my 401K right now since I am no longer with Wachovia?

XG


Nancy Dimino   September 30th, 2008 12:18 am ET

It is disheartening to see the brightest minds in our country playing politics while Rome is burning. They are more interested in their own party rather than the people they are suppose to represent. Do I hear a fiddle? Please make a decision before there is nothing left to save.


Lena   September 30th, 2008 12:19 am ET

it’s the republicans not showing any leadership. mccain declared victory today, before the vote went down in flames. and some guy who didnt like pelosi’s speech took precedent. that’s there reason? pelosi called a spade a spade, and we LOSE 1 trillion dollars in one day? republicans are pathetic!


Chris Wigley   September 30th, 2008 12:19 am ET

Larry,

This is Darwinomics. This is the dinosaurs catastrophic event. This has to happen if we are going to evolve economically and societally. Do your guest really favor a bailout accompanied by complete disregard for the egregiously unethical behavior of the upper management of these banking and mortgage lending companies?


Joanne   September 30th, 2008 12:19 am ET

I don't know exactly how or if this could help, but its an idea. The taxpayers are paying for the bailout, so give the money to the banks, but have a certain amount of the money given to each mortgage holder by reducing the principle owed and reducing the interest rate to where the homeowner can afford to make the payments. The banks get money immediately, the homeowners, by the reduction in principle and interest get equity on the property and a rate that makes it possible to hold onto the house. This, in turn will free up money for the families to spend for other things that will help the economy. All mortgage holders should be included, as all taxpapers will be paying for this bailout.


Johnny   September 30th, 2008 12:20 am ET

We need those CEOs of the companies involved to pay back all the money they took. After all the money is accounted for then we deal with the rest of the stuff. This will keep us with more confidence in investing in the market. All those bank CEOs also made a lot of money.
Enough is enough!

Johnny


Kevin Lobo   September 30th, 2008 12:20 am ET

Hello Larry,
I am a Canadian and conservative by belief. I have seen all the Sarah Palin bashing and am shocked how trivial it can go. Its unbelievable how the negativity is so high against a woman.
Between the right and the left I have remained a loyal CNN fan but was shocked how today even Anderson Cooper played theSNL spoof, the Katie interview, etc over and over again.
How come you guys did not even once play the relevant segments of Nancy Pelosi's speech which ultimately was the deal breaker.
Unbelievable how you can lose your neutrality? Hope you will answer my question.
Kevin Lobo
Canada


Melissa Nelson   September 30th, 2008 12:20 am ET

Just in losses today we have paid (out of a different pocket) for the 700 Billion, and then some. I wonder how much more we'll pay tomorrow and Thursday before the house realizes that they've cost us more than the bill is requesting.


Bill   September 30th, 2008 12:20 am ET

I am convinced there is a nexus to terrorism here. Don't forget, Bush went after their money years ago. That gives them a motive to act the same way.


S. Joseph   September 30th, 2008 12:20 am ET

The citizens of the US elected these representatives and senators to be our voice. But in the midst of turmoil the only voices that are being heard are those of these finger pointing politicians. How can the people trust that this revised bill will be in our best interests if those working on the bill can't remain civil or off vacation for that matter?


George   September 30th, 2008 12:20 am ET

The stock market over reaction today is not a signal of the end of the American economy. It is the beginning of a very necessary readjustment. The market fluctuates wildly when no one can figure out what the government is going to do next. The market can rebound just as fast tomorrow or next week.
The real problem is that the lending practice of many mortgage banks has been totally irresponsible for years. Housing prices have been overly inflated by this irresponsible lending. Thirty five years ago, the price of a modest 3 bedroom house was about 3 to 4 times the starting salary of a college graduate. Today (or hopefully yesterday) the price of the same 3 bedroom house is (was) 7 to 8 times the starting salary of a college graduate’s starting salary. The markets need a big readjustment; not a Bail Out.
Let the irresponsible banks and their CEOs go bankrupt. They have ruined the American dream. The will be plenty of money to support the credit markets once these irresponsible banks are gone. The sky is not falling. The sun will rise tomorrow. George W. Bush will be gone January 20th and the recovery can begin.
The Bail Out will support and perpetuate the problem not eliminate it. It could take 10 or 20 years to correct the markets. I don’t want my grand children dealing with this mess. People who live within their means, pay their bills, pay their taxes, don’t use credit card debt (surprise Suze, there are many of us who don’t pay credit card interest), buy cars instead of leasing cars and drive their cars for ten years to save money have had it. I thought I was in the minority; now I am realizing I am not alone. We vote and we are ready to vote congress out of office if need be. What should congress do next? I say they should adjourn.


Jo   September 30th, 2008 12:20 am ET

I have a question about what happens to the retirement funds set aside for retired employees? Will they be still able to collect on these funds? Also, what happens to their ESOP or Wachovia stock account will today's balances still apply to collecting their savings plan dividends?


Gary Pfalzbot   September 30th, 2008 12:20 am ET

Larry, there's really only one way that I can see getting out of this mess that will keep a large majority of angry Americans from feeling they are being dumped upon and neglected – zero balance the economy. While I can sincerely appreciate what each of your guests have to say, I think you need to have a few ordinary Americans on your show to share their viewpoints and show what it might really be like from their perspective. Many of us are at the point where we don't care about these credit issues because our credit application is going to be rejected whether or not a bailout bill is passed.

During the recession in the 30's, Roosevelt was at the point of declaring a zero balance. Sure, a zero balance might be a tough issue to sell, but I'd like to know why this option isn't being considered or talked about and what are felt to be the pros and cons of such a plan. If you could have this answered by average Americans as well as the rich folks who should rightfully be worried about this debacle – theyhave more money at risk than a low income, hardworking American such as myself.

Thank you.


Roger K.   September 30th, 2008 12:20 am ET

Ralf from N.J. that's an interesting point that I brought up just last week. I don't think the majority of people have thought about that one yet,


Lee Miller   September 30th, 2008 12:20 am ET

Please have Suzie explain why Fannie Mae and Freddie Mac have nothing to do with the credit crisis. It is related to Mortgage backed securities and forclosures. Not FNMA


al gibson   September 30th, 2008 12:21 am ET

Why can't the government take the money and allow people with A.R.M.'s to pay them off and have a low interest morgtage? At least the companies in crisis would cash flow, people would get to keep their homes and the monies would have a better chance to get repayed.


Jason   September 30th, 2008 12:21 am ET

Any solution to this issue must hold the leadership of fannie and freddie and the credit card industry as a whole to blame. The executives of these companies make windfall bonuses every month, most of which are several times more than the average american earns in a year. If we are to just loan these companies money that we dont have, we need to know that these executives are going to stick around despite a significant cut in salary and rehabilitate the companies that they ran into the ground. A law should be passed that if an executive takes one of these bonuses that if the company goes bankrupt anytime in the next 3 years that bonus must be returned to the company to keep it afloat.


Ryan from Hawaii   September 30th, 2008 12:21 am ET

Please, no more talk of big government stepping in and giving everyone money. Our government needs to keep their hands out of it. Our government does not exist to bail out greedy multi millionaires and you and I don't deserve money either. The great thing about free market is that it will always work itself out.


eric b.   September 30th, 2008 12:21 am ET

my credit is not that good...... will i ever be able to borrow money to buy a house now that all the banks are going belly up ?


nick siegessaule   September 30th, 2008 12:21 am ET

a very curious day. looks like Bush and congressional republicans set up an ambush for the democrats. maybe the 'mavericks' are willing to shoot their own horse just to prove how independent they are.

idiots!


John   September 30th, 2008 12:21 am ET

1 Trillion lost today......... I can't think that high.
Clearly a 700B promise for tomorrow is better then a trillion dollar loss today. I'm no math wiz, but this sure does not seem smart to me.


rohit   September 30th, 2008 12:21 am ET

I seriously believe the REPs are out of their senses, when they blame the failure of bail out to the speakers non partisan comment.
They definitely need to give us more serious reasons to push the market down a trillion dollars.
Also, I am unsure why media is blaming all the melt down to SUB PRIME crisis. I believe WAR is equally responsible. If we pump in billions to IRAQ every day, I am sure we can pump in 700 Billion to boost our economy.
Also, why dont we ask Iraq to start paying us back, given the fact they have surplus and dont know what to do with it. Wont that take care of replenishing some %age of the 700 billion bail out?

I am not sure why the people are not highlighting the following points:
a. How does the bail out plan restrict the incentives paid to the FAT CATS on Wall St
b. How did they come up with the figure 700 BILLION Dollars. Is this something that will bring us out of this mess or will simply procastinate the disaster. I feel details around these are very vague and making everyone nervous

In my view they need to come up with a plan of punishing the BIG FATS on Wall St who gambled our lives for their BIG FAT bonuses

Also, they need to come up with a plan so that they can regulate the prices on real estate so that we do not get into this again all over

What could be the next melt down that can push us into similar mess all over again? What do we do to avert that?


Caryl Eager   September 30th, 2008 12:21 am ET

Until now, I have doubted that one person's lone voice, or one person's lone vote, could have any affect on Washington. . .

but isn't that the same as saying one drop of water, can't make a splash?

The latest outrage, which earmarked ACORN to receive a sizable portion of the $700 Billion dollar rescue plan, was shouted down this weekend, by lone voices, like yours and mine, who emailed, phoned, and registered our opinions in Polls, demanding that ACORN be written out of the $700 Billion dollar "rescue plan".

Maybe the authors of this outrageous ACORN-provision in the $700 billion plan,* hoped it would fly through this weekend, while we Americans were busy attending ball games, shopping, taking care of our families, etc. But, they didn't count on the sacrifices we were willing to make!

Those of us, who could, gave up our weekend to shout down any stealthy provisions that might be written into their plan, and our "lone-voices" were heard in Washington!

While Congress burned the midnight oils...so did WE!! We stood toe-to-toe with them! By Monday morning, our "lone voices" were heard, and ACORN was written out of the plan! Hurray for us!

Now, we have to push on, and make sure that other earmarks to "special interest groups", are taken out of the bill. . . I think Gingrich's idea to "re-value" the assets is the best yet! Since, we Americans won't have to suffer anything at all from that move!!! It can also be implemented before the markets open in the morning, and it will automatically add liquidity to the market, which will help all our pocketbooks!!

So, heads-up America! You can and will be heard, just scream loud enough and long enough!

Caryl Eager
New Orleans, LA


Linda Brink   September 30th, 2008 12:21 am ET

Suze – Should I stop my contributions to my 401k and other retirement investments and start saving all of my cash? I have two children in college and mainly use loans for their education – will I be able to get loans next year?


Jeff   September 30th, 2008 12:21 am ET

If credit is hard to get, why don't interest rates go up? I'll lend companies money but not at 3%.


Bert Clark   September 30th, 2008 12:22 am ET

What should i do to save my money, should i move out of my 401 to a protected savings plan?????


Divid Johnson   September 30th, 2008 12:22 am ET

George Bush need to resign immediately because he has been defeated to rule. That is the best thing he can do for himself and for the citizens.


Richard   September 30th, 2008 12:22 am ET

They have abused credit on main street and wall street cannot handle it. May be if we learn how to manage credit properly, then some bailout cannot go to some fundermental banks to begin recovery but not free money for mismanagement of credit. Nobody gets a bailout when they spend all they have. This is like the story of the prodigal son in the bible. Let them fix the system before giving any tax payers money out. Thanks.


Anita   September 30th, 2008 12:22 am ET

Suze, what would a depression in this day and age look like? We live in a "virtual" world now, very different from 1929. What could we expect if this (let's face it) recession turns into a depression?


Otuyelu Olumide   September 30th, 2008 12:22 am ET

I have been a long time viewer of the show, never called in, but this was too sweet not to be a part of. Great show and great guests ( okay, lots I disagree with but still find informative).

I just hope this generation leaves behind a better America than the one handed to them. Save the economy, save our way of life, Join and save the American Dream and way of life!


Jamiel   September 30th, 2008 12:22 am ET

Larry and Suzi:

I have no debt, other than my home and living expenses. Pay my ccards off each month. My home is for sale, because after a divorce, I need to simplify. No one is buying....or even looking right now. I owe $153,000 for my home. I have about $6000 total. I have a 30 yr. fixed jumbo mortgage loan. I have the option to pay only interest for the first 10 years. That is what I have been doing to afford being in my home.
Should I take a chunk of my money and pay on the principle? How much should I keep for a "safety fund"? What to do? I make about $30,000 a year. Taxes $5600 / Home Own. Ins. $1600 year / interest payment $860 a month @ 6.75%. Please give me some direction!
Thank you.


Nick   September 30th, 2008 12:22 am ET

It is "funny" to see Suze saying again and again how we lost all these monay in the stock market today. "We" didn't looze it. The Big wall street dogs lot it. It is better their money than our money. I am grateful that te house is thinking of us.


Khari Myers, Buffalo NY   September 30th, 2008 12:22 am ET

I am a 25 year old professional. My question is, should I move my 401K internatonal and domestic stock funds into a short-term 401K reserve fund?


Lisa   September 30th, 2008 12:22 am ET

My question is this:
If Supply(loans and credit) is down and demand is up(business need cash and indivuduals need vehicles and homes) will this equation drive interest rates up? I have been hearing for a while to "let the markets work". I personally feel that we (america as a whole) have overextended ourselves, could it be that the market is contracting because we have overextended ourselves and we are going through a natural correction? Other than businesses needing capital, why wouldnt we want the market to correct itself?


Carole Decea   September 30th, 2008 12:22 am ET

My opinion is that the people in Congress and the Senate have been there tooooo long. Yes it is time for a change. A complete change to people who do not think of their party first, but the country first. The people in Washington are only interested in maintaining their power. As far as I am concerned they should all be out of a job. Some of these congress(people) have been in Washington too long. It is time for term limits for both Congress and the Senate, maybe then things would get done in a timely fashion for the people of this country no matter what the party in power is.


Suze   September 30th, 2008 12:22 am ET

Suze, I have a 401A and a 457 Plan and they are both in a diversified portfolio, should I be playing it safe and pull my investments out of the diversified portfolio (that has large caps in it) and placing it in bonds or the fixed income account that generates about 4%?
-Rick Haydon, Arroyo Grande


Jean   September 30th, 2008 12:23 am ET

First, I'd suggest you get the cartoon ABC World News used tonight to explain why the "credit crunch" matters to all of us one Main St (explains Ali's flow chart in a much more graphic way.)

Second, I'm one of those people who do pay off my credit card every month, who has no debt. Won't make any difference at all - I'm being hurt every day of inaction by Congress.

Third, its been my opinion for days that the House Republicans have no intention of voting for any bill; their plan is to force the House Democrats to "own" it. That way, the House Republicans can take advantage of all the anger out here during the rest of this election.

Fourth, its not too late for the fourth estate (yes, you CNN) to actually discuss the bill, its provisions to protect taxpayers, and how it would work. Instead of hyping the $700 billion; you might talk about how we're likely to break even (the provision for a five year review) and maybe even make money.


ed   September 30th, 2008 12:23 am ET

i just want to see all responsible in charge in jail with all their assets frozen and given back to tax payers. BTW what is FBI doing on their investigation. This is the biggest scandal in 21st century. Shame on our goverment.


jessica   September 30th, 2008 12:23 am ET

Don’t you think we should be putting more blame on the banks that allowed our economy fail? and why should we ever vote republican now?


Matthew Edwards   September 30th, 2008 12:23 am ET

I hate these guys telling us they want to stop us from being cuaght in the credit squeze. Here's an idea, how about give every person in the U.S.A. 2 million dollars each. That's less than one billion and noone will have to worry about needing credit and it will create an instant housing boom and retail boom!
Think people... Why spend 700 billion when less than one billion will do the same thing???


Chris   September 30th, 2008 12:23 am ET

I think this is the brave new world Larry. The American people have woken from their 8 year lethargy and realized they have the power, they are the government.

