Talkback: Get your economic questions answered
Do you have questions about our economy?
What about jobs and unemployment?
How to address the issues of foreclosure and declining home prices?
How to improve Americans’ spending and savings habits?
What the “green” grid and “green” economy really means?
Post your questions below, and they might be answered on air as part of the first-ever CNN Money Summit. A panel of experts – journalists, politicians, business leaders – will be discussing how President Obama can fix the economy – and where he should start.
We want to hear your voice.
I understand why Obama (and the USA) want China to continue to buy our Treasury Securities and finance our debt. But I don’t understand why they do it. Their economy needs investment and it’s underdeveleoped. Why do they spend so much money on what is essentially a bank account?
How much would each taxpayer in the US have to pay if we were to pay off our debt to China? I don’t need this posted I would just like an answer.
hi,
I am working on a work sheet for my economics class and I can not find the answear to this question anywhere..”A ban on the import or export of items from a specific country is called?..” Please help its driving me crazy.
I was researching the number of “Tax Payers” and came across the question “How much $$ per taxpayer?”. In this article it states that there are “156.3 million” tax filers. My Question: of those who file, how many are “net” tax payers? How many of US citizens are actually directly contributing to the Federal Treasury?
I am a history teacher in a small town in Wisconsin. I have a question regarding elasticity. The question is “Patricia owns a beauty shop in her home. In April she charged $35 and sold 12. The next month she lowered the price to $25 and sold 8.” When calculating using the Total Revenue Test (P X Q) you get total revenue of $420 for month one and $200 for month two. with a price decrease and a Total revenue decrease it should be inelastic. Now if you take the same question and calculate Percent Change, you would get a change of 28% in Price and a change of 33% in Quantity. According to the rules of percent change of elasticity, when your change in quantity is greater than your percent change in price, it should be elastic. How can it be that the same situation is both? I would think that you should be able to calculate a problem both ways and come up with the same answer. Please help me to enplane this discrepancy to my students. Jason
hello im kirk ,im married and have a 4 year old son im trying to raise and give a decent education.im disable from a car acc.and draw around $11.000 yearly disability.it took me 4 years to get.meanwhile i lost my home and every thing else i worked all my life for.im writing to see what grants i may qualify for or any profesional advise you may have.my home is in terrible need of repair and we despertly need help.i have never asked for anything but i fill so imbarist for my son because im not able to provide for him like he needs.i hope somewhere out there someone will give this letter some attention and give us some helpful advise.we sure cant go on like this much longer.thank you very much for your time. ps.if you could just contact me about any grants that i may qualify for it would sure be helpful. thanks.
I was working as a visiting professor at a University in Texas under a one year contract. The contract ended June 2009.
I then applied for a renewal on the contract, but did not get it.
i was offered COBRA (at full price) for myself and wife ($12000). The University told me that were we not eligible for the premium reduction. Is this true?
hello i am a married with 1 child on a low income of 12,000 a year, my wife doesnt work but trying to survive on the income 1,000 a month, such as rent food ins. etc. it was hard getting food stamps for i did not know that my income was her income. are there any asist programs for married couples?
Some say that our country is in such bad shape that it could default on it’s debt. If that should happen what would it mean to the citizens of this country?
Who is buying the securities that back the stimulus package? 8oo billion- that’s a lot of obligation.
Hello,
I was laid off end of April after 20yrs from a large computer company. I will get a severance package of 17,686.32, and have 37,130.90 worth in shares/stock from this computer company (but of course the price of these shares will change day-to-day depending on the market) also I have 128,084.42 left in 401K, but of that, I have outstanding loans that amount to 7,878.87. I will end up having to pay taxes on that amount at the end of the year. We have been in our house for 6yrs and have two mortgages one with a balance of 168,367.56 and the other 32,671.69. My question ….how do I make the best out of the money I have…..my husband thinks I should take the severance along with the selling of some shares and payoff the smaller mortgage. I am nervous & scared of the future and need some guidance. I want to keep what’s left of my 401k and roll that over into an IRA with the same company that holds it now (Fidelity). I don’t want to touch that unless I MUST. I am finding it hard to find a job that pays similar to what I was making & so my focus now is not so much pay but just getting a job hopefully with insurance benefits, but just not sure how long we can hold out in our house with just my husbands paycheck coming in right now. Can you help me be smart with the money I have and help me do what I can now to plan for a not so sure future and how best to take the money I will be getting and make it work for us.
Thanks so much for your time. Beth in Texas
It is obvious is not going to fix this ,it is also obvious that everone has forgotten how important the workingclass is to this economy .I have been trying for four years to get anyone that truely wants to see this mess turn around to help me out to no avail .I am begging you cnn please give me and some assistance to help reach an audience of people who really wants to help turn this economy around .
We meaning the people if we unifify as one people can turn this economy around .I have the plan i have the ways we can turn this economy around in 6 months .The catch we have to leave the looking for no 1 ,the greed and selfishness aside .We also have to give up some of our privacy and our space .I believe that a cheap price to pay for a brighter tomorrow .It also beats depression ,stress ,strokes ,homelessness, crime ,prostituon ,drugand alcohol abuse to name afew .So please contact gigilewis@bellsouth.net my name is gloria lets puts our strenght resources together to fix the place by the way the theme is fix the place .My son already wrote and record the song fix the place for the cause .Thanks cnn you have the power to help turn this economy around with the oppurtunities to give people .
On The Money Summit today, after people responded to the survey question “How far would you go if you knew you had a job waiting?” Velshi and Cooper insinuated respondents did not understand the question. They should apologize to the American People for this gross mistatement. The survey results indicated, duh, that people would relocate great distances for a damn job! It’s a clear indication of the problems of Main Street. Maybe I should apply for your jobs if you can’t even read your audience better than that.
LISTEN!
Obama is not going to solve the worlds problems by giving money to banks, Insurance, businesses and The Union Mafia.
Most of what has happened is because of greedy, cheating,
dishonest people. This will never stop in this world we live in. This is the reason we have fewer manf. left in USA. And all you people who shop at WalMart have given the largest boost to China and loss of jobs here in US. WalMart is not your friend. Pull yourself up by your boot straps and get to work. Our government does not give us money without strings attached.
I’ve been a businessman (in business) for 52 years come this May. I was fortunate enough to be in a fairly large cash position when the @#&* hit the fan so to speak, and when my bank kept lowering my MMA yield, I started looking for another way to preserve my capital gain with little risk. I did a lot of research and finally settled on a company that has paid regular dividends for over 10 years. I have slept well every night since. My question is: WHY are all publicly traded companies not mandated to payback a portion of their earnings to the stockholders in the form of dividends. My question was promted today by GOLDMAN SAKS (GS) raising money today to payback taxpayer money (TARP) by an additional stock offering. When I looked at the payback in dividends it turned out to be less than my MMA. It now appears that the only way you can gain monetarily is for the stockprice to appreciate based on earnings that will never be realized by the stockholders , BUT WILL in fact allow for huge bonus checks to be handed out to the employees (not the stockholders) STARTING with the top management who will be rewarded more than all the rest combined. I cannot get my head around this no matter how hard I try. THIS, TO ME, is a ponzi scheme. I understand fully the concept of earnings/growth equates to realized value but for WHOM. Certainly not the people who invest. They only realize a gain if they sell the stock at a higher price. I wouldn’t accept an investor in my own company who was satisfied that we were continuing to grow the company along with our earnings, but his shares were only worth what he paid plus whatever growth we had acceived during his participation.
I would like to know how mortgage re-sets of ARMs will continue to effect home foreclosures, or is there something in the administrations housing plan that will address these?
You were talking about where our tax money goes. I would like to know how much of our tax dollars goes to pay for insurance and retirement benefits for the federal employees and all the elected officials. Maybe they could pay for some of their own.
I am 58 years old and retired from state government. I receive a monthly pension with federal income taxes deducted each month. I am not old enough for social security. Will my withholding decrease? Will I be able to take a credit next year when I file my taxes? Or have all the people who fit into my category been overlooked?
In today’s world econmy it hurt so much to see the financial stress the american people are going through these tough times. I was laid off last year 4/08. I tried so desperate to find a job but came back fruitless. Sometimes I feel like crying but I know it would not heal the pain, my benefits will expire on march 2009, and it would be greatly appreciate if Mr president Obama give another tier III extension. This will greatly help millions of us american in need to feed the family and pay our hefty mortgage to keep aroof over our head. Please advice. Thank you for your patience.
with the fuel spikes of the last year(higher gas prices) most corporations that stock our grocery stores and big chain outlets have passed the cost of higher fuel costs to the consumers in the form of higher price of goods….now that fuel costs are down considerably these corporations have locked in prices that they will not be willing to lower to reflect present day transportation costs! why is’nt washington weighing in on this?
I just watched the recent Money Summit and am now somewhat confused.
1) we gave money to bail the banks out because of their bad investments
2) we gave money to shore up AIG because they had a little probelm
3) AIG took our money and paid insurnace claims to the banks that had the bad investments
4) now we are going to buy the toxic assets that AIG insured and the we have already given the funds to the bank to help them out because of their bad decisions.
so . . . how many times are we going to pay for these bad decisions (toxic assets)and if the other efforts did not work why would we even want to do it again?
hi, i was wondering last year social security gave the people that gets paid on the 3rd a check for the stimulus checks, but never gave us SSI social security disabled people any of that why? are we all going to get this stimulus money this year as well or is the ssa retiree only, and when and if it be eigible for another stimulus checks?
I am 57, just “resigned” after being given the choice between resignation and termination. I am the 2nd person to leave suddenly under similar circumstances. I will not be able to afford Cobra payments. How do I apply for the 65% reduction in Cobra cost? I can’t find any answers about how to actually do this, who to contact.
I lived in Alaska until 3/21/2008. Things got kind of hard there so I moved to find a job and an affordable home. So I guess my question is will I qualify for the additional unemployment benefits and will I also get the $25.00 extra? I live in Oregon and get my unemployment from Alaska.
I understand the Stimulus Bill includes a 65% reimbursement for college expenses. Is this true?
Thanks!
will there be any money coming to the disabled this year like last year.i hear all kind of talk about money and credit goning to places but nothing about or direct to the people.
1) Where can we find the list of fiancial institutions that are participating in the T.A.R.P. Program?
2) Please explain to the great Moms and Pops and other businessses out there that the T.A.R.P. is not a free program to the Banks. The government is taking some skin from the banks. If the bank uses the funds and the loans go bad the good banks will have to repay the loan to the government regardless. Where wil that money come from?
I just heard at a chamber dinner of a company was sound, never late, had the 5 C’s and they had to close their doors because the financial instutions would not increase his line of credit. He was not directly involved with the RV Industry. I find this difficult to believe as we have over 15 banks in Elkhart.
So, I would assume that who ever we are banking with, we want them to be making sound loans, right?
I keep hearing about long term investing. I started 25 years ago is that long term? Now I’m retired and need my long term money. Where is it?
HERE IS REAL STIMULUS: Give each American a $50,000 debit card. You cannot pull out any cash from it, instead, you must use it for bills, food, purchases, travel, etc. The money needs to reach the street. Not the banks. The banks cannot and will not lend to the street any longer. With all of us making late payments on our homes and credit cards, all of our credit scores went to hell. The banks will continue to hoard the money and pay their top execs millions while the average Joe stands to lose everything they’ve worked so hard for. Make it a $100,000 debit card per person and you will see the stock market triple overnight. The cost for taxpayers to do this is much much much less than all of the money that would be required to pay unemployment, medicaid and food stamps for the millions that will be out of work soon. There is no other way around this issue.
Little has been said about those of us who are elderly in our 70’s and 80’s whose retirement funds have been decimated by stock market losses. I can no longer work and save for the next decade. Nor can I now afford to stay in a senior facility should I become disabled. what to do.
My husband has been unable to find a job for over a year now. I myself am disabled and we have three children. My question is how do we get a stimulus check if there are no taxes to file? Is there anything we can do. We filed our taxes last year but there are just no jobs available!
I heard that the Federal Reserve is buying government debt (treasury bonds etc.). Where does the Federal Reserve get the money to buy Treasury bonds (and all of the other money the Federal Reserve is lending out)? And will they soon run out of money? (Does the treasury print it and give it to the federal reserve so that they can then give the money right back to the treasury to buy bonds from the treasury?!)
Tax and legalize marijuana in California? What about second hand pot smoke and children’s health? Does having a baby high sound like a good thing for America?
One Million Taxpayer Dollars for Utah Cricket Control? Birds and Cats will not do? Would not monies be better spent feeding our hungry children?
I,m retired an had to retire early receiving social security and SSI how will the stimulus work for me.
I keep hearing how money will be added to my paycheck after April 1. If, with just two deductions and married, I don’t make enough to have taxes taken out of my check, how will I get the money?
My husband and i are in the process of buying our first home. We already received our 2008 tax return. Can we get the $8000.00 housing rebate now or do we have to wait until our 2009 tax return?
I’m retired, receiving pensions from IBM and the Army, plus social security. Will the new tax tables be used for pension payments? If so, it looks like less tax will be withheld from my monthly payments, yet I won’t be eligible for the credit next year, since none of my earnings are “earned.” This would mean a large payment due the IRS in 2010.
I receive Social Security and also work a part-time job. Will I receive both the $250 stimulus and the paycheck deduction?
What is in the stimulus plan for seniors,above 65 years of age, collecting their Social Security benefit and still (Thank God) working full-time. Will their $400 be put on their full-time check or their monthly Social Security check?
Can I spread my 30% tax credit for solar panels over more tahn one year? Is it a refundable tax credit, meaning I can get back more than I owe that year? Thanks!
I moved $44,000 out of the $47,000 in one of my 401ks from equities to fixed income to cut my losses back in Jan ‘08. It was a smart move. They now give me 0.4% interest or about 1/6 of 1 yr CD rate on the $44k. I still lost $10k compared to Sept ‘08 account value ($57k), and the $3k I still left in equities still continues to dissolve. What’s my best move? I feel like the 0.4% is their way to push me back into mutual funds. Should I do a rollover IRA into a CD at my local bank and get 2.4%?
I hear it is illegal for a married couple to file separately but I also hear that even if I am an American citizen and my two kids are Americans that I was not elijible last year or this year for any stimulus check or increase in tax money due to the fact that my husband works with a tax id. and has not completed hes citizenship. I have already filed jointly with him again this year. We are in the lowest income bracket and work very hard. Is it true that not even my American children can benefit from the stimulus just because I obeyed the law and filed jointly with my husband who is waiting for a visa. Seems so unfair…:0(
I am 57 yrs old and have been unemployed since Jan 2008, my source of income is the EUC which for me will end in April. Is there anything in the Stimulus package that will benefit me because I don’t believe I will qualify for the expansion of unemployment benefits as stated in the Stimulus package. I have never experienced anything like this in my country and for the first time I will probably have to ask for food stamp & public assistance!. I am a renter so I will probably lose my apartment, I hope there’s something in that Stimulus package for people like myself.
My question is: If a person(s)already owes the IRS and is on a payment plan with the IRS, will the person(s) still receive a stimulus check? Or, will their check be held back to be applied to the balance owed? In all fairness the individual(s) that are on payment plans should be eligible to receive a stimulus check because the arrangement(s) have already been made regarding to the debt.
My husband and I are both retirees, receiving a state pension and not old enough for SS. How will we benefit from the stimulus package?
I qualified for the Stimulas payout last year. However, I never recieved the payment. Just a letter telling me how much I would be receiving. Yes, I went through the steps to try and locate the payment and I am still waiting with no clue.
Is the same thing going to happen this year. Will some people fall through the crack and not be able to do anything about it?
The stimulus plan ignores one category of folks in trouble. I lost my job in November. I was able to pay all my bills and mortgage on time in Dec and Jan but am now in trouble. I believe that I will be reemployed soon so I ask my mortgage companny if I could get an extension on my loan, skip a couple of payments and add them to the end of the loan. I have never had an late payment on this mortgage in 8 years. I was told that they would like to help but Freddie Mac who was the investor did not allow extensions. So Americans who only need a little help while between jobs cannot get it. Instead my credit will go down significantly and I will have a much more difficult time catching up when I am re-employed. I only need a little help which will not cost taxpayers anything. I have a history that warrants it. I did not buy a house I could not afford and always have played by all the rules. I bet a lot of other American workers are in my situation.
The interest rates have been reduced to help borrowers refinance their mortgages, but has the credit criteria changed? Last year I only qualified for a loan modification because I was behind on my payments, but that I did not qualify for refinancing to a fixed rate because by credit score was too low. I would like to try again, but my credit is still not that good, probably in the 400 range. Has the criteria changed any in terms of credit to help borrowers refinance? I have managed to keep my payments current for the past 7 months even after my interest went back up to 9%, which is my minimum according to my original loan terms. Will bad credit still leave borrowers with a high interest rate if they try to refinance? I would think that I am not the only one whose credit has dropped lately in need of refinancing.
i have a house that has been on the market for over 8 months. i am paying all my bills but cant sell because i ouw more then the market will pay. i am working in arkansas have a house in florida i cant sell and been here working for over 5 months my wife is still in florida watching the house. what is obama going to do to help me out?
Why isn’t the justice department looking into the possibility of charging the derivatives writers with fraud, as it appears that these derivatives are nothing more than insurance policies with no documentation or regulation, a definite violation of insurance law.
I am 23 years old, single, and have no children. I don’t own a home, I rent. I have been working for most of my life, and made about $12,000 last year. 12,000 is not alot of money by any means. One thing that a lot of my friends and I have been wanting to know is why it is that single people in their early 20’s always get dealt out of the cards when it comes to tax breaks and government assistance. I currently have 2 room mates and all 3 of us work two jobs just to get by. For some reason though we make too much to recieve any benefits. We’re not eligable for food stamps. We can’t get medical assistance, because we’re too old for MC+, yet too young for Medicare. We can’t even get EIC, because we’re not 25. Yet we all struggle with bills and living expences just as much as the people that do recieve these benefits! The thing that kills me is that we bust our humps every day, get taxed more than people with children or who are married, pay into social security that we won’t even have when we retire, and are unable to get tax credits and assistance. Then there are people who sit on their butts all day and do absolutely nothing, except watch tv and have kids and they get food stamps, WIC, TANF, and a whole host of assistance! Now, I don’t know about you, but something about that just doesn’t seem right! So, please tell me that there is some sort of a plan in play for those of us in our early 20’s that get out there and do our part!
I know this question has been asked before, but here it goes again. My husband & I are both on Social Security Disability and we have 1 dependent who will be 18 this summer. How soon will the money be put onto our checks and will our dependent also get the $250.00 put onto her check or will it just be for us?
I would like to see a list of all of the earmarks that are in the stimulus bill…….which was suspposed to be none
I hear talk about reducing the amount of money spent on entitlements such as Social Security, Medicare, and Medicaid. I am only 47 but am legally blind and receive disability. What can people like myself, who would work if we could, expect as far as our benefits are concerned? Its not as if we can pick up a second job or work a little overtime.
I want to build a new home this year.
I am not a first time home buyer. Will I be entitled to a tax credit this year?
Hi! I’m asking this question because I have yet to get an answer. Will I see any benifit, since I’m on a fixed income due to an accident. It’s not SSI or workmen’s comp. My monthly check is from the insurance co. that gave the hospital employees their benifits. I don’t qualify for SSI or Medicare. Will I be getting anything?
How will our primary educational infrastructure be affected by this “stimulus?” I realize education doesn’t necessarily improve by throwing money at it, but with a tight economy, it’ll be tough for schools to sell cookie dough and magazines to make ends meet this year.
Why isn’t a penalty-free retirement account withdrawal as candidate Obama promised part of the stimulus package now that he’s President?
how do they do a married couple when one is working one getting unemployment on the stimulant plan.and also it needs to be easier for people to get foodstamps.and talk about cobra insurance a person cant aford it.i am the low income bracket and have a sick husband. cant aford it.
How are people like me self employed,or independent contratctors get their stimulus money if we don’t get a paycheck?
Thanks
i get social security disability how will i get the one time payment of $250.00 will i have to file a return or what
What about PLUS loans? They are 8.5%. They are reset every July. Why not do it now. Help the parents who are funding their kids education through PLUS loans if you want to put money back into the economy.
Is there anyway for first time home buyers who do not have the money to put down as a down payment on a house, to be able to use the $7500 credit for the down payment? I have rented for years, yet never seem to be able to save enough for the downpayment. Yet the amount I pay to rent the house, is more than a mortgage payment would be for the same house, and it is not a big fancy house. My question is this, what’s out there to help myself and other’s who are in the same boat? My job is pretty secure.
My question is on the cobra benifits, i just read on cnnmoney that the 65% subsidy took affect on feb. 17th the day the bill was signed. But i just called ceridian cobra benefits svc. and they told me that the subsidy did not go into affect until march 1st and that i would have to wait until april 18th before they would give me a credit for march and april! is this correct?
SEARCHING FOR THE TRUTH: Were Lenders pushed to sell adjustable mortgages?
I know since Eisenhower there has been a notion (not a policy or law) that the American Dream includes home ownership. Has there ever been written policy or laws or rules that actually pushed lenders to write these adjustable mortgages in recent years?
Friends and A relative in two New England states independently have told me that they heard/read that the mortgage crisis was caused by liberal polices that forced lenders to write these adjustable mortgages. How true is this? Were bankers pushed to provide homes because liberals/Democrats thought this was a good idea?
This sounds suspiciously to me that my good friends have been listening to the same propaganda such as Rush Limbo. I just want to be squarely informed as to the truth of this from someone who is not biased in any direction. Is such non-biased information possible to obtain these days? I am searching for the Truth and it is hard to come by!
Thank you.
Robert G. Birk
295 Skidmore Road
Washington, Maine 04574
New auto sales tax deduction…Is this on the 2008 return or the 2009 return. Thought all purchases from 1/1/2008 qualified? Purchases during 2008 are deducted in ? and on line?
Just curious, over the years, my wife and I have paid in taxes from our jobs. My wife is currently receicving SSI & I have been fighting Social Security for SSI & RSDI (Disability) for almost 7 years now. I’m in the federal court stage of appeals. We are wondering, beings my wife is already receiving SSI if we quailify in Obama’s stimulus plan?
For the new car credit – what is the effective date? Is this for any new car purchased after January 1, 2009, or for any new car purchased after the date the stimulus package was signed?
we keep hearing that this bill is to help keep people out of forclosure…My daughter has tried to get a modification from the mortgage company holding the mortgage on her double wide mobile home, the interest is 10%. If interest were lowered and the length of the loan raised, she could afford this home on her present disablity payments. Where does one go to get help in this situation
My Question is this Loan Modification..I think it is the worst part of this Stimulus Package.I have been struggling to pay my mortage for 6 yrs now since my husband became disabled.Why should we give people a loan reduction on their principle and have them build up equity in their houses faster then everyone else that is paying their mortgage.Why arent these people who DID know what they were getting into when they bought their house get a break.Why isnt there a clause in their loan modification that any money that they took as a loan reduction, when they sell their house and make a profit made to repay this money? It isnt fair to all us Americans that have lost so much value in our houses in the last year. What is Obama thinking.There are many people that would buy these forclosed houses at a reduced rate that would pay the mortgage..Why are we throwing bad money into bad money.Most of these loan reductions will not work Thank you
Since this problem started with the foreclosure crisis, besdies bailout money has there been any discussions about the predatory lenders havign to not only pay back the difference from property values then from now but also paying interest to the taxpayers for their helping them out? Will congress enact a law that will restrict the percentage of people’s annual income to say 20% as a maximum banks can charge them per year for a mortgage to prevent this from happening again?
SO THE GOVERMENT IS SAYING THAT THE STIMULAS PACKAGE WOULD BE PAID OUT THROUGH PAYROLL AND THE NUMBER OF DEPENDENTS CLAIMED ON INCOME TAX RETURN FOR 2008. WELL I THINK THAT THE IRS SHOULD LOOK INTO THINGS BEFORE LETTING SOMEONE FILE THEIR TAXES WRONG AND THEN GET PAID FOR DEPENDENTS THAT DONT HAVE THE RIGHT TO RECIEVE THE STIMULAS BECAUSE THE DEPENDENTS DON’T RESIDE NO LIVE WITH THEM. PLEASE EXPLAIN?
I,m not one of those (market rocket scientist)just a simple ol truck driver.I don,t have a college education,or even a high school diploma.I thank GOD I do have a little common sense.I watch,listen,and learn.What I see is a nation of greatly divided people(the haves,on one hand,and have-nots,on the other)I see that the (haves) are a self centered,I don,t care as long as I get mine,poop on every one,me,me,me,bunch,and I hear the whoe,s and hurtful moans of the have-nots struggling to raise families,and survive on a cornbread and bean budget.On one hand the (haves)found loop holes,to get out of paying a fair share of taxes.On the other hand the(have-nots)bare the burden of taxes to keep this great nation of our,s running.To put it simple,One hand washes the other.It,s about time.We lay blame on unfair trade,yet we don,t buy American made products?Start looking at the tags.Buy a ford,chevy,or dodge,and save your neighbors job as well as your own!Don,t blame everything else,when we have done it to ourselves.I know it,s hard to,but be optimistic,and PREY for our president,cause Lord knows like the old farmer,HE,S GOT A HARD ROW TO HOE!GOD BLESS EVERYONE,AMERICA,and especially the MEN and WOMEN of our armed forces.BUY AMERICAN!!!!!!!!!!
HOW CAN MY EX FILE MY CHILDREN ON INCOME TAX RETURN FOR THE YEAR 2008,WHEN THE KIDS DON’T RESIDE WITH HIM. DOES HE GET THE STIMULAS PACKAGE FOR THE KIDS IF SO THATS NOT FAIR HE HAS NO RIGHT TO CARRY THE KIDS NON-WHAT SO EVER. HE ONLY PUT THEM ON THERE BECAUSE HE WAS BEHIND IN CHILD SUPPORT,IS THERE SOMETHING I CAN DO?
My Question on the Stimulus is What is my Return on Investment. Using broad figures, our National Debt is $10 Trillion dollars. Our US population is about 310 million people. So every man, women and child owes approximately $35,000 each to service the existing Debt. If the Stimlus, Budget and interest owed combined add $2 Trillion dollars or 20% to the National Debt, we would now owe an additional $7,000 or $42,000 each. My question is this? Will the tax benefits and saving provided to a family of 4 earning $75,000 outweigh the additional $7,000 in Debt we will be burdened with?
In 2005 I filed for Disability.In 2007 I had to draw unemployment from a prvious job and work part time to pay my bills. It took until July 2007 for my disabilty to go through. Now the State of Missouri says I was over paid $800 in benefits. They expect me to repay this on disability. Now President Obahma says the first $2400 is tax free. How does that help me on a disability fixed income?
I had heard that this new stimulus plan would give homeowners who made their homes more energy efficient the ability to claim tax credits to help pay for the updates. My wife and I just installed a new enery efficient furance and A/C and are in the process of adding more insulation in our attic and replacing all of our entry doors. If these tax credits are still part of the plan signed into law how would this work and would we be able to claim these credits when we file our taxes in 2010?
is there a chance a 69 year old on social security first time buyer could get funding from this package to buy a place to live
how the does the stimulus work for a single person with one child.and they don’t take taxes out of our checks?because i am self employed.i’m a childcare provider.we’re already having problems with the state not paying us the amount that we’re suppose to get on our checks.if our checks are suppose to be $500.00 dollars and their only $340 dollars.what are we suppose to do.so tell me how does this stimulus work for people like myself that are self-employed?
I have not seen the answer anywhere. I am in the military (employed), we bought our house in CA here four years ago, have never declared bankruptcy, never been late on my mortgage, the new city assesment shows about a $100,000 loss from my purchaes to the now market price. Why can’t the realtors, city inspectors, banks, and the State be responsible for the inflated prices we were sucked into. Will the stimulus require them to reduce the loss of the purchaes price ?
im wanting to know if the veterans and the disabled who cannot work., the poverty stricken an poor people are going to receive anything from this stimulus??
I purchased my home March 31, 2008. So I missed out on the $7,500 tax free credit. Is there any other recourse or credit that I can use with the new Stimulus Package? Thanks!
Is there anything written in the stimulus package about letting people refinance at the current market value ? Since our values have dropped drastically. More people would have a less negative opinion of this stimulus.If they could actually be helped too.Our home are worth less than we owe. People will think what is the point they will just bail me out if I don’t pay.We need to help everyone.The banks are getting help left and right we have done everything right .Maybe if they would help all of the homeowners,with a low rate and lowering principal balances to what the home are actually worth it might work.
I am single mother who work 2 jobs and makes 31,450 combined income. Working between 60-75 hours a week. I am raising 2 teens (17-18)in high school and recently purchase a mobile home in Oct 07. What benefit me to the stimulus plan? Will I be qualify for the first time buyer and still qualify for the low income family???
I work as a nanny for a family. I think they filed a w2 on me so I do pay taxes. How will the family know to add the extra amount to my check if im able to receive the money?
I am deaf, I only recieve SSI, and I am a mother of one child. didn’t do my taxes this year because I didn’t work. Will I get any money from Government. I am paying for 2 loans for college, one Direct Loan and another loan from Bank. will I get help paying them off??Do I qualify? if so how much will I get?
how does the stimulus package help the disable, or people who are getting social security disibility?
I am single mother raising 2 teens (17 &18) both in high school. I recently bought my place on Oct.25/07 and am working 2 jobs to get by. Will I be qualify for ANY tax break or get tax refund?
I am a widow living on SS disability & receive part of my husband’s SS. My income is less then 1800 per month. Am I eligible for monies from 1, both, or neither SS checks? Also, I didn’t know that I was eligible for the 300 Stimulus ck in 08 can I still receive it? If so how?
Will the loan mods decrease your credit score? If so has the gov done anything to help with credit cards raise rates because of your credit score?
I have (2) unrelated questions: (1) Are 2nd time homebuyers entitled to any tax credits that are offered to 1st time homebuyers? I want to buy a home in 2009. (2) Health concern: I have been declared disabled. There is a (2) yr. waiting period for Medicare. I was receiving SSI & Medicaid. When my SSD began, Medicaid was automatically cancelled and not I am without any medical insurance though I obviously have medical problems. I have been unable to properly follow-up with my specialist, have the medical procedures done that relate to my disability. I can only wait until my (2) years rolls around. This will make it (1) year without any state supported medical coverage. Is the new administration addressing in their health care policy(s) anything that will bridge the eligibility gap from Medicaid to Medicare? Thank-you.
