Bailout Winners And Losers

Well it looks like our Representatives in Washington D.C. are refusing to represent us, as the "Bailout For Wall Street Babies" is being voted on today in the House of Un-Representatives, which high expectations of passing. The Senate will make it a "done" deal on Tuesday or Wednesday, and "To Hell With The American People" Bush will sign it right after, and will guarantee himself a huge "golden" parachute once he leaves office, and can start collecting "speaking" fees from all the "monied" people he saved.

Whether you or for or against this bailout, you should let your Congressmen and Senators know, so that they can understand that this may be their last term in office if they go against our wishes. According to the polls a vast majority of the American people oppose this bailout, and elected officials should fear losing their jobs as they take this vote.

The story at Yahoo News by Tom Raum, an Associated Press writer breaks down the "winners" and "losers" in this bailout:
The proposal to bail out U.S. financial markets to the tune of up to $700 billion creates a lot of potential short-term winners, as well as some losers. Wall Street and the banking industry are perhaps the biggest winners. Scores of banks and other financial institutions faced with going under stand to gain a lifeline that should allow them to start making loans again. Under the plan that congressional aide sought to put into final form Sunday, the Treasury Department can start buying up troubled mortgage-related securities now held by these institutions.

These securities are clogging balance sheets, leaving banks without the required capital to make new loans and putting the banks dangerously close to insolvency. Banks not only have slowed lending to individuals and businesses, they have stopped making loans to each other. The rescue plan should help restore confidence to financial markets. There are other winners, too, if the bailout works as intended: anyone soon trying to borrow money -- for cars, student loans, even to open new credit card accounts.

Top executives at troubled financial institutions, on the other hand, are in the losing column because the proposal would limit their compensation and rules out "golden parachutes." Of course, these executives may take solace in knowing their jobs still exist. Investors, including the millions of people who hold stock in their 401(k) and pension plans, should benefit. Failure to reach a deal over the weekend could have sent stock markets around the world tumbling on Monday.
link to the full story