This bill had to fail, the companies need to correct themselves. If the US Government wants to stimulate the economy and recover this, give the people the money. Let them pay their mortgages and bills, put money into retirement funds, get medical insurance, new cars, education, ad nausema.

The money paying the mortgages credit, saved, etc would fix or begin to give the businesses the stimulus they need without giving them money the american taxpayer would realistically never see again.


william brown   September 30th, 2008 12:23 am ET

hey larry,

i was wondering, watching the news the past week or so there have been confusing and contradicting reports. there is about a 60-40 split with economists on the air. most of them say that there is an economic crisis but a lot say that there is no crisis – that the president has not proven there is a crisis. what is the actual scoop? ask ben please


Markus Kaufmann   September 30th, 2008 12:24 am ET

Now the housing market crashed. When will the consumer credit market crash?


ricky   September 30th, 2008 12:24 am ET

larry my comment is simple.a kingdom divided by itself shall fall.larry if look keenly thats whats happening right this minute.every one is saying we have to bail out these corperate giants, while thier c.e.o's get away with under the table dealing.how canyou reward a c.e.o with millions when he prove himself to be incompitent.see larry washington have been building from the top down for years and now for their stupidity and lock of concern for the poorer class their kingdom are now falling.how about taking this 700b. and give to the working class so they can pay their bills,ie.margage,credit card,car noteand insurance. now i beleive that this will get the economy going again.i know that the poorer class spends the most so why dont they just build up for a change .


Rick Kangas   September 30th, 2008 12:24 am ET

As a Coloradoan... Marilyn Mustgrave is almost as smart as Gov. Palin. She should get out of the way and go on vacation. Fortunantly the democrats are in charge and will provide the leadership we need to get out of this (Republican) mess.


Kevin   September 30th, 2008 12:24 am ET

I am deeply sadden by a bunch of ignorant and emotional congressmen the Republican party, who pushed the US economy to an unbearable state. I still don't get why they have hard time understanding the situation, digesting the plan and see the implications. Today's result on the 700 Billion Financial Rescue Plan clearly demonstrated leadership failure in our Congress – especially the House of Republican, and our government. This, in effect, costs you and me and all the American people trillions if not zillions for years to come.

In the past weeks, American people and investors were lack of confidence in the market, yet still maintain little hope with our government. Today, everyone lost confidence in our government – for not able to pull things together and show some leaderships to save the American people. A clear demonstration of a broken US government, and it has vividly shown to the world. Shame on U.S.


Sue Parker   September 30th, 2008 12:25 am ET

Question: I trust Suze Orman in this situation. Could she suggest where a 401-k investment could be moved that would be considered safe and not cause a taxable event for persons already retired? We're watching our retirement funds go steadily down the drain already and have not yet seen results from this week's financial disasters.


Bill   September 30th, 2008 12:25 am ET

I was in the Philippines for 17 months. Both 9/11 and this financial mess reminds me of the Philippines. Terrorism is a weekly event there and big business is in bed with government. Are we becoming the Philippines?


Paul Ridenour   September 30th, 2008 12:25 am ET

Since the House could not stand up and be counted for the American People by passing 3997, Let the next leader of the country – Obama or McClain Lead the Senate by example and passing the Stabilization Act. It's time for someone to take a stand.

By the way, my incumbent representative (Harry Mitchell, AZ) lost my vote when He voted for HIS JOB and not the jobs of his constituents.


LM   September 30th, 2008 12:25 am ET

We keep spending money on the war effort. why is it such a problem taking care of things at home. Spend the money to take care of the US.


S. Joseph   September 30th, 2008 12:26 am ET

The people are getting screwed two times over. Politics allowed for lobbyists to make sure that the very rich at the top are secured first but us normal people get shafted. We have an opportunity to create a bill that will benefit the normal people first!!!!!!!!!!!


Chet   September 30th, 2008 12:26 am ET

If the gov't does not pass this bailout how far do you think that the stock market fall and at what point will the entire financial market collapse?


Alex Lim   September 30th, 2008 12:27 am ET

One thing the "Main Street" person can/should do is call his/her representative and ask why he/she voted NO. Most likely the true answer is:politics! The reality is "Wall Street" ends up as "Main Street"-just look at your 401k, pension fund, IRA, etc. However "Pennsylvania Avenue" does not end up at " Main Street" because our senators and congressmen do not have the same 401k and pension plans that us common folks have--that's why they can afford to play politics with peoples lives-–until a certain point-–when panic sets in--and everyone runs for the bank--then we will all be in a soup line!!! sound familiar??!! The bailout plan--no matter what form it is in-at least helps prevent panic. You have seen the gas panic here in the southeast this past 2 weeks-the same can happen at banks!!!


Tony   September 30th, 2008 12:27 am ET

I just wanted to thank Suze Orman. In the early 1990's I saw her on a show ( I believe it was PBS KQED ) and the information I learned helped me tremendously. Suze is very credible. In the 90 I had a FICO credit score in the 600s and did not know how to manage my credit. Last year I made to an 820 FICO score.

Thank you


Tito Lugo   September 30th, 2008 12:27 am ET

Hi Suzi
Should I withdraw my money from the Washington mutual bank and keep it in a safe at the house until the politicians make up their minds and come out with a solution to the crisis or should I invest it in my 401 k?


Erick   September 30th, 2008 12:27 am ET

I'm not a historian or economist or an expert but if you want to invest in something look to history when it hits the fan.
Alcohol -mfgs, distributor etc...
cigarrettes- same as above
medicine – same as above
people resort to these things because they are necessities when times are hard. Depression and anxiety leads to using drugs that enhance depression and anxiety and when you're poor and depressed you get sick. This is history repeating itself this is what you should invest in IMHO


Elsa Morales   September 30th, 2008 12:29 am ET

Hi, Larry:

Great job as always. I guess George Bush exhausted all the political capital that he so much bragged about when he was reelected.

It is a sorry state our nation's situation. We lost credibility internationally and now this domestic financial debacle. What's left of us?

The most important thing is to keep clarifying the facts and educate the public in easy terms of what this means to the average person.

Congress and the two political presidential nominees have to be decisive, forget their personal interest and truly for once show us that they care for us or else Nov. 4 is coming and we are noticing.

Thank you again for always been so informative with your shows.

Long live Larry King,

EM


Aaron Cookerly   September 30th, 2008 12:29 am ET

Larry your jewish so im guessing you should know some of the significance behind the number 777.
Could you shine some light on that?


Jamiel   September 30th, 2008 12:29 am ET

Correction to my email. Total money $60,000. What is the wise thing to do? Pay principle on mortgage? Safety fund? Money is in a savings account.


Richard   September 30th, 2008 12:29 am ET

Larry, how do they know 700Billion will fix it. Is this like another kind huge stimulus but to wall street because what they offered main street wasn't enough?They have no idea how deep the problem is. We need to get to the root of the causes of this credit crisis.


Bill   September 30th, 2008 12:30 am ET

Obama was just handed the election, slam dunk.


Mel   September 30th, 2008 12:30 am ET

Suze Orman is giving some great advice, but the advice that she and other economic advisors are failing to do is to advise the American people on what they need to do to support this, that is to contact your Congressmen and tell them to support this! Politicians need to get over their worries about re-election and do the right thing! It's not about who saw this coming , where the blame lies, or even people standing by their principles. It's about saving our Economy! By the time the average American comes around to understanding what's going on and politicians quit playing the blame game, it will be too late. In the next few days, all the networks need to run thorough coverage with our top economic advisors explaining this situation better to the American people. Ben is right...Thursday is too long to wait to fix this problem and so much damage can be done to the economy in that time.


Penni   September 30th, 2008 12:30 am ET

I think that this is one of the most selfish and stupidest thing to do ever! So the middle class and the poor will suffer , families and their children will to people will lose jobs , house/home not be able to pay for gas to go to work, not be able to by food etc. You will be headed for a depression if you dont rethink your descision, its seems that all you BIGSHOTS you rejected this bailout get what you deserve , I hope you lose your jobs, home cant send your kids to school etc . You all dont care about no one but yourself and what you get out of this at the expense of the taxpapers while if you didnt have taxpayers who would you have.
This bailout is to protect the wealthiest Americans at the expense of the tax payers. People need to take responsibility for their actions. We will not need to regulate the pay of CEOs when they don’t have a job.
Rethink your desicions ! FIX this and then worry about the rest after! Otherwise Wallstreet will crash and you will create Panic!


Monica   September 30th, 2008 12:30 am ET

I read this today on a MYSPACE bulletin...It's meant to be a joke but right now it sounds like a better plan than anything I've been hearing about on the news. Maybe Congress should read this, it may help them come up with a new plan that helps the average American.

We are against the $85,000,000,000.00 bailout of AIG.

Instead, we are in favor of giving $85,000,000,000 to America in a 'We
Deserve It Dividend'.

To make the math simple, let's assume there are 200,000,000 bonafide
U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and
child. So 200,000,000 might be a fair stab at adults 18 and up..

So divide 200 million adults 18+ into $85 billon that equals
$425,000.00.

our plan is to give $425,000 to every person 18+ as a 'We Deserve It
Dividend'.

Of course, it would NOT be tax free.

So let's assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes.

That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket.

A husband and wife have $595,000.00.

What would you do with $297,500.00 to $595,000.
00 in your family?

Pay off your mortgage – housing crisis solved.

Repay college loans – what a great boost to new grads
Put away money for college – it'll be there
Save in a bank – create money to loan to entrepreneurs.

Buy a new car – create jobs
Invest in the market – capital drives growth
Pay for your parent's medical insurance – health care improves
Enable Deadbeat Dads to come clean – or else

Remember this is for every adult U S Citizen 18+ including the folks who
lost their jobs at Lehman Brothers and every other company that is
cutting back, and of course, for those serving in our Armed Forces.

If we're going to re-distribute wealth let's really do it...instead of
trickling out a puny $1000.
00 ( "vote buy" ) economic incentive that is
being proposed by one of our candidates for President.

If we're going to do an $85 billion bailout, let's bail out every adult
U S Citizen 18+!

As for AIG – liquidate it.

Sell off its parts.

Let American General go back to being American General.
Sell off the
real estate.

Let the private sector bargain hunters cut it up and clean it up.

Here's our rationale. We deserve it and AIG doesn't.

Sure it's a crazy idea that can "never work.
"

But can you imagine the Coast-To-Coast Block Party!

How do you spell Economic Boom?

we trust our fellow adult Americans to know how to use the $85 Billion 'We
Deserve It Dividend' more than I do the geniuses at AIG or in Washington
DC .

And remember, The Family plan only really costs $59.
5 Billion because
$25.5 Billion is returned instantly in taxes to Uncle Sam.
Talk about a
stimulus package!


Llewellyn Downer   September 30th, 2008 12:30 am ET

how does this financial fallout in the united states affect the carribbean regions. in areas like tourism ,banking.etc


Margarita Washington   September 30th, 2008 12:30 am ET

So there is going to be a credit crisis ? Does that mean that the American people are going to have to live within their means, save their money to pay for what they want. the way it used to be.Pay for their groceries and gasoline instead of using a credit card and paying 38% interest. People are complaining about the $4.00 a gallon for gasoline add the interest if you pay by credit and it could go up to $7.00 Dont bail out we will survive


james taman   September 30th, 2008 12:32 am ET

larry-this is a question.at the present time i am making my house payment with no problem but my house payment resets in march of 09,to apr.what good is this bailout going todo for me the morgage companys want thousands of dallors to redo it,puttind me deeper in the hole .why can't i get bailed out to a cheaper rate?


John   September 30th, 2008 12:32 am ET

This country is a mess and I blame our current Government for everything that has happened. I am ashamed to be a Republican and believe President Bush should be impeached in his final days. A fitting end to 8 years of deregulation and stuffing his crony buddies pockets at the cost of the American taxpayer.
I wonder what our forefathers who spent endless hours toiling over a piece of vellum so long ago would think of what Government has allowed to happen. It is no longer Government of the people, by the people and for the people. but more so Government of the business by the business and for the business, And I tell you that if the Author of the Declaration of American Independence Mr. Thomas Jefferson were alive today he would be handing out the guns.


Doris   September 30th, 2008 12:32 am ET

The Bill should not pass, without oversight, change of how Wall street is doing business and taxpayers protection. If they pass it without that then say just ask for more next year. No way.


jack   September 30th, 2008 12:32 am ET

We are not only having a econ. crisis, we are also having a long boiled class crisis. Rich is getting richer while middle and lower class are getting squezed And now the bankers are askings the pubilc the bail them out. Why should we be the suckers?

Also, why we not seeong any officials on the regulatories being indicted for causing this hugh mess for our country???


Jill   September 30th, 2008 12:32 am ET

this bill should have past and clean up this mess, was the unpassage of this due to the unlikeable part of the CEO payouts?? What do you think, isn't it about time something is done about this mess regardless which side of the aisle you sit on? I am glad the two of you agree on this one!


Kurt Kauffman   September 30th, 2008 12:34 am ET

Not only did the bankers fleece this country for billions, but this administration allowed it. They all need to go to prison for the dirty underhanded maneuvers they either used or sat back and allowed. I say liquidate the assets of all the lenders and banks, liquidate the assets of all the CEOs that got fat and rich off this mess, and liqidate the assets of the politicians that allowed it. I'm angry and I can't beleive I spent time in the military protecting this country so crooks like this can operate unmolested.


King H. Harris   September 30th, 2008 12:34 am ET

The decision was the right one if we are going to put the money up to keep these companies alive and have the risk of the looses we need to have some upside. Therefore we should buy the companies with a plan to divest at a income certain point.


Peter Finnorn   September 30th, 2008 12:34 am ET

Larry King, Have your so called experts read the bill that failed today? It is only marginally better than the ridiculous original from Paulson. There are no details. The oversight section has no meat. There are no details on how goldend parachutes would be prevented (and who cares about this issue anyway? It's peanuts compared to the $700B) There has been no real debate with testimony from top economists. Many economist don't believe that it will work. Most Americans won't be affected as much as our politicians anyway. The average American is not heavily invested in Wall Street. I am glad that Congress did not jump to endorse this legislation.


DAN   September 30th, 2008 12:35 am ET

Susie,
I am 67, wife 66. We have Soc. Security income & guaranteed retirement.
We (as of tonite) $240,000 invested, but it is loosing $$$ fast.
At our age should we pull it & put in Money Mkt till it settles.
Txs
Dan


Susan   September 30th, 2008 12:35 am ET

Hello Mr King
I just heard your guest, Suze Orman, make what I thought was a remark meant to instill fear, regarding credit cards. My husband and I use a credit card and we do pay the full balance each month. We budget our income and insure that we can pay all our bills. What has happened in these financial institutions is outrageous. This happened because all the rules had been stripped away and these crooks swooped in like a fox in the hen house. This is white collar crime at it's worst. I just can't believe how greedy these people are. I hope those responsible for this are prosecuted.
Susan


Roy J. Meidinger   September 30th, 2008 12:35 am ET

I think I can give three suggestions for a short term fix to the banking problem until the governments program kicks in.

1) Have the President ask the home owners with mortgages to make an additional mortgage payment for the next three months. This would lower the banks mortgage base, increase money on hand, increase home owner’s equity and give them the highest rate of return on their money.

2) Ask all counties across the Nation to lower their tax rate, on single family homes by 5%. This would give the group which is under the greatest pressure a tax break. In the long run would reduce the number of foreclosures and maintain a high tax base.

3) Find a way to lower the adjustable rate interest base by at least 1% and/or put a cap on how high the interest rate can go for the next two years. Try an find a way to convert the adjustable rate interest rates to a lower (no more than 6%, but 5 1/2 % would be better. This could be done by Fannie Mae and Freddy Mac on Monday. This would also give the greatest assurance the banking industry is cooperating in this bailout.