What about the elderly who does not have to pay taxes because of no income. Only receive Social Security.Do we get any money this time. We need help.
Just to confirm the 2009 tax tables used next year for filing our taxes will be adjusted to NOT require us to pay back the stimulus tax cut we are receiving this year. Pls confirm. Thx.
I understand the tax breaks being proposed. What I want to know is this: will the income tax tables also be adjusted so that I am not still ‘required’ to pay the current amount of tax? In other words, will my tax refund be lessened next year because there is not as much being taken out of our paychecks?
What happened to all the home buyers that had to pay PMI as part of their loans. With all the loans that have defaulted many of them had to be covered by insurance.
Would the purchase of a mobile home or modular home qualify for the first time homebuyers’ tax credit. What if the mobile home is in a park? Or on its own, purchased-with-the-mobile-home lot?
I am a 58 retired teacher living on retirement benefits (MO) and married to a self-employed truck driver with one employee. WE hav two grown sons, one a teacher first year and the other who works for a machinery company. How much (if any) will get from the stimulus plan. We make less than 40,000 a year and have no plans to buy or sell our home and can’t afford a new car. I have student loans in forebearance (interest accruing) that I can’t begin paying back. Looking for a job which is hopeless. Will Obama’s plan help me at all? My parents are 90 and 80 and and living on mdeicare and social security. I (they) don’t even have the money to pay for a funeral for either of them.
I was talking to my neighbor, she said she received a check & so did her mother. For the deposit put down for renting the apartments we live in? Why did my neighbors receive these & I haven’t? What am I suspose to be expecting? Anything or probably nothing?
I am on SSI and I know about the $250.00 but my question is this: I normally do not file taxes as I am on SSI but I will be a first time home buyer this year. I understand there will be a credit for that. So do I go ahead and file taxes in 2010 anyway, even though I am on SSI and don’t normally file?
My husband and I are self-employed in construction. As I was reading some of the Q&A, i read that businesses are not buying machines and equipment to keep going. Well if we got a $10,000 debit card for the business from the bailout money we could upgrade our facilities, people would spend the money to buy food, pay bills, etc. Businesses are consumers too because we have to purchase items to keep the business upgraded and we dont have the income from the so-called consumers then we can’t purchase anything either. I would love to have a gov’t backed debit card instead of bailing out the banks who don’t seem to know how to handle the money to begin with anyhow. Does anyone even know what happened to the bailout from the Bush admin? No. So poof to all the money and it was my money, and your money and my kids money and my retired mother’s money and any future generations money.
How is another 410 Billion dollar spending bill, as well as spending 900 million to help rebuild Gaza going to do ANYTHING for our economy?
What 900 billion stimulus, plus 410 billion, plus another 900 million… that’s what… 1,310.9 BILLION we are now in the process of wasting… How is this going to HELP?
We are borrowing into the future with all these bailout options. Yet to find a way to pay it back, will requires “raising” of funds again, whether through raising taxes, increasing fees, “robbing Peter to pay Paul”, etc. Isn’t this the ultimate Ponzi scheme?
Hi – I am about to use up the tier 2 extensions to my unemployment – is their anything in the stimulus bill that would extend my unemployment benefits
For foreclosure if the home owner received stimulate help from gov today and in the future they get profit when they sell their home. Does home owner have to repay the stimuate money they received today?
When will we be able to gauge if the economic stimulus package is working-doing what we want it to do to boost the economy? 30 days? 6 months? A year?
Hello, I have just recently been laid off. My son starts college in the fall, if for some reason I cannot find work how does that affect our situation with the new stimulus package and the college credit?
I wasn’t laid off, I was fired because of my disability. I have been paying my very expensive COBRA since January 2009. I was also deemed fully disabled by The Social Security Administration. My former employer is still in exsistance. Can I expect to see a 65% reduction in next years taxes for my COBRA premiums, or within 120 days?
Thank you.
Krissy Elliott
I am single,unemployed and I am attending community college. I also have 2 teenagers one in high school and one starting college. Will I get stimulus money?
I live in Mississippi. This question is reguarding the unemployment extension. Our governer (Haley Barbour)seems to have major opposition with Obama with the extension for unemployment benefits. He may refuse the government money for the unemployment extension. Can he do this? I can’t imagine why people who actually worked and were laid off are gonna be shunned. We are honest, hard working people who are, very much, deserving of this extension. When will we know if Mississippi will take part in this, or not…???
HI, i am on SSI (social security disability) just wondering if i was going to get any of the money? also i have 3 other people living in my house hold, my older son is a college student who is not working, but is full time student, will he get any of the money??,my younger sons’ father did work but lost his job, will he get any of the money on his unempolyment checks? my younger son does not work so i know he won’t get nothing… this whole thing is so confusing, wish someone could explain it so people would understand it a lot better.
I get a retirement check from a former job. I am not old enough to get Social Security. I am not working because I am caregiver for my 81 years of age mother. Do I get any stimulus?
I am on workers comp and have been since jan. 2008. What kind of breaks or benefits do the people who are injured from their job get?
Having recently resigned from my job due to differences between myself and management, hoping to get another job soon, my ability to pay bills and mortage is drying up after six months.Will I qualify for some of the stimulus package and if not what should i do
I would like to know about the 65% savings on COBRA for a lay off of January 24, 2009. Will this still apply to me and how do I go about taking care of it?
How does the stimilus package help people that are on Social Security Disability & other Disabilities Checks? I get a Social security check plus a disabilty check from my former employer, will I qualify for a stimilus check?
How would people that are self employed get there stimulus since they dont receive a PAY CHECK ?
Editor’s note: For most people, this will be distributed through the payroll system. But those who are self-employed can claim it on their 2009 taxes.
i read somewheres that people on ssi would get 250 dollars is this true
Editor’s note: We answer that question here.
IF we get less federal money takin from our checks will we have to pay tax on that at the end of the year and if so is that not like a LOAN from the GOVERMENT?
Editor’s note: No, this is not a loan from the government. This reduces your tax liability and is not considered taxable income on your 2009 taxes.
I am self-employed in Real Estate. As everyone knows, the real estate market declined in 2008 as well as the ability to find a new job because of all the layoffs, etc. Because I am self-employed, I don’t have the luxury of collecting unemployment so I have had to raid what is left of my 401K in order to pay my bills. Is the government going to lift any of the 10% penalty for withdrawing early from a 401K? To sum it up. . .are there any breaks for the single, self-employed person without children who has had to use their 401K in order to survive? So far, I haven’t heard of any although Obama did mention not penalizing a portion of early withdrawl from a 401K during his campaign.
Mabe i just don’t understand how this will all work out. I am a single mom, work alot for a little pay, i would have qualified for food stamps, but now this extra whopping $26 i will start receiving because of the stimulus will over qualify me for food stamps (which i would get over $200 in FS). How is this helping me. 26 compared to 200!? i don’t get it.
I would also like to know, what happens for us on social security disability? I keep hearing about our wonderful seniors, those unemployed, and those who work. Nothing about those disabled. Do they think we don’t need a lil help? Try raising 4 school children on 700 dollars a month. We all need help to. Disabilities are not our fault, but yet we seem to be the ones that suffer as bad if not more then the ones who loose their job.
we bought a home jan 12th 2009, we did credit for 7,500 which has to be paid back, however we filed taxes in jan and still have not recieved our refund, and that 7,500 has to be paid back over 15 years, can we change our taxes to the 8,000 credit and with the state we had to sign an iou how is it the gov wont add intrest to our iou if we owed the gov money they would have added intrest to the amount we owed
Editor’s note: Yes, you can because your home was purchased in 2009. If your home had been purchased in 2008, you would not qualify for the new credit. You can file an amended return. We answer this question in more detail here.
I would like to know if retirees who don’t make out a tax form will have to like we did with the last stimulus check? Or will it be automatically sent to us?
Editor’s note: We answer that question here.
I am a single parent of a nine year old. I do not receive child support. I was wrongfully terminated from my Government employment and now living on unemployment. I already received my tax return because I worked a temp job. I have taxes taken out of unemployment before I receive it. My income is under the $19,000. How much extra in my direct deposit should I receive and starting when?
I filed income tax last year and didn’t hear anything. separated and use to file with ex. he owed IRS and I was under the impression that’s why I didn’t get anything. Am I eligible for stimulus
So when are we going to see the stimulus checks and in what order will they be sent?
Editor’s note: We answer this question here.
We are a married couple making between 40,000 and 60,000 per year. Once the Busch tax cuts expire how much will our taxes go up?
I would like to know why the Firt Time Homebuyers Credit that homebuyers were able to claim on their 2008 taxes only affected those who purchased a home between April 2008 and January 2009? Why wouldn’t people who purchased a home at anytime through 2008 qualify for this credit? It seems to only make sense for homebuyers that purchased a home between January 2008 and December 2008 should qualify? Plus, with the new homebuyers credit for purchasers between January 2009 and November 2009 (?), that should be extended for all of 2009.
While I like the thought of having more to bring home in my paycheck, I am concerned that when it comes time to file taxes next year I am going to be short. So my question is, are there going to be adjustments to the tax table to accommodate the new tax cuts so that we are not just paying it back in when we file our taxes next year.
Since training is part of the unemployment part of the Bill how come the unemployment offices won’t let you have training? Also Is there help for those heading to foreclosure over back property taxes?
I’ve read about all the breaks,all the exemptions but what about the people who are on disability, social security, SSI? I have not heard anything where they fit into this equation.I think I have read through most of the cuts and I am thoroughly impressed just show me something for us who are on a very strict income where the tax cuts does not include us? Shall we expect a onetime lump sum, pay another percentage hike, what? Any help or feed back will be appreciated.
I have a question regarding the stimulus bill. My husband is on social security disability and I am his payee but receive absolutely no income any more through social security because our youngest son has turned 18 now. How does that bill affect me. I know he will receive $250.00 and our son also receives social security under his dad’s number under he graduates will he also receive $250? Will I be eligible for anything under this stimulus even though I cannot work because I am my husband’s caregiver also? Thank You
How much of the national debt under the previous administration was spent on infrastructure imporovement in Iraq and Afganistan?
I have been unemployed since June 27, 2008. I have been looking for a part time job since then. I have to have a part time job only, because I have therapy on Thursdays every week where I am not available the whole afternoon. How will the stimulus help me? Will I get a check of a certain amt mailed to me from the U.S. Government?
My husband’s name is still on the mortgage from the home he and his former spouse owned. She still lives there and has spoken to him about getting the loan modified. What I want to know is; whose income will be counted toward eligibility for modification? Just hers, or will his income be counted as well? He has already quitclaimed his interest in the property. Is this a chance for him to remove his name from the mortgage? Obviously this would be ideal since her income does not qualify her for a tradional refinance.
Does the new Stimulus Bill contains Tax Credit for people who has a social security number but their spouses do not (they have Tax Idenfication Number) because they are on a dependent visa?
I am still not quite understand some of the things that are being said about the first-time home-buyer. You have to live in that house for three years to qualify for the tax deduction but only a short time frame to buy the house. I’ve bought a house in the summer of 06 and have stayed in that house till now. I’m consider first-time home-buyer because it really is the first home that I’ve bought. Am I qualified for that $8,000 tax break?
When is the 718 billion stimulus bill going to be effect? I’m consider as “under water” because I owe more than the house is worth. I called my bank but they wouldn’t let me refinance.
I don’t know where to get the resource,please let me know what I can do.
Thank you very much.
What if a St Kitts economic passport system was applied the USA what impact would have on the economy and would USA allow such a program?
The St Kitts economic passport system simply allows citizenship to individuals and family which buy a property over $250,000 (not funded by USA) and keeps it for 5 years.
What if this was modified to just be for your 20 million illegal immigrates? And include a closing date for application before 2011. Would you be killing two birds with one stone?
My wife and I are struggling small-business owners. I’d like to know what is in the stimulus bill for our company. Even though we’ve actually been growing in sales the past 2 years, our expenses have risen, and we’ve not been able to pay ourselves much of anything (our take-home last year was under 10K!).
I also have several health issues which make my quarterly Health Insurance premiums almost $ 2,000.00 – and I don’t qualify for any “small group” plans. Is there anything in the stimulus plan to help with Sky-High Insurance Premiums??
I want to ask again — Where is a jobs program that will help anybody but blue-collar high-school dropouts? Construction jobs? You have got to be joking, Mr. Obama! Don’t use MY tax money to help just that one small group!–an all-male group. No, specifically, a YOUNG all-male group. Please consider mature men with mortgages, and fine young college grads looking for their first job, and women who are the sole support of their families, and older people who have lost all their retirement funds and have to go back to work.
I was outsourced 01 August 2008 and was out of work for a month and took a much less paying job. As a result I had to take disbursements from my IRA in order to keep up with my mortgage payments and monthly bills. Is there anything in the Stimulus package or any other bill or proposal that will forgive the 10 percent early withdraw and or the capital gains tax associated with the early withdraw? I was responsible inrepaying my debts and am only asking for relief with the associated penalties for doing so.
To increase revenue, Obama will propose taxing the investment income of hedge-fund and private-equity partners at ordinary tax rates, which are now as high as 35 percent and may rise to 39.6 percent under the administration’s plan, the New York Times reported today. They are currently taxed at the capital-gains rate of as much as 15 percent.
How will this, help the economy… it’s up on Bloomberg… look for it.
Three percent of my paycheck gets deposited into an employer sponsored Anuity Savings Account (Public Employee’s Retirement Fund). There are six funds that I can invest in. I just started with this employer and have $1,000 in the ASA. Right now, I have 100% in the Guaranteed Fund. The other five funds are managed by companies like JP Morgan Chase, Northern Trust Investments/Lehman Brother’s Aggregate, S&P, etc. I’m only 38 and I have a way to go before I retire. However, I’m scared to death of risk taking especially with faltering companies I see mentioned on CNN and in Time Magazine. Should I play it safe right now and leave everything in the Guaranteed Fund or should I take advantage of the “buy low” mentality right now and split maybe 50% in the Guaranteed and maybe 50% in the Bond Fund (since it’s the only fund that didn’t experience a last quarter).
President Obama signed the stimulus bill on 2/17/09. Can 2 brothers attending the same college buy a home as tenants in common (50% ownership each)and each qualify for the $8,000 (total $16,000 tax credit)first time homebuyer’s credit therein?
It appears that the Stimulas plan is mostly helping the unemployed & first time home buyers. What about the average working person that already has a mortgage, we still need some relief but we aren’t really going to get any. I understand that those who are unemployed due to no fault of their own need help but for those that have learned to “work” the system should not be benefiting from this & they are. I am glad 1st time home buyers will get some help but shouldn’t those of us that have been paying a mortgage get some kind of benefit since we also have a mortgage to pay? It just looks like the it is only helping select groups of people & not us all.
Hi, Is the stimulus money coming in the form of a check from the goverment in the mail? or is it coming in our bi-weekly paycheck from our employers cutting our taxes? I am so confused.
my wife and i are both disabled, my housepayment alone is 1,043.58, because my wife was in a coma in 2003 on xmas day, she recovered but it put us into bankruptcy in 2004.thats when my payments went up, to pay dr. bills. i havent missed a pymt. in 20 yrs.and i am afraid to ask my bank to refinace me,or do i not make a pymt for 3 months, rent a place and let them forclose,i have a low credit score because of this but since the bankruptcy we have tried to manage but we cant do it anymore,do i ask my bank to refinace, i cant find help in the stimulus plan
I have a question about PMI (aka mortgage insurance)that home owners are required to pay when they do not have the “typically required” 20% downpayment at closing. I would have expected many of these “risky” homebuyers to have had PMI! Did they or did they not? If they did, isn’t the point of mortgage insurance to protect the loan provider? Are all of these new first-time home buyers going to have to also have PMI? I know it added over $150 to my son’s mortgage payment. Is the PMI amount included as part of the total mortgage payment when the government refers to a “goal of 31% of gross pay” for extending help to the responsible homeowners who are making their payments? I do know my son did want a bigger, “nicer” home but just realized that he could not afford it, despite being told he had excellent credit and could secure a larger loan, even without 20% down. But just to reiterate, I thought that most loans with a down payment of less than 20% required PMI, and I thought the point of PMI was to protect the loan company….is PMI working? Surely there must be a large number of these foreclosures involving persons who had less than 20% down????
What I think would stimulate the economy most would be to require the banks to allow any payments to principle at any time instead of restricting payments to only monthly payments or one huge one with a balloon payment, and keep the interest payments at affordable levels for the common property buyer.
Seems that things will really never pick up until the money starts flowing upward, if it’s not too late, otherwise the government will keep printing inflationary amounts of money to buy out extremely bad loans at the tax payer’s expense.
Ok 500 or 10.000 as a stimulis to the people wouldn’t work but if you gave us 100.000 or more for each person over 21 the problem would be solved and it would be for a lot less money then is going to be spent and that spending will not fix the problem.
this is a consumer econemy and that is where the spending needs to take place.If enough is given to people it wont go to savings it will go to homes , autos , and spending that will save the country!!!
My husband lost his job (outsourced to India, Thanks…America). We took a significant finacial hit. Our mortgage is fixed but due to reset in 6 years to a higher payment. To make matters worse, the value of our home has dropped by 60% so we owe more than its worth. Will this stimulus plan help us refi our mortgage? What do I need to do?
For the home buyers credit of $8000, define “the last 3 years”. Is it calendar years? Is it based on how you filed your tax return showing a deduction of mortgage interest? Are we talking 2006, 2007, 2008 or 2007, 2008, 2009?
I have heard that the stimulus package includes a provision to pay a portion of COBRA health benefits. Is this true? How does one apply?
Health Insurance Cobra for Unemployed Employer 2% Administrative Fee:
I was laid off on 2/10/09 and would be eligible for health to pay Cobra benefits at 35% the premium rate. The Economic Stimulus Bill does NOT mention whether my employer would be eligible to collect a 2% administrative fee. Would I be required to pay my employer a 2% Cobra administrative fee? If yes, is the 2% based on the full premium amount or the premium amount * 35%?
How is this stimulus package going to help the self employed? I am paying .36 in total tax. The SE tax is a killer.
I hear how the public has lived over its means but I am recently separated from the Federal Government. I was employed at the office of the Federal Pubic Defenders Office District of Arizona, in Tucson Arizona. Our Ao had a saying that if the entire budget for that year was not used you would not get that money back. There ws so much miss spending it was not even funny. We had over 50 empty offices in our building that leases were being paid for. We had brand new flat screens every year and if you requested not to get one then you were considered “weird”. The Federal and every stage of Government has over spend on everything in the last decade. Add a war and everything else that our Government has gotten us into and that amounts into alot of money. To take this point further, it seems to me that people who are in Government jobs seem to have that security that their job is so secure that they live over their reach and do everything to try to make their agency grow, grow, grow, this is turn turns into Government mis-spending. Their is brand new Federal Courthouses, prisons, and other government buildings that go up every year when the old ones were just as good for the time being. Why do our branches of government think that spending is better when they should be saving money and returning that money to the people who work non-government jobs that don’t have health care and who could use that money to take vacations, buy vehicles, etc and get that money back into the economy. I am not talking about hundreds that could be given back but thousands and thousands. I think our Governments at all levels need to start from the inside. I am gald many Government employees are losing their jobs because those jobs are the ones that probably are less needed and were created for more budgeting. I think the jobs that need to be cut out of the government are the CEO jobs of the Government. Start from the top and work your way down.
I don’t see what is so difficult in helping the average homeowner. Is it not the banks and poor lending habits(or greed) that got so many people in a bind? Give all homeowners(emphasis on all) a chance to refinance at 4% or lower on their primary residence only. The banks took advantage of people, they have been given huge sums of money and they are not lending to cover their own bad loans. There should be no fees for these refinances other than title requirements and minimal document fees but the bank(this is key here) receives nothing on the refinance; no points, origination fees, etc. You tell me then if this would save the individual homeowner money or even their home.
In Texas we have tried to refinance, but due to the homestead act we have not found any lenders that will refinance and allow cash refinance. What other ways can one refinance with cashout in Texas.
We are watching the CNN Money Summit and was disappointed to see that Alaska and Hawaii were not included in the map tracking the economic health of each state. Shabby reporting, this discussion is too important to not include ALL states.
Everyone is speaking up and against this 18 mo. recession. I would like the world to remember that the American Constuction workers have been laid off and out of work for the last 2.5 yrs. We were the first to loose our jobs, homes and cars. We are still out of work and are in great need of help.
I am the president of our school district in Houston, Missouri. I presented a construction plan for our high school to my senators, representatives and state government officials. I was turned down. Our project could have started this May. We would hire 70-100 skilled laborers for 16 months. Our design has significant green technology in the construction. We focused on science, technology, and math in our building. We are committed to share with our city and community. We met every criteria identified by Congress and the President as a requirement for inclusion. We are located in an area of >7.5% unemployment. How is it possible that we were not even considered for inclusion in the stimulus package?
Before I go into foreclosure (3mos) I want to refinance at a lower rate. I’ve lived in my home over 20 years, never missed a payment. I’m 69, lost my P/T job, and I’m worried about keeping up with my bills. Mortgage, auto, FPL, water, phone, food. Will this 75B plan include me?
I haven’t been able to find any information on whether there are tax incentives for Business’. Orginally, in the first house version of the package, there were tax credits including expanding the work opportunity credit and giving a 50% bonus on depreciation for purchases made in 2009. Are there any present business tax incentives in the bill that passed?
Because of losing my job last year, I relocated from Puerto Rico to California on Sept 2008 and am in the process of purchasing a new home in the US. My wife is still living in our former home in Puerto Rico. Does the new home purchase credit apply in our situation or does the 3-year prior home ownership restriction applies outside of contintental US?
Please help me to understand where the stimulus money is coming from. Is this what we borrowed from China? If unemployment continues to climb and businesses go under doesn’t that mean there will be less tax revenue? Are we just printing more paper money? I have never lived beyond my means so I can’t begin to understand any of this until I know that the money to be spent is there……is somewhere.
What benefit, if any, is available to the self employed individuals/businesses that are not allowed to collect unemployment? These individuals are the backbone of this country and it seems that they are allowed to fall by the wayside.
Why doesn’t anyone address the real problems here?
http://www.youtube.com/watch?v=EMljWDEWABM
The Mass Media is too afraid to report this… thinking it will cause a run on the banks… heaven forbid the Bankers don’t prosper out of our coming collapse!
Please notice that you probably won’t be helped by the jobs part of the stimulus plan. But why, why, does it seem designed to help only young male high-school dropouts? Not all construction workers dropped out of school but they sure as heck are almost all male!–younger males! So we’ll see our tax dollars used to provide jobs for just them? Yes. Please write your congressmen to protest if you need a job but you are female, or a male over 30, or an office worker, or struggled to get yoursef educated in a tough field like engineering. You also need a job but no jobs are being created for you. Sorry, folks! Sorry, all women! This is gender discrimination at its most extreme.
Many people get social security disability and also work, or get social security based on age and also work. Will they get the $250 for social security and also the $13 a week for working–get both? Just curious; neither is enough to make anyone start buying again so this progam will be a complete and utter failure. Poor Obama. I’m sure he really wants to help.
I am in consortium with several reputable Information Technology companies. We want to bid on Educational Technology and school modernization projects. When and where should we look for additional information. It is not listed on recovery.gov
The stimulus states that the first $2400.00 of unemployment for 2009 will federal tax exempt,i have already paid the tax on 6 checks will i get that refunded to me?
I heard that part of the stimulus package will help single moms reduce the cost of their mortgage. Is that true and how do I get more information?
IS THE TAX CREDIT PER FAMILY FOR THIS YEAR OR NEXT YEAR.. I CANT SEE HOW IT CAN HELP IF ITS A YEAR AWAY. MY HUSBAND HAS A SMALL SELF OWNED BUSINESS AND IM A STAY AT HOME MOTHER OF THREE I CANT SEE HAOW A TAX CREDIT NEXT YEAR WILL HELP US RIGHT NOW.. ALSO ID LIKE TO KNOW WHAT HAPPENED TO THE ENERGY REBATE THAT OBAMA PRIMISED HE WAS WORKING ON?
All I hear about it the poor homeowners who bought houses they couldn’t afford. Who is speaking for all of us who rent and have been saving and waiting for the market to correct? Americans who rent and pay taxes are going to be helping these homeowners stay in homes they should be forced to sell. Isn’t this taking from the poor to help the rich?
Why can’t they lower the interest rates to 3.75%, that would help all home owners plus those wanting to buy.
As President Obama unveils a $75 billion home foreclosure plan, I can see how it will benefit current homeowners in risk of foreclosure and also “future” potential homeowners/first-time buys with the low interest rates and the price of homes that can be bought at a lower more affordableprice….however, my question is, what about the people who have “already” lost their homes last year to foreclosure? Is there any benefit to them? My husband and I before we both got laid off from our jobs were earning a combine income of $225,000…….we lost our jobs then we lost our home that we worked very hard for…..we have drained our 401k accts, savings, our FICO scores have surrefered to the point that we couldn’t EVEN get considered/qualified to buy another home…….seems like us people that have already lost their homes are being forgotten…..
So, as I read the “flowing ” information on this program, the supposed
$400 to individuals, $800 to couples, and the $250 to seniors will go as follows:
$400 and $800 will be in TAX CREDITS that no will recieve until they file for their 2009 TAX Returns in Jan-Mar of 2010.?
AND, us poor seniors will get a small one time check of $250 in the mail.
WOW ! I can run right out and get that new car I need…..AND SAVE THIS ECONOMY…..NOT !
SO ! where is the Stimulus?
IF your NOT working where will you benefit with the extra $13.00 a week NOT coming out of a check your NOT getting?
IF you were forced to retire, like me,
and NOT working with a reduced annuity,
your savings lost, home foreclosed, car
repo’d, and lived in your car before it was repo’d……NOW WHAT !
SO, it would seem that this is once again a ‘SMOKE AND MIRROR ” game of the gov’t? RIGHT !
SO ! let’s hear your answers on this one!
HERE’S SOME REAL INFO FOR YA !
IF IT HAD NOT BEEN FOR THESE GUYS IN THE ARTICLE BELOW, THE FEDERAL, STATE, AND LOCAL RETIREES WOULD HAVE SEEN NOTHING: TALK TO THE MASSES ABOUT THIS ONE!
From: NARFE National Headquarters
To: PANMCC@POSITECH.NET
Sent: Tuesday, February 17, 2009 11:16 AM
Subject: NARFE Legislative Update 660 HR 1 Signing
This special NARFE Legislative Update, number 660, was released Tuesday, February 17th. This Hotline notes the President’s signing of legislation which includes a NARFE victory in obtaining tax equity for retirees who do not receive Social Security benefits. The next scheduled Hotline, set for Friday, February 20, will report on January consumer prices. (380 words; 2:12)
On Tuesday, February 17th, at 2:40 pm Mountain Time, President Obama will sign the American Recovery and Reinvestment Act. Soon, H.R. 1 will be assigned its own Public Law number. NARFE successfully spearheaded efforts to include federal, state and local retirees, who do not receive any Social Security benefits, in the legislation. But for NARFE and coalition work, championed by Sen. John Kerry (D-MA) and with the help of Senate Finance Committee Chairman, Sen. Max Baucus (D-MT), and other fed friendly lawmakers, the massive economic stimulus legislation would have left out many CSRS retirees along with a much larger number of state and local government retirees who are entirely outside the Social Security system.
Under the auspices of the stimulus package, tax relief via reduced payroll tax withholding will be provided to wage-earners under the ‘Make Work Pay’ provisions. Social Security, Veterans, Supplemental Security Income and Railroad Retirement beneficiaries, who are not otherwise wage-earners, will automatically receive an additional $250 check from the federal government. As a result of NARFE’s advocacy, federal retirees who are not eligible for any of these payments will be eligible to take a newly-created $250 per person refundable tax credit for the 2009 tax year.
NARFE Legislative Director, Dan Adcock, discussed this victory on FederalNews Radio on February 13, shortly after House passage. Audio archive of Adcock’s remarks and a summary are available on the Internet at http://www.federalnewsradio.com/?nid=35&sid=1602877 (NARFE’s press release is posted at http://www.narfe.org/departments/home/articles.cfm?ID=1716)
Information on how non-Social Security retirees can apply for the tax credit will be provided to NARFE members when it becomes available via this Hotline and in NARFE magazine.
Thank you for using the Hotline. This weekly legislative message is available to telephone callers (703/838-7780 and toll free at 1-877-217-8234), posted on NARFE’s Internet site, http://www.narfe.org, made available to NARFE-Net Coordinators; and broadcast to 44,000 GEMS e-mail addresses. Each delivery channel is a service of the NARFE, the National Active and Retired Federal Employees Association.
This message is generated by the NARFE Global Email Messaging System (GEMS). Please do not reply to this message. If you wish to reply to this message, please compose a new message to the sender. To stop receiving these messages, simply visit our web site at http://www.narfe.org and remove your e-mail address from your membership record or email us at memsrvcs@narfe.org.
Reading the blogs about people who have maxed out their credit cards, bought houses they can’t afford and/or have outrageous ARM loans, etc.. What about personal responsibility? I own my own busines, own my home, have a new car and have no credit card debt – pay my bills on time. The key? I only spend money I have – wow, what a novelty. Grow up, people, and quit whining to the government and start taking care of yourselves.
Has anyone really dissected this stimulus bill? I’d like to see each dollar amount correlated to how it will spur our economy, i.e. job growth or an economic stimulus. Seems to be a lot of political pay-back, i.e. pork in this bill. Is our government completely broken? Sounds like we need to throw the baby out with the bathwater and start over to me. Any hope?
s plan only work for mortgage company and builders ,institions like banks themselves auto makers and their union,mortgage is not the problems, just owning the house costing insurance high property tax utility bill home owner association fees,can you afford 2.9 mill rate of property tax? do not inforce the minimum wage gave them tax break by the government,leave employer alone.this is what people need to figure itout. out
What is in this plan for the people that live humbly …purchased humble homes and are paying their bills and affordable mortgages? Will we be suffering because of others lack of judgement?
We purchase a 2009 Truck on 2/14 not totally because of the tax cut but we were told that if the stimulus passed we could then deduct our sales tax next… Well the bill was signed but not until 2/16 or 2/17 so does that mean we will not be allowed to deduct our sales tax next year?
I am a first time home buyer who qualifies for the tax credit on my own. However my father co-signed on my loan to get a better interest rate, since I am a recent college grad with little credit history. Do I still qualify for the credit, or does my father’s owning of a primary residence disqualify me?
I contacted my former employer regarding the new COBRA benefits, and they said I would need to continue my full payments. I would then receive a tax credit at the end of the year. I don’t think this is correct. Am I right? Also; when will this benefit start, and how can I get my former employer to expidite this?
How is this bill going to help the people that allready have a foreclosure on thier credit? Or the millions of americans that now have bad credit due to not being able to pay their bills?
I am buyiung a home with my son. We will both be on title. I currently own a home but he will be a first time homebuyer. Will he be able to take advantage of the first time homebuyer credit?
After reading your article about gov’t rebates for making my home more energy efficient; the article said $1500 rebate, but my real ? is we hope to install an outside wood boiler (cost $11,000) + re-siding our home (cost $6500) + 8 new windows – would our rebate only be that $1500 amount or would there be more since we’d be spending well over $17,000? We, also want to install wind power, but can’t afford this year – we have the room on our small 42 acre farm.
Barb
In all of the income limits or phase-outs, are the references to “income”, gross, net, adjusted gross, what?????
For the auto sales tax deduction of the stimulus, how do they define “125,000″ income? Is that $125,000 gross income in 2008? Or 125,000 taxable income (say I contributed 15K last year to my 401k and also have mortgage interest which brings my taxable income below 125,000)?
for the past 3+ years, my husband & I have had a summer home in Oregon, but no main residence. Most of the year, we traveled & lived in our motorhome, maintaining a Florida address through a mail forwarder. We just bought a home in Ft.Myers, Fl in Dec.’08. Are we considered first time buyers?
Please explain, as if I were a 10 year old, why the government can’t just print more money to cover their expenses instead of tax payers having to pay them.
My husband and I are physicians in KY, both self-employed in solo or small rural practices. This past month, Medicare payments have ceased. Phones in the local Medicare office were not answered, and there have no definite reasons given for suspending payments. The word on the street is that Medicare decided to delay payments by 30 days due to their own deficits. How ironic that the federal goverment is pledging billions of dollars to bail out banks and auto industries that have mismanaged funds, and not responsibly paying for medical services already rendered. We can’t make payroll for our employees. What is the answer?
So first there’s $700 billion for bank bailouts in TARP, now a $783 billion stimulus package – all of which adds debt to a budget which is already spending into deficit.
Bottom line – how the heck is Washington planning pay for all of this?
I currently have an APR mortgage that seems to get higher every year; yet, I’ve never missed a payment or been late. The problem is that in order to make that claim, I make it at the expense of my credit. I find myself using my credit cards more and as a result, I am overextended in debt causing my FICO to be lowered because of my debt to income ratio. With this lowered FICO, I don’t qualify for some of the lower interest rates available. This credit card debt is killing me. Does President Obama’s mortgage plan address persons such as myself and/or what are my options?
There are provisions for the government to assist with “Cobra” health insurance premiums but no one knows how to get it??
With the price of a barrel of oil down, why are we still seeing increases in cost at the pump? Should the gov’t look at a ceiling on the prices to help out the economy?
The government infused the first stimulus package money into the banking system. What did they do with this money? Save it! This money along with the latest bandaide should be used by the banks to help homeowners. In the end, both parties would be in a win win situation. The government should hold these banks accountable.
I lost my job on October 31st of 2008, I am current on my mortage payments, have some money in a savings account, have some equity in my home, will I qualify to refinance to lower my mortgage payment under the stimulus bill?
Is there going to be any help,for people with bad credit issues,if they want to buy a house.There are people who are hard workers who needs a second chance too
I am trying to find an end to my school loan, I have paid for it more than once, I am no the only one responsible, but they came after the single mom for over 20 years, plus I am on social security, and they still took what little I get plus last years stimulus check. By the way I had a set of twins and an older boy all were 13 months between them. Is this fair?
Would someone please tell me where all this money is coming from? Our country is already in debt up to its eyeballs. Who out there is dumb enough to keep lending us money. I JUST DON”T GET IT!!!
What I want to know most, and one thing I haven’t been able to find anywhere in the news media, is how come there are no Realtors and Execs of Realty companies going to jail? I have been trying to find the answer but nobody seems to know. And, why aren’t the Sandlers (World Savings Bank) in prison?? What is Congress doing, if they’re not doing what we’re paying them for? Where is the outrage. Why isn’t there anyone out there demanding justice for the fraud-the biggest fraud in the 21st Century-bigger than Enron even-why is noone going to jail over this? This is historic fraud-the biggest of my lifetime. And the people who got rich off the American homeowner are sitting at home right now with their Millions Of Dollars watching as their fellow countrymen and women bleed tens of thousands of dollars in the mess that they created. Well, I’m glad for them that they’re super-ultra rich and living the American Dream…but, what about the rest of us,, the ones they’ve taken it away from?!????
I have been laid off of work since Christmas. Our bank account is almost gone. So far we have paid all our bills but in another month all of our savings will be exhausted. How will this stimulas package help people in my circumstance.We also have lost our health insurance coverage the last day of my employment. We now have no coverage. When can we apply for the cobra coverage that is discounted by the stimulas package.
Here’s what I call the “million or should I say trillion” dollar question.
Where is all this money coming from to fund this recovery and reinvestment act? All from the taxpayers,are we borrowing from some other source or printing more money? Or a combo of all three?
President Obama ;Deductible interest on mortgage payments is in reality a cancer on the individual’s enthusiasm to pay down their debt. Therefore: ELIMINATE the deduction of interest paid on mortgage loans from Fed income tax. Allow deduction of principal payments say up to $10,000.00 Encourage homeowners to pay down their debt by increasing their equity.
My wife and I bought the new home next door for her ailing parents in 2004. Before they even moved in they became too sick to live alone and went to an assisted care facility. We live near a military base so we rented the home but the renters are able to leave with 30 day notice per their “military clause”. When that happens we are stuck till we can get it rented again. When it is rented it rents for about $400 less than the mortgage. We can’t affford both mortgages and when the rental is empty we can’t pay it and it is about 3 months behind now. We just got it rented again. We are current on our home. When I try and talk with the bank (citigroup) I am told they can give me an “add on” loan to catch up payments at an inflated interest rate! This home has a ton of equity, has a 5.5% rate already on a 30 year fixed, and is on the market at a very low price. I am in limbo in that my primary mortgage is not in default but I am in danger of losing this asset or of jeopardizing my primary because of it. And my credit score is in the toilet on this one account. Catch 22-I need help to reduce the payment but can’t get it because my credit score is too low! The loan has PMI on it but that company will not assist in any way. We’ve had this problem for about two years and I caught it up once before by liquidating all my savings. Sorry kids no college for you unless you get a scholorship.
I purchased a home in January 2008, do I qualify for either of the first time home buyer tax credits under the new or old law? If not is that fair?
For the Work Pay Credit, how does this work if you’re self-employed? Will there be a line item on the 2009 tax forms to get the $800 (per couple) credit all at once?
I bought my townhouse in 2005 for $500,000. I used a 5 year fixed ARM after which the rate become adjustable but increases no more than 2% per year.
My townhouse now appraises for $366,000. I do not have any equity in the house. I would like to refinance for a fixed rate for 30 years.
My question: Will the stimulus package allow me to refinance without
equity in the house and no downpayment?
Make Work Pay indicates ‘married’ families will receive an $800.00 credit. What about single parents? I am a single mother who makes less than 40,000 before taxes. Will I only qualify for a $400.00 credit as opposed to the $800.00 for ‘married’ families?
my wife is on disability ss and i am on retirement ss. are we going to get any money? neither of us work.
I have a mortgage, a second, and many credit card bills. The Banks are unilaterally increasing rates. If I chosse to close the account it actually lower credit scores. I’m current on my bills but paying high rates. After your hooked the Banks are getting bailed out at the same time hurting people who are current. Is there help for me, or do I go noncurrent and apply for Bankruptcy.
The people who walk the straight line are the ones who get the whip. Democracy is of the people, for the people and by the people. If people are greedy and go beyond their means. SO WOULD THE CHOSEN GOVERNMENTS. This stimulus is a reward for the greedy, irresponsible people NOT for the responsible ones who saved and invested. Best is to never save, buy a million dollar home and ask government to help. Responsible People Will Never Be Heard.We DO NOT have a voice. NOT even 1 (ONE) Senator Rep. or Dem. speaking for all the people who saved and lost!! NOT even ONE!!!!. Just Imagine!! Writing all these blogs seem a way out to vent the frustration. The ones who never had money to buy then will not have it..ever. Credit Report is a farce….
I’m in a situation where I need some major home repairs. Credit cards are maxed out just trying to survive.All my bills including my mortgage are paid on time.At the expense of sacrificing food and medical care.Haven’t had any new clothes in years.Don’t know how much longer I can keep it up. Why isn’t there some help for people like me ? Struggling to keep our heads above water while our homes fall apart around us. Why do new home buyers get a break ? That tax credit they are getting sure would go along way in helping me with necessary home repairs.I would be better off if I had bought a house I couldn’t afford.I don’t need granite counter tops, stainless steel appliances, closets big enough to live in and a bathroom for every person in the house. I just need a new roof. Wheres’s my help ??????
I am currently unemployed. How long will it take to see the extra $25/week in unemployment benefits. How will I be able to apply for the aid to help pay my Cobra health benefits?
I bought a house in September 2008. Do I qualify for the $8,000 credit, or am I stuck with the original $7,500 that I am required to pay back?
Please be careful: pull your pessimism punches, all of you. We deserve information but in todays constant news cycle, the pessimism is getting over exposure. Given that recessions are in large measure psychological paralysis, your constant “the sky is falling and nothing will help enough,” may be accurate or sadly, may become a self fulfilling prophecy. I believe that we need to start having a different or at least additional conversation in the country: how we can each one of us help the country by volunteering. buying locally, conserving energy, etc.
Why aren’t we changing credit qualifications for the tax payer? The reason most people cannot buy a house or a car is because of their credit score or the high down payment needed to purchase the house or car. If you lose your job and cannot pay your bills that will affect your credit therefore preventing you from obtaining a loan. I see a problem that needs to be solved quickly. What could we do to get the markets back up in real estate and automobile sales?
What is the OBAMA stimulus package doing about outsourcing of American jobs?
Why can’t we for instance implement an OUTSOURCING tax? Penalize an employer 200 percent of the salary of each outsourced job, for example.
I am running out of my unemployment benefits and I have already been extended once. Will the stimulus just signed extend me again?
Yes I want to know if the new stimulus package EXTENDS unemployment benefit for an additional 20 weeks ON TOP of what President Bush extended? Some people have been out of work for longer then the 26 weeks of normal UE and 13 weeks added by Bush on top of that….So does Obama’s plan add more weeks or not to the 26 plus 13 additional already in place?
How soon will unemplyment benrfits be released in Texas, and is it only if the state agrees to the stipulations suggested by the stim bill
When I filed my income taxes I opted not to get the tax rebate for the first time homebuyers due to I felt like it was not a rebate… Now that the bill has been passed If I did an admended return would I still have to repay the money since I bought my home in Aug. 2008? How come no one let anyone know about this “rebate” that was passed in July? I feel like those of that bought a home in 2008 are being punished and those that buy in 2009 are getting a better deal. If I have to pay something back over the next 15 years it is not a rebate it is like having a 2nd loan on my home. How is that to stimulate anyone that bought a home in 2008?
I am buying a house as first time buyer.
What do I have to do in order to get the 8000 from the goverment to close o this property?
I purchased a home This year, but have already filed my taxes and claimed the $7500 credit. Since I did purchase my home after January 1, 2009, can I Amend my taxes to claim the new $8000 credit.
I was laid off in December 2008 and I am about to sign up for COBRA. Will the COBRA subsidy apply retroactively?
HUD defines a first time home buyer as “A first-time homebuyer is an individual who meets any one of the following criteria:An individual who has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property. This includes a spouse (if either meets the above test, they are considered first-time homebuyers.” But the IRS states “You (and your spouse if married) are
considered a first-time homebuyer if:You did not own any other main home during the
3-year period ending on the date of purchase.” – this is not clear to me. my wife owned a home before we were married. i just bought a home and we are now married. am i, or we, eligible for the $8,000 tax credit? The HUD definition is very clear but the IRS one is not that clear depending on how you read it. i assume since they are both government agencies the definition would be shared, but my mother told me that when you assume “it makes an …..
I am a teacher in Virginia. I’ve heard that in order for our state to benefit from the stimulus, it cannot cut the education budget. Is this true? Will Gov. Kaine have to “give back” the money he has cut?
I consistently hear that the private sector is 70% of the economy (approx)
and the government is 30%. That sounds like a scam to me, since the government gets all of it’s funds from taxpayers. If the government gets it’s operating funds from taxpayers, wouldn’t taxpayers and the private sector be 100% of the economy?
My husband and I are 1st time home buyers in California, we bought a bank owned home, I was hoping we can use the 1st time buyers credit, We closed on 3/28/2008, just short a little over a week to claim the creditm now with the new package just past there is another credit Of $8000.00 but that is if you bought a home after1/2009, Is there any chance they would modify the 1st time buyer to go back to 1/2008 ???? We could have really used this as we need to landscape our backyard, buy some furniture, payoff bills, etc … I held up doing our tax’s until they did the new package…. now we are going to count our pennies
Why do persons on Social Security only receice $250?
Persons who are working receice $400 this year and next year for single and couples rec. $800 this year and next year.
We all received $300 last year if we received x amount and those tho made more received a little more.
We persons on Social Security can sure use $400 this year and next year also.
Rita
I just want a straight answer on when these tax cuts, such as for the working people and the unemployed will be in effect. For instance, I already filed my taxes this year, so will I need to file an amended return so I may recieve more of a refund because I’m unemployed, or are these things for when I file my 2009 taxes next year???
I for the life of me do not understand that we Americans are losing our jobs to outsourcing and in my opinion is one of top reasons we are in the predicament we are in today yet NO ONE is taking seriously and doing anything about. You are making other countries rich at the expense of your own people. It just baffles me to know end. These companies are steady outsourcing to these countries to save a few dollars but not getting the same quality. Like I always said, you get what you pay for and to me you can not compare the two especially in the customer service field. I hope and pray that are tax dollars are not going to companies who outsource just to continue to cut the jobs here in the US and any company who does should not be allowed to receive a dime in the bailout. I am offended and appalled that my tax dollars will be used to support someone in another country. GET A GRIP PEOPLE. BRING OUR JOBS BACK!!
why are they giving out all this stimulus money to all the big companys etc. what about the little people WHO NEED A CHECK IN HAND NOW not taxes cut we need food and things now now where is our check we the POOR PEOPLE
How does the new stimulus package signed into law today, (2/17/2009), affect the $7,500.00 tax rebate for first-time homebuyers? Did the amount change from $7,500.00 to 10% of the cost of the home? Will it need to be paid back and under what criteria?
The TARP (Troubled Asset Relief Program)bill was initially to help financial institutions to remove under-performing loans from the books to shore up their balance sheets. Then the automakers came hat-in-hand in their private jets to get a share of this money.
Meanwhile, the Treasury Department has neither a definitive plan nor the personnel to carry out the plan. However, they have put up some websites http://www.treas.gov/initiatives/eesa/jobs.shtml to begin hiring people and http://www.financialstability.gov/ to keep us informed.
The questions are, what is the REAL detailed plan, and when will they make these plans available to those of us who have the experience to assist in carrying out the plans? I’m not talking about the lawyers and managers, I’m talking about the people who would be processing the intricate transactions that would be necessary to separate the performing parts from the non-performing parts of the complex instruments like the CDOs.
Also, when will the ratings agencies, Moody’s and Standard and Poor’s, who gave AAA ratings to the highest bidder without regard to the actual credit worthiness if the instrument be brought to bear in this?
1) Why is the US Government allowing H1B workers to continue to flood the US Workforce?
2) Will our government consider rescinding these work visas issued within the last 2 years?
3) Will our government consider denying renewal of visas expiring?
The stimulus package, so far as I have heard, does nothing to help people who were forced into early retirement. People in thier early to late 50’s lost thier jobs through RIF, Right to Work State laws, etc. They have looked for jobs but cannot find or obtain one at thier age. They have had to pay for thier own medical coverage after COBRA. They have been forced to withdraw from thier IRA’s whcih are being grossly depleted by the value of the stock market. They have no earned income to report because it is all reitement generated income. They cannot get food stamps or any other public assistance becasue they own property, ie, house and auto.
Still after looking for work, receiving no unemployment or any other assitance what are people in this situation to do? Soon we will have to sell the home at a tremendous loss, drop medical insurance and so on down the line.
Where can we find help if we are in this situation and live on a budget, cannot find a job, pay our own medical, own our home and vehicle outright and depleting our retirement accounts before we can take social security?
I want to know why the US gov. Has not tried 2 simple step to help the Economy.
Step one: Insure the american public Gas will not rise over 2.50 a gallon over the next 2 years. Please keep wall street out of tring to make a buck on these type of commodities. it only hurts the general public Example: at my house gas expense went from $85 a week to to 170 a week. $340 a month the average american’s budget cannot talerate that type of change.
2. Offer a 3% fixed refinancing oportunity to help anyone loosing there home This will stop the mass forclusures. It is simple to understand when your morgage payment doubles and your paying $340 a month more for gas the average person will not make ends meet and no stimulus in the world can help that.
thanks
Is the down payment assistance program in the stimulous package? If not, why? It has never cost the tax payers a penny and helps people get into homes. If you pencil a payment it is better than most others for the consumer.
How will the disable get $$ from the stimulus tax ? also if I’m disable but my wife is not disable ,but she takes care of me will she get any $$ ?
I’m sixty years old, was involved in an auto accident while working and in 1989 was deemed permantely & totally disabled and my income now is Workers’ Compensation. No taxes are deducted. I’ve been left out of former stimulus packages and am wondering if I’ll be included in this one. I pay property taxes and sales taxes and I am having a hard time keeping up. I also have no health insurance. Will I be helped with this stimulus package?
i lost my job in dec will unemployment benefits be extended and for how long and if so when will the new law take affect
I have paid cobra payments of 500.00 a month since june of 2008, I still have to august of 2009 till I become medicare elgible, I also have expensive medications to pay for, does this mean that I am going to be able to get relief with my cobra payments
thank you
Why is there little talk about the price of oil? Oil drives everything…when oil prices go up, the cost of everything else goes up…people stop buying, causing people to lose their jobs…and this cycle perpetuates itself. Why were banks so reluctant to discuss payment issues with their customers and work out new repayment plans for them instead of forcing them out of their homes…where did they think new buyers were going to come from…and where is the loyalty to their customer? Why are the people in charge of the decisions that change the lives of all “ordinary” working people out of touch with us? People who have been affected by the economic colapse know that we have been in recession for 3 years…and are teetering on the brink of depression…why wasn’t this obvious to those who “take care of us” on Capitol Hill? I will be eligible for retirement in 2 years…I was saving every extra penny to take care of myself during those “Golden Years.” Now those “Golden Years” are tarnished and if I will be allowed to work until I am financially ready to retire…I still won’t have recovered what I’ve lost! I am in a fully commissioned job…I did not earn a paycheck for 3 months during 2008…and earned less last year than I have in 20 years. I am not eligible for unemployment because I have a job..or do I? I didn’t get laid off or fired…but I was also not earning money, either….If I wasn’t able to make my mortgage payment…does that mean I have a “bad loan?” Those who have the power to fix this problem need to understand what the root of the problem is and fix it at that level. Every person who is late on their mortgage should be given a compassionate ear…if their reason has to do with the loss of a job or other reasonable extenuating circumstance…lenders should be held responsible for selling loans to people who were obviously over their heads from the start….extend those loans to 40- 50- or even 60-years if they have to…no one volintarily gives up the roof over their head…these people were told by virtue of being qualified for their loan that they “could do it.” Many of these unsuspecting victims were uneducated in the area of mortgages, budgets, and money management…the job of the lender was to educate them and not lure them into this fantasy that could not work. People are out of work, homes are losing value – very fast – and the only solution to this problem is to get people back to work, allow them to financially care for their families – which means they will spend their earnings…insuring others of their jobs…and let that cycle perpetuate itself. Tax breaks are fine if you are earning a living…those who are out of work will not be helped by a tax break…give them a job! Don’t give a penny to any corporation or entity that doesn’t understand that their responsibility is to first create jobs…not a huge “bottom line”. the “bottom line” will take care of itself. Security along with the ability to provide has been stripped away from the American Citizen…and others around the world…so that a few privileged, selfish, self-centered and self-serving people can prosper. How outrageous!!!! Without the “working people” they would have no one to steal from…as is now the case. Talk to real people…not those who earn in the hundred thousands of dollars each year, and play golf instead of working a full day…about their needs…talk to me…I have always been a responsible person who never bit off more than I could handle…and I am losing so much!
Regarding the tax credit included in the stimulus package – I am wondering if those individuals not actually employed (i.e. receiving retirement pensions, social security) will be included.
iS IT TRUE THAT THE ENERGY PART OF THE STIMULUS PACKAGE INCREASES THE TAX CREDIT FOR ENERGY EFFICIANT FURNACES&AIR CONDITIONERS FROM $500 TO 30% OF THE COST UP TO $1500,AND IS THAT OFF THE TOP OR PART OF YOUR DEDUCTIONS?
I understand that the stimulus package will subsidiaze 65% of COBRA payments for individuals. I was laid off work and since my company closed down, I wasn’t offered COBRA and I am paying for individual coverage. My question is, will the stimulus package subsidize a portion of the individual coverage I am paying since COBRA wasn’t an option for me?
Well to start. The rich will always spend because they could and still can. Many in the middle class are finaly living within their means. Once the economy improves they may more than likely continue along similar lines due to fear. Those on food stamps will like it even more because their benefits will increase, giving them less reasons for contributing to the economy since they are the ones getting a pay raise. But alas, life goes on.
I was wondering, how realistic legalizing and taxing marijuana and industrial hemp could stimulate our economy?I think it would generate immediate jobs in unprecedented numbers,and the tax on it could be used to pay off this bill and very well get us out of this recession all together!
can some one please tell me how this package is going to help me, we have been in our house for ten years, and now im an out of work manager,we have always paid our bills, never over spent what we have, all i see in this bill is a lot FILLER.Looks like more of the same trikle down, ING and bank of america should return all the over payment money they took,oh i have an idea, how about the people of america FIRE THE POLITICIANS IN WASHINGTON, and put real working americans in there,
Both my wife and I collect social security. I have a part-time job and make around $12,000 a year. My wife does not work. Since we file a joint return, will we be eligible for the $800 tax credit for couples? Also, will we both still receive a $250 check from SS?
The stimulus says the tax cut for college tuition goes from $1,800 to $2,500 when do we get that cut? Is that the hope credit?
I sell replacement windows in Southern California. It looks like consumers can get a tax rebate of up to $1500 for changing out their old windows with new energy efficient windows. I also see that the restrictions are that the new windows must have at least a 0.30 U-Factor or lower and at least a 0.30 Solar Heat Gain Coefficient (SHGC) to qualify. These restrictions make alot of windows not an option for consumers. If these standards stand some window companies will have to improve their windows and doors energy rating or go out of business. Hopefully people do their homework and find out only certain window brands qualify. Most Wood and Aluminum Clad windows will not qualify. Consumers will have to buy vinyl replacement windows to qualify. National Brands like Anderson and Pella replacement windows do not qualify. Vinyl Window Brands like Silverline (West Coast Line), Superior and Amerimax Vinyl Windows do qualify. Most brands only qualify if the windows have low-e366 glass, argon and superspacer package on the window. I hope this makes people go out and replace their windows. We will see.
Republicans continously attack the stimulus as a theft of the next generation. What generation do they think the $10 trillion debt they left will affect?
I have read reports that Citi and JP Morgan have put a moratorium on all foreclosures…Is this going trickle down to all investors and servicers?…Also at what point are lenders going to be forced to lower principal amount on properties?…which is the real problem…They can lower interest rates on modifications to 3% but people are walking away from homes that are underwater…Who wants to pay monthly into something when they hold a negative equity position!!!
My wife & I are first time home buyers and have electronically filed last week. We took the $7,500. tax credit. If the new stimulus package is passed as reported, can we re-file and claim the new credit?
How could we take advantage of the full benifit.
In an article written by Ari J. Officer, Friday, Feb 13, 2009, Time Magazine (Business and Tech), he wrote about “A Better Bank Fix: Cut Every Mortgage’s Principle”. His article says precisely what I’ve been thinking and I am by no means an economic genius such as the likes of those who have been running Wall Street and the Government. The gist of what he says is to ‘cut the principle on ALL mortgages by 70% ( or some determined percentage). The loans will no longer be toxic’. His suggestion is intelligent and viable. Why is no one of the “powers that be” seeing something so obvious a solution? Please read his article and clue me in.
Is COBRA still part of the package specifically for people over 55 being able to continue to age 65?
I don’t understand why Congress has to put all of this money into one bill that few, if any, people have had the time to read. Why can’t the “stimulus” be broken up into smaller, easier to digest, bills such as 1.) Tax cuts 2.) Money for infrastructure 3.) Energy efficiency 4.)Long term planning? In that manner the “shovel ready” programs can be funded today and the less immediate issues can be better debated and understood.
Was the stimulus package clear to hire
American citizens, so the money is spent and stays in the US instead of going back to the countries of the illegal workers??????
If the economy needs to be stimulated, then how is $12 a week extra in our paychecks going to help. I believe congress needs to pass the fair tax law and let the taxpayers keep the taxes. I dont mind paying higher taxes at walmart or the grocery store. That will stimulate the economy.
What about the people who have already lost their homes to foreclosure?? What about people that filed bankruptcy in order to keep their own house?
OBAMA’s economic plan: I think that the ENTIRE plan needs to be publicized. CNN and other media are leaving some IMPORTANT items out of any discussions, such as: approval of medical procedures and meds for elderly people. There are plans NOT to help certain older people (age based on how healthy they are)medically, if it is proven they don’t have enough life-span remaining.
What about those of us that played by the rules and didn’t get caught up in the “irrational exuberance” and are struggling to make it right now? I’ve worked in the residential construction industry for 25 years, and I’ve always lived within my means. I have a primary residence and two rental units, ALL 3 WERE PURCHASED WITH 30-YEAR, FIXED-RATE MORTGAGES, AND AT LEAST 20% DOWN ON EACH OF THEM! NO EXOTIC FINANCING! Today, I’m unemployed because the company I worked for went out of business 5 months ago and I can’t secure another job. The local government here had the stupidity to re-evaluate property values at the height of the euphoria and now each of my properties is over-valued by fifty-thousand dollars and more, and with the ever-increasing insurance rates here at the coast I can’t rent these units for anywhere near what it costs me to hold them. Christopher Dodd and Barney Frank should be run out of town immediately for not seeing any of this coming. What the hell are they drawing a paycheck for when they are not doing their jobs! I am outraged at what they allowed to happen in the mortgage industry and pissed off we are still listening to anything those two have to say!
Ok, You’ve told us how much we would get if they gave us back our own money. Now how much is it really going to cost us in our life time to repay the debt with more of our money and future generations that aren’t even born yet? As Albert Einstein states “We cannot solve our problems with the same level of thinking that created them.” And Frankly the problems have just been pushed long for manys year. Government needs to stop blaming who did what and truely solve the problem not push it onto the next generations, which is exactly what they are doing.
I hear that irresponsible lending created much of our current problem (banks lending to people who shouldn’t have qualified for the types of loans they were receiving). Now I’m hearing that we want to get banks lending again, to get credit flowing and move us forward. How do we make sure that banks don’t continue to make poor lending decisions?
If the 10,000 would begiven to each home owner , make sure that it can be applied only to a House mortgage or a down payment for transportation, or either for deposit for a colleage education , this would spur up mone y so that each family in america would end up with more money to spend each montm. You could also have a 6 month morterum on the Federal income tax and social tax , this would create enough money to give working people more money in ther checks and give them a incentive , buy either by that if each family buys large items the interest on those large apllances or cars or what ever would be taken off there income tax for that next year this would create more money in each family budget and they might buy houses and larger items , or take long vacations and spend all that extre money.Also the govt needs to give alll business across the board a tax cut for 3 years to give them an incentive to hire more employes to get the country back to work. You must give business a way that the money that the large banks have gotten from the first stimulis package to borrow so that the country can move into to a growth period , instead of a depression which will happen if we only spend money and do not provide ways to intice the business of the us to want to hire more people to get produce or manfacture items for sale in the usa.
If the stimulus cash were given to each tax payer, the assumption is that people would save instead of spend… but why is that so bad? The money will indirectly enter back into the banking system, and the banks will have an obligation to make that money work but loosening credit.. isn’t that a better idea to “give” money to banks? If I own a bank, I would not change my ways one bit because there are no incentive to work that money from Uncle Sam.
America needs to be truthful and honest with the people.I always had the feeling that we’ve long been in a recession for the last 2-4 years. The Bush-Era of distrust,incompetence, ignorance or arrogance has brought this country to where it is now. Let’s be HONEST. Please. These so-called bailout, rescue and or stability act terms are just words with hollow definitions. We the people deserve more than fear and threats of disaster. We the people are the backbone of this country’s economic wealth. Greed, theft and pure discontent, have robbed our children of the “Americam Dream.” I still cannot accept or embrace the notion or the evidence, that 8-10% of wealthy and greedy so-called Americans, have destroyed 90% of the working middle-class and lower income Americans, hope faith and dignity to every get ahead. The “Middle Man” needs a break. Give us rebates, cash or debit cards, we will sprnd not hoard, this will, by us time to carefully construct a plan tha will work. No more bailouts.
“Instead of man strengthening his mental faculties with constructive ideas he destroys them with poisonous fumes and putrid thoughts.
He allows selfishness and depravity to deprive him of reasoning powers and idealistic inclinations.
Instead of building up the human race into a most efficient body by constructive cooperation and unification of all of its parts to the greatest advantage, mankind tears itself to pieces through individual greed and short-sightedness.