The long term solution is to fix the Health Industry Oligopoly and eliminate its strangle hold on the Manufacturing Industry. I would like to hear of some hospitals being audited by the IRS and that they have lowered their charges for the un-insured to the insured rates.

Also pray.

The first point is the bail out is not going to help the defaulting mortgages but is intended to restart commercial lending. Because the mortgages are defaulting the banks cash on hand, a federal requirement of 3% for banks is being severely tested each week. The banks have taken over many houses, now called Real Estate Owned (REO), is not considered cash. This is why there have now been 14 bank takeovers. The banks are force to go to the Federal Reserve and borrow emergency money from their overnight window, which as of last week tripled to about 89 billion a day. To help this situation the Federal Reserved just made a second bailout available, moving its limitations of how much the banks can borrow up from 95 billion a day to 225 billion a day. The situation is getting critical. The banks need an influx of cash quickly. Yes, the people who are in stress cannot pay an additional mortgage payment but the ones who are not in stress, the majority of the mortgage payers can. The interest rates on the mortgages are higher than the interest rates of their savings accounts, so by paying mortgage off they are improving their rate of return on their equity. As for the banks, the mortgages out there are estimated to be about 47 Trillion dollars, but the value of the property they are backed up with is only about 45 Trillion dollars. This is do to the falling values of the market place and why many people are walking away from their homes. The economic stimulus package is going to help the economy to get started again, with an increase in jobs, which will increase the amount of money available to buy homes, which will drive the value of the homes up again, but it will take time.

The tax cut I proposed is five percent (5%) of the taxes imposed by the county you live in, on the single family home. The single family home mortgage is the item which is going into default. When a home is foreclosed on by a bank, it drives down the value of the homes in the neighborhood. The devalued homes bring in lower tax revenue. I am trying to directly help the people who need to lower their monthly mortgage payments. This tax reduction helps only the middle class families, lowering their costs and stabilizing the market place.

When the government takes over a bank, all the share owners lose their investments. The depositors are paid by the Federal Deposit Insurance Corporation (FDIC) which is a government program, and all the assets of the bank are sold by the government. The biggest loser is the government, because the sale of the assets is a rock bottom price. The government is the U.S. taxpayer. A failure of any business whether it be a bank or a manufacturing company is probably do to poor business management or uncontrolled greed. In this situation the housing and banking industry went to far in extending credit, but not to bail them out would create a greater harm to us. The problem is what they did was not illegal, but it should have been. What is happening in the health care industry is illegal but no one is enforcing the antitrust or the tax laws. We only have ourselves to blame for the manufacturing industry sending their plants and our jobs oversea s. This is our legacy to you.

The last item is the problem of which mortgages are defaulting. The greatest numbers of defaulting mortgages are the adjustable mortgages. These have to be corrected as quickly as possible. People did not understand the risk associated with these mortgages when they took them out. I want a fair rate of return on the mortgage money the people borrowed, which I believe is 5 1/2% to 6% on a fixed mortgage. The banks understood the risks associated with these lending devices and that is why they quickly sold them to Freddy Mac or Fannie Mae. Freddy Mac and Fanny Mae then sold them through Subprime. Now that we have an economic downturn these mortgages are at a greater risk and no one wants to buy them. We must help the individual family directly and we must do it now. Convert these mortgages into a lower fixed interest rate. The banks realizes it is better to get a little bit lower interest payment rather than get a house that is worth less than the amount loaned on it.


Kim   September 30th, 2008 12:36 am ET

I also want to know where the responsibility is! If I put money into the stock market and played aggresively and then lost it all bankrupting myself – government would not be on my door "bailing" me out!!! This is essentially what has happened, these banks financed these risky mortgage loans and allow this to happen. I should not have to pay for the high profile banks making bad loan decisions, or for the irresponsible home buyer who didnt do their research before buying their homes with these risky loans. There needs to be accountablility on both parts!!! Whats next – SOCIALISM maybe.


Martin   September 30th, 2008 12:36 am ET

At this moment, Paulson should be gone... he carries too much bagage. Where is the leadership in America? It appears that the US is about to become a 3rd world nation... and the average American has no idea whats going on... Now that your nation is broke its about time yoe u pay attention to your citizens and not the rest of the world... Rebuild your nation. Maybe in 20 years you'll appear to be something other than a 3rd world nation.


Humberto N   September 30th, 2008 12:37 am ET

Larry
Watch and see the end of this soap opera, partialy manipulated by Mcain campain...
Now Mcain goes back to Washington, pretend to be the leader and "help" passes whatever bale out bill to become the "hero".
Will it work?
I dont thik so, but lets see.....
Humberto


Robert   September 30th, 2008 12:37 am ET

Susie,

When someone wants to hide something, they push people fast so no one can see what they have done.

Do you think Bush has done something with federal money when he shouldn't have? Knowing he is pushing to get "700B" cash so he can hide his administrations wrong doings? With Zero Oversight as requested in the original documents?

Social Security? Gone?

Bigger Picture////Human Nature


Ryan from Hawaii   September 30th, 2008 12:37 am ET

If I rarely use a credit card, and dont have a mortgage and invest only in money markets, how will this bill not passing affect me?


Ken Braden   September 30th, 2008 12:37 am ET

Stop giving rich bankers more money and help the real people who
can't afford the mess that this greed has produced. Until there is a cap on rates that these bankers use to rip us off this mess will not go away.
The next bank will most likely be ran by a oil company


Christen - WinstonSalem, NC   September 30th, 2008 12:37 am ET

I understand both sides of the coin. I think it was McCotter from MI that said our freedom is worth more than $700 billion. I also understand that if the market continues downward and we do nothing, people can kiss their retirement funds and pension plans goodbye, goals of college and future advancement goodbye, I mean, you name it. If we do nothing, life as we have grown to know it would no longer be the same. I agree with Mr. Stein that perhaps there should be a bill regarding so much oversight over the big money makers here but offer the money instead to the taxpayers. If you're worried about how people spend it, why doesn't the government allow us to submit paperwork for a government rebate to eliminate 1/2 our our loan debts via the bailout package that can only be used for what our debts are and you will see people getting out of debt and putting the funds where they are needed anyway. I think more people would gain from something like that.

Who is to blame? I'm sure there are enough people to blame over this whole thing. I worked with someone who got hit with a mortgage fraud situation and the FBI told her that they wouldn't investigate her situation until a loss was incurred... they told her to go into foreclosure on two houses or they wouldn't DO THEIR JOB! Many many many people are to blame for how this all worked out. Let it be known however that the time for American's to turn their head and let Washington do what we expect them to is over.

I'm for Obama... which I guess means McCain is to blame!


Jared   September 30th, 2008 12:38 am ET

I just have a quick statement, why should american taxpayers pay for these companys who are already failing. This is just like giving welfare checks to people who can really work but choose not to, which we all know happens and that has made the welfare system a complete failure and a waist of my tax dollars. Why should we give money to companys that have choosen not to work, and that have failed, its just not right to pay for more failure out of my tax money


Lynn   September 30th, 2008 12:38 am ET

By the way, speaking of Paulson and Sachs, does anyone else find this a bit of a conflict of interest? And why is no one besides the Washington Post and New Gingrich paying attention to this???

From the Washington Post (9/27)...

"In a separate meeting on Sept. 15 to discuss financial aid for A.I.G., the only participating Wall Street chief executive was Lloyd C. Blankfein of Goldman Sachs, Mr. Paulson’s former firm. Mr. Blankfein had particular reason for concern.

Although it was not widely known, Goldman, a Wall Street stalwart that had seemed immune to its rivals’ woes, was A.I.G.’s largest trading partner, according to six people close to the insurer who requested anonymity because of confidentiality agreements. A collapse of the insurer threatened to leave a hole of as much as $20 billion in Goldman’s side, several of these people said."

So, Larry. What are your thoughts about this or any of your guests?


Little Guy   September 30th, 2008 12:39 am ET

If your credit score fell because you lost your job and couldn't pay your mortgage.......Are't you stucked / screwed for at least 7 years no matter what happens? So why should I care.

Remember you can't lose what you don't have!!!!!!!!


bernice   September 30th, 2008 12:39 am ET

I have to say that I'm not happy about the bail out of Wall Street, but I understand why it needs to happen. I just saw Congresswoman Marilyn Musgrave on your show and I just had to look and see if she is up for re-election and of course, she is. Give me a break. She and a lot of the others that voted against the bail out are only worried about their jobs. If she and the others that voted against this had a better solution to the problem then they should let everyone know what it is. I'm sick of all of these politicians blaming each other for why we are in this mess. They should be doing what's best for the country.


Penny H.   September 30th, 2008 12:40 am ET

Everyone keeps talking as if there are only two choices: pass this bill or don't pass this bill. Why aren't other alternatives being seriously considered?

There are no easy fixes to this mess. Congress needs to slow down and Find Another Way. The American public is not going to be satisfied with less than that.

And Suze, you may be hot stuff, but anybody who thinks a credit card holder who is only making minimum payments isn't in deep financial trouble ... is nuts.


alice   September 30th, 2008 12:41 am ET

to: Shelia Perry
To find out how your representative voted just go online and type in
How did your congressional Rep. vote on Bailout , and enter the state.


Peter   September 30th, 2008 12:42 am ET

Suze Orman is outlining the consequences associated with doing nothing, but how does she know that the same consequences won't occur following a bailout? I would think that you would want to hear the pros and cons debated by expert economists. The American public deserves nothing less.


Tony   September 30th, 2008 12:42 am ET

This whole economy deal boils down to one thing: greed. Our country has had it too good for too long. I don't want my tax money going to bail out greedy corporations who couldn't manage their money. Isn't this a capitalist market? It's supposed to go up and down. This correction has been a long time coming. Looks like lucky 7's at the casino!


Spencer Krenke   September 30th, 2008 12:42 am ET

Larry,

Instead of rewarding the banks for their poor lending practices, why not give every American Homeowner a "Mortgage Payment Holiday"? Force the banks to accept up to 6 months of no payments (while allowing them to accrue the interest on the principal balance), and encourage homeowners to use this cash to pay down credit card debt and increase savings? This would be better than rewarding the bankers for their greed?


Dana Berges   September 30th, 2008 12:42 am ET

Mr. King, I was in the banking indusrty for 25 years. I left because I did not work in the greed enviroment I was working for. Because I live in the post Katrina New Orleans area I lost my job in the new field I ventured into as a licensed private investigator. At a fourty something years old , a small female I spent the last three years doing ceramic tile tile, marble and hard wood flooring to help rebuild our area. I was recruted six months ago into the mortgage industry to try to help obtain loans and refinancing for the people in my area. The lending industry has gone from the worst swing of the pendulem to the other. Deserving Americans can not get a loan where so many non deservings could in our near past. I believe what we want to see is a clear understanding that this will actualy help our average Americans and not rely on these corporations, lenders. and CEO's to actually pag the bail out to the borrowers and consumers of this country. I think we should have learned that with "Reaganomics trickledown".


Paula Herbig   September 30th, 2008 12:42 am ET

All this seems a bad comedy!!!!!! Do people realize the big mess the world is in because of this administration


Carol   September 30th, 2008 12:43 am ET

More posturing by our congress. All they are concerned about is being reelected. All those who voted no, are up in November. After the vote today,they all probably scrambled to buy stocks today at a lower price. Where are the statesmen?

This fiasco has been coming for a long time, but Bush and McCain just discovered the problem last week. We in the middle class have been feeling the pain for quite a while, but no one listened. Bush & crew have had this whole scenerio planned for quite some time now. I certainly don't trust them and it seems the Republicans don't either.
All I can say is DO SOMETHING, and for a change take care of the people who are struggling, not the rich guys.
Some are losing their homes because of health care bills. There are many in this country, who were once considered the middle class, who are now having a hard time putting food on the table. No one cared when the gas & drug companies started their gouging, All this has taken a big bite out of what we bring in. As one blogger stated, give the money to the taxpayers, let them pay a tax on it, pay off their mortgages and credit cards and get a tax credit for paying them off. Money goes back to the banks and they can start pilfering the little guys again.


Lisa   September 30th, 2008 12:43 am ET

My question is this:
If Supply(loans and credit) is down and demand is up(business need cash and indivuduals need vehicles and homes) will this equation drive interest rates up? I have been hearing for a while to “let the markets work”. I personally feel that we (america as a whole) have overextended ourselves, could it be that the market is contracting because we have overextended ourselves and we are going through a natural correction? Other than businesses needing capital, why would we not want the market to correct itself?


Mr. O'Hara   September 30th, 2008 12:43 am ET

I got a question. Under the bail out plan I understand there are 2,000 attachments (riders) to this bill is that true? If this is true why haven't you exposed these attachements to public and why there are needed?


Richard   September 30th, 2008 12:44 am ET

Hi Larry!

I just can't believe that 228 idiots voted against the bailout plan today!

And believe me, it did not affect only americans... I am canadian and the fact that the Toronto Stock Exchange dropped 840 points was not pleasant to watch either!

Imagine, our economy is doing well (so far), we had a surplus of 9 billion last year and we have to experience this!

Do these people realize that their decisions will affect the whole world's economy?

By the way, like a vast majority of canadians, I hope that Barack Obama becomes President of the United States on November 4th.

I just can't believe that a majority of americans will vote for a carbon copy of Bush!


larry   September 30th, 2008 12:46 am ET

Ben Stein was great as always – but I still disagree that the bailout needed passing. We are outraged with the bank bailout – we didn't get a .COM bailout and the country went on about its business. Here in New Mexico my bank offered me a 3% down 5.9% 30 year mortgage on an owner occupied triplex. What is this BS about credit freeze? Yes the banks won't lend to those with no income – big deal.

This bailout will do nothing but create hyperinflation – does anyone remember Germany's Weimar Republic? That is where this bill will take the US $.


Ronald Overstreet   September 30th, 2008 12:47 am ET

In my opinion the members in congress who voted against the
$ 700 Billion Dollar bail out are the only ones listing to the American people.
I'm 59 years old and on disability and have retirement funds invested in the stock market. The value of my retirement account has gone down significantly, just like everyone else.
However, I say let the market crash. Lets see what happens. I don’t think the effect on the over-all economy will be as bad as predicted by many. I think some members of congress and the media, plus financial advisors are using severe scare tactics to try and convince the American people this is the right thing to do. I’m not convinced it is the right thing to do.
Financial advisors like Susie Orman and others have been telling us for years we have too much debt. They were right, so lets face up to the facts and learn from many years of Americans trying to be too affluent. Do the consequences out weigh the very necessary lesson we all need to learn from this crisis?
A revelation: We really aren’t a wealthy Nation anymore, just enormous debt. I think this economy needs this drastic shake up in order to get back on solid financial ground.

Ronald Overstreet


Siva Narendra   September 30th, 2008 12:47 am ET

$700B - where did that magic number come from? From the same experts that said the fundamentals of the market are strong?

I hear this comparison of we "lost" $1T today and that $700B would have saved that drop. We don't do anything in particular when the market swings up dramatically, the market fixes itself, does it not? After all aren't we supposed to be the hallmark of efficient markets? So, why are we trying to buy ourselves out of a market correction.

Then again, this really isn't about the stock market is it? It is about the main street. I hear this talking point too. Can someone explain how does a $700B bail out help the average person. It seems to me that investment of $700B on infrastructure will bring jobs and will boost the economy from bottom up. I am surprised to hear the Democrats run after the a trickle down economy that they were preaching against so often. What happened?

No one really knows that this $700B is needed or even enough. If the market can move $1T in one day, how do you save that? Why do we need to save that?

Let us put the money back to work for the main street. Bottom up. Not top down. Then put checks and balances back in to wall street. After all Adam Smith's "invisible hand" will destroy the possibility of a decent human existence unless government takes pains to prevent. Capitalism without checks and balances is just pure greed. And we are feeding the greed more. Why?