Man’s so-called Economics is based upon wastefulness not upon usefulness.
As a result of man’s horrible greed caused by his penurious system of Uneconomics and gold worshiping activities the world is now overrun almost exclusively by cheats, liars, beggars, thieves, blackmailers, ingrates, lunatics, murderers and suicides.”– Alfred Lawson
It would seem that one of Economics least known may also be one of the most correct. “And because there was not enough money for everybody to use there were men who made it their business to get control of it and make everybody pay for its use in the shape of interest.
No autocrat of any type ever held such power over human beings as is held by the present international financiers who control the supply of money. They are the real masters of office holders, manufacturers, merchants and workmen. And they are gradually screwing them all down to nothingness.
The branch of capitalism which allows interest to be charged on money, has not only paralyzed mankind, but it is the two-edged sword that will destroy Capitalism unless abolished at once.” Alfred Lawson
Thank you Sean from Maryland for struggling day to day to maintain your household. I though my husband and I were the only one’s left that were making our mortgage payments. We lost over $100K (all of our lifesavings) in equity aswell.
The only thing I have heard that may help us is if the government guarantees our loans and has our interest rate adjusted to a fix 4%. Yes this would help us, but should we just throw in the towel and foreclose?
I thought people like us drove the economy, I guess I was wrong.
good luck
Poor Shane from Santa Clara. If you and your spouse both earn under $70k working in Santa Clara that just tells me you are an unskilled worker; and should have prepared yourself better for life. Did you pay attention to your senior year economy class? Please think about what you wrote and hold yourself accountable not the government. Maybe your friend should not have accepted a loan she could not afford. Yes some banks took advantage of some consumers, but the irresponsible people that overextended themselves should not be bailed out.
I am 26 years old, have been a homeowner for 5 years; God knows I have struggled to keep afloat at times. I’m a stay at home mom with 2 kids. My husband makes about $60k a year. If we could do it so can you. Dont assume government should give you money to pay your debt.
Okay, so you don’t have kids because you can’t afford them. If you are debt free then I guess you’d come around. What type of life do you think your children will face in their adultlife. Why should they pay for our mistakes?
If you want to see this economy come roaring back the answer is very simple. ELIMINATE CAPITAL GAINS ! Period. Real estate would bounce back significantly as investors poored dollars into an investment that they would no longer need to share 1/3 with the government. The same would hold true for stocks, bonds and other such securities bringing our retirements back to the pre-crash levels and much beyond. It would create millions of jobs as housing is the catalist for all the trades. It would shore up the financial services industry as all the money on the sidelines would flow back into the system knowing it would be shielded from Uncle Sam. Too logical, too simple. Perhaps, but it has been proven time and time again.
Just in case, that was said in jest…
Besides, were spending 9 billion dollars on Bird Flu… and there’s only like 7% of the stimulus aka spending bill, going toward creating these 4 million jobs.
Still, seems like we could spend our money on more important things than Digital TV Converters, bird flu, and dying banks.
Since the stimulus is creating 4 million jobs, at the cost of nearly a trillion dollars, that’s roughly 200 million, per job.
Where can I apply for one of the 200 million dollar over 10 year jobs? 20 million a year, that’s change I could believe in.
What happened with the idea that 401K shareholders could take out, up to $10,000 with no tax penalties up to 2 years?
Colleen mentioned giving everyone $10,000 and the answer was that wouldn’t work because people would save instead of spend. Why not give everyone a credit card with a $10,000 limit with no cash advance privilege. The only way it would be worth anything is to spend the $10,000. Would this work?
Okay I am currently a homeowner who purchased my home before the decline in the markets (2006). I have never been in foreclosure and always on time for my payments. I know there are many people in a worse situation than I am; however, how is Obama’s plan going to help those in my situation? I can’t refinance because of the equity in my home. I have a high interest rate and I don’t get to take advantage of the $7500. If free refi’s were available with those we great credit. I would have more money to spend and help the ecomony. So Basically I feel I need to go into foreclosure since there is help for those people there.
I’m an Obama supporter, but recently disappointed. Focusing on line items such as an eco-friendly Federal vehicle fleet might be important any other day, BUT NOT TODAY. We have MAJOR problems that are spiraling us into Depression (forget Recession already).
Shane from Santa Clara is 100% right – our “leaders” are so detached from reality, from all those things that their legitimate constituents (YOU AND I) actually care about that they seem to be complete buffoons.
I have been disappointed in my government before, but this hits a new low. I would like to say that I refuse to accept the fact that our “leaders” are so ignorant that they actually allowed major investment firms and banks to abuse bailout funds (bonuses? salary increases? REALLY?!??!?!!?) but at this point I’m so disenchanted that nothing surprises me.
This is beyond ridiculous. Democratic Senator Dorgan is 100% correct, and I can’t believe we as Americans are not DEMANDING accountability. Our new “leader” promised a transparent, open government… Ok, Obama. Then where is the money going, and whose brilliant idea was it go reward failing executives with bonuses and salary increases, PAID FOR WITH OUR TAX DOLLARS? Whoever it was, should be fired.
Immediately.
if you have saving in abank and it goes belly up and is taking over by the goverment , how long will it be before you can get all of your money out?
thank-you
I have a few bones to pick with our great economists. So I will be professional but direct.
Much of what we are experincing is a systematic destruction of the middle class working people. Yes the folks who actually do the work of any company. Small Buisiness Owners aside at this point, because they fall into a different class by themselves.
No I am talking about folks like me who have to grunt the commute every morning to head to a job where you have become a slave to it. I must include my wife in this category as she falls into the same situation.
Basically I am talking about every American that earns $30,000 to $80,000 per year. These are the folks that should be stimulated to make the economy operate.
I pick that income bracket because this is where most of the workers whom are 18 years or older have their incomes set. These are folks who are renting apartments, houses, paying for cars, looking into the purchase of a home or Condo and may have a little credit trouble, that in the current state is a monumental issue.
Ok, now I have set the stage here. What needed to happen was a large enough check to clear all the debts that you may owe, with enough left over to place a nice down payment on a home, (for the renting class), and make it enough to bring the finance amount down to a manageable amount so the mortgage rate is low enough to handle.
My point?
In Santa Clara County the average mean price for an average home is currently $750,000.00! Now I don’t know about you folks, but I do not have $500,000.00 laying around in any of my Bank Accounts to use as a down payment to keep the mortgage rate manageable. My wife and I can barely afford the $1200.00 per month to my landlord.
A friend just lost her home, and had to return to the renting scene because her monthly Mortgage was $3200.00. Heck that is my complete combined income that REQUIRES my wife to work.
So how do we afford to keep out heads above water? Well its a tricky thing called not having any children, and every penny squeeks as its spent. Commute costs for fuel in our cars is another issue. So what about the necessary food, utilities, vehicle maintenance, insurance, (Medical and Vehicle), and yes the infamous credit cards that are now being leaned on to make the ends meet.
So what should have been done?
Well I should hope to shout, that it should have been the mission of the Federal Government to wipe the slates clean.
The checks should be issued with a requirement that you are to clear your debts, and make a large purchase of some type. House, home improvements, car, vacation, whatever you like. The hitch is that you would be penalized by heavy taxes for placing it in a savings account and sitting on the money for a “Rainy Day”.
The checks would be distributed through your local IRS Office when the Federal Government has verification of your filed Tax Returns. You sign the documents and the check is released, then you are required to return copies of your spending receipts.
Would this create a paperwork nightmare?
You bet! But then again, doing your taxes is the same type of nightmare for most of us! 
The end result would be a stimulus package that makes sense to every one. Its simple you have a valid Social Security Number or Tax ID Number and you are a citizen of the USA, then you are eligeable for the stimulus money. Your annual income must be $25,000 or greater up to $85,000, and you must be 21 years or older, (verifiable), to receive this.
The issue that is facing us now with this current package; this is once again a situation where this will benefit the wealthy. Think about this for a minute. Do you really think our VERY WELL PAID politicians are really going to adopt a plan that does not somehow benefit them?
Not that I doubt Mr. Obama’s intentions but a $400,000.00 Salary comes with his presidential title. Have a look at the incomes of our elected officials. There is not one that earns less than $150,000.00 per year.
So when I earn about $30,000.00 per year and my wife earns $37,000.00 per year, with a total income of $67,000.00 per year, this begs me to question the true motives of our wealthy politicians.
It begs me to question the motives of the writers and editors in these columns, and the economists, when they are also fairly wealthy people.
They often claim is the choices that we make that has dictated our incomes and our debts. Yes that is partly true, but its also these folks who own companies, and don’t spread the company profits back into the incomes of the workers they employ through payroll increases and bonuses.
I take my example from my living in the Silicon Valley. The ruling class here is quite honestly ruthless. They are always after their 50% out of your 50% leaving you with about a quarter of your dollar.
And you are supposed to live on that?
After the State Income Taxes, Federal Income Taxes, Social Security Taxes, State Disability Insurance Taxes, and taking out for your own company retirement plans, folks like us are hard pressed to make it every month.
This on top of Sales Taxes, Fuel Taxes, Registration Taxes for vehicles, or in our case, annual license renewals to insure you can stay employed, Union Dues and many other costs.
And all of this before you can even buy a bag of rice or some ground beef.
I wonder if the stimulus even considers all of this.
I would wager it does not.
The simple truth, is the fact this nation is starving. Not from hunger, from greed and the wealthy making it a point in their mission to continue to strip the working class people of what little they do have.
Jobs being developed two or three years from now do not help the immediate situation at hand. They do not bring back jobs that have been outsourced to countries where they have a socialized medical care system, and have cheap labor.
We have a huge problem, and its not just a matter of creating “Green Jobs”, its a matter of returning jobs to this nation as a whole. Its a matter of creating taxes and tarrifs on companies that are currently outsourcing jobs.
An excellent example of this I Microsoft Corporation. They used to be a Silicon Valley Giant. Now when you call for Customer Support, you call goes to India or some other country.
GM, Ford and Chrysler is another example. Build the cars in Mexico?
Purchasing foreign oil?
What in the heck is wrong with this picture?
The solution for many issues needs to be swift and immediate. Not languishing in our Senate or House of Representatives for wealthy people to decide how best to protect their assets, and continue to make their bucks on the backs of the working class citizens.
Personally, I feel that it is time they are forced to pay their fair share to our country’s whole community.
Sincerely,
Shane McGuire, Santa Clara CA
I really don’t get it why people are worrying about the deficit, the deficit, the deficit. Who should care about the deficit? Noone! The major population don’t even know what the…it means. People are more interesting in feeding their family and keeping their jobs by any means possible. I’m don’t want to sound like an Obama lover but I’m willing to give him a try an another one, and another one.
Mr.Obama is not the reason why we are in this predicament and people are forgetting that. We’ve been in this situation for about months when they greeding sons of…hit the big score. Hey, at least Obama is not going to pocket or sharing the stimulus money with his buddies and walk away like nothing happened.
If you are worrying about the deficit you must be in the middle class status and have a good job and all that your selfishness is trying to do protect yours. You are worrying that you’re going to collapse, well my friends welcome aboard with the regular peps.
The republicans will not vote on anything that they’re not going to benefit from. It is sad to see that none of them vote on the package.
I’ve heard most people say that unemployment is the issue for 2009, but what can we really expect? Is this going to pick up any time soon?
What should any average consumer be investing in now?
With this “consumer get back” fashion, are prices falling or not?
They say that if the bailout were to go to the taxpayers, each of us would get nearly $10,000. They don’t want to give it all to us because they are afraid we will hang onto it and save it instead of spending it and boosting the economy. I thought Janeen’s idea (on 1/27/09) was teriffic of giving each of us a $2000 gift card which must be spent within a certain time period. I do agree they should not be allowed to put it into savings, but I don’t agree about not using it to pay bills because there are a lot of people who desperately need the money to keep their houses or cars or keep their electricity on, etc. However, if they would give us each a gift card for $2000 every 6 months for 2 years, I believe more people would spend it and stimulate the economy. If they knew that another $2000 was “just around the corner” only months away, I believe they would be more likely to be willing to spend it on “frivolous” things like TV’s, clothes, restaurants, vacations, etc. A one time shot, maybe they are more likely to hang onto it, but given in installments, would increase the likelihood of spending.
We have not seen much help from the first 700B, who is to say another 800B is going to help the people who really need it. Interesting article: http://www.wnd.com/index.php?fa=PAGE.view&pageId=55601 (Economist predicted the Fed would drive the DOW to 8000 back in Feb 2008)
I worked for Hewlett Packard for nearly 24 years. I’ve now worked for General Atomics for over 3 years. Both companies export many products overseas. Think I want to hear about “Buy American” in the Stimulus package? NO! NO! NO! Please don’t cut the jobs by causing a backlash from the countries we export to!!! This, by the way, is how the great depression ended up with 15 million unemployed by 1933.
- Stephen Witte
I have a two part question.
So a big part of the bailout is that people in danger of losing their houses get interest freezes and having their properties repriced lower.
What fixes are there for someone like myself, I refi’d my house from 5.25 for 18 years, to 7.00 for 30, to get some cash out to help support my father when he had a heart attack in 2007 to pay off loans, bills, and various other medical charges, I’ve never missed a payment on his house, or my mothers house, that I also help with.
Also, why dont they offer people like myself, with good payment histories, the option to get a Fed backed refi at 4.5 %, this would give me 700 a month in extra money I could pump back into the economy.
For those that say why dont I get a commercial offering, I can’t, my house lost 29 percent of its value in the last 18 months.
Just seems to me there should be some type of mortgage bailout for people that make their payments on time.
To say that giving money direct to the taxpayers would not have worked because many would’ve saved it is baloney! Government could give all the money in the form of a debit card
with the provision of “no cash back” that would’ve expired in, say, 6 months from the date of issue. I assure you it would’ve worked.
So there really is no “free market”, it is all an illusion done by manipulation.
This is “Alice in Wonderland” time for us all, and we have no idea which pill to take to escape.
Just give me my $10,000 and I will buy a new hybrid car.
Why not revamp fico scores to even playing fields as a result of loss jobs, loan modifications, slow pay or no pay on bills, foreclosures, etc. This will help peaople get credit again and stimulate the economy. Also why not give the lower interest rates of 4 to 4.5 % to individauls with a higher interest rates. This would assist one in having more disposalable income to spend. etc.
If consumer spending is going to ease the recession, why are credit card companies continuing to increase APRs? Consumers are not going to spend money if the financial institutions are bailed out or could borrow money at low rates, yet charge consumers astronomical interest rates.
Do the new car interest rates and credits mean only for American made cars (since we just spent a bunch helping them out?)
How about a 1% national sales tax with all proceeds going towards paying off national debt? It seems like 1% wouldn’t be enough to discourage people from buying (it’s $300 on a $30,000 car for instance). This seems like a good, across the board way to pay down debt without increasing income taxes.
Give every American $1 million dollars. Bills will be paid, scholarships will be paid, cars and houses will be bought and paid for, some savings will increase (in the bank) and some will just lose it. But at the very least, if folks can’t get work just yet, then they will have something to live on. Stop giving the money to anyone who is not a human being. Let the people decide how to spend their money.
Since all of my income is now from Social Security (no earnings) and my IRA’s, does this mean that I will not benefit from the $1,000 per couple tax break? After all, I do pay income tax on 85% of my Social Security benefits (thanks to Bill Clinton). I have also worked until this last year (I retired at 74 years of age) and have paid FICA taxes and Income Taxes every year since I was 14. Even in 1972 when I was unemployed for seven months, I did not draw a single dime of unemployment. I found a way – delivered phone books, delivered newspapers, carried out groceries for tips only, etc. What is the matter with people’s enginuity and spunk today. I have a hard time feeling sorry for someone who borrowed against their home equity and credit cards to “live the good life”. I was not able to buy a home until I was 68, then it was less than $100,000 and I still owe $70,000 (at age 74). The home is now worth only about $90,000. But I do not feel sorry for myself.
Also, what happened to Obama’s promise to eliminate my income taxes since I have less than $50,000 income per year. I still have to pay over $3,000 income tax this year and will not benefit one dime from the stimulus package since I quit working last year on my 74th Birthday. Am I getting screwed or what?
What, if anything, is being done to help military famlies forced to change bases (Permanent Change of station or PCS) who may face foreclosure if unable to sell there current homes?
Is there a way to restrict access to the stimulus package for those state reps who are against federal monies helping out state gov.? I remember when the federal gov. walked away from state funding it was called Reganomics and it is a prime example of Americans getting what they deserve for voting movie stars into office. A forced OPT-OUT maybe?
Why is the U.S. government not trying to put a floor under the housing market?
I think the focus is wrong. The problem began with the housing market and cannot end until stability returns.
Find ways to keep people in their homes, i.e. subsidised mortgages, shared equity schemes, acquiring empty properties and letting them out at subsidised rents. Introduce ways so that people who cannot afford the mortgage on their homes can stay and pay rent instead.
Restore stability to the housing market and you restore stability to the financial sector and the products they have created on the back of the housing market.
Further help the building sector recover by building public housing to provide homes for people on low incomes.
In this way taxpayers dollars would be spent on ordinary Americans and not on propping up the failed business leaders who have too many houses, yachts and cars.
If you give out $10,000 to people no matter if you give them a check or giftcard all that is going to do is give the market a fake boost because once the money is gone we go back to square one. Its a waste of money that we will be paying for the rest of our lives and grand kids lives also. Is it worth it? Its going to be rough but i think we need to ride out the storm. We will be better off in the end less debt for the country and an easier hole to dig out of.
Obviously, there are a lot of issues out there that must be addressed in a very short time but, my question is: If the bail out money was to be given to the taxpayer in the form of a voucher to pay off 20,000.00 in debt to creditors or banks for credit cards student loans, car loans, etc.., how much would that cost the government? Could this help the economy?
What would happen if we tried trickle up economics. Let’s say the government would buy down all primary home mortgages to 4.5% 30 year fixed, this should give those families close to $500 extra per month based on a $250K lone at 6.5%. This could translate into more spending which could then lead to more jobs as demand for products rises.
For the taxpayers that don’t own a home, a stimulus check for $10k would create more spending and could possibly turn around the housing market and get some of the foreclosures off the books as a down payment would become more affordable.
Why is our goverment condoning usery?
Fix the laws governing the credit card companies and the few states that are more interested having no limit on interest rates to draw the vulture corporations, MD. being the the leader. The vast amount of disposable household income in middle AMERICA is paying INTEREST. Morgage,30 years @6% credit card Debt 10% to 28% forever.
Fix the real problem and the economy will heal itself
? I haven’t heard anything about lowering student loan rates from the fixed 6.7%. In the past a student could consolidate from 3-4% but the government eliminated bank incentives to do those loans. Wouldn’t lowering these rates (which they control) put more cash into the hands of many Americans with minimal effort and at the very least add some cash to the economy?
I want to know how the stimulus would affact my social security.. would I receive any thing?
Last year I didn’t receive one because even though I filed a tax returnI didn’t have to include my social security amount. I thought that since they already had the informaation that I get it automaticly.
Since everyone’s needs are different, why not re-classify the entire stimulus from a spending bill to a lending bill? Specifically, allow every taxpayer to sign a promissory note for their (approximately)9,700.00 share of the proposed stimulus at a rate of, say, 2% interest to be repaid over 15 years payable through the IRS. No one would receive a tax refund unless that refund exceeded that years required principal and interest payment. Any non-payment would be handled just like past due taxes are handled now, with penalties and interest added, including enforcement through levys and tax-liens. This money would be spent and the economy would be positively impacted plus there would be no debt passed to future generations
I think the Federal Government should allow the taxpayers to “pay off” their debt. Why not offer the ability to pay off “your” portion of the national debt. Other than SS and Medicare we spend approx 20-25% of the remaining as interest on the national debt. Let people pay their portion off and then get a 25% tax reduction, whatever that may be, for the rest of their lives. Those at the top would quickly part with their $30-35,000 per head, inject huge amounts into the US coffers and this “directed” tax cut would stimulate the economy AND actually reduce the national debt!
I have applied for a mortgage loan and am waiting to “lock in” my rate. Is it best to lock in as soon as possible with the rates a little elevated over last month, or do you see the 30 year mortgage rates coming back down anytime within the next couple of weeks?
The economic crisis started since the customers who were not eligible to get the loan got loans and they were not able to repay it. How will the economic
situation better if still the economic condition of the customers (including businesses) remains the same. Will the same cycle continue ?…
I hear the Republicans (especially Michael Steele) complain that the jobs created by the stimulus package would be short term (fixing roads and bridges). I am having a hard time understanding why this is a bad thing? If you give tax credits to businesses, are they going to start hiring more employees right away…probably not. Most road and bridge repairs would be 3-5 year projects and by that time wouldn’t we begin to see the turn around and businesses be hiring..especially in the green technology?
I disagree with the analogy that debit cards would not generate demand in the economy. A debit card is different from a gift card in that the vendor has already been paid up front for the designated amount of the gift card. The debit card however can be used at different vendors….the vendor would then get their money from the source of the debit card. Distribute debit cards to the taxpayers instead of funding a “spending plan” that will NOT benefit the tax paying citizens.
I support this package, We all need help paying are bills and trying to keep food on the table. What upset me the most, is the people (republicans) never had to cut the food on the table or take from the light bill to pay heating bill. American are hurting and need help now. I am very fortune it to have my job, but my husband is self employed and he has no work and that is a hardship for us. Please us help up now
This is for the State of Rhode Island: I heard that there is a bill that is proposed to have illigal aliens go to college in RI for “free” as long as they promise to become a US citizen. Are you kidding me??? My child will be attending a University in the Fall and she will have to pay full tuition because she’s an “american”. There is something terrible wrong with this picture. That is not fair AT ALL! If this happens, my self and thousands of other parents WILL do something about this!!!!!!!
To follow up on the question posed by Zachary from California, I have a similar, but slightly different question.
The rebuttal to the idea of tax rebates to everyone continues to be something along the lines of “people won’t spend that money, they will just save it or use it to pay down debt”. My question is, why is that a problem?
I have to believe for the vast majority of americans “saving” the money means putting it in a bank, not burying it in their back yard. So if I get a check from Uncle Sam and deposit that money in a bank, doesn’t the bank now have that much more money available to loan out as credit. By doing this, aren’t we essentially “recapitalizing the banking system” (another buzz phrase), while allowing taxpayers to pay down debt, which ultimately makes us more credit worthy?
And I often see last year’s stimulus plan used as evidence for why tax rebates don’t work, but could it be that the reason we didn’t see this effect from last year’s stimulus was because it simply wasn’t large enough relative to the problem?
Why do government employees need hybrid autos at the expense of $600 million. From the few articles I have read regarding where this money is going, it all looks like “pork” to me.
I think all this bailout is, is just a big rip off to middle class America.
It just seems to get worse and worse.
I am sorry that our new President had to inherit Bush’s many blunders.
Oh, well, we keep moving forward. Or trying as we all fall down, paying for other people’s mistakes. By the way, what is being done to the American people is a crime. Who will help us, reallY?
What type of tax cut will middle class receive? Will there be any stimulas checks sent to individual households?
We hear a lot of talk in the Stimulus plan that include income caps. Has this been defined? Is this Gross income to include dividends etc and/or is this Adjusted gross income as defined by our tax return?
In response to Jimmy, who asks why we can’t just print more money… Jimmy, it’s essentially the laws of economics. What makes fine jewels, or any other commodities so precious is the relatively small supply, against high demand. The less you have of something, and the more that people want it, the more it is worth.
If we just printed more money, the value of the currency would continue to drop… (inflation). In concept, it’s simple… the more you have laying around (on a very macro level), the less it’s worth.
Hope that helps.
I still want to know how our brilliant politicians, the leaders of the country, literally FED the Fat Cats on Wall Street MORE FAT. That’s MY MONEY that you are rewarding failed executives with. And now MY salary has been frozen… WHILE THEY GET RICHER.
Aren’t there differences between economic stimulus measures and economic bail-out measures? If so, does the current plan have more bail-out and less stimulus? To my mind, stimulus means work programs, infrastructure re-building, restructuring and regulating the financial and mortgage markets to provide assurance that fake securities made of bundled worthless mortgages won’t happen again, and working with economists to implement sound fiscal/financial policies so the world financial markets can start gaining some sense of equilibrium. Please discuss: bail-out versus stimulus. I voted for Obama. So far, I’m wondering: where are all the big plans? Why is Nancy Pelosi running the stimulus package show?
I can’t help but laugh when I rad the part that said that the money given to the banks is just a LOAN. give me a break. What are the repayment terms? Government NEVER repays just look at our Social Security System. The banks got their money, yet still screw the people. the while stimulus package is a joke. And the new package, why is there any money going to government spending? American people, we need to stand up and fight for whats right.
Genuine Question – WHY did Capitol Hill FAIL to better restrict use of bailout funds? Execs at these firms still getting massive bonuses, salaray increases, etc etc? Speechless.
Why can’t taxpayers just get their share of the stimulus”, and the response from cnn.com was: “because too many people would save it.”
I hear this everywhere, can’t we just get some kind of gift card or monopoly money that has to be spent in 1 year or lose it. Just a thought.
Maybe it’s just an excuse, and no idea is good enough. seems when the richest were asking for money everyone rushed to help ,but when the idea of helping the poor comes up we have to stall and pick and choose who will get the help they need.
Just one man’s opinion.
Why can’t tax payers get their stimulous? I think it is a good idea, but to maybe make a condition that the American people need to pay off their debts first, it would help a lot easier to start from scratch and learn to budget.
How does the economy current situation affect college students that are part time, head of household, and have no health insurance?
My tuition went up last year and the scholarships and loans only cover half of my living expense. I work part time for the school but I have no benefits, I have been sick numerous times but haven’t been able to go to the doctor and when I do I never pay the bill because I can’t afford to.
What about that “universal healthcare” plan or that “national healthcare” plan the government employees get, wasn’t there some mention that that would be incorporated eventually so health care cost would be affordable for everyone?
I would like to see the money go to the taxpayer as a voucher coupon that must be spent within a six (6) month period on buying something like, cloths, car, house. etc. That way it will not be saved and help the economy.
The question was asked, “Why can’t taxpayers just get their share of the stimulus”, and the response from cnn.com was: “because too many people would save it.” That is not a good answer. So what if they save it? They will save it IN BANKS (the same banks that the congress is otherwise injecting with our money), and those banks will put the money back into the financial system through loans and other investments. Isn’t that the point? Saying that “some people might save it” implies that this is a problem. That is not only incorrect, it plays upon false stereotypes of class warfare. There may be other reasons why taxpayers should not get their even share of the stimulus bill, but “people might save it” is not one of them.
To add to John’s point. If the main concern is really stimulating people like myself to spend I can understand why not to give me $10K, honestly I would pay off debt with that money. however if they could somehow allocate 10K for me to spend and have to spend by a certain timeline and only in specific industries (i.e., retail, car purchase, part of down payment on a house, etc) I would go out and spend it tomorrow. We all have things we need from each of the ailing industries. is that too far-fetched an idea? I’m sure I’m missing obvious obstacles, but it seems to me instead of giving me 10K to throw at debt they’re giving Billions to private companies to do the same, make them spend it on us then!
How much does the United States spend on illegal aliens a year. For example, those from Mexico, don’t we provide them with free healthcare, schools, welfare, etc.
WHY cant OBama do what the pepole whant done and forget the Republicans who got us in the mess the first place
Corporate America is just passing the buck with all the layoff that are taking place. This is only going to cost the state and federal government more money later with unemployment cost and lead to more foreclosers. That will continue to hurt the financial sector. Why not give a temporary tax break to companies that promise to not put people out of work. Then offer tax cuts for companies that create significant jobs. People will continue to pay their mortgage, companies will save money on their taxes, and jobs could be created.
I can understand why it would not be a good idea to distribute raw cash to individual taxpayers, but vouchers for such things as cars, clothes, mortgage pay down etc. I think would be very beneficial.
I understsand the recently passed stimulus bill includes about $4Billion for ACORN, the Politcal Organization with several leaders currently under idictment for Fraud…
But beyond thant legal problem, I don’t understand what ACORN would do with $4 Billion that would “Stimulate” our economy. Can someone help me understand how we recover faster by giving ACORN $4B ?
What does the term “Sunset” in regards to public policy mean or in the case of Senator Isakson’s ammendment to the home buyers tax credit? and also for someone like me a first time homebuyer in Sept.2008 who meets income and purchase price guidelines to recieve the full credit who has not filed yet for the current $7500 credit? As I understand it I will not get the $15,000 cause I did not purchase this year but I still would’nt mind getting the $7500 credit loan.
If taxpayers are so in need of the money to help them maintain their monthly needs, whey are economist so sure that taxpayers will save money from a stimulus check? Keep in mind, the operative word is “needs”.
You can’t give taxpayers $600 and think it is suppose to do something. I knew it was not going to do much before we received it because $600 is just pennies. Government did not give taxpayers anything to work with so we saved it. Actually we bought $4/gal gas with that money, pay a little to get up-to-date on our car loans. There simply was not enough money given to taxpayers for us to go out and shop. It appears that some economist are missing some variables in their calculations. Can that be possible?
What about the RE agents, RE appraisers and Home builders, they created unreasonable/unrealistic home prices? They are the culprits of this financial crisis.
Where were the regulators, rating agencies, corporate boards and central bankers?
What about the borrowers, who did not read contracts and had to know they could not afford these mortgages?
And what about the shareholders and investors, who did not question the business models of the companies they owned?
As described by various Senators reducing taxes for families and small businesses will stimulate the economy by adding jobs and increasing the GDP. Which is true to a point. I want to know where the point of diminishing returns is reached when reducing taxes. Are we not there with deferred maintenance of our infrastructure and social insurance programs.
2 thoughts:
1) The predetory lending practices that promoted the Mortgage scandal sucked in everyone that could qualify for a home loan. Who are they planning on giving the $15k tax break to? Will it allow for re-finance, 2nd homes?
2) How about a tax credit for professionals and individuals that provide Pro-Bono/ volunteer work to 501c’s/ NFP’s?
This would help the public service organizations that are loosing financial support.
Every American has their taxes done by someone and wouldn’t know if it’s correct, wealthy people have accountants. Who really knows if their taxes are wrong until they get an audit. Polls/Republicans say people don’t want Obama’s stimulus, but want the same Bush stimulus which gave 80 per cent pork. The GOP clearly explained this is not about helping those Americans who are suffering it’s all about making sure Obama fails. As if we would put McCain/Palin in office even without being voted in office. Joe the Plummer is the GOP spoke person for Economics. What does that tell you?