Fred   September 30th, 2008 12:49 am ET

The root of the problem is the EASY MONEY. The bad mortgages are consequences, symptoms. The real cause of the problem is the easy money pumped to the economy by the government, pushing everybody to consume more and more…getting everybody deeper and deeper in debt. Throwing more money to the economy will not solve the problem, it will only postpone the day of reckoning that we could not go on forever living on credit, as individual or as a nation.


Jan   September 30th, 2008 12:50 am ET

I feel the best course of action is for the government to only cover ,or buy out mortgages in trouble and stretch out the payments for a longer period of time at locked in interest rates. This will lower their payments so that these bad loans still get paid. No one will lose money, it will only take more time to collect it .
What I do not under stand is why the banks
didn't do this them self.For all loans.


Lynda   September 30th, 2008 12:52 am ET

Suze-
I too froze today after the vote – I have a son to put through college in just 2 years. But I can be thankful that I have 20 years to recover my retirement accounts. What I am concerned about is the reverse mortgage that my aging parents were convinced was their answer to retirement. How will the inevitable loss in home equity be realized and how quickly with this start affecting their retirement plan?


Eileen Donohue   September 30th, 2008 12:52 am ET

Everyone is responsible for this malee. We are all too arrogant to realize that there cannot be a top without a bottom. When those senators came out of the meeting, instead of thanking the people who are the ones bearing the burdeon, they thank themselves. For oh so long they have been giving more to the top than the bottom and the gap got just fo far. Nothing is going to help at best it is a gamble.


Will Noble   September 30th, 2008 12:52 am ET

Ben Stein made an interesting comment, saying that maybe the government should give the 700 billion to the people in order to address their mortgages. Is it ridiculous to suggest that the government should seize these institutions that are asking for financial help, regulate their practices short term (3-5 years), and offer a stimulous to the economy that strictly addresses their outstanding credit and mortgages? I understand that most likely, business will hike up prices, fees, and interest rates in order to profit from the consumers new wealth. I feel that most debt is created by institutions through penalties, interest, various fees, and practices that are ridiculous. Now that the average consumer is pinched, these corporations are suffering because they cannot collect what they want, not "fairly" owed. If our economy recieved such a huge financial relief, people would truly spend and homes would retain their value again. I don't want to see another Wamu situation where a CEO that worked for 3 weeks, recieves 18 million dollars. In closing, Fannie May and Freddie Mac are only a part of the problem. 7 year arms, interest only loans, and whatever other programs that were out there were SOLD! Many Americans were told that these programs were good and they were really sold on these arrangements. Also, many real estate investors bought into these programs. Combine these factors, low income loans, and unpredictable property taxes, Americans were misled. We are not as irresponsible as some media and politicans accuse us to be. This is why I'm open to the idea that the government should "bail" us out, not these companies.


Joseph   September 30th, 2008 12:52 am ET

Stocks are momentarily out of the question, in terms of investing, so would an average investor benefit by purchasing a savings bond?


Izabelle, Durham,NC   September 30th, 2008 12:54 am ET

Larry,

You always have magnificent and awesome guests! I honestly hope Ben Stein is the current Sec. of the Treasury, Paul Krugman the Chairman of Federal Reserve, and Suze Orman the Economic Adviser to the President. We could not have been in this big disaster had these three geniuses were in place long time ago. Our government leaders especially the incumbents better listen to these WISE THREE or it will be America's doomsday!


Nyat, California   September 30th, 2008 12:54 am ET

What does it take to have a website where people can log in and understand the reality? Where they can read:
(1) What does bail out mean?
(2) Why is a "bail out" necessary?
(3) How does it affect: (a) the emplyed [by employer type...small business, retailer, construction. high tech, etc], (b) the retired, (c) the unemployed, (d) small business, (b) big business.

It appears to me the media seems to forget that the majority of the people are still in the dark. Besides, tens of millions of people do not even have a clue what Wall Street is and how it affects their lives.

I suggest CNN set up a section where the above information is presented in a simple and understandable format. I am not an expert or an economist, but I know, with only so few parameters, setting such a website is is a very simple task.


Peter   September 30th, 2008 12:56 am ET

I don't think that politicians are failing the public. I think that they are finally representing their constituents. Quit saying that Wall Street lost $1 trillion today. Who is to say that following a bailout, the daily losses and resulting inflation would not be magnified many times. This is not a black and white issue. I would not wish a recession on anyone. But , until someone convinces me that the bailout would work, I will not support it. On the contrary, I would vote against those who do.


Roy J. Meidinger   September 30th, 2008 12:58 am ET

The fundamentals are not sound.
Every politician says the American worker is the best worker in the world, because of their productivity. The truth is there are less of them then there were 40 years ago, actually 40 years ago they were 35% of the work force, now they are only 11%. Businesses which determine where the best workers are have been shipping our manufacturing jobs overseas. We don't manufacture consumer goods in this country anymore. The calculation of productivity of the American worker is misleading, because it includes products manufactured overseas but sold with American labels on them.

Our Manufacturing industry seems to be limited to our agriculture industry, but even in this industry we are importing food. Our food prices are going higher because of the new demand for fuel. It seems ridiculous at a time of rising costs we are paying our farmers not to grow crops. We are an agrarian Nation and we should be increasing our exports of our produce to the nations who have the money.

If you look at the so called American car as an example, they are assembled in the United States, but most of the guts that go into them are manufactured overseas. The future of the American worker is bleak because we cannot match the number of college graduates of other countries. Our education system is collapsing, one-third (1/3) of our high school student are quitting before graduation, and if we follow California, it will be even worse, that state is up to one-half (1/2). This is the group who are going to have to pay our Social Security and Medicare benefits. This is the first group in our history who is now projected to earn less than their fathers earned. This is our legacy.

We are transferring the ownership of all our wealth overseas, the first thing to go was our natural resources, the foreign countries have basically bought up all our mineral industries, with Canada being the biggest purchaser. We are buying Seven Hundred Billion Dollars of oil a year ($700B) from overseas countries, when we have the largest supply oil reserves in the world, in shale, which could be extracted at thirty dollars ($30) a barrel using the new method developed in Israel. We even built a supper highway along the Green river in Utah and Colorado in the 1980's for getting the oil and gasoline out. But, Congress is listening to the big oil companies, who are waiting for the price of oil to go up to the price of gold before they reinvest their profits into developing these resources.

The Asian countries are our bankers, but that is changing as they have stopped depositing there funds in our banks and even started to withdraw them. Who can blame them when the dollar keeps De-valuating and the money they put in the banks is worth forty (40) percent less. The Asian banks are going to invest in their own Nations where there is economic growth and demand. The only reason they invested in the United States is because of the security our country has maintained, our stable government and the enforcement of our laws. This financial crisis, caused by a lack of regulation or the enforcement of existing laws has shaken their confidence.

Like our forefathers, the illegal immigrants come to this country to make a better life for themselves. WE do not want to give them the benefits that we have worked so hard for all our lives, unless they have earned them. No person should be denied what they have honestly earned, but no person should just walk into this country and say I should get what you get, when they have not contributed to it. There must be a point in time when we recognize the illegal alien is due his fair share. In law there is a statute of limitations for a crime committed. If an illegal alien has been working in this country for seven years, as a good citizen, excluding serious crimes, but allowing for minor ones, he should be given amnesty. Any alien under seven years should be given an opportunity to enlist in the military for two years, or a government work program for 4 years. Any illegal alien not willing to work in these programs should be returned to their native country th e first time, given jail time the second time and then returned.

The problem goes back to the Health Care Industry and its strangle hold on our manufacturing. We must lower what we pay for our health care, lower it from eighteen percent (18%) to eight percent (8%) of our GDP. This one group is compensated three (3) times the rate of other employee groups, i.e. they get three times their share of the Gross Domestic Product per capita employees. This industry has been able to grow in its wealth and power because it is acting as an Oligopoly and the antitrust and taxation regulations have not been enforced against it.

The fault of our problems lies in the greed of all men's hearts. This is a good motivation when it is properly channeled and with limited regulations. I strongly support success and proper compensation for the individual who brings benefits to others. But there must be a reasonable limit on how much a person can take for them self when they master the methods of success within our society. I support an escalating tax system on the individual, who should ask themselves not how much I am paying in taxes or what my percentage of tax revenue is, but how much do I have left, how have I benefited from this financial system of free enterprise.

If we do not strengthen the underlying contributing fundamentals of our society, of equal and fair compensation, of better educated workers, of stronger family support and of diligent monetary planning of our own lives we will bankrupt the future of our nation.


Vidya Angeri   September 30th, 2008 1:02 am ET

It seems to me that all the talk about saving "main" street is in fact CRAP. Whether the $ 700 billion bailout plan passes the house or not, it's the middle class that will get hurt the most. If the bill passes, all tax payers will have additional debt on their heads. if it does not, the economy crashes and we loose jobs, credit etc. Isn't there anything out there that can REALLY help the middle class?


Kak   September 30th, 2008 1:02 am ET

What happened to the "country first" motto? the republican claim of a partisan speak by Nancy Pelosi is outrageous. Its sad if it is true and reflects even more poorly on the republicans


Steve Rosen   September 30th, 2008 1:03 am ET

How about closing the wall street market for a few days, which I believe was done out of necessity after 9/11. Closing will give everyone, and the stockholder public, a few days to sort things out and help prevent a deeper slide.


kathi Crum   September 30th, 2008 1:04 am ET

A week or so ago the Congress was ready to leave town early because they didn't "know what to do". Now they are in putting on the table or taking off the table varying resolutions. Who is Congress now consulting to educate themselves about this financial mess and possible viable critical resolutions?


R Dalton   September 30th, 2008 1:05 am ET

Frist off, I do not agree with the bailout at all, unless you want to set aside 700 billion in a private funding agencies and all those so call small business'es and folks losing homes can go to that agency and apply for help. Let the rich and spectulaors loss there ass like they should. readjust the wealth in this country


Loretta Reese   September 30th, 2008 1:06 am ET

Its ashame that Congress is not representing the people and acting like preschoolers. The lack of leadership in both parties is an embarrassment to the people of the United States. I firmly believe let Wall Street take care of its own. Middle Class americans have been struggling for along time and our government didn't bail us out. It there is going to be money given out it should be to help people pay their mortgages to keep their houses. Most middle class americans don't have numerous houses to chose from if they lose one. I am a republican voting for Obama. A man with one house and if he loses his house he would be homeless just like me.


Gordon   September 30th, 2008 1:06 am ET

I believe this Bill isn't good for America in the Long Run! No Way!These Financial Instiutions with Millionares involved Should Pay. The way this Country views money is Despicable! We should Pay our own Debts NOT the Rich Fatcats who put us in this mess!


William Mark Clarke   September 30th, 2008 1:06 am ET

Everyone needs to take a deep breath. Let's not blame anyone. Let's to get to work.


Vicki Johnson   September 30th, 2008 1:06 am ET

I noticed my comments and question was put in for moderation because I used words to describe the actions of security investment firms and politicians that were, well, honest. Everyone out here now agrees with me, let them see it and ask them what they think. Or maybe, you are just correcting my typos. Perhaps after the bailout Suzie will advise everyone to buy Treasury notes. I hope so, someone has to back this bailout. I'm going to do my best to avoid it. Probably paying medical bills! Oh, now, Suzie says don't buy in the market, so behind the curve. Hope her book sells!


lynn   September 30th, 2008 1:07 am ET

I Think that they should of passed this BAILOUT BILL ! then these BIGSHOTS AND CEO'S sholud be required to repay the money once the market improves, as it always does, or is it going to put more money in the CEO’s pockets . Maybe they should live like the middle class , But these CEO'S and these politicans and other government officals don't care they wont lose sleep over this they have millions of dollars and wont suffer the hardships their pensions are secure ! Maybe we should take these government officals and CEO'S should take there pensions and there pay checks and use that towards the BAILOUT and see how they would like to suffer! All the money that the stock market lost was alot less then the BAILOUT! they should rethink their desicion and bail them out ! After all this is there COUNTRY too! Voters should vote them all out ! Taxpayers are what make this Country ! They out it to the rest of us Americans and the future of this Counrty and the children who have to live in it ! People are home / starving and losing everything ! BUT NO ONE SEEMS TO CARE!
Then make sure that these CEO'S should get pay cuts to pay back the Bailout !


Sharon in Nevada   September 30th, 2008 1:07 am ET

I think the government should confiscate everything the CEO'S own. All of their money, homes, cars, everything...especially the millions of dollars they left with. Give them a FEMA trailer to live in and a job
at McDonalds for the rest of their greedy, stupid lives. Lets see if Ronald give them a big "severence" pay....


Walter Wychopen   September 30th, 2008 1:08 am ET

As a minimum, to have a healthy economy, the chairman of the Federal Reserve should have a strong background in economics. He should not be expected to learn economics by going to the library during his lunch hour as did Allen Greenspan.
The Chairman should have a strong degree in economics so he would know what is going on. No surprises like what is now happening.


TC   September 30th, 2008 1:08 am ET

I say use thar $700B and pay down us taxpayers morgages to bailout the economy, that way it our taxdollars stay with us.


rkd   September 30th, 2008 1:11 am ET

I don't understand how politics could not influence the Bill, when the economical situation is a hot topic, and the nature of all bills is to pass through politicians. Even Paris Hilton became a political issue this year; courtesy of McCain. Was the bailout good for the economy or did the everyone on capitol hill give in to the pressures of the public opinion.


Tom   September 30th, 2008 1:11 am ET

Trickle up theory
I'm against the $85,000,000,000.00 bailout of AIG.Instead, I'm in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.To make the math simple, let's assume there are200,000,000 bonafide U.S. Citizens 18+.Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18and up..So divide 200 million adults 18+ into $85 billion that equals $425,000.00.My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend.Of course, it would NOT be tax free.So let's assume a tax rate of 30%.Every individual 18+ has to pay $127,500.00 in taxes.That sends $25,500,000,000 right back to Uncle Sam.But it means that every adult 18+ has $297,500.00 in their pocket.A husband and wife has $595,000.00.What would you do with $297,500.00 to $595,000.00 in your family?Pay off your mortgage – housing crisis solved.Repay college loans – what a great boost to new gradsPut away money for college – it'll be there
Save in a bank – create money to loan to entrepreneurs.Buy a new car – create jobsInvest in the market – capital drives growthPay for your parent's medical insurance – health care improves
Enable Deadbeat Dads to come clean – or else
Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ( "vote buy" ) economic
incentive that is being proposed by one of our candidates for President.If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!As for AIG – liquidate it.Sell off its parts.Let American General go back to being American General.Sell off the real estate.Let the private sector bargain hunters cut it up and clean it up.Here's my rationale. We deserve it and AIG doesn't.Sure it's a crazy idea that can "never work."But can you imagine the Coast-To-Coast Block Party!How do you spell Economic Boom?I trust my fellow adult Americans to know how to use the $85 Billion We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC .And remember, The Family plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.

(Just imagine what 700 billion would do.)

Ahhh...I feel so much better getting that off my chest.


Eileen   September 30th, 2008 1:12 am ET

Give the money directly to the American people to pay off their mortgages. If the money is put in the pipeline from the bottom up we could all pay off our mortgages and credit card debt. The pundits would have us believe that without credit our personal finances will go under but that's not true. If my mortgage was paid off I could live quite comfortably on a cash only basis and so could the majority of the American people.


Roger K.   September 30th, 2008 1:12 am ET

If Congress had passed the bill on the bail out the stock market wouldn't have crashed but things would still get worse. This would have outraged the American majority who have been saying that this is just a way of helping out the big corporations whose greed got them in this position. Then most of the politicians would have lost there support next re-election. NOW, just maybe, everyone will realize how much worse this can get if we don't pass the bail out.
This is going to get bad either way, but the bail is our fastest, and best option for now!