I have a question, I hope someone can answer.
What happened to all our wealth? Say I had 1000 shares of Motorola trading at $101 a share back in 1996. I’m worth $101,000 in 1996. My shares are worth that much because someone, somewhere in the world has $101,000 to pay me for those shares.
Now, in 2008, my Motorola stake is worth $5.00 a share. $5,000. If I sell those shares, all I get is $5,000. The other $95,000 is GONE. It has evaporated. Winked out of existance. What happened to me has happened on a global scale – the perceived value of real estate dropped, and then banks – who based their capital assets on that perceived value – needed to capitalize. Hedge funds that bet on the banks debt had to de-leverage (sell assests, even good ones, at a loss to raise capital so they can stay solvent.) They sell shares in the stocks they own, pushing the price down for EVERYONE.
All that money is gone. Taken out of the money supply – 7 Trillion dollars worth, from what I understand. Why NOT print more money, to replace that money that evaporated into thin air?
Why can’t countries print money, as much as they need, to replace the money that evaporated in the global meltdown? Why do we have to pay ourselves back in the first place? Why borrow money when we can print it? My e-mail is Jamesd5251@aol.com. Any answers would be welcome.
During the campaign both President Obama and Senator McCain promised to allow people to withdraw 10% of their 401 K up to $10,000.00 without penalty and just the standard tax being levied. Now that the election is over and President Obama is in office I guess this was just another one of those campaign promises made to match the other guy. It’s our money allow us to use it and we see fit.
a cap has been put on salaries. the people on wall street say this is unfair because bonuses is how they are paid as they do not recieve a large salary. just what is a low salary, how much do they make a year? i understand NYC is expensive. why do i have to pay them for doing a bad job? if there is that much money, then lower fees, do somtheing for the people who’s back they are standing on.
So then Question;
With this stimulus package, what will that mean for taxes? Surely to pay for this taxes have to increase. And as a student, will this effect the loan market?
The economic problem is not limited to US but worldwide. I propose that each country gets 1 trillion USD injected to their treasury to spend without adding the artificial debt to each treasury. It’s like the $500 paycheck but at a country level. There will be lots of helps from every country to buy equipments/materials to help improve their infrastructures for all countries to benefit. Yes, each of African nation gets 1 trillion USD.
It amazes me how many people posting here are looking for “something for nothing” and expecting others to pay for it. If you lost your job, I’m sorry to hear it, but I had nothing to do with it. Why should I have to pay for it? Why should I be subsidizing the purchases of TVs, small appliances, furniture, etc for people who couldn’t handle their own money in the first place? Would I expect them to do the same for me? No. Why should we forgive someone’s student loans? Did they not get an education as part of the deal? What kind of return on my investment would I get for paying for four (or more) years of somebody else going to school? My guess is none.
In short, suck it up people and quit whining.
The last couple of days everywhere I look I see knowledgeable economist saying that Americans are saving more and that is bad. I think they need their collective heads checked! When I went to school the economic belief then was people should save the money in a bank, that money is used to loan to business to invest and grow. It became supply and demand, the more businesses were grown and looking for loans the higher the interest they paid also the higher the interest earnings for savers because banks need more to loan. It seems to work too, look the Japan. No one is immune to the world wide economic down turn but who would you rather be, a person in a society who only saved 1 or 2% (in the U.S.) or in one that saved 10% (Japan).
Since when did that formula become bad? Banks should be ecstatic that people are saving because they get the money, people start to gain confidence when they feel they can weather a financial storm. Business when they need to grow have a bank with monies to loan.
Arguments and reason will be plenty not to save but you’ll never convince me .
The following is a portion of an article that I posted on my readwhatisee website. This is what I think would have been the best sensible solution:
What became of his rhetoric on the failed policies of the past? Every time we turn on the TV with the hope of finding good news, we just find a gloomier picture and more of the same: Barney Franks, Chris Dodd, Ben Bernanke, Tim Gheithner, and our new economic expert Nancy Pelosi.
We have had bailouts and more bailouts and even bailout of bailouts. At this point, there is no one that can or will say how many trillions have been spent and there is an estimate that four more trillions are needed. Not even the almighty U.S.A can sustain such without destroying the value of the currency and eventually have an economic collapse.
The government initial obligation when the sub-prime crisis erupted in the middle of 2008 was to its citizens and not the banks. The trillions that they have wasted trying to save the banks should have been used to reduce the principles of mortgages. This is what I think would have work better for the benefit of our citizens and the future of our country:
Allocate bailout money to banks to reduce the principal on mortgages, not for them but for the mortgagees.
Leave all mortgage terms such as remaining time and interest rates unchanged but reduced the principal on all primary residence first mortgages and recalculate the monthly payments.
Take all first mortgages on primary homes with a balance below $500,000 and reduce them by 30%. As an example a $250,000 mortgage would be reduced by ($250.000 x .30=) $75,000. Subtract that from the principle of $250,000 and now you have a $175,000 principle balance. By doing this principles can be brought down below the devalued home prices. This would encourage owners to stay and pay.
This would give the borrowers as an average an extra $500 plus every month to continue spending. The extra cash in hand would stimulate our economy, the world economies, virtually eliminate foreclosures and we would not be having the unemployment mess that we are now facing.
Restrict the sale of the homes for 24 months from the time of bailout and stop the issue or the increase of equity loans during that period.
If the home is sold during the probationary 24 months then the proceeds must be used to repay the entire bailout amount but not to exceed the net worth of the sale.
After the 24 months, all home sales must repay 50% of the bailout amount with no interest.
During the 24 month period, banks would also face restrictions for having been saved from bankruptcy. They must forfeit to the Federal Government 50% of the profits and all executive bonuses. In addition during that time 100% of all stocks dividends must be payable to the Fed.
Include mortgages from $500,000 to $1,000,000 with the same rules but only do a 10% bailout on these.
Anything above $1,000,000, we could consider to be owned by someone wealthy enough that no bailout is needed.
This program would be considered a mortgage bailout to save the economy. Because there is a payback provision, those who own their properties and renters would not be included.
As a good Capitalistic policy no bailout money should be allocated for business, if they cannot manage them successfully they need to liquidate and be replaced by those who are able to do so.
Even if such mortgage bailout would have cost two to three trillions, it would have been just a fraction of what it is now costing and over 50% of it would have been recovered. Needless to say the amount of suffering that these failed bailout is causing and the pain that is yet to come is a good indication of how out of touch our Liberal-Socialist politicians are.
The proposed $815 billion stimulus cannot stop what is already in motion. There will be millions more productive private sector jobs lost and not many unproductive new government bureaucratic positions created. Foreclosures will continue, homes prices will continue to decline. The people are scared and in a savings mode, that will accelerate the economic chaos. The auto industry eventually will bankrupt from the lack of sales. As business, collapse banks will continue to need more injections of bailout cash. With the collapse of business so it will the stock market taking out even more cash from the economy. Asian countries economies that rely on exports to us will suffer our same fate and eventually will stop holding our currency. The dollar will collapse and our savings will evaporate with devaluation and hyperinflation.
This question is in response to on your CNN Money Summit:
1. How much $$ per taxpayer?
2. Why can’t we split the money among taxpayers?
The experts responded that $ 1.519 Trillion divided by 156.3 Million equals $9,718.49 per U.S. taxpayer.
Another expert stated that if people were given a $9,718 stimulus that they would save it…
My comment/question is this:
Even if (for instance) all those people did save the $9,718 stimulus in their banks, wouldn’t that be like the people of America giving the banking/financial sector a $ 1.519 Trillion loan? The banks could then loan that money back to the public/private sector and help rejuvenate the economy. Those people that spend it instead of placing it all in the bank would also help rejuvenate the economy. The banks would have to do their part for it to work.
The people have spoken and the people
are right. What we are seeing now is a
readjustment of the dollar to the value
of the product. What the people in Wash
ington need to do is read these 300+
comments, they might learn something. I
like the idea of dividing the stimulus
money evenly between the tax filers who
make less than 50,000 a year. Give them
a debit card with an exporation date.
They would buy houses, cars, trucks, HD
TVs, fridges, stoves, washers, dryers,
and computers. Now that would jump start the economy the right way. More
demand, more jobs, more taxes, and less
deficit.
Three years ago I was making $65K a year and paying my mortgage. Due to the downturn in the economy I was laid off in 2007 and although I was able to get another job I had to take a $25K pay cut. Paying the mortgage is now a problem.
Why can’t a trust fund of sorts for the sole purpose of helping people with their mortgage payments be established so that the people truly being affected can get some relief? The banks would still their money , foreclosures would be reduced and people could get back on thier feet.
Yes, they would probably save more, I would hope we all learned something from this mess, but I believe that people would spend as well.
1. To qualify for this benefit your mortgage must be on your one and only property.
This is not for people who have more then one property or want to start flipping houses or got stuck because they were flipping houses. This is only for thise people that are in jeopardy of losing their HOME.
2. You must show documentation that supports the fact that your income is such that you cannot make your mortgage payments and in all likleyhood probably would not qualify for the mortgage you currently have anyway.
3. If you sell your home you pay off the balance of your mortgage, just as you would normally.
4. You would not be able to qualify for any other mortgage while receiving this benefit.
5. You can only qualify once.
6. Should you want to be able to qualify for an additional mortgage you would no longer qualify for this payment benefit and would forfeit your eligibility.
It’s one or the other, not both.
7. You would need to re-qualify your eligibilty status annually.
I want to work, I want to pay my mortgage, I don’t want to lose my home but without some direct relief I don’t see how I’m going to be able to do that.
Never mind giving people money or debt cards for the $10,000 per tax payer as some people have suggested. This problem is a problem of over spending. Spending more money that we don’t have will not fix the problem. The govt’ should give people a $10,000 credit to pay down debt. Either credit cards, cars, home equity lines or mortgages. This would give each American tax payer badly needed relief and restore confidence in their own personal financial health. The monthly savings on the personal debt will make it’s way back into the economy in a healthy, reasonable, responsible manner. It may also create equity in homes that are under water on the mortgage.
So… (looking at the “why not split money amoung taxpayers”) basically, the bailout will cost each & every taxpayer $9,718.49
(plus interest of course)?
Has there ever been a calculation performed to estimate the GDP associated with direct “producers” (hands on design/manufacturing, service industries, etc) and the GDP associated with “skimmers” (Managers, Lawyers, HR, Police, Security, etc.).
How do we stack up against other countries?
I am not trying to say that skimmers are unnecessary or valuable, but, there is only so much core product being produced as a base and minimizing skimmers makes our entire economy more efficient and flexible.
I fear that we are heading in the direction of exporting the producers in exchange for the skimmers. The skimmers make more money, but how many times can you sell/resell/trade insurance on packaged mortgage backed securities? Ultimately, who does that benefit?
Re “How much $$ per taxpayer?” When will the media take on the responsibility of reporting facts and ensuring that editorials don’t totally misslead their readers? This article claims to have “three experts weighing in…” These three experts certainly missed math class (e.g., providing results to the precision of decimals, while only using numerators and denominators at the precision of a million). These experts also fail to recognize that there are many more tax payers beyond “individual tax filers” — e.g., corporate tax filers, which are typically orders of magnitudes higher in tax liability, etc. And extending the previous thread, the formula fails to acknowledge the “proportion” of taxes paid by different classes and even more importantly — by corporations. The only expertise I see in this response is the ability to sensationalize and misslead the ignorant public that assumes there’s any value to the flagrantly squewed mathematics used.
My wife just got laid off. How does she get the 500 or as a couple the combined 1000 of the stimulus package if she is not getting a check???
This is a question not a comment. If a general motors employee takes this new buyout offer- $20,000 cash and the $25,000 car voucher what kind of car will they be able to get? Won’t the voucher be treated as cash as far as the IRS is concerned, therefore not only will they pay taxes on the 20,000 but will also have to pay taxes on the 25,000 as if it were cash in hand? Maybe that’s what they are supposed to do with the remaining 20,000 after paying taxes on that they can forfiet the rest for taxes on the “car voucher”. Please give us some input on this as we are a family faced with that decision- buyout now or hope for a job back. Thank you.
Will we ever see any Credit Rating Company executives tried & emprisoned?
Meaning, when will congress start its investigation of the crisis?
This is about all the Tarp money that banks, insurance companies, auto companies etc are receiving. it seems like they decision makers are in a constant fix mode and there are many root causes. I am certain that astime passes this crisis will ease and when that time comes :
What happens to all that TARP money that was loaned / going to be loaned to those financial institutions / auto companies when it is paid back with interest to the treasury..Shouldn’t we as taxpayers be receipents of a dividend / tax credit with the interest earned on it since it is our money that is being used. That is a question that was never really addressed when all this money was approved in the first place whether we was for it or not.
I want to knowwhy banks do not really want to help people to save their home even do they took money from bail out like chase bank ,citibank, indymac, very unhelpfull, is there something else we can do to save our homes or do we have to file bankruptse to get to save our homes.
I am still perplexed as to how bailing out banks is going to strengthen the economy. I understand the philosophy behind it – It will free up more money for loans. This is where I get lost. If I am in the position of not knowing if I will have a job tomorrow what makes the government think I would go out and borrow money to buy a car etc. if I don’t know I will be able to pay back because of losing my job? How is this helping the economy? All I see is that it is giving banks a clean slate for all the bad loans they gave because of greed. Personally I think the banks should have been allowed to collapse. Now they are not even being held accountable for what they are spending the money from the bailout on and are being hush hush about it. I think the government really dropped the ball on this one.
Hello,
I greatly thank you in advance for reading (and possibly answering my questions).
Here’s my questions regarding this stimulus package currently being put together:
#1 – Once this stimulus package has been approved, will the taxpayers receive payments like we did in 2008? (Maybe I missed that part, but whenever I hear this being discussed I never anything directly being said about individual taxpayers receiving payments like in 2008…only talk about states getting x-amount for infrastructures or this amount going towards unemployment or that amount for Medicare and etc.)
#2 – If taxpayers are getting payments again like we did in 2008, at this point, what is being discussed as the breakdowns for those payments. (i.e. in 2008 it was 600 for singles, 1200 per married couple and etc.)
#3 – Again, if payments will be going to the individual taxpayers, what time frame are we looking at and what method would be used? (i.e. in 2008 payments started in May and was issued based on the last 2 digits of SSNs.)
#4 – If individual taxpayers are not going to be receiving any of these funds,(as we did in 2008), with so many people loosing jobs due to businesses closing and layoffs, why not?
Thank you again for your time, RT.
If the Fed would put out a CD paying 8% on the IRA’s, they would get the money, we would get a decent return on our savings, and when we drew out the interest we would be paying probably up to 30% back in taxes I for one could retire, free up my job, and if the companies were forced to not send my job overseas, and start bringing jobs back, it would go a long way to helping the economy. I was able to retire with my IRA with a 4% return before the crisis, right now an 8% return would again allow me to retire, I am 63 yrs old and now probably looking at 3 to 5 more yrs if I am lucky . Pensions have been eliminated, and they want to go exclusively to an IRA, but offer nothing to allow us to retire with(2% interest)
example
IRA = 1,000,000@ 4% = 40,000
IRA now = 500,000 @ 8% = 40,000
vs
IRA = 500,000 @ 4% = 20,000 *
Why not offer a $10,000 5% 20yr loan paid yearly through taxpayer’s filings? This would offer a large sum of money to taxpayers to either spend in the economy or save in their bank accounts…with the payment coming from their yearly tax returns!
Year 1 = $1000, Year 2 = $975, etc.
Why not go back to what we had 15 years ago, and allow tax on interest to become tax deductiable, that would encourage spending, encourage the auto industry, and for the most part give an incentive to people who do spend?
Regarding the question by COLLEEN… I agree with the answer as well however, the money does need to circulate and quickly so why not give each taxpayer $5000.00-$7500.00 but in the form of a Gift Card with an expiration date set to expire within 12 months. This prevents all from saving and allows the stimulus to actually work this time.
I’m with Jim from Phoenix. I bought my home during the 2008 qualifying period for the HomeBuyer’s Tax Credit. Now there is talk of doubling the credit and not paying it back for those who purchased after 1/1/09. Originally it was 4/9/08. What about us? How did we fall off somehow? And where exactly are we now(if it passes)?
Why doesn’t someone just come out and say it?The reason the country is in the mess that it is,is because the people of this country are now and have been living well beyond thier means.Keeping up with the Jonses’ with thier expensive homes and cars and other toys.It’stime everyone realized that the end is now,it’s time to pay the piper.Everyone needs to stop blaming others for thier irresponsable spending nd start paying for what they want or they don’t get it.I wish the government would grab some guts and tell it like it is.
Why won’t the go gov. allow people to go into their IRS without penalty(state or federal) at a set amount say $15,000.00 to pay off credit cards or other bills this would give families more to spending money and lower their debt?
All this is very dark and depressing. How about something lighthearted?
Colleen Hargis, you are gorgeous!!!!
Have a nice day everyone.
We all are financial gurus now which is good when the economy turns. Patience is a virtue. Thoughts are still revolving around Mortgages and credit cards. For the financially prudent this will help with renegotiated rates for the deserving to put more money back into the economy. The checks for a stimulus do not do enough. Spent today for a quick bandaid today but no future gain as credit cards and Mortgages. Thank you
Instead of giving the $9718.49 directly to individuals or directly to banks why not pay off debt in that amount for the individuals. The money would then go to helping individuals out of debt and end up in the banks where it is also needed.
Experts say that consumers would rather save the theoretical $10,000 stimulus share rather than spend it. If the money goes to business, wouldn’t they just use it to pay off debt? How does that stimulate the economy? Debt is not a service or product that translates to hiring of workers… So how is giving money to bailout banks any better for this recession?
Three companies – Experian, Equifax, and TransUnion – maintain databases that affect each of our ability to obtain a mortgage, buy a car, or get a job. However, their data can be grossly inaccurate, correcting it can be next to impossible, and the consumer is provided very little protection.
One low cost way of stimulating the economy is to provide safeguards for consumers against inaccurate data that can destroy lives.
I know that there is a lot of talk about the going into another depression but in one of the responses a professor said that it was unlikely? Is it possible that we will have another depression just not as dramatic as the one in 1929? and why can’t the government take the same steps they did back then to save the economy? and why are they continuing to give huge companies bailout but yet we are still seeing layoff’s? what are graduating college students supposed to do?
Instead of checks or debit cards why not have a tax credit for major purchases such as cars, or other durable goods.
The tax payers are getting stuck with the bill for the financial system failure.The financial systems gave away their future earnings for immei-diate cash gain in the form of upfront loan origination fees.We the tax payers deserve to be paid upfront now. 9,700 $ per tax payer earning less than 100,000 per yr.or 200,000 per household.Most people would spend the money in the ist 6 mo.Some would save but why is that so bad.The money would go to the banks and financials again to be redistributed to the public.The tax payers cannot afford to take on more debt.We need debt relief to help get the economy going again.People will buy cars,homes,and bonds.It will do no good to bailout car co’s.,unless we can afford to buy cars.It’s our money anyway so let us put it to work.We will get stuck with the bill later so we should bennifit now.Get this economy jump started now.
Why is the Government pumping money into automotive manufacturers and banks when people don’t have jobs? If you don’t have a job you are not going to buy a car. And the banks are helping no-one. They will not help you re-finance and they will not modify your loans unless you are a minimum of 4 payments behind. This makes no sense.
And the Government needs to quit funding stupid programs like making beaches pretty, welfare, un-employment or the Space program, and start to cut peoples taxes. I know people that will not look for another job because they can make more on un-employment…good motivation. If you are losing your home and you can’t feed your kids…does it really matter if someone can walk on the moon.
Why not help people pay off their primary Mortgages? Say $450K and under. If you have a home that’s worth more than $450k you don’t need a bailout. This would eliminate most of mainstreet’s largest debt, and free up their income. This will allow them to take lower income jobs if necessary. Without a mortgage people will buy cars, vacation homes, travel, start businesses and everything else.
So if each tax payer received $10,000 from the government from the bailout money it would hopefully stimulate the economy right? Well, if the government is nervous that people are going hold onto the cash instead of going on vacation and buying new TVs, why doesn’t the government disperse the money like a debit card or prepaid gift card that will require Americans to spend the stimulus money? Instead of receiving a check they can dump into the savings account.
Since the housing crisis is the main cause of most of our problems why can’t lending institutions lower every homeowner’s interest rate to 4-4.5% across the board? Thank you
It is far more simple then we are making it – any stimulus money that goes to anyone and or department that raises/adds to someones pay should automatically disqualify them to receive – secondly the apx $10000 SHOULD go to every tax payers who makes less than $500000 – they WILL put it back into the system, which generates economic growth – third every government employee (bar none) should have their department auditted every two years (politicians, fireman, street workers, etc.) – fourth – ALL social entitlement programs should be reviewed for abuses (i.e., cnn news show a woman on food stamps for the last three years, yet she has a two year old child)…we need to put our own house in order first….and if a privately held company fails — that is their fault — not the taxpayers
Wouldn’t it make a huge difference if we took some of the money and bought $100.00 worth of stock for each person who filed taxes this year? I would think that would boost the economy!
If you want to stimulate the economy. Invest in the stock market in american business for the individual tax payer. A 5% ganrantied annuity that pays a portion to the tax payer so he can buy food and housing or what ever. The government can keep the principle and tax the interest it pays out to the individual. The amount of the annuities can be based on age and income. The interest can be reinvested if it is not needed for further growth for the country and individual.
I keep hearing that banks are accepting bailout money but not loaning it out. I also hear that the government wants to take on all the bad loans from the bank and stick the public with them.
Instead, why doesn’t the federal government just loan out all those billions directly? Then those who made the bad deals can take the losses, 100% of the funds would help the economy, banks could loan or not as they see fit, and bankers could give themselves whatever bonuses they want.
Fiscal stimulus can be made WITHOUT dollars, and with LAW. Why not make a law for a 30 hour work week and triple time over time. Corporations would hire AND train new employees. Current workers would get less hours and be encouraged to get schooling, advance up, find new skills,to supplement wage loss. Retirees may not retire, or be encouraged to stay longer and develope new skills. More people will be back to work and trained!!
Colleen Hargis asked why not split money among tax payers, and expert answered,money should be spent and not saved.So if govt. wants us to spend then Govt. should buy stuff for taxpayers. (if they are not sure weather we willspend). I can send my list of things.
Re: $10k, “Some economists believe that transfers to individuals will not stimulate the economy, since the recipients will save a large fraction of those transfers.”
Isn’t savings the pool that financial institutions draw from to provide loans? Instead of bailing out financial institutions by handing them billions which they are apparently just sitting on why not give the money to citizens to do with as they see fit? If the citizens choose to save the financial institutions still have the money to sit on but at least there is an obligation handle these funds responsibly. Who knows this may make these institutions less inclined to redecorate their offices or hand out bonuses to their managemnt teams for their stellar performances over the last several years?
I understand that the economy is about to get this trillion dollar infusion. But since the rest of the world is in the same dire straits who are we borrowing it from. If we aren’t and the Treasury is just going to print it won’t that simply lower our standard of living and cause rampant inflation, which will further erode our standard of living and pulvilize people on fixed incomes? Or am I missing something.
What is the total liability of the United States, including obligations to social security. What is the per capita obligation?
I hear talk of “bad banks” and other things to help. Why not freeze the loans heading into foreclosure? Have them appraised and evaluated. The buy them at a fair price the appraised value or the principle amount – lower of these amounts.
This gets the loans off the bank books. Then start working with the people to restructure the loans at very low rates so they can make the payments. If this can not be done then foreclose, but not until every effort has been made to keep the loan viable. Even 0% interest and a loan paid is better than a default.
Also what about government gauranteed loans? I have one on my farm. I lost my contract and now will not be able to make my payments. Sort of like losing a job. Uncle sam is going to pay the bank and take my farm. Why does’nt he sit down and try to work with me so I can get a new contract and pay him back? I am up to date and even ahead on some loans…but no income available until the economy starts to recover. How about helping me stay afloat?
Is there a way to give each taxpayer ten thousand dollars in some “gift card” form that would ensure the money is spent and not saved. Maybe even put a six month expiration on the card? It seems this would stimulate the economy rather quickly.
My question is: Why on Earth would it ever be a good idea to give everyone in America bailout money? Wouldn’t that be like giving an alcoholic a drink hoping it will solve their problem? What got us into this mess is the majority of the population living well above their means, buying houses they can’t afford and then blaming the banks that gave them the money to do it. I am sorry but if you make $30,000 a year and can’t afford the payments on your $10,000 maxed out credit card or $500,000 house you got a loan for that is no ones fault but your own. For the people who ask “Where is MY bailout?”: please stop thinking that being handed money will solve your problem, you will more than likely just spend it on an even bigger plasma TV that you really can’t afford. Bail yourself out and start living below your means and, heaven forbid, SAVE some money for when you really might need it….NOW!
Instead of The bail out money going to mortgage companies why not loan direct to the home owner? All this bail out money given and my home was still placed in forcloser by Countrywide after waiting 3 months many calls my final answer from Countrywide is that I do not qualify for any programs where is all the so called help???
Most experts I’ve heard say that simply giving money to people right now (and that includes tax rebates) is not such a great idea. With the current mood and uncertainty in the economy most of us will just save it, not spend it.
However, they point out that the exception is low income people. If someone is already living hand-to-mouth, most of them will spend almost every penny that is given to them.
One objection I’ve heard to this approach is we don’t want a “redistribution of wealth”. But we already have different tax rates for different incomes, give food stamps to poor people, and many other programs to bring about some sort of social equity. Anyway this would be part of the temporary one-time stimulus, not a permanent move toward a socialist economy, as some might fear.
So, my question is why we don’t direct more of the relief money specifically into the hands of low income citizens? Will that be effective? And how to convince free market purists that this is not a dangerous move?
There is an easy way to put money
in peoples pockets
First you need $1000 to each tax payer,
and this is with out retrictions.
I know some of the 156 million tax payers,would spend there money on
goods.The rest would put money in banks.
I always here every year ,at Christmas
time the stores losing money.
The solution is to make that payday
before Christmas free from all deductions.This way people would have
more money to spend.
Why doesn’t the federal Internal Rev. service cancel penalties for early withdrawal of IRA funds of individual 59 1/2 or younger?
This can help individual that are retirement plan rich but cash poor!
I Don’t understand why they won’t give the money to the tax payersThey say we wouldn’t spend it we would put it into the bank, Ok so give the money to the banks and then they turn around and buy jets, give themselfs bonuses,and know we are finding out that Bank of america just spent 10 million dollars on the super ball if not more, so how is this helping us the people. We are the ones without jobs, no food, no medical insurance, but lets give it to the banks. We are going to give our money to the banks, so then we can turn around and borrow our own money back, doesnt make sence to me. And what banks is going to leaned money to people that are out of work. Obama needs to sit down and see the big picture because the banks didn’t get it right the first time. Obama should just give so much to each household and he will see people will start to spend it on paying off cars, paying houses off, paying credit cards off and this will get the economy going again. He needs to listin to the people who have put him where he is today. It is our money we will do a better job with it, tell people they need to spend or they will have to return it, Seeing no one knows where the banks have spent it, they are not being held accountable for what is being done with the money have gotten already. But then again Obama is upset with the bonuses and jets yet he doesnt say anything about the money that was spent on his sworn in party 150 million, maybe the banks are just following his lead. Let the people decide where the money goes. I voted for Obama not sure if I will again as so many other people feels the same he better enjoy his four years. For I dont see him getting in again if he keeps giving our moeny to the wrong people. This will probably not make it as cnn controls a lot of the media
If you really want to see a change in spending, I think the government should cut everyone’s mortgage by half. Whether it is a first or second mortgage, cut it by half and re-adjust everyone’s payments according to the terms of their loans. This will give people confidence in their government and people will start to spend.
I also think that all corporate executives should have a salary cap just like the rest of us; and their bonuses based on goals and objectives like the rest of us.
It’s high time they’re held to the same standards we are.
Just my thoughts.
Putting it in the taxpayers hands is the best idea. That stimulus package is just a joke. It is a payoff to the Obama supporters. If they are worried about peolple saving it then here is my idea. Give everyone a pre-oaded credit card with $10,000. Then give that card an expiration date. If they don’t spend the money within that time frame then the card stops working. Now who in the heck would not spend it all in the time frame. I am making 2 house payments! Buying a TV. Fixing my house. How many forclosures would that stop!!!! Problem solved. Everyone goes crazy spending the money and the ecomony would see the bigest spending spree ever. That makes a bigger inpact than giving it to honeybees….
I am confused about how the employment numbers and tax numbers are put together.
Question: It was announced last week that 4.6M to 4.8M have now been unemployed / laid off from 2008 through EOW. The last percentage issued was estimated around 8% unemployed. So my math indicates the US has around 60 million tax PAYERS – EMPLOYED.
Your article today uses math that concludes that $9,700 would be the result if the $1.5T bailout were evenly distributed. This math is based on 157M tax FILERS listed in the article.
The math mathematical problems above indicate a result that 100M (roughly)do NOT work thus pay no taxes, but would be expected to receive an equal share of a rebate/bailout.
So who’s math is correct? Does anyone actually know the basic answers; ie total unemployed, total actual payers, the median US wage, the median US PAID tax, etc????
I think the Obama’s cabinet choices have exposed three non/short Tax Payers (FILERS) of the possible 100M; and these three choices I am to trust?????????
Read on . . .
I work, they pay me. I pay my taxes, and the government distributes my taxes as it sees fit. In order to earn that pay check, I work on a rig site for a Fort McMurray construction project. At any time I am required to pass a random urine test, with which I have no problem. HOWEVER, what I do have a problem with is the distribution of my taxes to people who don’t have to pass a urine test. Shouldn’t one have to pass a urine test to get a welfare check because I have to pass one to earn it for them?
Understand – I have no problem with helping people get back on their feet. I do on the other hand have a problem with helping someone sit on their fanny, drinking beer and smoking dope. Could you imagine how much money this country would save if people had to pass a urine test to get a public assistance check?
If you agree, please pass this along, or simply delete if you don’t. Hope you will pass it along though, because something has to change in this country, and soon.
Since the end of WW2, our economy has been consumer driven. Over the past couple of years I’ve seen articles written discussing how ‘tired’ the consumer is. With the current crisis, wouldn’t this be a good time to re-focus our economy on something more resilient than consumption? Don’t we have enough ’stuff’? Instead of trying to get people to ‘go out and shop’, yet again, can’t we develop a more sustainable economy that doesn’t rely on going to the mall?
So how many shares does the government/us own of these banks and at what price did we buy the shares. I should see this on the institutional investor section. I need to see how the investment is working.
Why are we as a people not concerned about the 8.5 TRILLION dollars that the bankers and government have stolen from all of us?
Why is the stimulus package look more like a wish list of every democrat in Washington, instead of a stimulus package?
Why are we spending 9 billion dollars on bird flu, and 50 million on the national endowment of the arts? Can’t really see those boosting anything… can you?
Why are we allowing the Federal Reserve, which is just as federal as Federal Express, ruin our nation with a Fiat Currency that is nothing but a debt currency, and is not supported by gold, etc.. .and has been illegal to use since it’s inception??
Why aren’t more American’s tired of being lied to by the press, by the government?
Why can’t you realize that 8.5 trillion comes out to 60,000 per person, man, woman and child in the US?
Why does CNN keep removing my post? Are they waking up the masses?
I don’t see why when there is a great need and obvious places to put the stimulus, that politicians always seem to load up the bill with special spending projects that have nothing to do with stimulus. Do they really care about the economy or just their special projects and see this as a chance to get it through when it wouldn’t on its own. I think it is shameful, hypocritical and works against the best interest of the nation as a whole.
Ok, so I understand that giving taxpayers a $10,000 check and telling them to go spend it probably wouldn’t be effective because too many would just save it. So here’s a novel idea: Give everyone a $10,000 Visa/MC/Amex gift card that you cannot turn into cash. Not only would it stimulate spending, but it would sure make the credit card companies happy. Maybe they could bid on the business, e.g., sell the government a $10,000 card for $9500.
Improving economy is simple.
- Stop Panic
- Boost Consumer spending. Govt should issue Use or Lose debit cards to public that will be expire in few months. The items purchased are non refundable. These cards should be allowed to used towards closing costs for purchase of homes
- Give Tax Credit to companies that don’t do Layoff’s
- Decrease high property taxes like in Texas(above 3%) to making housing attractive atleast for next few years.
- Dont attack companies that give bonuses but dont take bailout pckg from Govt.
As far as the government giving each taxpayer the $10,000, it was related we may not use it and instead put it in savings. So make the $10,000 payment with the condition it be used only towards our mortgage payment. I for one would love that $10,000. I would directly put it towards $10,000 worth of mortgage payments for the next several months. By doing that it would free up money that I could be spending to get the economy moving again.
The experts say our economy is driven by CONSUMER SPENDING, which as we know has dropped dramatically.
The ROOT CAUSE of the drop is lack of consumer CONFIDENCE.
The root cause of the lack of confidence is LACK OF JOB SECURITY, especially with thousands of layoffs being announced every day.
The SOLUTION is a MORATORIUM for a year on job LAYOFFS, restoring confidence and buying us some time to transition from a consumerist economy to something new, to be determined.
Most companies probably aren’t yet desperate enough to require layoffs for survival. Let the govt audit them to prove this.
I heard Taiwan issued Government vouchers to all taxpayers for use in retail stores. They are wortheless unless you actually go to a store and use them to purchase products. This would encourage people to shop, help out all small business, and keep people from just banking their stimilus checks. Why don’t we do this?
Everyone has to sit and watch their 401 K dwindle away. Why not allow them to withdraw a percentage which would then be taxed, this would be money going into the government to help with the deficit. It shouldn’t matter if people used the money to pay down debt or purchase new items, it would help the individual.
I can’t believe answer 5/12. You need to learn how the federal reserve system works. The Govt NEVER has to raise taxes. If open market bond sales dont happen, the federal reserve will buy them up and “print” money electronically. The answerer of this question insinuates that the Bureau of Printing has anything to do with the money supply. Most of the supply is not paper/coins, it is electronic ledger balances at member banks and federal reserve banks. Duh
The media calls it bailing out the banks. It is my understanding the TARP money is a loan to the banks at 6.5% that must be paid back in 5 years. They can take this money add it to thier capital lend it out at about a 10 to 1 ratio allowing them to profit thru more loans. Is this correct? If so why are the banks getting such bad press?
I would like to know why the Federal Reserve doesn’t liberalize lending rules by making the reserve deposit requirement a percentage of the inflation rate. Even if the reserve deposit requirement is set equal to the rate of inflation, it seems to me it would provide automatic control over an economy that grows too fast frees up more money during the slow times.
Sonjay from Brookly New York I couldn’t agree with you more. Chase has done nothing to help me modify my loan so I can save my house. Why are banks reputations NOT checked out before giving them BILLIONS of Tax Payer Dollars? This is not right, I lose my home to Chase, and I get to pay back their bailout gift money. I also want to add that they can’t even say no in a respectful manner. How rude!
If one of the main problems America is facing is the foreclosure of homes, why not apply a larger household stimulus to tax-paying homeowners (when applicable) and then send the rest via check or prepaid gift card to the household. This action would pay down mortgages, put money back into the banks and financial system, shore up housing markets by preventing increased forclosures, as well as keep family in their homes. Down side? Possible short term deflation, but more money will move than simply bailing out the banks, who seem to be sitting on it.
There isn’t a question nor a need for an answer. I needed to write my thoughts in hope that someone might read & understand my fears, concerns. I may not be speaking for some, but may be some one else has the same fears and concerns. Our day to day existance has become just that; day to day. Some of us aren’t as clear about our dreams, goals or the direction to take in planning. The American people are going through difficult times that seem to be getting worse every time the paper is read & the news is heard. The american people (me, you our parents, grandparents, & children) need to see that are best interest is @ hand & not just the major CEO’s, Presidents, VP, & Executives of major Industries. Our (my) goverment works for the people, (ALL THE PEOPLE) not just the individuals in a higher tax bracket or the white collar criminals. When companies fail, reorgainzation (internal reorgainization)happens, you don’t reward the individuals who have performed poorly with a positive (bonus)hoping that the behaviors & performances will improve? Shouldn’t be the high performers be awarded? Our goverment has rewarded the wealthyand the businesses failure. Something is very wrong. In one of the previous question/answers listed; who will reimburse all of the individuals who have lost hundred & thousands of retirement funds? People need to have a safety net & a goal to achieve and our goverment needs to bring us back to that place. Have the businesses taken responsibility for their failure & reorganize & restructer? With the unemployment numbers, may be the people needed are out there? Thank you for this opportunity.
I was under the impression that the way most of our (taxpayer) money gets added to the economy by the Federal Reserve is not by physically printing it, but by creating it out of thin air (the Federal Reserve has this authority) and then buying Treasury securities. Although, technically the government OWES the money back to the Federal Reserve, the Federal Reserve never cashes them in and returns most of the interest back to the Federal Government. My understanding is this is over 50% of the total of the Federal debt. So essentially this isn’t really a debt and won’t ever need to be paid back. This is “debt” that taxpayers need not worry about leaving to future generations. Do I unserstand this correctly and if so why do the politicians and economists pretend that taxpayers will have to pay it back? Yes – the Treasury sercurities purchased by others will have to be paid back with interest, but that is less than 50% of the total sold.
In regards to the foreclosure prices, Is there anyway to get the banks to stop trying to outbid each other for the lowest listing on the market. In an article posted on CNN.com you had mentioned that in many real estate markets, the foreclosures and or short sales are setting the market. It seems to me that they are shooting themselves in the foot and every homeowner in the back by dropping their prices so much. There are homes on the market right now for $25,000 that 2 years ago were appraising for $200,000 (sure those may have been inflated prices, but to drop that much is ridiculous). I’m no genius, but if the banks held out for a slightly higher sales price, maybe they wouldn’t need as much of the bailout money???
If the bottom half of all taxpayers pay no income tax and the Obama policy is to make the top 5% pay the bill, isn’t your math on the cost per taxcpayer wrong?
5% of 156 million taxpayers is roughly 8 million taxpayers and the combined cost is still $1.5 trillion, so the tax bill to be paid by the tax payers is really $187,500. That amount is actually larger then the total income of those in the 5% level, they would owe more than they earn. So let’s try the top 1%, about 1.6 million taxpayers. They would each owe $937,500. That is about 250% of the bottom end of taxable income of the 1% ($350,000). That won’t work either.
Your analysis is more simply stated this way. In 2006 according to the IRS the top 5% paid $600 billion in income taxes. This stimulus is 2.5 times larger than their total tax payment which means to pay the bill, they will see a 250% increase in their taxes. Why is no one talking about the inability to pay this back??
If our goverment wants to stimulate the american public to buy, they need to reset everyones credit scores. They are trying to help people in the forclosure process, now. But what about the people that went through hard times over the last 2 or 3 years.
Reset the credit scores, to wipe out all writen off debt would help huge and that wouldn’t cost anything. If they felt a need to spend money then give the money to the people to wipe out debt they are paying on. Why give it to corporations that are cutting jobs and only a select few are reaping the rewards.
I think people would get out and spend again if they had the extra money. But we don’t we are being asked to take pay cuts but yet the cost of living keeps going up. I think the goverment spending would go much farther and be more successfull if the american people didn’t have these credit issures lumming over their heads.
The goverment is will to bail out huge companies why not bail out the little guy instead?
Dear Fellow Economist,
So if we get 10k on a debit card and have an opportunity to spend -VS- to the CEO taking in a larger bonus and trusting them with the money is a better idea? Please explain?
I have been self employed as a carpenter for more than thirty years. After all is said and done I still only make about $16.00 per hour. It has never changed. There is one thousand million in every one billion. More than enough to put a cost of living raise in every ones pocket. Don’t the big wigs want the people who put them in office to be happy and healthy?
Once upon a time, Americans could write off 100% of their credit card interest. This was because the bank/card provider had to pay taxes on their income, just like you and me.
The American borrowing public should NOT be paying the income taxes of credit card providers.
Also: Marijuana has recently surpassed corn as the #1 cash crop in America. Not ONE death has EVER been attributed to a marijuana overdose, nor has ONE death ever been attributed to a vehicle accident where the driver was soley under the influence of marijuana.
WAKE UP AMERICA!! BILLIONS UPON BILLIONS IN TAX REVENUE ARE PASSING US BY WHILE WE BICKER OVER A WEED.
What if President Obama put the bailout money in fannie and freddie to provide 1% 30 year mortgages to average Americans. We could refinance homes, purchase existing home, and lower monthly debt for many Americans who would in turn afford to purchase cars and other consumable goods. Wouldn’t it make more sense to work from the bottom up? It appears all these Bank CEO’s, Wall Street folks, and corporate CEO’s are still using money inappropriately, like this recent NFL deal with BOA for example.
Hello. It seems to me that some of the discussions in Congress about getting people into houses that have already been, or are about to be foreclosed on are bound to fail. If they couldn’t afford the mortgage the first time, wouldn’t they be less likely to afford a mortgage the second time. Increase property taxes will come back to get them in the end, unless they are well off.
How about a circuit breaker property tax. The reason we live in a mobile home, 1979, is that my husband doesn’t get cost of living or merit raises. He has received approximately the same salary for years. Why would I buy an adjustable rate mortgage. It would sooner or later adjust upwards, and I would loose the house. Why would I buy a fixed rate mortgage. The inevitable increase in property tax would also cause us to loose the house, unless my husband worked a second job. He is 57 and already pushing it as a welder and heavy lifting truck mechanic. Lifting 80 pound brake drums.
If there was a permanant circuit breaker tax, I might possibly think about buying a house, but then still the government can pull a benefit for the taxpayer without notice.
We’d all be more secure living off government benefits. They are assured raises, section 8, Heap, phone help, etc. food stamps. We haven’t been on social security, but it seems like the only secure haven. No job is secure. My question—why aren’t they mentioning circuit breaker property taxes?
Recently, when going through some of my mothers’ paperwork after she contracted Alzheimers, I found her house payment receipts dating back to 1962 when my parents bought their house. Their payment was 216.00/mo. at 10% interest. From the onset of their loan until they paid off their house in 1985, 194.40/mo. went to the principle and 21.60 went to the interest.
How Simple! How Fair! The American dream! Simple interest!!!
My question is this: How did we as a people ever allow the demise of SIMPLE INTEREST for loans on tangible goods? My parents paid approx 6500.00 in total interest for their house. If they were to buy the same house today (adjusted for inflation) they would have to fill out a disclosure about Annual percentage rates and yields and the loan, which if carried to term, would cost about 300,000 in total interest. Additionally they would need to understand that they would have to pay for 15 years on a 30 year note before their principle started to go down even a little bit.
No wonder banks have become “too big to fail”. Any chance on pushing for legislation bringing back simple interest for home and auto purchases?
Distribute the bailout money as the gov’t see’s fit in interest bearing acct’s to all taxpayers without the possibility of withdrawl for 5 yr’s. The interest is borne by the various inst’s so they are bound to make sound invest’s and perhaps we too can earn some dividends.
I’d like to revisit the idea of giving everyone a check for $10,000 instead of the current bailout package. Economists say that in general we would save the money, which does not give stimulus to the economy. I beg to differ. I think that if everyone took their $10,000 and put it in the bank, they would in effect also bail out the banks by giving them money that they could loan to businesses, thus stimulating the economy. I would have more faith in the economy if I had money in the bank, and the banks would have money to lend out for business investment.
My concern is, since so many folks have lost their credit rating, and they have had to claim bankruptcy, how are they suppose to ever get a second chance?
Why don’t these lending institutions rework their loans so it is manageable, and for those who have had to claim bankruptcy, and finally get good jobs, help them reestablish a credit rating.
If you have people feeling unempowered, shouldn’t we get to the core root of the problem and empower them?
The rich can NOT get richer without the working poor and middle class feeding the market. PERIOD!
Has there been any discussion on the permanent reduction of taxation on money saved,invested and the earnings of that savings/investment.
Is there a way for the government to provide a tax free, penalty free way to induce move personal savings.
When people save. Without having that money added to next years tax returns to be taxed again?
The money saved is used by the banks to invest and to provide loans to others. I dont see any profitable reason based on the current tax/penalty structure to save any money.
Why cant we use this strategy to boost our economy?
Why dont we allow Americans to borrow directly from the fed or treasury at .5% interest on top of an idividual stimulus.
In reference to the question regarding those people who have had to take early withdrawals from their retirement funds, why can’t the federal government re-instate income averaging to help alleviate the tax burden to the individual during these very difficult times? Currently, you have to be born prior to some date in 1936, I believe, in order to average. That doesn’t help the thousands who have had to pull monies from their retirement funds, who are a lot younger. Doesn’t this seem like a doable compromise for tax payers?
Every “expert” assumes the government will spend the money more wisely than YOU. In reality, they will NEVER give the money to YOU. The bailout is designed to save the fools and crooks who got us into this mess. The only honest thing would be for the government to outlaw “fractional reserve banking”. That is the fraud that got us into this mess.
There are a lot of programs that exist for 1st time home buyers, especially those in the low income brackets. These programs, backed by the government, would provide assistance with the down payment, anywhere from 5-20%, depending on the programs the consumer qualifies for. This money would be paid back if the homeowner sells the home or refinances. Otherwise, the money would sit at 0% until the 1st mortgage is paid off and then the homeowner would continue to pay the 0% loan back until the loan is paid off. My question is, why wouldn’t the government set up a program where the homeowner, who now is in a home that is worth less than what they owe on it and they can’t refinance off the ARM they were put on 3 yrs ago, or any other situation, take 5-20% off the principle mortgage balance at a 0% 2nd mortgage backed by the government. This could help in keeping customers in their home instead of foreclosure. The lower monthly mortgage payment would help to stimulate the economy for the consumer to start spending again. I have seen articles that say 1.5 to 2 million homes have or will go into foreclosure. Take the $700 billion + the additional $819 billion proposed stimulus = $1.519 trillion / estimated 2 million homeowners in foreclosure = $759,500 per home in foreclosure (if my math is correct). Not everyone needs $759,500 to save their mortgage, so split the $1.519 trillion among all current homeowners and continue to help other 1st time homeowners with the down payment money needed. This would increase refinances on homes and create a spark in home sales. Banks would be willing to lend with lower loan to values, homeowners can stay in their home with a lower affordable monthly mortgage payment, and now the consumer can start spending again on remodeling, vacations, and other items to help stimulate the economy. Instead of giving it to the banks and having them sit on it and increase tougher lending guidelines, give it back to the people!
i have heard that if you add up all of the credit card debt in the country, it comes to about $950 billion.why don’t they wipe out the entire country’s credit card debt. that would get everybody spending again, and solve the problem of all of these banks that have raised everybodys credit card interest rates for no reason and ripping off consumers.
COBRA helps with health insurance when you are laid off. I heard that they are looking at extending COBRA and maybe adding MEDICAID. My question is can they do anything about health care for workers whose company goes bankrupt? There is no COBRA coverage for an employee whose company goes bankrupt.
I would like to know which party Democrats or Republicans have a greater spending history? We seem to have a one sided government this go; and my concern is there is no balance? Not that Politics are balanced as an organization any way.
When filing taxes, taxpayers opt to receive a check or for the money to be directly deposited into a checking account. Why not give this money to these citizens and set up a system–a hybrid online banking/IRS payment options system–so that taxpayers can choose among several ways to receive their money? No more than a certain percentage can be issued in cash/check/debit cards and the rest must go to overdue mortgage or credit card payments and/or to up to three future mortgage or credit card payments (for those currently unemployed), which is money that will go back to the banks and free up some collective credit for the country. This would provide immediate breathing room for each tax payer, while boosting demand and supply alike.
I am employed for a GM Dealer. I am a finance director and my question is what is the gov. going to do to help the auto industry? The reason we are in the shape we are in is the high gas prices we had and the banks not lending money anymore.
I heard something through the grapevine this morning about an accross the board 4% mortgage rate. I believe it is a GOP stimulus plan idea. Is Mr Obama entertaining these real “Help the People” ideas or sticking to long term environmentally friendly(Make a select few very wealthy) ideas ? And if not, how can we make sure he really gets to check out this and other viable alternatives to help the people he represents out.
If anyone has any further information on this 4% mortgage idea please let me know.
Harry Sheridan
My idea is to use part of the stimulus money to bail out/replenish the value of our 401K/IRA accounts to pre-wallstreet meltdown (Sept08), which will make many of us FEEL GOOD, and then those with a job will go out and SPEND SPEND SPEND, and consequently creates more JOBS.
We say that if the government gives $9700 to each individual, we will save it. But instead of giving cash, why can’t this be done:
1. In the IRS website everyone can login , and they will have 9700 credit to them
2. For that amount you can print for yourselves grocery coupons, car buying coupons, retails coupons etc, which needs to be used in few months
3. That will make everyone used that amount f money. Just imaging if $1.5 trillion is being used in the economy directly in few months, it will have a big impact.
Just my 2 cents
About all the bailout talk. Has all of America lost their common sense?? We don’t know where half of the first 750 Billion went and to who because nobody was regulating it. I haven’t seen or heard anything that the 750 Billion has helped anyone except the big banks and corps. that got us in to this mess in the first place. Now we are talking about 819 Billion dollar bailout. This latest bailout plan is worse than the first one…why are we continuing to throw good money after bad?? The government is asking us (the tax payer…actually generations of tax payers down the road) to borrow 819 Billion and they don’t want to give us any of it claiming if we should get a good chunk of money that we would just sit on it…what do they think the banks and everybody else they gave money to is doing?? SITTING ON IT!!! It’s still hard for people with good credit to get a loan. All this talk about helping the “now” middle class…what about the people that were middle class and now find themselves below the poverity line?!? It could take decades for all this bailout crap to work itself out so what are we supposed to do in the meantime?? The government wants to borrow money from us the tax payers to keep their pockets lined while we are continuing to lose ungodly amounts of jobs? When someone “borrows” money, it’s with the understanding that it will be paid back…a $500 tax cut is not payback to me…I personally need a good chunk of money to get going again…just like all these big wigs that got bailout money. All I see in the future is a REVOLT agaisnt the government unless they really do something to help the American people. The US government is NOT indispensible and until Americans have had enough of job loss, starving people, people killing themselves and their families etc. over this mess…nothing will ever get done. The government works for us, people wake up and lets demand results instead of empty promises!!
I have tried to refinance my home and it is impossible to do if you are not working. You used to be able to get a none job verification loan that went only by your credit scores but for unspecified reasons these loans are no longer available. The mortgage broker that I have talked to feels it is because the number of people defaulting on their mortgages. Now this leads me to this, from what I have read and understand to be true, the reason for some of the bailout money was to help stop people from losing their homes. Chances are that if you are going to lose your home then you are probably not working. Although refinancing at a lower interest rate might lower your payments and give you a glimpse of hope that you can keep your home it still isn’t going to happen because of insufficient income from being unemployed. This leads me to my first question, how is this money from the bailout going to help the ones of us that really need it? Is there something that I am missing here? Am I not asking the right people for help or is this bailout money for the select few? At this time the refinance rates in my area are 4.75% and with this rate I would save $150 a month. This might not sound like much but it sure would help. So, why are we being denied due to being unemployed? This is absolutely crazy! Is there really opportunities for us who are less fortunate or unemployed? If anyone can tell me where this money is, I am positive that many others would be grateful for the information also. It is no wonder that the people of this great country have lost faith in the way their government operates!
How to prime the pump?
There is plenty of help for unsecured dept. How can I be helped for my secured dept? I want to lower my monthly expenditures, but I can’t get banks to help. I have ok credit, my taxes helped out these large banks, so why aren’t they trying to help us now? We need to get money re-circulating, I thought that’s why we helped the banks. What can I do?
The CEO’s and all the high rollers get paid off by the government, but what about my 401k. I have lost over $100,000, who is going to pay me back. I am now forced to work for the rest of my natural life because of CROOKS (who are free and still stinking rich).
Will the newest bailout include any assistance for homeowners whose mortgage amounts far exceed home values (market value) and are not in foreclosure status?
Improving economy is simple.
- Stop Panic
- Boost Consumer spending. Govt should issue Use or Lose debit cards to public that will be expire in few months. The items purchased are non refundable. These cards should be allowed to used towards closing costs for purchase of homes
- Give Tax Credit to companies that don’t do Layoff’s
- Decrease high property taxes like in Texas(above 3%) to making housing attractive atleast for next few years.
Stimulus Debit Card Solution:
Reading through the other posters’ ideas, it looks like I’m not the only one who thinks that might just be the ticket.
Could the government require that taxpayers spend the stimulus money? For example, put the refund on a special debit card that can only be used to pay for products from American merchants (merchants who pay their taxes, of course!)
I am a self employed artist, I don’t have any income since two years, no one is buying artwork for their home in these hard time. “We” as artist can’t get any kind of bailout, no unemployment, I have use up my saving and have no where to go.
What is this bailout going to do for the art community that is never heard in this society?
In the reports of the stimulas package, part is for rebuilding roads and bridges. Isn’t the taxes (state and federal) that we pay on a gallon of fuel for the state and federal roads and transportation system? Where did that money go?
What is the incentive for the unemployed to find some kind of a job quickly, when they are offered increasing unemployment benefits, extended length of the benefits, and not taxing the benefits as a dis-incentive to working for a wage?
I was unable to get the last stimulus check as my income exceeded the said amount for 2007. However, my earned income for 2008 has been cut in half as I am self employed and the economy has hurt ne tremendously. What year’s income is being used to determine whether or not people are eligible for benefits in the stimulus plan? 2007 or 2008 ???
I am a single male, make $75,000.00 +
Pay the most payroll taxes, and yet would get nothing in the form of a tax credit. Although $30,000.00 of this is from a profit sharing bonus. Last year was a huge year for us but this year will not even be close. How is the Govt. going to help me as I recieve no stimulus check or tax benefits?
Why can we give the banks all of this bail-out money at little to know interest with no collateral? Why can’t the govt. buy my mortgage from the bank and change my loan to 1-2% using my house as collateral. If I default, then the Govt. has my house what do they have if the bank defaults?
Robin Hood is Alive…
I pay taxes. The Govt. is giving people who make less than $75,000 money back… say around $500.
Take from me… give to someone else… sounds like Robin Hood.
Jim
we should give the money to LEGAL US residents. giving the one to the banks and autos and everyone else but the people, wont stimulate the economy.
There is a huge difference between a 500 or a 1,000, compare to the figure shown here of close to 10,000. You give 10,000 I’m gonna pay my bills and yes gonna save some money
Why don’t they take each taxpayer’s share of the bailout money and put it on an existing credit card account. It would either pay down debt or be a credit which could only be spent. It would also give the banks $$$ to hold. Seems like a reasonable solution.
Im a 23 year old recent college graduate who missed out on any stimulus at the beginning of 2008 because I was still in school. The new stimulus package would allow for “$14 billion in tax credits of up to $2,500 a year for college students with an annual income below $80,000.” Will this apply to those of us who have graduated in the last year or am I doomed to miss out of both sides of these stimulus packages while struggling to pay off current student loans with my unemployment benefit money?
If the government and/or analysis do not think that the American people will not spend the money (if it were to be given directly to us), then who do they expect to spend it?
If you gave the money to someone else (some foundation that most likely we wont know how to find to help us) to actually disperse the money, would that not take that much more time to spend the money? What would stop the plethora of organizations or the many foundations from holding on to the money to ensure their survival? This trickle down theory has proven not to have much of an affect.
I would not call myself an expert but you don’t save money when you are in debt. You have to get out of debt before you can even call it saving in the first place. You think about it; the country is TRILLIONS of dollars in debt, but the country is not saving anything. I say give it to the American people…there is not much time to save your money in bank when you will be losing your home at the end of the month…
-Tra
I agree with Randy R. of Colorado Springs. Any stimilus incentive in the form of an extra tax rebate such as the previous one of $300/$600 should be distributed as a credit/debit card with a provision that it can only be used to purchase durable goods and the amount on the card would expire in 6 months. Use it or lose it! Going one step further, There could be another provision that the card could be used toward 50% of the cost of those goods and reward those who spend the full amount on the card with an additional amount(to be decided) added to the card with the same conditions to be applied. Cards should be embossed with tax payer’s name and photo ID required for use.
If the government wants the taxpayers to spend the stimulus, but are afraid they will just save it instead, why don’t they issue debit cards that expire instead? And if they think people would simply substitute the card for regular income, and save that instead, then make it only good for retail purchases that are not food. A little could still be saved, but most would need to be spent.
An article today said that Wells Fargo paid a $371 million dividend to the taxpayers (i.e. government). Does this money really trickle down to the average Joe and if so, how and when?
Credit card interest rates
Someone said that the Fed cost to loan out money is near 0%.
Interesting that I am getting notice after notice from the many cards I have (0 balance thankfully), telling me they are jacking up the interest rate to 17, 18, 19%.
They see an opportunity to make more money since they have to pay less for what they borrow.
And from the same institutions that just got bailed out….
FEDERAL INTEREST RATES
WHY FEDERAL DIRECT LOANS FOR STUDENT’S AID REMIN AT 6.8% APR?
WHEN WALL STREET’S INTEREST IS CLOSE TO ZERO?
WHERE IS PRESIDENT OBAMA’S HELP FOR THE PEOPLE?
I have been unemployed (14 years there)
since August ‘08. Single mom: I voted for Obama when he said we may take 10K from our pension WITHOUT a penalty.
I need to pay my health insurance, my dentist, and medical bills that are going by the wayside.
Is this going to happen? How do I ask the President about this. He can’t give out his email.
Chase has gotten one of the biggest bailout piece and yet when it comes to “greed”, Chase is an ideal example. I wanted to refinance my mortgage, however the closing costs are close to $9,000. Checking the math using refinance calculator, I am better of staying put. Its ironic that the government and common people cries out for rescue while it seems that all the executives of all financial institution are deaf. Are they? or are they acting deaf? Always looking to pry into our pockets for more!!.
DEBIT CARD SOLUTION PROBLEM
Give me a debit card to use for new purchases, and I’ll save the $ I would have had to spend on normal things, and use the debit card for them.
Not a comprehensive solution. Not saying it’s a bad idea, just pointing out the problem I see.
Even if some or all the people who receive this $9718.49 save it, won’t it end up in the hands of institutions who will in turn lend it to people who do want to spend it?
I would like our president and the members of congress to explain why the top 5% or the top 1% of American earners are excluded from tax cuts, stimulus packages and deductions.
High income earners are Americans too and we all deserve to be treated equally. Anything less is simply a redistribution of wealth. The last time I checked, Obama was not Robin Hood.
If anyone should be allowed to take advantage of the stimulus money it should be the taxpayers not the corporations. I for one can’t figure out why we are offering bailout money to million and billion dollar businesses when all they are going to do is blow it on bonuses and redecorating and raise the prices on products we can’t afford already.
So with no knowledge of how our economy works I am offering my “common sense” solution.
1st. Any 2009 taxpayer who is elgible and recieves a refund, should have a second check for the same amount as their refund sent out starting the week after tax season ends.
2nd. A federal freeze should be placed on all interest rates. All Loans, Insurances, Credit Cards etc…….
Why?
Because……….
3rd. Any taxpayer with a credit score under 600, score should be erased. Debt’s over 1 year old wiped clean.
4th. All child support owed to children born before 2006 should be paid to the current parent or legal guardian. Or payment could be set aside in a trust fund for the children that wouldn’t be allowed to be used until the child is 18. The negligent parent(s) of the unpaid child support would now have to repay the government.
I know this would cause all kind of hysteria and corporations would take major hits. But This would only be temporary. Americans spend and waste money better than any other country in the world. Auto makers will be forced to slash prices by 30 to 40 percent. But people will buy and will want more, which will get the economy and employment moving again. By the end of 2009 the same corporations who are crying foul now will be running rampant with kool-aid sized smiles.
As for our current employment situations. How about building a couple of cities (yes cities) in some our less populated states. I’m not talking about putting a “New York” or “Los Angeles” in the Dakota’s but 3 or 4 cities that could comfortably house 150,000 people, schools, hospitals, businesses not included. North and South Dakota, Wyoming, and a few of our Heartland States would be ideal. This alone would generate millions of jobs. Teachers, construction workers, nurses and doctors, law enfrocement etc……..