John   September 30th, 2008 1:14 am ET

Well after watching CNN and Local news I see that a lot of fat cat's that have a lot to lose due to their foolish gambling in the stock market are trying to scare people into urging congress or whomever to bail out wall street. Well I say let them struggle like I have been all my life. I don't think people should use credit cards for shopping; yes I've done it before and realized through hard trial and error that if you don't have the green you don't need a thing. If your using a credit card for food then that should be a sign of how screwed up the economy is and 700 billion won’t help just like the stimulus package didn’t it’s just a band aid where we need stitches. I’ve never been late on my bills but I have nothing to show for it except a billing statement and very little saved. Oh not to mention because of fear a major credit card cut my account from 6000 to 3000 dollars 4 months ago before all of this happened I think they seen this coming, mind you I have never made a late payment or over charged my account with them or any other credit card I have. So tell me Larry why should I really support this because I don’t get it and I want to I really want too. I wasn’t bothered before this and I’m sure God will see me through because this economy never has especially the last eight years.
PS When can I the common middle class everyday Joe come on your show and talk about this from a none investor point of view. LOL I would love to have that opportunity. You never know I might help your ratings!


art sitler middletown pa   September 30th, 2008 1:15 am ET

one million dollars to each citizen to take care of this financial fiasco is cheaper and better for the economy than 7 hundred billion for wall-street


John N. Elliott   September 30th, 2008 1:17 am ET

Why do you, and CNN in general, take every opportunity to make fun of Governor Sarah Palin? Your continuous banter against her, with the excuse that it's funny is demeaning. I hope women throughout this country realize that she is being mistreated, and treated scandously by yourself, CNN, ABC, CBS, CNBC and other liberal media outlets, such as the New York Times. Your derogatory remarks and quips, as well as demeaning comments are inappropriate for a woman who very well may be our next Vice President, and even our President. It is possible, because of what you and the Liberal media are doing, that that in itself will defeat the McCain/Palin ticket. If this happens, but I do not believe it will, you will have eliminated any possibility for a woman to be on the top ticket anytime in this 21st Century. Shame!!!


Eric Henrickson   September 30th, 2008 1:23 am ET

While it has been exceedingly clear for the last two decades that a large market correction would occur at some point, the extent to which fiscally poor behaviors on the part of both citizens and banks to artificially prolong an overinflated market for the purpose of profit taking is what is most troublesome.

I ask myself what and who the proposed bailout is intended to benefit. Several points are clear.

1. The theory that a bailout would work undeniably confirms the belief in trickle-down economics for all parties involved.

2. We should not assume that infusing large sums of money into the real estate market will have a prolonged effect on sustaining an overvalued entity.

3. Perhaps the electorate would be more supportive of the huge blank check being written by the government should it have the spine to represent us as stewards of our taxes.


Jim   September 30th, 2008 1:24 am ET

The markets are being manipulated directly or indirectly by lack of
controls (could have suspended trading). The purpose is obvious,
to create fear so the white collar thugs can steal more money.... It
is a shameful rip-off. Wall street and it's friends are not for the
American people and need to be thoroughly investigated for criminal
activities at the highest levels.

If this is a real emergency that effects the security of our country, it
is the responsibility of Government oversight committees and the
SEC to shut down the market temporally until the real issue can be
assessed or fixed. In the mean time, STOP the bailout, Go after the
crooks.

What happened to our judiciary Department? Indictments should be
streaming out with all the laws, and regulations that have and are
twisted to steal American taxpayers money.

America -- stand up for yourselves; your fathers did.


Omar   September 30th, 2008 1:26 am ET

So it seems that two dozen Jewish Congresspeople will erase perhaps another trillion dollars in US shareholder wealth tomorrow...Wow, I wouldn't want to be in their shoes when they return to the floor on Wednesday...
Shame on Nancy Pelosi for inciting the wrath of Congressional Republicans earlier today...And moreso, shame on the Republicans for responding to her truly dumb partisian whining fit by voting with their egos rather than reason...
The truly shameful result is that in the end, the taxpayer (read:"our man on Mainstreet") is the loser. Not Congress, not the Democratic or Republican leadership, not Wall Street...
And the most ironic thing is that the party most to blame for this debacle is the common voter; that uninformed, poorly educated and emotional sod who just doesn't have a clue....


judy   September 30th, 2008 1:27 am ET

i am against the bailout for many reasons. first, when and how do we draw the line as to who we will bailout. the government does not bailout private individuals who have run into financial difficulties, often due to circumstances beyond their control, yet the government wants to help these corporations that due to greed and/or mismanagement have gotten themselves in a bind. secondly, a lot of people for the bailout say it is necessary to avoid a trickle down effect, either way there will be a trickle down effect because if there is a bailout the taxpayers will end up paying for it in the long run. also if there is such a crisis with stocks dropping, why did the house decide they could take a recess?


msr   September 30th, 2008 1:34 am ET

Larry,

It means a lot to the Legal immigrant community.I HAVE MONEY, but cant think of buying a home as i dont have a immi status as yet.It is in process for half a decade.

If i buy toys, electronics, clothes and house hold equipment, for that matter if i buy acura or lexus the the money goes to china, Japan & south east asian countries, and their economy would boom. Where is the money that you loaned go??? It went OUT to other countries...

The fact is i want the money to stay in AMERICA, if i need the money to stay in america, i got to buy american CARS(Ford/GM), american made beers, and i cannot think of more products made in america??? Every manufacturing unit has been outsourced to asia.

Facts:
There are around .5-1 million LEGAL Immigrants in the country who are paying between 28-35% of their salary for taxes, for the last 5-10 years with out any Immigration status in a broken immigration system. These legal immigrants have good savings/lots of money in their bank accounts.

Positive outlook to this problem would be start a reconstrcution program, provide Immigration status to immigrants and they will start buying homes and put more money into the economy.This would be a stepping stone for restructuring.

This would probably solve 25 % of the 2.2 million open homes in the current state.

YOU NEED RE-CONSTRUCTION IN THIS DOWN FALL.IT IS NOT EASY TO START RECONSTRUCTION.

IF THEY LOOSE THEIR JOBS THEY TAKE BACK THEIR MONEY AND GO BACK HOME, YOU ARE SPEAKING ABOUT .5 MILLION * 50 THOUSNAD DOLLARS ON AVERAGE. 5000000 * 50000 =
250 BILLION


E.G.   September 30th, 2008 1:43 am ET

I'm all for getting to the bottom of who's to blame-how will you ever fix the problem if you don't? President Bush is guilty of appointing a disappointment of a Treasury Secretary as I see it. House of Representatives is guilty of electing a leader in Nancy Pelosi who doesn't know how to lead. She should have made her grandstand speech AFTER she had something to brag about. Do you think it will be easy to get a solution now? Why can't you treat each other as PEOPLE and not enemies? No wonder so many Americans are turned off of politics-and I am more critical of the majority party because they have more control on how events play out right now, instead you see them trying to rub Repubican members noses in this crisis as if the members of the minority in Congress are more responsible for this mess MORE than the majority!


Carroll   September 30th, 2008 1:50 am ET

the govt should give every citizen 1 million dollars which would pay off allthe mortgages and have money in every bank for loans


Valerie G Allen   September 30th, 2008 1:52 am ET

People are tried of been played. The President has created a situation that, at this time people are willing to fall, to turn this financial dilemma around. Most people care about this country to much, to let the President "rail road" this Great America, if we pay off anyone, let it be China, so that the American people, all can be free of tainted baby food, toothpaste, lead poisoning and big interest !!!
We are fighting among ourselves, giving free trade, 700 billion dollars to the wall street, give the 500 billion dollars to the China!!!!
The American people see straight through the wall street mess.


Charles   September 30th, 2008 1:58 am ET

Today they say the stock market lost $1.2 Trillion in value. That's almost twice the dollar amount of the proposed rescue program for the current financial credit crisis. The congress-people and senators who voted against the rescue because of concern about the taxpayers “bailing out the rich fat-cats” need to think about the tax revenue lost because of the that equity loss. Not just capital gains tax, but ordinary income tax on 401k withdrawals at rates which can be double or more the capital gains rates. And the equity losses promises to get much larger as the delay, debates, and partisan recriminations continue. The House must get back to work immediately (NOT THURSDAY). In the interest of the taxpayers they must work out a plan that can relieve the credit blockage and halt the financial panic. While attempting to educate their constituents about the real costs to them of doing nothing, regardless of their tax bracket and net worth, they need to find the guts to do what is in the best interest of the nation's economy. Responsible leadership is needed to stop the uninformed “nose off to spite your face” and “baby out with the bathwater” mentality that seems rampant . The income of retirees is the first hit. Next comes loss of job and business income. No income equals no income tax. Then goes the services……… Can’t anyone see the big picture? Stop the spiral!


Valerie G Allen   September 30th, 2008 2:08 am ET

Women's deserve to be respected, McCain isn't the true gentlemen, he is using Sarah Palin to his own advantage. Wonder why women aren't with the "Sarah Palin", Women are more than McCain think. Smart, reliable and not stupid!! Sarah, get out while you can, show McCain that you have a back bone. Hurry, convert to Democrat!


Joe Sandahl   September 30th, 2008 2:14 am ET

Larry,

I clearly understand how money flows through the economy, etc., etc, etc,. The plan for the treasury to purchase the toxic debt has so many problems, I won't even comment on it here. New idea: Have congress, the fed and the treasury department draft the appropriate legislation to institute a program wherein ALL first position debt notes be re-written down by 5% and ALL second position notes written down by 50% – I can explain why I chose those amounts, but it would take several pages.

Benefits: The housing market will be helped into returning to equilibrium; Assume the typical house has a 1st of $400,000 and a second of $100,000. The house at one time was perceived to be worth $600,000. The tax payer felt "rich". The value drops by 25% or a total of $125,000. Now the value is $475,000, but the homeowner still owes $500,000. The loan modification allows the house to sell. The home has already lost %20-%30 of its market value from the high. With this action, the loans are written down to a total of $430,000. A homeowner call sell its house, pay all of the closing cost including realtor fees and still have a little left over. At least houses will move without the involvement of the banks. Banks are taking months to deal with short sales. Don't our politicians understand this? Most of us can make our payments, but we are seeing our neighbors walk away from their mortgages and buy the house across the street for half the price and half the debt. The ethical practice of paying ones debts has been thrown out the window.

I feel certain that any financial institution can take a 5% hit on the balance sheet. The reality is that this hit has already been accrued – it just hasn't impacted the consumer – it only has benefited the bank.

Next – jobs will be created – all the FIRE jobs (Finance, insurance and real estate). This will start filling up office buildings and help commercial real estate and these taxpayers will also pay taxes.

Next – Less interest will be reflected on taxpayers Schedule A – this will create a huge tax influx to the Federal Government. I propose that this tax be allocated to stabilize freddie mac and fannie mae which will be hit hardest by the 5% loan modification to 1st position notes. Remember that we have modified the notes to save the borrower in this example $70,000. In this example the borrower will save about $3,500 per year in interest and thus that taxpayer's taxable income went up by $3,500. An actiual tax increase while still saving all homeowners a ton of money.

The holders of the second position notes? Let them take the hit. Let the stock drop to $0 and let the executives get fired. If they get a golden parachute – never buy the stock. Use your shareholder vote and tell the board what to do. I am doing my best not to swear as I have a 7-year old.

Speaking of the ton of money, the economic stimulus from this $3,500 is HUGE compared to any economic stimulus previously offered by the Fed.

No new government jobs – the work to restructure the notes will be performed by the companies that hold the notes. No cost to governtment or taxpayers.

Oversight – I think the consumer will ensure that their note is re-written. If not? I feel sorry for any company that could endure the public outrage. Stock Price – $0.00. New servicing company will enforce the legislation – retroactive to 10/01/08.

Next – Think of the economic stimulus that benefits Wall-mart, Costco, Home Depot and the rest of the retail sector we love so much – all of the new jobs created from the housing correction will help. So will the reality that we can actually sell out homes This stimulus package is HUGE compared to anything that has been tried before. Time to throw out the big guns.

Some companies will be hurt. It's ok. Please let the free market system work.

The root of the problem is that people in the several states that have been hit hardest by the housing downturn – California, Florida, Nevada, Arizona, etc., have seen housing values fall below the level of the debt on their house. Houses simply can't sell. The average homeowner in these states has a first loan of $400,000 and a second of $100,000. I think we can all agree that homeowner spending (the HELOC cash machine) saved us from the dot-com crises. There is no more money from the consumer and he/she/they are broke. Lenders allowed the consumer to get themselves into this situation and they shouldl suffer because of it. With risk comes reward, but if you take too much risk you will fail. This simple thought is what keeps the free market capitalistic system working. Its time to let a few risk takers fail.

In summary? a plan that provides no tax payer cost to a bail-out, a true economic stimulous package. A way to penalize those that instituted the loan programs that caused the bubble. Simple but effective in its simplicity.

Am I wrong?

Interested in others thoughts,

Joe from Portland Oregon


Claudia   September 30th, 2008 2:21 am ET

Hello Larry,

I never thought, never ever, that the world economies
and its citizens were, are and will be still affected by american
congress-men decisions.
I do hope that congress-men will vote in favor for the bail-out
as the alternative will be worst and there is no time.
Of course, all the fault comes from the ex-investment banks and we should not help them but it is the only solution.
Otherwise, only chaos here in American and around the world.
It is really frightening. I do hope that this is the last Republican government.
Thank you for giving us the opportunity to comment in the very important moment in history.

Claudia
I


Valerie G Allen   September 30th, 2008 2:22 am ET

The blind leading the blind, DAY AFTER MCCAIN STATED: John McCain: “I’m going to be honest. I know a lot less about economics than I do about military and foreign policy issues. I still need to be educated.”:John McCain: “I still need to be educated. IS THIS MCCAIN LESSON!!!!!!


Butch   September 30th, 2008 2:38 am ET

I'm sorry if I offend anyone, but I just have to say I love your ideas but your math skills need sharpening. The last time I went to school one times anything was anything. Therefore if we give 200 million people $1 that would be $200 million dollars. Now add a zero to each number and you can see how far off you really are. So if everyone received your estimated $425,000 it would actually be $85 trillion dollars not billion. Sorry, but I love the way you think.


Valerie G Allen   September 30th, 2008 2:38 am ET

People can't get credit, no loans, 20 to30 years from now, the government isn't worrying about the little people, stealing Social Security retirement funds. The government never intended on preserving our economic for the future of our children. Maybe I should review the budget. As long as this depression didn't affect the richest people in this world, all hands on deck. now that the wealthy people are crying now they are pressing for all American to bail them out.
95% of the people, can't afford it!!!!!


Valerie G Allen   September 30th, 2008 2:45 am ET

My god, does Sarah Palin need to be lead like a puppy with a leach by McCain, the Republicans are unbelievable. Sarah Who?


jim elmore   September 30th, 2008 2:50 am ET

Our leadership has failed. Government is gridlocked over what to do about the capitol infusion. The republicans and the Democrats would see our country fall to it.s knee.s, rather that give the other side an advantage. We the people are pawns in their game and they have proven they could care less as long as they get re-elected.
See if you can get Warren Buffitt on the show. He is trusted by the people. Have him explain what he thinks will be the outcome if we fail to act. The American people will hold both parties responsable, should they fail to act after he has spoken.
McCain is a gut thinker like Bush, we see where that took us. The republicans will be years recovering from the Bush disaster.Obama seems too soft and unwilling to take the lead or any risk. We are a bit far North to be a banana republic, but?


Valerie G Allen   September 30th, 2008 2:55 am ET

McCain , he doesn't "got you journalist" Sarah looks pitiful.


Butch   September 30th, 2008 3:03 am ET

I wish people would stop criticizing the candidates. It’s all our faults for letting it get out of hand. We the people vote these people in, and it is we the people who don’t vote them in. What I mean by that is voter turn out in this country is a joke. We all feel like our votes don’t count and you would be wrong. They do count, unfortunately less than 50% of us vote. The party system has to end. If this last bout in Washington wasn’t enough for you, then it’s time to wake up. Republicans and Democrats will never get along, and their taking us with them. I’m not going. You can vote for who you like but I’ll waste mine on someone else.