Just a thought.
If the Federal Reserve is now loaning money at nearly zero percent interest, why doesn’t the federal government refinance the national debt and free the U.S. taxpayers from approximately 50% of our current tax burden– namely, interest on the current $10 trillion national debt?
Jordan(Washington), you posted exactly what was on my mind. I would like to add some points, these debit cards should also be allowed to used pay towards closing costs for NEW home buyers,so that this will improve housing market. Also there should be a rule that items purchased using debit cards should be non refundable.
DEBIT CARD>>> A very simple minded solution to a very complex problem. Why not hand out the money given to taxpayers to stimulate the economy on a debit card…which could be used to pay debt or buy any and all consumer products, but not allow for the money to be saved.
If the government wants to get people to spend to get the economy going the money should be given directly to the people. I understand that there is a fear of people not spending it and saving up or using it to pay off credit cards etc… However, with some creative thinking (and not even all that creative), this problem can be avoided. One potential solution, why not send out debit cards with a fixed amount, of however many thousands of dollars, to each taxpayer, put a ‘bank block’ on the cards so the funds can’t be transferred to checking, savings or credit card accounts. Then put an expiration of 6 months on the cards, so people either have to spend it or completely lose it. That will get this economy going over night and really won’t be all that tough to implement.
The businesses that the bailout money is designed to help have already proven that they are poor money managers. They squandered their own assets and are now working through squandering the taxpayers’ money. Why are we funding poor corporate decision making and failed corporate visions.
Don’t punish the people who are trying to do the right thing!!!
1) Banks created a terrible scheme (sub-prime).
2) People were pressured into these schemes… they made housing prices go up since everyone could get a loan, so it was the only way you could afford a house (and people were afraid if they didn’t buy now, they would never ever be able to afford one)
3) Market crashes… those trying to do the right thing are stuck with huge payments, because they don’t want to lose their house (even though it is now valued at 1/2-1/3 as much).
Solution?
Drop peoples existing home loans down to the value their house is really worth, and should have always been worth before the banks screwed up the system. This way you stop punishing the middle class, you give them $$ relief (say their monthly loan payment halves), they can now afford to buy the things they need too, to stimulate the economy again.
Follow that up with forcing new home loans to require 20% down to keep the market realistic, and focus on giving companies incentives to start new business here in the US, or to bring jobs back.
What do I do if I have expended my IRA to pay my credit bills and now I dont have the money to pay the IRS based on the distributions I have taken. I have almost exhausted all my money and the only revenue I have is my SS which I use to pay my mortgage and food and utilities. Can I declare bankruptcy
I have seen charts that show, presidents Reagan, and both Bush’s, added more to the federal deficit than all other presidents since WWII. If a deficit is bad, how can the republicans keep saying tax cuts are the answer, when their economics only work when we run up huge deficits?
In keeping with trying to stimulate the economy, why can’t the government refund “all” of individual tax filers’ withheld taxes for 2008? How much would this cost the government?
The federal government should give each taxpayer $10,000. The government would then tax that amount at a flat rate of 20% which would give each tax payer that qualifies $8000.00.
The government would then have tax revenue from 156.3 million tax payers. This would be approximately 312.6 trillion dollars in tax revenue for the federal government as well as put $8000 per tax payer into the economy. Even if half of the tax payers spent their money, the economy would benefit from this.
Why can’t the government give the taxpayers the $10,000 in a secure debit card that expires in 12 months. That way you cannot save the money – you must spend the money or lose it in a year. The card would have restrictions so that people could not cash it out and save the money.
So, the stimulus will come in the form of lower taxes on my paycheck, correct?
Does that mean that when I file 2009 taxes in 2010, I’ll owe more because I didnt pay enough in 2009 because of the stimulus?
If yes, then I guess I better save that money until then!
Why don’t they send a check for $9,718 that is for the sole purpose of paying back loans, debts, and mortgages. This will give the money straight back to the banks, but will also give one money multiplier, get people out of debt, and reduce foreclosures.
I am sure others have thought of this, but I wanted to suggest a solution. See what everyone thinks of this.
The recent economy crisis started with financial institutes specifically mortgage lenders. Instead of giving money to them directly, why not give the bailout money to rest of us (people who are paying the mortgages). We all can get a check that can only be spend to pay our mortgage companies. I think this will do several things.
1. It’s taxpayers burden so they should get some benfits out it. In this case, we get to pay some of our loans.
2. Mortagage compines immediately get the cash flow that they need to continue lending money.
3. Foreclosures should stop or slow down considerably because some of us will be able to pay our mortgage payments for several months while find jobs.
4. Some of the taxpayers will get more equity in their houses so they can turn around and borrow against it (if they can afford it) which should get the lending wheels turning.
The government can’t just give everyone an average of $10,000 because they wouldn’t spend it. Right. They have first to give it out as a stock market bonus to those on Wall Street and then chump change to all the general jo’s and joe’s in the form of a wishful maybe circumstantial eye OH you not me.
I would like to know why isn’t there anyone going to jail for this? I refuse to believe that all of these companies that are getting bailed out didn’t see any signs of trouble when they were collecting all of their bonuses. No Charges, just give them more money that they can hold, use for themselves, and not assist the consumers they just got finished raping? Why is the government not pursuing criminal charges against the KBR since it has proven to be factual that this company over billed us for contracts they probably shouldn’t have had in the first place? $100 per load of clothes? That is just plain robbery. My taxes shouldn’t be increased until the government has made a real effort to get some of the tax money I already paid back from Halliburton for the billions we were over billed. I think that the powers that be are all in league with each other and deliberately carried out all of these actions, ( 9-11, Iraq War, Market crashes etc) to further their own private agendas just as history has shown it being done in the past. Its a recession for everyone else, but if you already had millions or billions on hand and didn’t invest and lose it in the Ponzi, then now is the best time in life for you. You can basically buy all the property or anything else of value you want in bulk lots for pennies on the dollar, hold it until the middle class gets back on their feet, and sell the mid class back the same items that they lost for probably double or more that what they were purchased for. I didn’t have much to lose so I didn’t lose much, but it is disgusting to see seniors and people that worked all their lives in such a messed up position while the others that are behind the curtain are laughing and getting richer by the hour. I hope hell has a special place for all of them.
If our economy is based on consumers spending money, then wasn’t the collapse of the economy was caused by people speding TOO MUCH money? In turn, the government wants to keep the cycle going by encouraging people to spend. It’s like giving alcoholics a huge supply of booze to keep them drinking!!
So the logic here are the following; the government can more wisely spend “my” money than I can -and- spending is better than saving… interesting conclusions. Then perhaps the government should take/spend all that I earn, and squander every dime (and then some) for a more healthier economy.
I’ve heard a lot of people ask why the government can’t give the bailout money to taxpayers directly, which would calculate to around $10k per taxpayer. Most experts are saying that this wouldn’t be an efficient use of money because people would just save this money, which would not stimulate the economy.
Here’s my question: Why can’t the government give it to us on a cash card, such as a pre-paid Visa with an expiration date of six months from the date of issue. This would insure that all of the money would be spent directly into our economy. This would even do huge things for the auto industry as well. If me and my wife were to recieve $20K tomorrow, we’d go buy a new car.
Why haven’t the banks who recieved bailout money, and misused those funds, being punished? When I don’t have funds or enough money to pay all my bills, I get punished from every angle. Bad credit, higher insurance rates because of my credit rating, default notice for my house, higher interest rates on loans. Isn’t that an oxymoron. Charge people more because they make or have less. I work very hard and try to make the most of what I get, and get punished for it. The banks such as J.P. morgan Chase, who recieved $25 Billion in bailout money, won’t even addmit they recieved that money. When I ask them to help modify my house loan,I was treated disrespectfully. I answered to them when they wanted to know what I did with every $1.00 I made,yet they can’t answer what they did with $25 billion dollars that I will be paying back as a tax payer. Where’s the justice in this type of behavior from banks? What’s their punishment?
Why bail out these banks? Give it back to the people who need it the most. Banks, retail stores, car sales, on and on will benefit if the people received the money. The only people who should receive the money is 1. one who pay taxes, 2. US citizen 3. pass a pee test 4. People must pay off their bills with the money. Our country would be in much better shape. We are in need of jobs in south Florida. I’m in construction and right now it is awful. We are taking pay cuts, insurance is being taken away. My husband needs the insurance, he is a transplant patient. We can’t afford paying for his medicines. What are we to do?
Are we getting any money stimulus
pack the taxpayer and how much?
Mr Bush sent everybody money how
much we are getting now, if any.
Please answer me.
Frank Enriquez’
fax, fenriquez2@cfl.rr.com
I’ve read the horror stories about how bail-out money is being misused for buying corporate jets, giving out hefty bonuses etc.
Normally, when a private investor bails out a company, the investor will put his own people on the Board of Directors to safeguard his investment.
Why can’t the government put its own representative on the Board of Directors when it bails out a private institution? Wouldnt this stop or at least reduce the misuse of funds?
Will producing needed goods and services locally and buying these over imported goods help dissolve the deficit quicker?
Why not give everyone debit card (similar to the low income food stamp cards) for $10,000 that can only purchase certain items and not be cashed or used for cash? For example: vehicle purchase, etc?
I’m all for making profit, My question is; Are,’t there any law’s of /for or about unjust enrichment that these CEO’s, Sub-primer’s, Gov.Contractor’s, Oil Co.’s price gouging, seem tantamount to legalized extortion. Then paying themselves bonus’s. Where’s the equity of redemption,equivalent?…and are we still paying for those $600.00 toilet seat’s, which I’m sure has more than doubled! What a plate of hash you have to deal with!
All success! Barak & Joe…
An American/Dutch Carpenter
Why is it that some one like myself, has to be responsible for bailing out the the houseing and financial markets, when I infact have never even owned a house. It is not the American peoples fault that these CEOs do not have the first clue on how to run their the companys, except into the ground. Then ontop of that, they get bail out by yours truley. What to they do? They give themselves a nice fat bonus…These greedy fat cats should be drag out on to the street. Are they going to bail me out when I can’t make my auto payment??
“The rich get richer and the middle class pay for it all.
Why does the government always bail these bank out of debt and the bank won’t give americans loans but the bank can take taxpayer money to bail themselves out it is not fair. Americans who work hard for little money and pay taxes never get a break?
My question is, with the Stimulus Package, I can understand if the government doesn’t want to give a check, because most people may put the money into savings. So why couldn’t they do a credit card. Every tax payer would get a credit card with say, $10,000 on it, and the card can only be used at retal stores, gas stations, food centers, etc.. That way the people would feel they are getting something back, and there would also be a guarantee the money would be circulated back into the ecomomy.
If everyone in the US was allowed to take 10% out of their 401K up to a max of $10,000 without tax or penalty, this would provide $800 Billion in stimulus WITHOUT costing the taxpayers additional money. This is a HUGE untapped resource of funds in the US that would provide a super-charged boost to the economy.
$10,000 would go a lot further than $700 in the way of stimulus, and would significantly stem the tide of foreclosures.
A question about the questions on the stimulus package. Maybe here is a solution. Why can’t the goverment ( if they are afraid of the people not spending the money) give each tax payer $10,000 on a credit card with an expiration date of 3 to 6 months? I know I would spend it then. What I am getting at it is that some states do this for their unemployment benefits. Why not on a grand scale? A use it or lose it policy.
My story is just like the others..Hard times, wondering what or where to turn..Went with settlement company so I could repay my debt..They failed to tell me that as a debt was charged off I would have to claim as income..This put me and my husband over the edge when we had taxes done..Now we are wondering how we are going to pay them..
Our troubles began in 2002 when both of us lost our jobs (me 24 yrs,) & (32 Yrs. for my husband) then he had open heart surgery lost time off work..We both gained other employment things just continued to try and beat us down..My Question is:
Why can’t the government take that stimulas money and just pay off every American Home owners mortgage? People would have money freed up to spend on home improvements, childrens education, bad debt, cars the lists goes on and on, just by not having to worry about loosing their home if they buy groceries..
Why can’t the government give money to people who are really in debt, so they would have a chance to spend money on things that wouls stimulate the economy. WHY GIVE MONEY TO PEOPLE WHO ARE MAKING 100,000 OR MORE. JUST GIVE IT TO THOSE IN LOWER WAGE BARCKETS, THOSE WHO ARE IN THE MAJORITY.
How does this effect people who have been out of work for over a year and didn’t file a 2008 tax return? There are a lot of us out there.
Note to the President,
I am not a finance expert but one way to share the bailout wealth would be to pay some amount to every taxpayer , for e.g. 15,000 to 20,000 but with conditions.
Individuals would have to either go to a local bank or the IRS office and there their credit report will be pulled and this money from the government should be applied to payoff credit card debts. Any money left after that will be put into their checking account.
I call this shooting two birds with one bullet. The two birds are individuals and banks.
Individuals are relived of their debts(partially if not fully) and banks get their money back to re-invest it in the market thus boosting the economy.
Is a penny saved a penny earned? The
savings now should help in the long run, or does it?
R C Francis
My question is How are Tax cuts not spending? If the Governments revenue is taxes and you cut that amount of revenue isn’t that basically spending? and if so then why all the fuss from the gop?
I would like to see that money go to the consumer. They say people would Save It…..WELL make it so they can’t save it. Make it so they have to spend it. Like a Money Card. Banks will not accept them. Credit Card Co.’s can not accept them. I think you get my drift here. THEN the money will pour into the economy.
How big is the housing crisis? How many people (as a percent of the population) are in danger of losing their house? It seems like many people tried to buy more house than they needed or could afford and are now paying for it. If the crisis is only affecting those people, and its a small percent of the country, why are my taxes paying for it? I’d rather see my tax dollars go towards a real need-fixing the roads for example, not paying for someone who wanted to live better than they needed too. Why should I cover for those that made bad choices when I was responsible and bought only as much house as I needed and could afford (I bought my first house last year and its small and its all I need even though I could have gotten a house twice the size).
$9,718 per tax payer could truly stimulate the economy. My suggestion would be that the money be sent directly to the creditor/s of your choice versus sending the money directly to the tax payer. If you don’t have 9,718 in debt then you would receive what ever is left over after all debt is cleared up. This way the tax payer has less debt, the creditors are getting paid, and more likely to begin lending again. Can anyone point out why this wouldn’t work? Maybe there is something that I’m not thinking of.
We are avid supporters of the President but why is it not possible for us to follow the lead of other smaller nations with more pragmatic answers such as our friends in Taiwan. They have given taxpayers (who earn less than a specific salary) a DEBIT CARD with a predetermined spending limit… this debit card can be used to only purchase consumer goods up to a certain value such as $5,000.00 – it cannot be used to pay down existing debt etc. It must be spent on consumer goods. It would strike me that if we gave $5,000 to every citizen that earns less than $100,000 in the USA – then this would be a good way of jump starting the economy rather than all the money landing back in the banks where the problems started in the first place. Anyone given a tax incentive is only going to pay down debt in these very uncertain economic times. I would not be a receipient of monies under this scenario but would welcome the chance for others to consume products and jump start our economy.
The government should invest the money to stimulate our economy by:
1) Providing large companies a tax credit who bring back jobs to the US that have been sent overseas. The US cannot stay being just a “service” provider; we need to be “producing”.
2) The banks should be offering lower refinancing rates with the money they have already received. Rates that are 4% to 4 1/2 % fixed would give many Americans more money in their pockets to spend.
3) Instead of having goods delivered to grocery stores several times a week or even daily, have goods delivered only twice a week. Start using the train system more than using trucking as the primary mode of transportation of goods. Smaller trucks can be used for shorter distances for providing the goods from a railroad depot.
4) The US has never had so many banks as we do today. They are unneccesary and only the larger banks should remain.
These are just a few ideas………..
How about we wipe away most of consumers debt and give everyone $10, 000? I mean it may sound crazy but, I think if no one had debt to spend the $10,000 on, it would be spent in stores and start boosting the economy. Does anyone agree?
So what I keep hearing is that the reason not to give the stimulus money to the taxpayers is that most of us will save the money instead of spend it. But when people save their money, where do you think their putting it??… It goes to the bank! So what is the difference between the government giving money to the bank and the consumer giving money to the bank?
What happened to the proposal to allow citizens to withdrawl from there 401k plans or other retirement plans 10,000 a year for 2 years without penalty. It is the persons money afterall.
If home owner’s can pay taxes we should
be alowed to borrow money from the gov
just as banks do. Instead we must keep
BANKS robbing us so we can’t do anything but fail. Let the home owner
borrow the money then refinance in ten
years. This is a way to put monies where it is needed. Thanks
“$9,718: Your bailout cut”
NO!
It’s your Bailout BILL,
and it’s just more long term DEBT!
Stop twisting the truth,
Liberal Press Obama Lovers!!!
i would be ok with a stimulus credit to force spending. i assume i could use it to pay off personal debt. ie credit cards or my 2nd mortgage. i suggested this to my legislators with no response.
What should retired people do now. Stay in the market and take the bloodbath or sell at a loss and put in CD’s? We have no way to rebuild our retirement funds and they just keep going down. Advisors say stay the course but I’m afraid we don’t have the time to rebuild and are only going further in the hole..>HELP
About this upcoming stimulus – they plan on getting it to the poeple faster by dropping how much you pay in taxes on your paycheck, correct?
How exactly will this help people who are unemployed, or families who choose to have one parent stay home with the children?
They have to wait until next year to get their part of this stimulus?
Why do some people ask stupid questions like “what if we divided the stimulus money among all tax-filers?” A more appropriate question would be “why are we pretending we have ANY money to do ANYTHING with?”. There is no money! We are broke! Saving and living within our means for a decade or two is the only REAL solution.
Everyone is wondering how our economy has gotten here. Well, here it is. Our US economy is fueled by the working class. People that make less than say $150,000. Inflation has increased so high through the years, that it’s completly surpassed the worknig class. If someone really wanted to fix the economy, they would increase minimum wage to match the current cost of living. Most cars are $20,000-$30,000. This is more than most people make in a year. And the car industry is wondering why it’s failing? We as tax payers bail out large Banks, and then they don’t want to lend us the money? And they wonder why their failing? Let’s get a grip on the real issue on why we are not spending. If they want the class that fuels the economy to start spending again. Give us jobs, job security, and a raise to match today’s current cost of living. Right now, most workers are out of a job, or those that still have theirs are afraid to loss it. So this causes everyone fear, and they don’t spen money. You have to restore jobs, restore confidence that others will keep there jobs before things start getting better. The key is making sure the class that fuels the economy can afford to spend money!
If it is true they are scared the people will not spend the 10,000 why
would they not send it out by the month
with a void date? Or is it they want to
control who get the money?
Wouldn’t more small businesses and the American public invest more if there was no capital gain taxes?
I think as a consumer, I would put more money into the stock market, knowing that it would not work against me during tax time. Small businesses would benefit because, they too. They are more likely to invest into the stock market without having to worry about how much tax would be taken out due to capital gains.
All in all it would stimulate the economy and we would be put back on the right track.
Of all the money being committed to the “stimulus” and “recovery” plans,TARP, how much are intended as loans by the taxpayer? What is the expectation of that money being repaid, with interest, so the taxpayers can pay off the debt – an investment?
How much of the stimulus plan is just taxpayer spending on infrastructure – no potential of return on payment but we get improved infrastructure?
How much of the money being committed to TARP and the auto companies is in the form of loans? What is the potential of the taxpayer being repaid so we can retire the debt?
Please break out the numbers in to loans the taxpayer can expect to recover, taxpayer investment in infrastructure, and taxpayer give-away programs.
A big portion of mortgage payments seem to include city/state property taxes. Wouldn’t it be a good idea for the states to reduce their respective taxes, therefore lowering homeowners mortgage payments. This may save some people going into foreclosure, since the payments may reduce a lot. Does this make sense? I’m not a homeowner but I am looking to buy a house and see how much property taxes are and now much they add to the monthly mortgage payment.
The big worry about any stimulus to the general population is that people are too worried about the economy that they will save whatever is given to them. Why has there not been a solution to prevent people from saving their stimulus check and only allow them to spend it or lose it.
Solution: Granted I do not have all the answers and I am not a legislator, however the possibility of stimulus credit seems plausible. Instead of recieving a check which can be cashed, each recipient will recieve a universal card with a designated credit.
The individual can call to activate the card with their SSN to verify identidy. The credit can be used as a credit card or gift cirtificate at any retail, travel, entertainment within the US. It could be used at multiple locations as well.
The stimulus ‘check’ can then be sent to the retailer to pay off the credit. The card could have an expiration date of X months to ensure immediate spending.
This garuntees that all the stimulus money is spent and not saved.
Why can’t the FDIC modify and enhance the Quarterly Call Report to track the use and application of TARP funds received by banks? It seems that quite a few are using these funds to buy their competition and limit the payment of dividends to stockholders when they have perfectly reasonable capital positions.
How about the government takes no federal income taxes for a whole year. That really would put money back in the taxpayers pocket and put money back into the economy
Just as I was reading over the article on what my cut of the stimulus package would be, I already knew the argument against it. Government wouldn’t give individuals money as the risk remains they would not spend (just save) the money, so instead they pay out business in financial distress. However, as we look back at the first 700 billion dollar package, I have to ask the question, isnt’ the government already facing those same issues with private companies? Companies work like individuals looking to protect their own welfare. Banks have used the money just how the government did not want them to, saving it, using it to purchase other companies, or paying down debt (or even worse … dividends)… all instead of lending it. Now the government is forced to use addditional regulations and oversight to help “direct” companies use of state funds.
Why doesn’t the state simply give that: $9,718.49 to individuals, log it as taxable income for the next year, but at the same time prepare a list of one time tax credits across a broad spectrum of industries (from retail to automotive, energy etc…) which will one ensure individuals a greater opportunity to spend, but also give more confidence to the market as individuals now empowered with nearly 10,000 more dollars than before have more flexibility in their budgets.
I agree with Bing (Tx) comments. I would also add this; Why isn’t goverment helping the huge number of people ready to go into foreclosure, by giving some type of credit or funds so they can stay in their homes?
If things continue the way they are, not only there are no jobs, but people will not have a roof over their heads!
I read about a stimulus plan idea to help fix the mortgage problem by letting people refinance at a very low rate – 4%. But how can this work when so many people owe more on their homes than they’re worth – making it impossible to refinance unless you have a huge chunk of cash sitting around to make up the difference?
152 million taxpayors but many don’t even pay tax.
What is the share of the bailout on a tax paid basis, in other words if you are in higher income bracket?
Why not have the first ever White House Garage Sale. We have enough first ladies still alive that they could sort through all the stuff in storage that they personally picked for the white house and weed out the things that are not gonna go to a museum. If you were to put this stuff on Ebay we could make a killing in selling the stuff to rich people and get their moldy money back in circulation. Then use the money to add to the stimulus package for the american people, NOT the corporations, banks and auto industries, but the portion you give to the common man. You would also gain space in the White House.
could the government mandate that all banks automatically cut mortgage rates (existing, troubled, new) to, say, 4.5%? i bought my house two years ago with 25% down, the value of the house has dropped, i can still make the mortgage payments, but a two percent cut on my 6.75% rate would free up several hundred dollars a month for our household. (which is suffering sticker shock from rising grocery prices – up more than 25% since last summer)
If banks are getting money at such a low interest rate, why are they raising our credit card rates? For those of us who do have credit card debt, a good bailout for us would be if the government froze interest rates the credit card companies could charge us, rather than allowing them to charge us over 20%!
It seems that we haven’t gone far enough to stop the greed in this country. Nor have done enough to help the middle class American who is STILL paying their bills!
My questions is what about those of us who are paying our martgage but just barely. Because things are so tight or credit rating is going down and so is our home values. When I tried to refinace I’m told no. Is there anything to help us so we don’t default?
How is a 4% mortgage rate on a 30 year loan going to help those whose homes (which is almost everybody!) are worth 10$K to $100K less than what the mortgage is? Why give only first time homebuyers a $7500.00 credit for buying a home? How about helping those who have lost their homes due to foreclosure and whose credit is now ruined; help those who are upside down on their mortgages by requiring banks to re-do their mortgages to the original payments they were approved for or agreed to? It does not take a rocket scientist or an economist to fix this mess–it takes common sense!
Rather than giving each taxpayer a $10,000 check as some have suggested, why not give each taxpayer a debit card for that amount?
That would make it more difficult to save the money and it would almost force people to use their cards for purchases. Of course, people could use these cards to pay for gas and groceries instead of the ways they pay today, so that could effectively amount to saving the money. However, I think most Americans would spend the money either way.
We are a small Appliance, Electronics,Furniture business in Ohio with 20 employees in the third generation since 1945. The owners work 6 long days and several nights a week with low pay to keep up against the competition. But, we could put some construction workers to work if we had just a small portion of the bailout. We could remodel and add on to the store and install energy saving equipment. We could buy new service trucks to help the auto industry. We could use money for our second store as well. Plus much more.
To give more money to crooked bankers is another example of the ignorance of our nations leaders.
Call me and lets sit down over a cup of coffee and I can tell you how to better give money away to help put workers in our area back to work and get the economy going.
I read that one of the tax benefits for companies would be to hire 18-25 year olds. How about hiring those over those ages so they can try to recoup their once again lost retirement funds as a result of mismanaged and poor decision making of our government. Those in the age group of 18-25 have many years ahead of them to build their nest egg. Another problem I have, is the bailout money being given to these financial institutions, the government should be charging them them the same interest rate that they are passing along to their customers? Companies like Citigroup should be just fine paying a 28% apr. Also, why should these people in the housing crunch, be given better interest rates than those of us carrying their irresponsible, lying butts? And only changing those that are credit worthy, how many of these people can possibly have decent credit, I mean the only payments being made on time is for their over priced vehicles, priorities you know, I mean that’s just an observation from the house to the West and North of us, no big deal they’re forclosing but I don’t see them sacrificing squat, additionally one of these folks has caught wind that since they have children it’s at least and 18 month process before they’re booted. I keep reading about tax credits–hmmm let me see with the extra money I’ll be saving each paycheck, it will only take me 10-12 months to save up to help stimulate the economy, in a pretty minimal way. I’m glad I’m not in any of these folks positions–darned if you do, darned if you don’t. But at any point have these people asked the general public’s opinion, those of us who are going to “benefit” from they’re master plan?
So how is the government planning to help those responsible individuals who lived within their means and avoided taking on unnecessary debt? Are they going to help us by footing us the bill for others’ mistakes? Are they going to cut everyone elses mortgage payments while leaving ours’ untouched? Are they going to give everyone else a break at our expense? Why not give everyone there fair share of the pie rather than stick us with the bill…I would be more than happy to receive $10K from the stimulus plan rather than paying for someone else to get it.
That’s It! Enough already! I cannot stand to hear anymore of the banks getting money only to spend it frivolously on BONUS, AIRPLANES, & OFFICES. These people should go to jail for these actions! To date this is still going on in the banking industries. They were told to spend it to stimulate the economy. Not spend it on planes, bonuses, and luxury offices. All the economist stepping in to speak of how the correct route is to give it to the banks. Well economists, what do you have to say about how it’s worked out so far? What do you have to say about how it was spent so far? Where in your professional, educated opinion did it say to piss it away on bonuses? We did it your way and it didn’t work and will not. To date these banks do not get it nor care to. They are not making it easier for financial support. The first wave of bailouts was a 2 month lifeline nothing else. They are in the same position if not worse than before. Here we are again in the same predicament. The bail out of banks JUST IS NOT WORKING. Period! I’m sick and tired of all the PROFESSIONAL FINANCIAL ECONOMISTS explaining why the consumer cannot receive the funds directly. Well, you know what, you are WRONG! You have been proven wrong with the bank bailouts. It’s now time to try it our way! The banks are not being held responsible and are not accountable for where the money that they already received has gone. Don’t you Economist get it? With 9.5% unemployment, who is going to take out loans? Everyone is in serious debt or laid off. We don’t need more loans. We need to pay off high interest rate credit cards and mortgages. The banks will get the money anyway. The difference is we will all have some relief. Not just the greedy banks. I’ve even herd comments about state funding not getting support if the money should go directly to the consumer. Try being laid off and then lets hear your attitude. If I have to rely on unemployment to survive and found out I have $10000 coming my way you don’t think I wouldn’t feel some relief? I just lost my job. Receiving that kind of money will support me through my trying time. You economists speak without even thinking about the harsh reality of life. The truth is not what your Harvard education taught you. It is what is reality. Try not receiving a paycheck for a few months and see how that feels. Let’s hear your professional opinions then. Once again, you are wrong. These people need help and they need it now! I don’t care how you do it and in what form of payment (prepaid credit cards, check, directly to consumer’s credit card/mortgage company). JUST GET IT TO THE CONSUMER! NO MORE BANK BAIL OUTS!!
If the government wants everyone to spend their stimulus money, why don’t they issue something like a gift card where they cannot use it to get cash to deposit in savings accounts?
I have an article that was written a month ago about the 825billion stimulus package. It says that the First Time Homeowners Tax Credit would NOT have to be paid back if the stimulus package passes. I haven’t seen or heard any other information on this tax credit. Are they still thinking about doing this?
I just read the article about why they dont just give the people the money and the comment was people would tend to save it rather than spend it as intended. My response to that, why not issue the people a debit card with the $10,000 and give them 60 days to spend it or lose it. This would ensure money is spend to stimulate the economy as intended and whats not spent would go back to the government.
I would like to propose using the bailout money to fund a government loan program to people at a low interest rate and structured like the student loan program. If people could use that money to pay off their bills and lower monthly payments then it would free up more money to put back into the economy. Businesses would have more cashflow and it would help their bottom line. Also it would be money that would flow back into the government funds later.
John McCain just spoke on CNN this morning, stating that he believes that the National Endowment for the Arts funding, as part of the stimulus package, “would not create jobs.” This is not true. What about my job as a theater director for young people? I am willing and able to work, and could employ three or four other adults in the technical field if we were given a grant to produce a play. This also would benefit the community (children) as they would learn discipline, public speaking, confidence, history, literature, etc. I depend on arts funding in order to pay the mortgage! Sen. McCain, I need a job! Fund the arts. Jobs in the arts boost everyone, everywhere. Thank you. Mrs. Baker
What should have happened months ago was to give “bailout” money directly to the people who deserve it in this country.