Butch   September 30th, 2008 3:08 am ET

Goodnight Valerie it's late 3:08am here


Kylene@Seattle   September 30th, 2008 3:12 am ET

Larry/Suze,
What do we do now if we're a young working couple that needs to save and invest and buy a home and start a family, when everything seems so unstable? We are watching our friends and family get laid off, lose their homes, and rack up debt and it seems like the only thing to do is hold on to our money and wait it out. Do you have any other advice?


puneet   September 30th, 2008 3:12 am ET

I am happy that the bill was rejected.. we should stop doing the patch work, but should look and work for real change and more permanent solutions. And anything that comes from Bush administration, I frankly do not trust it anymore.


Adam   September 30th, 2008 3:20 am ET

Possible alternative solution to economic crisis!!!!!! Please read!!!!

This idea sounds just crazy enough to possibly work, so naturally it won't be given serious consideration. How great is our bureaucracy!!

I'm against the $85,000,000,000.00 bailout of AIG.

Instead, I'm in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.

To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up..

So divide 200 million adults 18+ into $85 billion that equals $425,000.00.

My plan is to give $425,000 to every p erson 18+ as a We Deserve It Dividend.

Of course, it would NOT be tax free.

So let's assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes.

That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket.

A husband and wife has $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family?

Pay off your mortgage – housing crisis solved.

Repay college loans – what a great boost to new grads

Put away money for college – it'll be there.

Save in a bank – create money to loan to entrepreneurs.

Buy a new car – create jobs

Invest in the market – capital drives growth.

Pay for your parent's medical insurance – health care improves.

Enable Deadbeat Dads to come clean – or else!

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Leh m an Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.

If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ("vote buy") economic incentive that is being proposed by one of our candidates for President.

If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!

As for AIG – liquidate it.

Sell off its parts.

Let American General go back to being American General.

Sell off the real estate.

Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't.

Sure it's a crazy idea that can "never work."

But can you imagine the Coast-To-Coast Block Party!

How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion

We Deserve It Dividend more than the geniuses at AIG or in Washington DC

And remember, The Birk plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.

Ahhh...I feel so much better getting that off my chest.

Kindest personal regards,

Birk

T. J . Birkenmeier, A Creative Guy & Citizen of the Republic

PS: Feel free to pass this along to your pals as it's either good for a laugh or a tear or a very sobering thought on how to best use $85 Billion!!

No virus found in this incoming message.


Christina   September 30th, 2008 3:21 am ET

I have always lived within my means. I don't use credit to make purchases that I cannot immediately afford. I think this is a responsible way to live. Will the current crisis and potential future crisis force Americans to live more responsibly with their money? If so, isn't this a needed wake-up call for over-consuming Americans? Will Americans living within their means have to pay the price for Americans living outside of their means?


Leonard Steinberg   September 30th, 2008 3:23 am ET

Can the crisis be handled without reigning in and bringing to justice the brokerages and clearing houses which are blatantly
counterfeiting (electronically) stocks by naked short selling?
The mortgage part of the problem may be the tip of the iceberg.
Nobody seems to want to take the brokerages and Cede Company
(clearing house run by the brokerages) to account.


Adam   September 30th, 2008 3:23 am ET

Please Read!! Possible alternative solution to economic crisis, thought of by a man from Kenton, Ohio.

This idea sounds just crazy enough to possibly work, so naturally it won't be given serious consideration. How great is our bureaucracy!!

I'm against the $85,000,000,000.00 bailout of AIG.

Instead, I'm in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.

To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up..

So divide 200 million adults 18+ into $85 billion that equals $425,000.00.

My plan is to give $425,000 to every p erson 18+ as a We Deserve It Dividend.

Of course, it would NOT be tax free.

So let's assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes.

That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket.

A husband and wife has $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family?

Pay off your mortgage – housing crisis solved.

Repay college loans – what a great boost to new grads

Put away money for college – it'll be there.

Save in a bank – create money to loan to entrepreneurs.

Buy a new car – create jobs

Invest in the market – capital drives growth.

Pay for your parent's medical insurance – health care improves.

Enable Deadbeat Dads to come clean – or else!

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Leh m an Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.

If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ("vote buy") economic incentive that is being proposed by one of our candidates for President.

If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!

As for AIG – liquidate it.

Sell off its parts.

Let American General go back to being American General.

Sell off the real estate.

Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't.

Sure it's a crazy idea that can "never work."

But can you imagine the Coast-To-Coast Block Party!

How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion

We Deserve It Dividend more than the geniuses at AIG or in Washington DC

And remember, The Birk plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.

Ahhh...I feel so much better getting that off my chest.

Kindest personal regards,

Birk

T. J . Birkenmeier, A Creative Guy & Citizen of the Republic

PS: Feel free to pass this along to your pals as it's either good for a laugh or a tear or a very sobering thought on how to best use $85 Billion!!

No virus found in this incoming message.


ed   September 30th, 2008 3:24 am ET

If credit dries up then we are forced into becoming a cash economy again. Gee Whats wrong with that?

Is the intent to keep us indebted forever? Foreclosures arent such a bad thing ...just a byproduct of the correction in the housing market. which by the way was manipulated through fraud at the highest levels.

Why pay the Fed to create more money that we must pay interest on ?

Is this not an opportunity to print our own currency at 0 interest?


Adam   September 30th, 2008 3:25 am ET

What Ben is saying is right!!!! Read this!!! It relates!!!!

This idea sounds just crazy enough to possibly work, so naturally it won't be given serious consideration. How great is our bureaucracy!!

I'm against the $85,000,000,000.00 bailout of AIG.

Instead, I'm in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.

To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up..

So divide 200 million adults 18+ into $85 billion that equals $425,000.00.

My plan is to give $425,000 to every p erson 18+ as a We Deserve It Dividend.

Of course, it would NOT be tax free.

So let's assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes.

That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket.

A husband and wife has $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family?

Pay off your mortgage – housing crisis solved.

Repay college loans – what a great boost to new grads

Put away money for college – it'll be there.

Save in a bank – create money to loan to entrepreneurs.

Buy a new car – create jobs

Invest in the market – capital drives growth.

Pay for your parent's medical insurance – health care improves.

Enable Deadbeat Dads to come clean – or else!

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Leh m an Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.

If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ("vote buy") economic incentive that is being proposed by one of our candidates for President.

If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!

As for AIG – liquidate it.

Sell off its parts.

Let American General go back to being American General.

Sell off the real estate.

Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't.

Sure it's a crazy idea that can "never work."

But can you imagine the Coast-To-Coast Block Party!

How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion

We Deserve It Dividend more than the geniuses at AIG or in Washington DC

And remember, The Birk plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.

Ahhh...I feel so much better getting that off my chest.

Kindest personal regards,

Birk

T. J . Birkenmeier, A Creative Guy & Citizen of the Republic

PS: Feel free to pass this along to your pals as it's either good for a laugh or a tear or a very sobering thought on how to best use $85 Billion!!

No virus found in this incoming message.


Phil in Las Vegas   September 30th, 2008 3:25 am ET

Thank God it failed. This was a terrible plan. Parts were great parts were terrible. Golden PArachutes was way too weak if your going to take them then take them all.
U.S.Congress should federalize the Federal Reserve and take it back from the people on Wall Street. All they are worried about is making a profit not the American People.
If you want to give $700 Billion away give it to the taxpayers not to Wall Street.


Hyatt   September 30th, 2008 3:30 am ET

Muslims also dedicated viewers of your show.
The Muslims religious holiday is celebrated on Tuesday, Wednesday and Thursday is so Happy Eid to all Muslims around the world.


Bryan   September 30th, 2008 3:31 am ET

All these money issues are very simple,people who were granted credit and the banks to allow credit to be given lies all on GREED. We are a spoiled rotten country with a "got to have it now" attitude, due to people overspending and banks over borrowing and government over extending finally "Over" literally has taken effect. The Stock market is nothing more than legalized gambling. As the quote goes: Play responsibly...we have such a "irresponsible" government and we all can thank the White House for this big mess..no wonder with a president with the education of a hillbilly!


Priscilla Banks   September 30th, 2008 3:36 am ET

So here we are, the Stock Market did not like being what we the people wanted, so they trow this PADDY, that sent the market tumbling
just to show the PEOPLE what they can do, when they do not get their
way ! WHAT BRATS ! !


brett steele   September 30th, 2008 3:40 am ET

divide the 700 billion to all u.s. citizen who's 21 and above equally,,,,
it should be around 500-600k each,,,,,,now, charge us tax on it right away,,,,,,,,,,,


ARLENE   September 30th, 2008 3:44 am ET

I am nearly 69 & an invalid & INFURIATED ON WHAT'S GOING ON IN AMERICA!!!!!!!!!!!!!!!

I can't sell my condo that I inherited from my dear 91 yr old mother last year so that I can move into an assistd liviing facility, due to the "crap" that has been going on this past year!!!!!!! .Unfortunately, I also inheireted a $150K mortgage that mom took out due to her need to have more than 1 caregiver because she was a paralyzed stroke victim since 1993 & NEED MORE CARE IN 2005 .

I think that the ENTIRE CONGRESS SHOULD BE FIRED BECAUSE THEY HAVE USED THE EXCUSE OF the Jewish New Year to CLOSE SHOP durig THE MOST CRITICAL FINANCIAL CRISIS IN AMERICA.......even tho the MAJORITY of the congress is not Jewish & this is not a HIGH JEWISH holiday!!!!!!!!!!!! They seem to use any & EVERY excuse to close shop (by the way.....HAPPY NEW YEAR TO YOU & YOURS).

I have the mortgage on this place thru Wachovia & am concerned about what will now happen ..............it's taken me 6 mos. to get to a human @ Wachovia & finally last week , said would send me a copy of the mortgage & still have not received it ..........they FU__ED up & did not transfer my name also the lawyer faxed a letter this past April 12 to advise them of my ownership. Found out Wachovia does not bother to enter info chronologically into their computer notes....A GREAT COMPANY, RIGHT??????????? Not surprised they are folding also!!!!!!!!!!!!!

ALSO, WHat about McCain & the Keating 5 which cost us $5 Bill?????????????? Neither YOU nor any one else brings this up????????????

*********************************************************************
THOUGHT YOU MIGHT LIKE TO SEE THIS E-M THAT IS GOING AROUND>>>>>>>>>>>>>>>>

-NOW HERE IS AN IDEA THAT SOMEONE CAME UP WITH!

> I realize there may be some problems here, but I like this plan better than what
> is proposed
> What do you think?
>
> Subject: Alternate AIG Bailout Proposal
>
>
> Dear friends;
>
> I'm against the $85,000,000,000.00 (billion!) bailout of AIG.
>
> Instead, I'm in favor of giving the $85,000,000,000 to America in the form of an
> American Assistance Dividend.
>
> To make the math simple, let's assume there are 200,000,000 bonafide U.S.
> Citizens 18+. Our population is about 301,000,000 +/- counting every man, woman
> and child. So 200,000,000 might be a fair stab at adults 18 and up.
>
> So divide 200 million adult citizens 18+ into $85 billion; that equals
> $425,000.00.
>
> My plan is to give $425,000 to every citizen 18+ as an American Assistance
> Dividend.
>
> Of course, it would NOT be tax-free.
>
> So let's assume a tax rate of 30%.
>
> Every individual 18+ has to pay $127,500.00 in taxes.
>
> That sends $25,500,000,000 right back to Uncle Sam.
>
> But it means that every citizen 18+ has $297,500.00 in their pocket.
>
> A husband and wife has $595,000 .00.
>
> What would you do with $297,500.00 to $595,000.00 in your family?
>
> Pay off your mortgage – housing crisis solved.
>
> Repay college loans – what a great boost to new grads
>
> Put away money for college – it'll be there
>
> Save in a bank – create money to loan to entrepreneurs.
>
> Buy a new car – create jobs
>
> Invest in the market – capital drives growth
>
> Pay for your parent's medical insurance – health care improves
>
> Enable Deadbeat Dads to come clean – or else
>
> Remember this is for every adult U S Citizen 18+ including the folks who lost
> their jobs at Lehman Brothers and every other company that is cutting back. And
> of course, for those serving in our Armed Forces.
>
> If we're going to re-distribute wealth, let's really do it... instead of
> trickling out a puny $1000.00 ( 'vote buy' ) economic incentive that is being
> proposed by one of our candidates for President.
>
> If we're going to do an $85 billion bailout, let's bail out every adult U S
> Citizen 18+!
>
> As for AIG – liquidate it. Sell off its parts. Let American General go back to
> being American General.
>
> Sell off the real estate. Let the private sector bargain hunters cut it up and
> clean it up.
>
> Here's my rationale. We American citizens deserve it and AIG doesn't.
>
> Sure it's a crazy idea that can 'never work.'
>
> But can you imagine the Coast-To-Coast Block Party!
>
> How do you spell Economic Boom?
>
> I trust my fellow adult Americans to know how to use the $85 Billion American
> assistance Dividend more than I do the geniuses at AIG or in Washington DC.
>
> And remember, the plan only really costs $59.5 Billion, because $25.5 Billion is
> returned instantly in taxes to Uncle Sam.
>
> Now this is a plan I can support.
>
>
>
> Concerned American Citizen.


Adam   September 30th, 2008 3:49 am ET

Ok, I just did the math on that stupid forward I got, and the math didn't even work out to be correct. God, I feel like an idiot... It was a good thought though!!!!


s r halsey   September 30th, 2008 3:49 am ET

I think this bailout and the "pending economic disaster" is pretty close to a sitcom. People have asked: "How could this have happened?" I on the other hand have seen the writing on the walls for years and now its time for people to finally pay the piper. Let me think now, if I try and pay for things that I cannot afford with money that I do not have, I wonder how long I can get away with it? And yet that is the state in which the American economy finds itself in this very day. You cannot keep buying things on "Credit" or "No Money" indefinitely and then expect someone else to pay for your stupidity by bailing you out of trouble complaining like a bunch of kids whos candy has been taken away from them. I personally have been living below poverty for years figuring out how to squeeze a quarters worth of value out of a nickel because no one wanted to extend "Credit" to me and now I get to sit back and watch all those who claimed that they were better than I am and refused to listen to me squirm like maggots in hot grease as they are finally taught a valuable financial lesson. Who's responsible for this mess? YOU ARE. Is there a solution? ABSOLUTELY. Am I going to tell you? I havent decided yet. This is just way too much fun. Besides, do you honestly think that people would listen and do what it takes to fix it anyway?


Bill   September 30th, 2008 3:55 am ET

what's the cost for the auto mfgrs. and airlines gonna be? ya lets go with the bailout and watch inflation continue to go rampant. Maybe we ought to amend the constitution to allow a dictator at least then we'd know who's head belongs on the block!


Misanthrope   September 30th, 2008 4:04 am ET

I support the bailout. A loss of jobs would be a devastating blow to the bourgeoisie. Protecting the wealth of a select few wealthy influential individuals does not qualify as a complement to the greater good. The Republicans should suck it up and quit blaming the failure of the said bill on a few "harsh" words.

Vote for Obama, save our country.


Albert D. Beedie, III   September 30th, 2008 4:05 am ET

Congress was shameful today! To put partisan politics ahead of saving the this disaster is sick. American's are struggling and wondering if we will have jobs tomorrow and they're more concerned about their feeling than voting what is in the best interest of our economy. I don't like this bailout any more than anyone, but unfortunately we are past the point of no return. Thanks the Mr. Bush and his failed administration we are stuck here today and now we really don't have much choice. Then to add insult to injury they take two days off in the biggest political crisis in almost 80 years, and perhaps ever. Give me a break. If any of the incumbents get re-elected, the American electorate ought to have their heads examined!


David   September 30th, 2008 4:07 am ET

Saw this on an e-mail chain. What do you think?:

The Birk Economic Recovery PLan

Hi Pals,

I'm against the $85,000,000,000.00 bailout of AIG.

Instead, I'm in favor of giving $85,000,000,000 to America in a 'We Deserve
It Dividend'.

To make the math simple, let's assume there are 200,000,000 bon-a-fide U.S.
Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child.
So 200,000,000 might be a fair stab at adults 18 and up..

So divide 200 million adults 18+ into $85 billon that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a 'We Deserve It
Dividend'.

Of course, it would NOT be tax free. So let's assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes. That sends
$25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket. A
husband and wife has $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family?
Pay off your mortgage – housing crisis solved.
Repay college loans – what a great boost to new grads
Put away money for college – it'll be there
Save in a bank – create money to loan to entrepreneurs.
Buy a new car – create jobs
Invest in the market – capital drives growth
Pay for your parent's medical insurance – health care improves
Enable Deadbeat Dads to come clean – or else

Remember this is for every adult U S Citizen 18+ including the folks who
lost their jobs at Lehman Brothers and every other company that is cutting
back. And of course, for those serving in our Armed Forces.

If we're going to re-distribute wealth let's really do it...instead of
trickling out a puny $1000.00 ( "vote buy" ) economic incentive that is
being proposed by one of our candidates for President.

If we're going to do an $85 billion bailout, let's bail out every adult U S
Citizen 18+!

As for AIG – liquidate it.
Sell off its parts.
Let American General go back to being American General.
Sell off the real estate.
Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't.

Sure it's a crazy idea that can "never work."

But can you imagine the Coast-To-Coast Block Party!

How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion 'We
Deserve It Dividend' more than I do the geniuses at AIG or in Washington DC.

And remember, The Birk plan only really costs $59.5 Billion because $25.5
Billion is returned instantly in taxes to Uncle Sam.

Ahhh...I feel so much better getting that off my chest.

Kindest personal regards,

Birk

T. J. Birkenmeier, A Creative Guy & Citizen of the Republic

PS: Feel free to pass this along to your pals as it's either good for a
laugh or a tear or a very sobering thought on how to best use $85 Billion!!


Matt McKee   September 30th, 2008 4:13 am ET

Honey; I wana bail out from the government for our home loan. Why can't those people in governemnt get together and approve the 700 billion bail out.

Well; what about the people who don't own homes? Should they pay to remain renters?

It needs to be done; why can't those politicians just get together on this. I know they say the package isn't great, but it's something.

Ya know, this reminds me of our conversation right before we bought our current house; the Real Estate agent kept saying we needed to make a decision now, because the opertunity would be gone tomorrow. We only spent 600,000 on our 350,000 home, and we can walk away; where is America going to walk to?

Maybe it's time to slow down and look before we jump. It sound's like somebody's trying to creat fear, so we will accept a decision that we have not had any time to review. Do ya remember the Loan contract? We signed things presumeing that the future would be never ending housing appreciation, and we even lied about our incomes to qualify.

George Bush thinks we should take the deal now, and so do a lot of other government officals. They say we need to act now, or there will b dire consequences later. And the media seems to agree; Suzy Orman says we need to save the home owners.

Suzi will say anything to get some press; she will even participate in the creation of panic in the market when any good wall street man knows that it ain;t about the facts, i's about emotion. The market moves based upon emotion, and people don't buy things, they buy emotions. Even if they are selfish emotions driven by slef neede and self desire. All thos e people on TV should know better; the market will not chang direction until all emotion driving it in either direction is heightend to a level of fear or greed. People are afraid, cause they don't know the future, or undersatand how one quarte a company can put out perfect 10Q's and the next quarter they're showing 7.00 loss per share just after the CFO has left.

The public chooses to follow those who stimualte theirr emotions and not thier logic. Tell the big lie and publish it large so the facts can be known as predicted. Then, when the markets fall, we can purchase up the remnants as a custom of our considerate and helpful behavior and reap the benfits when we rewrite the lws that will again protect and empower those who are already rich and empowered.

And guess what; if we get caught we'll say we can't be held responsible; we work in the public sector. We have no liabilities or responsibility fror our decisions. You elected us, and you cannot threaten us. It was your decision; we live in a democracy.

Oh honey; your getting wierd, and your starting to be negative; I don't want to talk about is any more. You sllep on your side of the bed tonight; and don't touch me or I'll call the police.

I'm sorry honey; I'll do whatever you say.

IT'L BE ALRIGHT; I DON'T WANT TO ARGUE.


Sivashankar Krishnapillai   September 30th, 2008 5:19 am ET

I am from the other side of the world in Malaysia and was up until 4am, following the developments in disbelief!

This affects me a non American, as much as it does the lay American in the street.

All I can say is how naive the people who voted against this are. This is a fire and needs to be taken care of first.. Then we can come to taking measures in time, to prevent a recurrence.

Come on .. Help us all,,, Pass it on Thursday!


Coulton Berkinshaw   September 30th, 2008 5:20 am ET

I'm a 43 year old Canadian living in Switzerland. You'd think I'd be one of the last people effected by the financial crisis in the USA.

Unfortunately, I'm a IT consultant specializing in banks and finance... and I'm an unemployed single parent and looking for work.

Guess what... no one is hiring. I wonder why?

No health insurance, my son just broke his arm and we have no food to eat. Yeah... Switzerland... who could have imagined THAT?

Get it together you guys... the whole world is depending on you.


Sue   September 30th, 2008 5:21 am ET

Sir,

Comment on Lue Dobbs story on CNN abouth the North American Union that he signed and approved in 2005 and how it affects this economic crisis.

Also how the Asian Union, the EU and the One World Government goals the world governments have a plan to start.

This is not a secret, but many don't understand how this current world economic crisis plays in this.

Sue


Perci   September 30th, 2008 5:27 am ET

I believe now is the time that all the richest families in United States show their patriotism by pitching in on the bill of $700billion. The common South Koreans gave up their gold during the Asian Financial crisis.


Ndubuisi from Nigeria   September 30th, 2008 5:28 am ET

Hello larry,
If the US lost about a trillion dollars in one night....it wouldnt be such a bad iddea passing that bill. America lives on credit and if the american people dont have access to credit, then there is a problem that should be solved as soon as possivle


Perci   September 30th, 2008 5:31 am ET

I believe now is the time that all the richest families in United States show their patriotism by pitching in on the bill of $700billion. The common South Koreans gave up their gold during the Asian Financial crisis.


Carole   September 30th, 2008 5:40 am ET

The defeat of the bailout is a direct result of the fact that Americans by and large - including most politicians - do not understand the extent to which the US financial system is inextricably entertwined with global economy and financial markets. This crisis is not just a 'Wall Street' problem that will go away if a few banks or companies fail. The implications of non-action or delayed action are staggering and could ultimately cause far greater devastation than the 1929 depression.

The average person writing to his/her congressman or woman has little understanding about what is happening, or worse, what could still happen without immediate action.

People do not trust politicians. I believe the onus lies on the media, TV and press, to educate mainstream voters and uninformed politicians in simple terms as to the potential disaster of not passing this bill, or another rescue plan, immediately, within this week.

We cannot sit around and wait months to draft new regulations for Fannie Mae & Freddie Mac as suggested on Larry's show tonight but that very ignorant Republican Congresswoman. If we don't quickly stabilize financial markets worldwide, we will also be sending a signal to hostel governments that we are weak and our hands are tied. A sitting duck unable to fly.


David and Lynne Haahr   September 30th, 2008 5:44 am ET

Dear Larry;
Several things that can certainly help from here on out:

1) Never allow any politician to ever take another campaign contribution from a major US corporation again. This should be banned and ALL politicians should be allowed to run for office ONLY on their own funding as in Europe this will cut all of this influencing.

2) The United States should NOT ever consider borrowing from China or any other country to BUY ITS WAY out of its own debt. You can NEVER borrow your way out of debt.

3) It should be mandatory at this point in the Financial situation that ALL Major corporations in the US should put all of their profits back into the US economy and the US government should in no way even consider paying off the Golden Umbrellas of corporate execs who have helped to cause this. "Do you reward your son when he breaks a window"? These execs have been living off of FAT pay checks that are in the millions of dollars and we are just supposed to feel sorry for them when they caused this mess.


Bulent Akman   September 30th, 2008 5:49 am ET

Won't a bailout send the message that it's still worthwhile to seek profit gambling on loss and failure? Haven't some investors just gotten wildly rich? Isn't it clear that there was an incentive to encourage this crisis into being?

Call me naive, but it seems like Americans got the government they deserve. Total freedom still equals total liability, right?


David and Lynne Haahr   September 30th, 2008 5:53 am ET

Larry:

What ever happened to "OF THE PEOPLE, BY THE PEOPLE AND FOR THE PEOPLE"? When did the government become only for the rich and forget about everybody else. ALL of the politicians and legislators in House and Congress are to blame for this NOT the general public who are now suffering because of their misguided judgments. The Government should NOT be allowed to borrow the US further into debt by going to China to borrow they should go to the Major US corporations to borrow and NOT pay for Golden Umbrellas.

The US government and Major Corporations caused this because of their greed factor and they should be the ones to BAIL OUT THE LITTLE GUYS!


Kaela   September 30th, 2008 5:57 am ET

I keep hearing your guests talk about how the credit sqeeze will affect them....and the one reason i keep hearing is that small business will not be able to make payroll because they cant borrow. Im sorry, do i live on another planet? If you have to borrow to make payroll, you shouldnt be in business...period. Suzie saqid that people charge things on their cards to make ends meet...well its time they learned to live within their means.
Dont bailout anything....failure is a part of the free market system....let it take its course...no amount of money is going to stop the inevitable.


David and Lynne Haahr   September 30th, 2008 5:58 am ET

There is one thing that the United States should do from here on out: NEVER ALLOW CORPORATIONS IN THE US TO EVER MAKE A SINGLE CONTRIBUTION TO ANY ELECTION CAMPAIGN IT SHOULD BE OUT-LAWED" If a candidate wants office he/she should carry their own campaign funding like they do in Europe. This way they cannot be controlled once they are in office.


David and Lynne Haahr   September 30th, 2008 6:03 am ET

The house did the right thing by NOT passing the Bail-out resolution because it was geared towards assisting those executives and corporations who caused this mess. It did NOTHING at all to help or protect the US Citizen the average Joe who pays the fat salarys of these greedy corporate execs and government politicians.....There is NO WAY that this bail-out would ever work nor any bail-out if it means further borrowing from any other foreign country: China, Japan, Asia etc.....YOU CANNOT BORROW YOUR WAY OUT OF DEBT....ALL YOU WILL DO IS MAKE THE HOLE BIGGER AND PROLONG THE INEVITABLE....THE FALL! And it reall hurts when you hit bottom....JUST ASK THE AVERAGE AMERICAN who has been so abused by its own Government!


David and Lynne Haahr   September 30th, 2008 6:14 am ET

President George Bush and his current cabinet have done nothing but LIE to the American people as he did to North Korea when he signed the last treaty with them.....The North Korean Government is reactivating their nuclear program because Bush administration never lived up to its obligations....the American Citizens do not have a turn around point when it comes to President Bushes Lies! It is to late in his Presidential carrier he is on his way out and anything he can do to create more havoc for the new President he will do......He and the Republicans all know that Obama will win this election and at that point they will dominate for once all factions of the Government and it is the Republicans who are out to create as much discourse as they can before the next FULLY DEMOCRATIC ADMINISTRATION TAKES THE HELM.


perci   September 30th, 2008 6:21 am ET

I believe it is good time for the richest families in the United States to show patriotism by pitch in on the bill of $700 billion bailout. The common South Koreans pitch in their personal gold during the Asian Financial Crisis. Why can't they?


Tee Wilson   September 30th, 2008 6:32 am ET

I am tickled to death that the buy out failed. I saw one of the Senators who was heavily invested in stocks almost crying when begging the public to get behind this buy out. Free enterprize dictates the market that we live with. Stop whining to the Govt. We will not suddenly die should we have another depression. We have become a nation of cry babies dependent on the Govt to tell us what to do, bail us out, pay our debts. GROW UP and get back to the real world where people WORK for a living. We are the tax payers who will have to shoulder the weight of this fiasco. I would rather take my chances with free enterprize. Let the chips fall where they may! I am a lifelong democrat who is sick to death of what we have made of this country, but thank GOD the Republicans are using their brains! The American people do NOT want this! we are not a bunch of children who must be told what to do. Let go of wall street's hand and let them walk on their own. I know that it is not ALL about wallstreet dont minimize my statement, but it is BAD business that got these people in this mess. Buy what you can afford and stop living outside your means!


David and Lynne Haahr   September 30th, 2008 6:49 am ET

Larry,

It is high time that the War Mongering and Greedy republican party is out of office. I just hope that it is not to late for the American people to wake up and take notice of their surroundings and NOT allow something like this to happen again. Not allow the "BIG BROTHER" I will care for you mentality to take over again. In order for this NEVER to happen again the American People need to question and get more involved in the general goings on of the United States. Example The United States has fewer voting people show up capita then in any other country in the world. The American People also KNOW less about their own government and politics then in any other country in the world......THIS IS WHY AMERICA IS FACING IT'S CURRENT FINANCIAL PROBLEMS.....The United States Government should NEVER be allowed to police its own actions or set policies which regulate itself....that is a self serving government and NOT a government that is "OF THE PEOPLE, BY THE PEOPLE AND FOR THE PEOPLE"!!!!! What ever happened to "WE ARE ALL CREATED EQUAL"? The Government of the United States today is a "BOUGHT" Government...."PAID FOR BY THE MAJOR OIL AND DEFENSE CORPORATIONS OF AMERICA" These corporations are the ones who dictate what the politicians can say and do and a great example of this was what just happened with the FAILED BAIL-OUT RESOLUTION!!! Why do you think that Haliburton closed its corporate offices in the US and moved them to Dubai???? Because of Privacy Laws, Investigation and Disclosure Laws and extradition laws.....The American people need to wake up and realize that they cannot just take for granted that what "BIG BROTHER SAYS' is always TRUE and for the GOOD of the people........


sandra maluli   September 30th, 2008 7:43 am ET

how can anyone with a right mind vote for the same party that has been in power for the last 8 years and think this is a change.


Karen, New Jersey   September 30th, 2008 9:10 am ET

Don't even know where to begin. In the mortgage industry since 1982. Watched lenders create programs to allow people with low ficos and bad credit buy a home. No income, no asset verifications. 100% financing. If they didn't manage their money properly in the 1st place, what made them think they would be able to pay the mortgage after the initial reset of their interest rate? FHA creating a program "secure" and temporarily increasing borrowing limits "stimulas". Values decline and now owe more than the property is worth. Republicans admitting they saw the problem since 2005 and couldn't resolve? I've been laid off 6 times since 2005 and presently unemployed. Can't even meet the job search requirements for unemployment, there are no jobs available in the mortgage industry. Does this mean I'll lose my benefits? I only have until February 2009 to find another job. I am not alone in this. If you think that we have foreclosure issues now.. everyone that owns a home and unemployed in this industry will be in foreclosure within the next 6 mos, if not sooner. Unemployed, no savings, cashed in the small 401 that I had to payoff my car, couldn't afford the housing costs and a car payment on unemployment. At least my daughter and I will have a car to live in... THIS IS THE REALITY PEOPLE... this is life in these United States.


Roy J. Meidinger   September 30th, 2008 9:33 am ET

At the moment it is estimated 37% of the funds in savings accounts are not insured, i.e. the amount of the individual's savings in the bank exceeds $100,000 or for a couple $200,000. This situation will grow worse as the banks are merged together into larger bank, when one bank takes over another bank. We need to increase the Federal Deposite Insurance Coverage (FDIC) to $250,000 and $500,000 respectfully. This can be done by Presidential directive.


James   September 30th, 2008 10:32 am ET

This is G-R-E-A-T!!!!!

*************************************************************

I'm against the $85,000,000,000.00 bailout of AIG. Instead, I'm in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.

To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+. Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up...

So divide 200 million adults 18+ into $85 billon that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend. Of course, it would NOT be tax free. So let's assume a tax rate of 30%. Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has $595,000.00. What would you do with $297,500.00 to $595,000.00 in your family?

Pay off your mortgage – housing crisis solved.

Repay college loans – what a great boost to new grads

Put away money for college – it'll be there

Save in a bank – create money to loan to entrepreneurs.

Buy a new car – create jobs

Invest in the market – capital drives growth

Pay for your parent's medical insurance – health care improves

Enable Deadbeat Dads to come clean – or else

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.

If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ( "vote buy" ) economic incentive that is being proposed by one of our candidates for President.

If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!

As for AIG – liquidate it.

Sell off its parts.

Let American General go back to being American General.

Sell off the real estate.

Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't.

Sure it's a crazy idea that can "never work."

But can you imagine the Coast-To-Coast Block Party!

How do you spell Economic Boom?

I trust my fellow adult Americans do know how to use the $85 Billion We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC.

And remember, The Birk plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam. Ahhh...I feel so much better getting that off my chest.

Kindest personal regards,


David Sheriff   September 30th, 2008 10:39 am ET

I was amazed to watch Suze Orman on Monday night's show. Things may be very confused on Wall Street, and Monday's failure of the bailout plan may or may not be a disaster. But Suze was frankly hysterical. The sun came up this morning. The market will come to it's senses. The sky is not falling as Suze seemed to think. Call me stupid, but I think the country will not grind to a halt this week.


Surinder Puri   September 30th, 2008 10:44 am ET

I am wondering that rather than buying Mortgage back securities from the troubled financial institutions, why aren't we thinking about using the pool of money ($700Billion) to pick up foreclosed properties from the market. Once the inventory of foreclosed home reduce, demand might pick up, stabalizing the house prices. Once the prices stabalize, start selling the foreclosed houses. In the meantime, short term (month to month or three months) rental leases can be written at discounted prices. Perhaps the homeowners who are going to lose their house might use the reduced rents to stay in the home through the winter... Am I missing something?


just me   September 30th, 2008 11:23 am ET

Ms. Orman,
Yes, there are serious things going on, but don't you think you are engaging in scare tactics to a certain extent? On the 360 show which just ended, the "expert" who spoke before you broke out his charts and graphs to say many of the things you are, but also said the 777 points *could* be made up in a few days. Now, as a home owner who wants to sell his house, I know that the repercussions of this drop extend far beyond Wall Street, but I sense that we are being sold a bill of goods here.
This 1.2 trillion is a only a construct, if a very powerful one in a financial world whose physics revolves around fear and greed. There have been weeks when the dow has gone down over 500, then up again the next week, but we didn't hear about losing and gaining in terms of trillions of dollars – so why now?
Lenders would love to get bailed out, and if we don't like that, they can use the need to cut back on credit to make us fell enough squeeze to call our congressman.
Wall Street would love to get an influx of capitol.
Government seldom turns down the opportunity to expand.
I suppose that you would like to sell me your book – but I don't think I will buy it just now.


gerry   September 30th, 2008 11:38 am ET

Americans have ALWAYS believed that bigger is better, from cars to houses and many other material things, virtually all of it on credit. Well, now the bubble has burst, and you are faced with a BIG bailout of Wall Street (700 BILLION dollars) This has to be the ultimate disaster in financial management for America and its people.


Barbara   September 30th, 2008 12:11 pm ET

I receive a monthly pension from Illinois Municipal Retirement Fund. I need to know if my pension will continue. I have checked their website but there is nothing there. How can I find out?


Jon Barrett   September 30th, 2008 12:14 pm ET

Larry what if instead of 1 Trillon dollars to bail out Wall Street.... each person got 1 million dollars to bail the people out... we could all pay off our debits... the banks could supervise the funds from our accounts... money would flow back into the economy... and we could get rid of all the people who spend spend spend...
while we pay pay pay...


Heather Umphress   September 30th, 2008 12:23 pm ET

Larry,
As a small business owner and a true "middle income American" I have been glued to the television for the past week or so. I am of average intelligence and do have some stocks and IRA accounts but could someone in the media do a presentation in terms that the average person can understand. At this point I am not sure where I stand on the bailout or whom to be disgruntled with?


Roy J. Meidinger   September 30th, 2008 12:25 pm ET

The housing crises was like a giant ponce scheme, where everyone wanted to get rich. The home owner was sold on the idea they could afford the mortgage, but if they couldn't not to worry they could sell the house at a profit. The banks saw it as a methocd of lending more money, making higher profits, although with a greater risk, but they could quickly sell the mortgages Freddy Mac and Fannie Mae, and quickly get their money back or cut their losses. The ones who got in early, made the money, while the ones who got in late may lose everything.
A lot of suggestions are flying around as to what we must do in the short term, these must be done now. We can wait an additional three months or so, to determine what we must do for the long term.
We should look closely at the regulations past after the beginning of the depression in 1929. We should also recall that depression lasted for years and really did not end until after WWII.
It is evident, the welfare of the Country is important to each candidate and to each party, and the final solution will be a consenes of what the people want. What I would like to see from each candidate and from each party is when they expect to have a balance budget. A budget which reflects spending only what the government takes in, plus a slight reduction of the National Debt.


Ajay Kadakia   September 30th, 2008 12:33 pm ET

Larry, Great service you're providing to people globally.

I'm against the $85,000,000,000.00 bailout of AIG. Instead, I'm in favor of giving $85,000,000,000 to America in a "We Deserve It Dividend".
My suggestion puts $25B back in tressury right away (as tax), will fix mortgage crisis, eases credit problems and will have money left over to pull US out of recession. This is how:

To make the math simple, let's assume there are 200,000,000bonafide U.S. Citizens 18+. So divide 200 million adults 18+ into $85 billon that equals $425,000.00. My plan is to give $425,0 00 to every person 18+ as a "We Deserve It Dividend". Of course, it would NOT be tax free. Every individual 18+ has to pay $127,500.00 in taxes (assuming 30% tax rate).That sends $25,500,000,000 right back to Uncle Sam. But it means that every adult 18+ has $297,500.00 in their pocket.A husband and wife has $595,000.00.

What would y ou do with $297,500.00 to $595,000.00 in your family? Pay off your mortgage – housing crisis solved.
Repay college loans – what a great boost to new grads.
Put away money for college – it'll be there. Save in a bank – create money to loan to entrepreneurs. Buy a new car – create jobsInvest in the market – capital drives growth. Pay for your medical insurance.
If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!
As for AIG – liquidate it.Sell off its parts.Let American General go back to being American General.Sell off the real estate.Let the private sector bargain hunters cut it up and clean it up. Here's my rationale. We deserve it and AIG doesn't. Sure it's a crazy idea that can work.

-Ajay Kadakia


DONNIE BAKER   September 30th, 2008 1:00 pm ET

PLEASE FIRE SUZE. I WONDER HOW CAN SHE SAY AMERICAN'S LIVE OFF CREDIT CARDS. I ALWAYS PAY MY BALANCE IN FULL EVERY MONTH, BECAUSE I LIVE WITHIN MY MEANS, ACTUALLY BELOW MY MEANS, SAVE THE DIFFERENCE AND INVENST IN RENTAL PROPERTIES. PLEASE NOTE I MAKE $46,800.00 A YEAR.
WE NEED TO STOP LIVING ON CREDIT CARDS AND ACTUALLY PAY FOR THE THINGS WE BUY. IT ALL AMOUNTS TO PERSONAL RESPONSIBILITY, SOMETHING SOME PEOPLE NEED TO LEARN. NO MORE BAILOUTS!!


Clint Moser   September 30th, 2008 1:01 pm ET

The Dollar has increased the most against the Euro since the introduction of the shared currency in1999 now that the overinflated markets are starting to correct !!! Reject the Bailout Bandaid and let the credit wounds start to heal. Stop Printing Money out of thin air ! End Economic Slavery! You are not Free unless you are Debt Free !!! Reject the Bailout !!!


DONNIE BAKER   September 30th, 2008 1:18 pm ET

ALMOST EVERONE THOUGHT THIS 700 BILLION BAILOUT WOULD PASS WITH BOTH PARTIES LEADERSHIP, THE PRESIDENT ENDORSING IT AND MOST COMMENTATORS SAYING THIS WAS A MUST PASS BILL. THANK GOD, WITH ELECTIONS 5 WEEKS AWAY, THE HOUSE IS FINALLY IS LISTENING TO THE PEOPLE THEY ARE SUPPOSED TO REPRESENT, BY SOME ACCOUNTS A 20 TO 1 MARGIN AGAINST THIS BILL. A GREAT DAY FOR DEMOCRACY! WELL, WHAT DID YOU THINK WOULD HAPPEN TO THE STOCK MARKET WITH THE GRAVY TRAIN FAILED TO SHOW? IT'S ALREADY REBOUNDING. LET'S USE THIS TIME TO KILL THIS PILE OF CRAP (THE BILL) AND OFFER SOMETHING SUCH AS DIRECT REFINANCE OF ARM'S AT A DECENT INTEREST RATE, PUBLIC WORKS TO CREATE CONSTRUCTION JOBS AND LOANS TO THE BANKS THAT ARE NOT ON THE BRINK OF FAILURE?


JEAN   September 30th, 2008 1:45 pm ET

A solution for the Economy
US Population =
305,210,066

US Bank Bailout=
700 billon to a Trillon Dollars $1,000,000,000,000.
Now divide 303,210,066 into that and see what you get!!!!!!

Divide the money and give it to the American people!

2 billion dollars per person.
$2.000,000,000

Thay could pay there own mortgage off and have money to buy stocks,bonds,
create Jobs give to other countries in need.
It would stop the bailout of GM the car sales would be big.

Everyone in America would prosper.

If Thay are willing to give it to the banks thay should be willing to give it to the American People!!


Daniel Leiter   September 30th, 2008 2:03 pm ET

Raise the limit on FDIC insurance on saving from $100,000 to $250,000. What a joke! Everyone that has that much money to keep in a bank knows perfectly well that all they have to do is split their deposit between three or more institutions with no more than $100,000 in any one bank to have the entire $250,000 covered. For someone to put forth that proposal as a cure for the perceived problems is an idiot or thinks that we're idiots!


P.California   September 30th, 2008 2:27 pm ET

There are mixed feelings about this whole bailout issue. I was up for it at the beginning because it's a plan to save the economy as a whole, within the US and that uplifts foreign investors' confidence to pour more money into the country. But then why should we, tax payers, release our future securities for the bad decisions those CEO's/Presidents made? why didn't the government take actions earlier? Government officials, CEO's and other related people who caused all this mess should at least feel the shame for dragging us down with them.
America was once a land of dreams and opportunities, but now, it's just another country that's falling apart, even becoming a socialist with the government taking over those financial institutions with tax-payers money.
I'm a middle class worker who's trying to make a living and sustain a family, but with all this negative issues going on, makes me wonder whether there'll be a future for my kids, whether either candidates for the next presidential election will be strong and smart enough to do the right decision, a decision to favor the people instead of the contributors to their campaign.

P.LEE


Butch   September 30th, 2008 2:44 pm ET

Stop Posting this and do the math

I’m against the $85,000,000,000.00 bailout of AIG. Instead, I’m in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.

To make the math simple, let’s assume there are 200,000,000 bonafide U.S. Citizens 18+. Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up…

So divide 200 million adults 18+ into $85 billon that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend. Of course, it would NOT be tax free. So let’s assume a tax rate of 30%. Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has $595,000.00. What would you do with $297,500.00 to $595,000.00 in your family?

The answer is $425 per person not $425,000


Dan McMullan   September 30th, 2008 2:45 pm ET

Why were all your guest last night wealthy.
That day they had lost a lot of money in the stock market and of course the wanted the government to refill their pockets.
I lost a significant part of my retirement money, but I believe that your government should not give welfare to the extremely rich of the stock market.
Bush wants to reward the scumsuckers of the financial district before he leaves office. Im sure there will be a few financial board appointments waiting for him, if you hand out your childrens future to the wall street investors.
One of your guest was asked were did the trillion go. Her answer was it vanished because of the devaluation of property. My money in stock was paid in cash last year. Today I lost over 15 thousand in cash. that money didnt evaporate. There are coutries and individuals making money on the suffering of others.
Bank live by credit. I see them making loan an this crisis in a good enought excuse to add to their profits at the end of the year. If they need cash they should as your government does borrow it from China or some other cash rich developing country.
You know if you give money to beggars the next time you see them they will pester you for more. These financial handouts will never end and the hard working American will continue to lose their standard of living, houses and cars. The gap between rich and poor will widen .


Robert   September 30th, 2008 2:54 pm ET

Again 1 trillion divided by 303,210,066 is only $3, 298.04 do you people work on Wall STreet, because that would explain it.


Angela B   September 30th, 2008 9:27 pm ET

Vote no on the bailout please. Let's`clean up our business and banking. Let the banks and comanies that were taking reasonable risks and not costly sub-prime risks survive. We need a shakedown and let the insolvent entities fall aside as they sould. We need a clean slate not more debt and irresponsible behavior getting away with it as usual. I'm for change-let's start now.


Richard   September 30th, 2008 10:03 pm ET

Thanks so much for your two Guests Yesterday, Suzie and your other Economic expert. The graph of how main street would be affected by the wall street failures and no rescue plan from Congress is exactly what the American people need to be explained: they just think their bailing out the Fat cats when their really rescuing themselves.
The Average American doesn't understand the Gravity of this very serious Economic Disaster and how it will spell out Disaster for the them if we don't ( The American Government ) do anything to help or correct the very serious Economic situation.


Angela B   September 30th, 2008 11:58 pm ET

Richard-as of today loans are still being made to credit worthy people that meet the four C's of credit 101. Yes,belts will be tighter but they have been much too loose in recent years allowing anyone with any income level get a loan for interest payments only that was clearly beyond their means. It was bad decisions by a few greedy firms and it must be cleaned out of our economy if we are to move forward. This great country is home to the American dream, but you need to work towards that dream by savings, education to increase job growth for yourself and family and sound credit practices. The market will rebound for our 401 K's , we need to sit tight, and refrain from borrowing what we can't afford to repay.


David and Lynne Haahr   October 2nd, 2008 1:16 am ET

Larry;

I am so glad that the two partys have DECIDED what is good for all Americans. My question is why did they AGAIN put concessions and coat tail additional TAX breaks and TAX cuts for Big Corporations. WHY can't they just do the job they are asked to do? and

***What ever happened to “OF THE PEOPLE, BY THE PEOPLE AND FOR THE PEOPLE”? When did the government become only for the rich,the corporations and forget all about everybody else. WHEN do we get a say so in what is good for America? It seems that the politicians who have had a claim to what is good can't seem to figure it out.....they still think that America is ALL Republican and ALL corporate because every time they pass something it ALWAYS FAVORS THEM and NOT Americans as a whole!!!!

Why does it always take the Republicans a disaster before they wake up and start to make change. Corporate Republicans are the worst thing that the AMERICAN PUBLIC has ever had to face!!!!!!


Kim   January 9th, 2009 12:57 am ET

Hello Larry and Susan,

you know not everyone has credit card debt, yet that is where you alwasys go. what about us smart people who don't have ccredit card debt and want to get ahead of the game????


steve   January 15th, 2009 11:02 pm ET

if Oboma is so concerned about helping the money problem, who is going to pay the 160 million price tag for his inauguration?


Milford Kirby   January 28th, 2009 9:30 pm ET

To Ben Stein:
Why do you think expanded federal loan guarantees would cause less of a national debt burden than Obama's stimulus package? Doesn't a loan guarantee create a contingent liability for the taxpayers that adds IMMEDIATELY to the national debt (the same way a pension guarantee does)?


iloveyoumore   November 11th, 2009 10:35 pm ET

test 🙂


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