According to CNN there were 156.3 million filers of income taxes in 2008, well not all those people require economic stimulus.
Now first take back every dollar of “bailout money” given to any corporation or entity. To date, the “tab” is roughly 8 trillion dollars.
Then realize the fact that there are 110 million households in the US according to the US Census.
Then take the portion of those households that do not have income greater than $150,000. Say that figure is 80 million.
Now give these households $100,000 each. WOW, that’s 8 trillion dollars.
What will that accomplish. Well, everything the stimulus packages can’t, a true circulation of money.
1) The money would only be direct deposited into the houshold’s checking account. The banks will be flush with cash.
2) Most people will do the right thing and pay off debt such as their credit cards, or their car loan. A win again to the banks.
3) Others will actually pay off their mortgage or try and fix their existing one with the money. A big win for everybody.
4) Those people who only had a small chunk of debt might actually save some of their money or invest in a CD. Again a win for the banks.
5) Some people will run out and buy something, a car, a tv, go out to eat, take a trip, all things we want right now in this economy!!
6) Imagine if just 10% of these people do buy a new car, the auto industry would be set on a proper course.
7) Other will invest in themselves and go get an education, having the money to get trained, get a degree or pay their student loans.
Many of the things I list above will be taxed because of the transaction, which in turn would help government at all levels, local, state and federal.
Had this been done in a timely fashion in 2008, we would be recovering well in 2009 from any potential economic crisis.
Jobs would be saved, people would be educated, and our country could be on a course for better future.
So I ask you America, wouldn’t it be better to let the people have the chance to get bailed out, instead of corporations and set themselves and this country on the right path?
So why not give out vouchers in that amount valid only at car dealerships, that way the money would be spent as they want it to and not saved? This way not only do the auto makers get bailed out but we get something out of it too.
It seems to me that if “Uncle Sam” wanted to help bail out Citibank, the best way they could do that would be to hep all of us Citibank credit card hodlers pay off our balances.
I have many questions and opinions. I am not an economic expert, or even an over achieving head of class student. I am simply a senior accounting student at the University of Arkansas.
Right off the bat, DOES ANYONE know of any measures the government is taking to prevent an alternative student loan crisis?
Here is my story: Whenever banks were basicly giving away home loans, car loans, and various forms of unsecured lines of credit , they were also sending every broke college student in America a flyer in the mail that read: “Need Money? Have a $25k check mailed to your door for college!” When your’e stuck in a 12×12 dorm room, with someone you probably really dont even like, eating Cup O Noodles for breakfast, and finding a pen on the ground is the best thing that has happened to you in days, then one cant help to think “Thank God for Astrive!” I had BAD credit, I made $5.50 an hour working 20 hours a week. I applied for this loan MORE than once, and I received this loan MORE than once by different companies with the same offer. Along with myself, there are several thousands of students that have been victim of their own juvenile ignorance.There are also several thousands of students that have sub-par credit, such as myself. Now, our maturity level has risen, and we are looking for time machines on Ebay, because we realize that we shot ourselves in not only the foot, but probably part of the leg as well. The several thousands of students that are in the same boat as I, are graduating. Six months after graduation, I am looking at a monthly payment of about $600-$700, for longer than a life sentence in prison. The job market is HORRIBLE right now, with no end in sight. I have interviewed for several entry level jobs, and was told several times I am competing with applicants holding 5-10 years of accounting experience, and internships are increasingly offering knowledge over monetary pay. The business school at The University of Arkansas is ranked 20th among all public schools and the accounting dept has had an 85-95% rate for students obtaining a job right out of college, at an average pay rate of 48k a year. I dont know a single person in my class that has been offered an actual paying job. What do all of these students do in 6 months when they cant afford to pay their student loans along side the cost of living? As history has shown and repeated, when people can not afford a bill along side the cost of living, they simply put the bill aside for a while.
I am not asking for a government handout, but sometime in the future, one will have to be given, and that money will be used to generate more student loans, which does ABSOLUTELY NOTHING for the people that are ruining their credit by the month.
Foreclosures, repo’s, bankruptcies, and late payments absolutely destroy the number one thing that modern America uses to have a flowing financial economy, and thats credit.
In my opinion, if you want to stimulate the economy, you start with the back bone. A stimulus package that involves: handing out condoms, building ATV roads, researching things that arent helpful for another 20 years, and giving large companies (that are cutting jobs, and production) billions of dollars just so they can ask for billions of more dollars in the near future, is going to do nothing. Without credit paying customers, companies would not survive. There needs to be ONE extremeley large stimulus plan to help small businesses and individual consumers. A consumer credit system based on income and not payment history would be a GREAT start. People that want a car loan for a car or truck(made by an American company that over its life, costs more than the sticker price to keep in operation, and depreciates 40% the first year) could get one at a low, unchanging nationally common interest rate, if they have confirmed steady income.
A logical answer for how the bailouts should be paid does exist. Its all about timing. The debt shouldnt effect Americans to a noticeable extent. There should be an indefinite time period for which the debt should be paid as long as its being paid steadily. As long as their is an American government, the companies that received the bailout will remain active, and will remain to pay the balance until the debt is recovered. We arent spotting the government 8.5 trillion dollars over the length of a year or two, that would be impossible without creating more problems. Thats why ordinary consumer debt troubles us more than govt debt, we have a definite amount of time to pay it off, the govt doesnt. The national debt and bailout amounts show how much money is owed, but it does not take into consideration the assets for which the debt was created for. If it did consider the value of working assets the debt was created for, then the amount would reflect depreciation, goodwill, and changes in market value.
If you were to spread out yearly economic growth, on an adjusted basis, on a curve chart, you will see that this has happened on several occassions, oddly enough, almost every 7 years of growth is followed by a period of recession. If you want a forecast for when this is going to be over with, average all of the recessing dips on the chart, and mark it on your calandar, because thats the best anyone can do right now.
Start by shoring up the housing industry if the mortgage company doesn’t have an incentive to write off the balance they may consider other options. Lets only allow them to reduce the fair market value by 20% and cancel 10% to those going into foreclosure using local county appraisal values. This helps states, schools and local municipalities budget. This freezes values on the home market to allow the economy to catch up and mortgage holders whom have debt canceled an opportunity while the government still collects some money. Why should we forgive 1-2 million of acquisition debt for these individuals and why does anyone with a rental home get opportunity to claim insolvent and not have to pay tax on their failure at everyone else’s expense? Second would be to stop the usary that credit card company’s are afforded. Credit card interest rates should be tied to the fed rate. If the government has to drop its rate so should these credit card company’s. Next is start by oversight on local level I live in a small community that no one gets involved they know things are wrong but claim it’s not my job to complain about people spending taxpayer money without accountablity. I don’t have to get permits; I don’t have to adhere to ordinances; if I fail no one will make me repay for those loans made with taxpayer money; I don’t have to follow any laws of the state or performance agreements. AND IF YOU DO SAY ANYTHING YOU GET SUED BY SOMEONE!!!! Why do collection agencies get to try to collect debt for over 10 years then send you a 1099c when they can’t verify the debt ….” Oh we bought the debt but not the notes on the account we aren’t concerned about the incorrect billing… you will pay us or else we will sue … or tell the government you at least owe tax on that money.” The FTC set limits on how agencies collect and how long they can report the debt but no one draws a line in the sand on how long they can pursue and harass you on that debt that you may or may not owe…Sorry different tangent… We have the ability to set laws in place that define business practice lets use them to recreate a level playing field helping both businesses and individuals. We can eliminate EIC credit by making the first $25,000 exempt from social security and medicare tax on indiviudals the employers are still paying in and that is what it was to be when it began. No paper work to review those who job hop lose job security. Everyone recieves the benefit whether you are Bill Gates or Joe the Plumber and you get it when you need it with your paycheck. Uncap social security taxabiliy and change the rates to 10% for both 5% from employee and 5% form employer to allow medicaide to cover a subsidized free health market. Just as now if you can afford a higher quality insurance or health care provider then you pay but wellness care saves money to employers as well as taxpayers. Use unemployment to pay directly to mortgage companies for 28% of benfits to prevent foreclosure for the unemployed but if its income it should be taxed. For those who are on unemployment they should volunteer to community service as well as have to try for a specific number of jobs to receive benefits. This does not have to be permanant implementations but till the economy starts to recover. It instills community values to those who receive benefits from the government, stablizes the housing market, provides necessary medical care to all, regulates credit standards and prevents the undereducates or undisciplined from being preyed upon, generates taxes for our goverment to responsibly pay for these benefits without overburdening any specific class. Why are CEO paid so much more than the average employee just supposed to be more accountable (ha…right)It takes teamwork to keep a company afloat and a durable good to increase GDP. Lastly shareholders speak out our politicians should not have to force salary caps but if they must it should cover all perks, bonuses, guaranteed payments, stock incentives, If you don’t want to lose those perks make sure your companies remain profitable that is what you are being paid to do. Here is a start from a underpayed government official (city councilman) and federal government employee.
For those who think why should I pay for everyone elses failure I beleive the sayings are ” It takes a village and I am my brothers keeper.”
Instead of laying off employees, why don’t “BIG” companies reduce the working hours (from 8 hours to 7 hours??) or decrease salaries of the employees (5-10%)? IF goverment have a strong regulations regarding laying off employees, I think people don’t necessary to be panic as happen now.
We happened to earn $118k this year but that is $70k more than what we normally earn and we are a family of 5. Will we still get a stimulus check if they decide to go through with that idea this year?
If the government were going to split the bailout money to each of the tax filers and they saved it, wouldn’t it go to the banks? If they chose to spend it, it would go back into the economy. What is wrong with that? It seems like a win-win situation. I consider myself a middle class tax payer, and I’m pretty sure I would spend it right here in the USA.
My husband and I make good incomes, have no debt and save for both our children’s education and retirement. My husband and I both work full time. Our income class will be expected to contribute the most in tax dollars to bail out those who lived above their means. Won’t this create a disincentive for us to work hard, get those raises and bonuses? Wouldn’t it be easier for one of us to quite our jobs so we get more of the government’s handout?
To give us an idea how LARGE 815 billion is, how long would it take to count to 815 billion, at one number per second /
Why are we talking about an 800 billion dollar bailout, when the Bailout is already 8.5 TRILLION? That’s my question, and it deserves to be answered.
That almost 30K, per person, man woman and child in America…
It deserves to be answered, not deleted.
If you don’t believe my previous post, go on to google and just type in 8.5 trillion bailout… look for the video on metacafe, and watch it…
You are being lied too, and stolen from… not just you, but your children, and your children’s children..
Now the question is, who stands to gain from this bail out.
Why are we still referring to a 800 billion bail out, instead of the true amount of 8.5 trillion as of November last year?
That’s my main question…
It’s 8.5 Trillion, and growing, over 60 percent of our GDP… period.
The 800 billion is just a small portion that hasn’t been spent, or rather thrown up into the wind.
I just want to know if the government wants to turn around our economic forecast, how do they expect it to happen with more and more jobs being lost everday? Until they get the factories back in the US and get americans back to work, sorry it ain’t gonna happen. It’s not Rocket Science.
Let solve the problem Instead of creating a huge Debt…
Use the money for underwater home owners.
1 – Buy approved under water loans for a 20 – 30% Discount
2 – Refinance the approved home owner with a 3% rate for 5 years and then fixed for at 5% for 25 Years
3 – Offer new home buyers the same deal
3% for 5 years and then fixed for 25 Years
A – This will stop Foreclosures
B – This will reduce Standing Inventory
C – This will cause home prices to rise
Now sales increase which creates job and more disposable Income that creates spending which boast our Economy
Why doesn’t the country send a check for $100,000 to every taxpayer ($200,000 to couples) to restart the economy? Most of the people with mortages would survive for at least a couple of years and people would start spending.
It can’t be much worse than everything else going on.
We hear a lot about the mortgage meltdown being the result of loan defaults on bad mortgages. My question no one addresses is: What happened to all the Mortgage Insurance dollars that people with risky loans no doubt had to pay? Shouldn’t those funds have mitigated the mortgage mess somewhat? Where did all those premium dollars wind up? There had to be $ Billions no one talks about.
My question is how is it any different to give money to the banks as it would be to consumers? Neither entity is thrilled with the economy and will do what it takes to preserve itself not the economy. Why not do a bit of both by giving the money to banks in exchange for removing a proportion of each individual’s debt (Credit cards). So they remove 10-20k of credit card debt per family in exchange for bailout funds. Or lower the interest rates for cards down overall.
Billions in Wall Street Bonuses???!!!! How can it be a bonus if it is guaranteed in the contract? Obviously it is not a performance bonus since your company was just given billions to stay in business. The American public should be outraged about this and put a stop to the Wall Street Greed. Contact your Senator, Representative, hell contact your new President who is going to “change” everything. This should be something that he changes!
Let’s not forget about all the other little bailouts that took place before the 1st big one. I.E. AIG’s 85 billion and then the other one of 50 before the larger one. What is upsetting is that the changing of the guard and the natural process of our system will now never unfold as intended. There were and are many smaller banks and financial institutions that have now been robbed of taking market share for being better at risk managment or less underhanded. What did we get in the end. No loans, harder to get approved for loans when showing good payment history and having a job, unemployment, loss of primary residence, loss of education, loss of social events, loss of retirement. WHAT DID WE GET?? THE BIGGEST INSTITUTIONS WHO STOLE OUR MONEY WITH PUMPED UP VALUE IN SECURITIES GOT TO TAKE A FEW BILLION IN BONUSES, GO ON TRIPS TO RESORTS, BUY PRIVATE JETS, DECORATE OFFICES FOR A FEW MILLION, ALL WITH TAX MONEY. And that’s just what we know about trust me there is much MUCH MORE. If a business shows a loss how can it pay bonus? Where is the IRS on this one? Where is our government saying give us back that money or we are taking you over? Where is the order that Bush promised us with these funds? Oh…. I’ve found them they were all sleeping in the same bed. Obama better not bring the same, or it’s time we the people revolt and storm Washington and demand results we have been patient long enough.
President Obama,
I promise to spend my share of the bailout/stimulus/whatever you want to call it today.
Please send me my share. Geithner has my address.
Thx!
So, you claim you seek to stimulate this economy with cash to the consumer? Cash in the form of $15,000 per consumer should start things off just fine!The effect and response would be favorable and realistic!The consequences we will handle as they arise!
Last year, each individual could receive up to a $600.00 rebate check, $1,200.00 for married couples. This was before the large stimulus plans took affect.
Why is it now, after billions of dollars in stimulus plans, the American public is only looking at getting $500.00 in tax breaks for individuals and $1,000.00 for married couples? It seems pretty sad that this is all the tax payers will see directly.
It seems to be the same questions and same old answers. I’m no economist. That being said, I’m 29 years old paying into social security. Will my generation and other generations have social security when it comes around ? I do believe in our new President. I also believe that something, again, something needs to be done quickly. It seems like the more things delay the worst it gets. Some people want to throw money at the problem and some say that will make things worse. We are in a new era with a new hope that most people haven’t felt in a long time. I do agree with our President when he stated that he requires the people of this country to take responsibility.
Maybe using some of the old ways combined with the new ways in combination with the new outlook alot of Americans expressed including myself with the election for change will make the difference that we need. Under this new era the same stimulus that was given in early 2008 would have most likely had a greater impact under our current Presidents administration. This shift in consciousness has been seen and felt all over the world. Despite some media and people at this time in our nation more want us to succeed. We now have a competent President and I’m overjoyed by his actions so far. I’m trusting him in his efforts to make the right decisions with the economy and I know alot of us are.
What accountability measures need to be put in place to keep our government and corporate leaders in check? It would be logical to assume that without real consequences, there would be no real change.
I am particularly concerned about the housing issues .. Why has it taken so much run around with solving this issue . We have been paying all the pertinent people to manage expertly the financial issues.. They have failed and have still been payed .. If a physician caused adverse outcome to their patient .. severe consequences occurs.. SO why is every one beating around the bush.. Let get the Bad Bank in place , because most people who are in default /foreclosure , has no incentive to keep that liability . unless there was an incentive ,, Most people are prepared to just Start all over again , like the whole world is … ALso we should look at the people who have been receiving Section 8 .. forever , maybe it should have a lifespan .. not a whole generation.. How is it FUNDED ?.How did it come about ?…
I recently applied to refinance my 2006 car.I chose to try Capitol One.I recieved a decline notice saying at this time with your credit we cannot extend a refinance to you.
How is it that a huge corporation which has gotten tons of my tax paying money to bail themselves out,can not/will not work with myself.
Yes,my credit rating is not excellent,yet it is not 600 or lower either.Yet they dont have to worry about 3 credit ratings and scores because the American people are bailing them out.I wonder if they had to have a score,what it would be if they had to file bankruptcy if myself and all Americans didnt come to there rescue .Im sure it would be worse then mine.
Im sick of helping all these companies stay ofloat and recieve BILLIONS of dollars,yet they still keep hording the money.
sincerely, Angered American
Well if they are going to spend so much money on the econony, here is my suggestion…
So here is my two cents worth for the economy.
I ask the question, how many tax payers are there in the US? My guess about 100,000,000 plus or minus.
Now the government is talking about another $850 billion bail out. Why does the government not bail out the consumer? Let’s think about this, if the fed’s had say $1 Trillion to spend/print.
How about if they gave each tax paying entity (that would be husband & wife, single person…) $100,000.00. And in that they had everyone bring in their bills to some government office and they paid every bill off (up to $100K) and if there was not that much the would pay all of the bills off and give a check for the remaining back to the taxpayer.
What would that do for the economy? First it would make all of the banks, credit card, auto lenders and a lot of mortgage companies VERRRRRRY flush.
Then people would start spending again, businesses would start hiring again. Unemployment would be near ZERO and the economy would be great again as well as the stock market, oh and by the way the government would not have to keep giving all of the big business outrageous $$$ that they are not going to pass down to us the REAL consumer.
Why does Big Business always have to get the help??? When are they going to REALLY help US the AMERICAN PEOPLE???
Big business just hoards the cash and does not pass it down, not even to their workers, except the big wigs….
And last but not least, they need to institute a national 15% Sales tax (or there abouts) and also get rid of the IRS. What will this do you ask, 1st it will make sure EVERYONE pays their fair share. It will catch the drug dealers, businesses that do not pay anything now, the Mafia, every tourist that visits the US. It is my belief that there would be an excess of $$$ in the US government in 5 years or less. At that point they could start funding for SSI at that point. Every state should implement the same type of system. That would solve it alllllllllll.
Pass this along to everyone you know and have them go to http://www.whitehouse.gov/contact/ and put this on Obama’s website. As he has said, he wants to have the open administration in history. He wants all of the comments he can get from the people (You and I). I have done my part, now it is time you do your part. Tell the president what you think. Pass this to 5 people as soon as you receive it.
If you don’t like these idea’s pass yours back to who ever sent this to you and ask them to pass it back. Oh and by the way, this would stop all of the bankruptcy filings going on now!!
It’s a good life,
Craig Turner
My question is the same Ron Paul asked Congress, “how do you solve inflation with more inflation?”
By the way, the CNN poll right now, “How will the economic stimulus package help your job?”, when 75% say “It won’t make any difference”, why is a stimulus even being discussed? Clearly, it didn’t work last time, and no one thinks it will this time either.
I purchased a home in 2008 and have used the 7500 tax credit on the 2008 tax return.
From what i have been reading the current bail out package will forgive this tax credit but only retroactive to January 1 2009.
If this is correct would I still be required to pay the 7500 one time credit back as was first indicated?
Thanks
We got into this mess because we didn’t save enough money, instead using it to make riskier bets on bigger houses and complex investments we didn’t understand which then went bad.
Do we really want to encourage the American people to go back to the old ways of spending? Maybe it’s a sign the old ways weren’t sustainable. I understand that we need banks to lend to small businesses, but I think our country would benefit from saving more, spending less, and living below our means. Especially our government. But small businesses depend on people spending money. Maybe our economy needs to shrink. I don’t understand. I feel like it’s a gas shortage, where everybody says people need to resume their normal gas buying habits. But in the end we still don’t have enough gas to power everything, because there are too many cars.
Do we really want to fix our old economy using the old ways, by spending more? Will we come out better in the end, smarter and living a more sustainable lifestyle? Or will we just go back to buying SUVs when the prices drop?
The Fed is worried about rebate checks not being spent to stimulate the economy. Its understandable that most people would want to save their money instead of spend it. However, what about sending out Visa, Mastercard, Amex cards, etc. to use only for paying off bills or spending money to stimulate the economy. Done the correct way it could help out the financial institutions in crisis as well as the tax payer. The cards could possibly even have an expiration date on them and other provisions to try to get people to use the gift card like stimulus quickly or over a period of time to help the economy. Maybe this idea has already been thought of. Sounds like a good idea to me.
I was just reading an answer to a question about giving every tax payer a check for $9,718.49. But it seems the popular answer to that is “there are worries about the recipients saving, and not spending (as the government wants).” This may sound juvenile, but would a government-backed “gift card” be an alternative? I feel that it would because it would HAVE to be spent, and couldn’t be saved, as cash could be.
Thank you.
I have a question I have not seen addressed. How do I determine if my small regional bank is finacially sound? I live in New York state.
No one has addressed the issue of the National debt. Under Bush W, the debt grew 6.4 TRILLION dollars. That’s 800 BILLION dollars for each of the 8 years W was in office.
So, the Obama stimulus is just 10% more than what’s been spent each year for the last 8 years! Tax & spend Democrats? Republicans don’t tax, they just spend! Is this real money, or just a number we don’t have to pay back?
CNN Money,
Your numbers are incorrect. You printed this in your article:
“To arrive at that figure, CNNMoney.com took the total of the bank bailout, $700 billion, and added that to the proposed stimulus spending in the House of Representatives bill, $819 billion. That totals $1.519 trillion.”
The 700B bailaout bill was 850B. AIG has received 144B, Bear Stearns received 29B…etc.
Why are you not being completly truthful?
-wayne alenik
I have a suggestion for the Wall Street bonus mess:
Clsw back the cash bonuses, and pay out the bonuses in toxic assets off the bank balance sheets. This would work in four ways:
It would free up bailout money for lending, which was supposed to be what it was for.
It would pay Wall Streeters in the currency they claim as the justification for their bonuses.
It would get some toxic assets off the banks’ books.
Perhaps most importantly, it would fix a value for the toxic assets, which we keep hearing is a barrier to the banks’ recovery.
Why wouldn’t that work? How much difference would it make, assuming the $18 billion in bonuses paid?
This may be a naive question but:
1) Why can’t the government regulate:
Corporate Profit Margins
2) Why can’t the government implement:
Price controls on basic commodities like food among many other things
With the unemployment rates don’t you think it would be wise to send all the illegals back to their countries? If we did would that not open jobs for the unemployed americans? I think this would also help with leaving money in the US as well?
US companies should not be allowed to take their business out of the country. That would open up jobs. Companies need to quit being so greedy, make a fair wage and let other americans do the same.
I’m retired on a fixed income. My retirement has decreased by half. Had to reduce what I was getting out of it each month. I live alone and have no other income. My house mortgage is a fixed but my payment keeps going up. When I first built my house a year and a half ago it was worth $399,000.00. my mortgage company told me the house is now worth $188,000.00. I owe $233,000.00 which means I’m upside down. I asked my mortgage company if I could refinance to drop the interest rate I have now 6.75, they said no because of course I owe more than the house is worth. I make my payments every month but it is getting harder and harder and I’m running out of savings. Because my house is new my taxes seem to keep getting higher and higher. I asked for a “Decline in Value” from the property tax collector but it takes 90 days. Is there some kind of a program to help someone like me?
To: Ali Velshi
I watched your Economic Summit show the other evening and it was very informative and it was able to dissect all the broken pieces of our economy..
Foreclosures, umemployment, debt to foriegn countries etc etc.
I live in Florida and where unemployement and foreclosures are both affecting Floridians very hard. All of these elements have residual effects on our citizens.
Crime has also risen, armoured truck robberies, bank robberies, assaults on people have all gone up.
If this daunting economic crisis is going to last another 3-4 years, where is this going to lead us as a society?
Will the U.S.dollar colapse?
I trust and hope that President Obama will surround himself with some great economic minds because one person cannot solve what a generation has caused.
My husband and I in our mid 50% with good credit and no debt except for a mortgage. Imagine to our surprise – when I went to our local bank to refinance our mortgage that we currently owe more than our outstanding balance. I called the current mortgage holder and they basically stated that they could not help us – because we are not delinquent (never have been) and we are not facing foreclosure. All we want to do is refinance the existing balance to a low fixed rate product.
NO CASHOUT)HELP
So much confussion about econmey ,maybe its for best rich suely think so an corperations of world are pretty happy too. This is perfect storm wipping out trillions of debt owed to share holders corperations. Best part is corperation especailly banks get to keep all money racked in threw high stock prices an pay back penny on dallor now for worthless stock now . What shouldnt had happen is bail out it only made things worest by rewarding banks an excelerating decline in stock market.Faster the decline in value more banks profited now beause they using the bail out money to buy back worthless stock or theirs. wonder why no one connects the dots or is this too dangerous to say truth would implicate media as co conspiator. Any ways split milk now,get over it an lets every one go back to work making better world
If you want the people to spend (versus retain) any stimulus rebate perhaps instead of cutting checks the Fed should cut preloaded “gift cards” with an expiration date. They’ll spend it.
whatyou feel if gov.provide iou
facility to treasury or a newly setup firm to buy and sell
index shares at the rate prevailing
in dec 07 as cut of price ,instead of trillions of dollars in bailing out?
Please feel free to Google the info. I am seriously asking that this at least be a discussion BEFORE we hand out more of OUR money to other people in the hopes it comes back… This is very simple, and that may be the problem. This is how I thought we were raised.
It is a fact that in 2007, the federal government only recieved a total of approximately $2.6 Trillion Dollars in total revenue, and 2008 will be considerably less.
Our combined “Stimulus” programs and bailouts will probably wind up totalling MORE than the entire annual income for 2008, so….
Rather than “spend” that tax money, why not simply refuse to accept our tax money, and return 100% to every taxpayer. Every business, and person who paid any federal taxes would immediately recieve ALL of their OWN taxes paid in, and not owe any Federal tax money not collected, totalling approximately what we will have “spent” on bailouts and plans to restart the economy.
This money would immediately be returned to the public, in the exact proportion to their income.
It is completely fair, returning only what you paid in or would owe.
Why is it that we cannot simply have our taxes returned for 2008, and why is this not being discussed?
Thank you for the Money Summit and for the report regarding Representative Mandy Kaptur. In the former, David
referred to “new kinds of instruments”
I believe. Certainly this refers to a
hybid “mortgage-based securities.” Ms.
Kaptur indicated that mortgagees needed
legal representation; she is knowledgeable about property law.
It seems to me that our country should consider the “land” or property aspect
of common law and the “security” behind
commercial paper. What do these two considerations lead one to consider?
Real property law is at the base of a
country’s economic system, is it not?
Abraham Lincoln, I understand, was
disliked as much for his dedication
to preventing the establishment of a
“central bank” as for anything else I understand. In fact, he was adamantly opposed the such a bank and the ramifications that would come with it. This is, I suppose, the position against which the Federalists
argued. Alexander Hamilton,for one, was a big supporter of a central bank as I recall during the establishment
of “our experiment” in democracy via a realistic form of government, a republic.
The predecessor economic system to capitalism was mercantilism – which I understand had a moral component.
Let’s start at the beginning.
Apparently, the country is revisiting
the fundamental questions which concerned the founders of our country. Let’s address them directly. Senator Byrd and others could be quite
instructive in this regard.
Also, I suggest there may be a way to ascertain the VALUE of the bundled “mortgage-based securities: EMPLOY individuals to track the bundles, the individual
commercial paper, the mortgages and
the property. That might help the
unemployment problem.
Do we really think all the commercial
paper is undervalued? Perhaps, but do
we really have any idea. It seems to
be that in order to solve, correct, amend the current stress on our economic system, we need and CAN determine who or what entity owned
property at a given point in time.
If only bits and pieces of a property
are used as collateral in several different deeds, securities, morgages, etc., who owns the property? The possessor of the property?
Maybe some segments of our society
do not wish to know the answer to the
question of VALUE.
Well, I think our leadership and our “citizenry” (rather than our consumer selves – per a member of the CNN Money Summit panel, an excellent point by the way) can find a more detail specific direction for use of our “borrowed” tax dollars. I think the general point is evident.
——-
While a FDIC alternative remedy to
lending or borrowing may be a reasonable option, I see no reason
why we as a country need to participate
with all the world to establish a new
world order (i.e. one central world bank, for example) for the sake of expedience.
Doesn’t some myth, story or historical fact teach a lesson in this regard? Do
we all have to be the same? Speak the same language? I think not.The United
States of America can work with the rest of the world but we do not have to forsake our national values en masse. We CAN FIND a WAY -as did the founders of the U. S. – to serve ourselves and the world.
Thank you, CNN, for your investigative
journalism. Keep up the good work. Our leaders might just learn from you and from us, the citizenry.
Our President, I hope, will not bow to reflexive remedies, including the
remedy of a central bank that was, for good reason, anathema to his hero, Abraham Lincoln. Reasonable minds can reach philosophicallly different economic and political conclusions,but
we must first NAME, IDENTIFY, the underlying cracks in the foundations of our unique American systems.
The World Bank and the Trilateral Commission seem to this novice
somewhat too conventiently in place.
Can any American really believe that
becoming indentured to anyone, esp.ly
another country with political beliefs
totally contrary to ours, can allow the pursuit of happiness? A look at
the location of huge bridges and pipelines built by major Asian nations
are telling.
These numbers are not adding up? Nationwide 2.3 million homes faced forclosure proceedings in 2008. Only 860,000 went to forclosure. Average national home price was $120,000. yrs 2000-2007. 30% had pmi so 100% recovery to bank. Others FHA and VA are 100% covered by uncle sam. so $50,000 loss per 860,000 homes comes to 43 billion. (yeap, Only 9 Zeros) ONLY about double the WALL STREET BONUSES of 20 billion for 2008. SO the banking industry should have a net surplus after TARP 1 Of 640 Billion after all foreclosures and performance bonuses if the mortgage meltdown is the cause of the problems. I guess if I could milk uncle sam for 650 billion in 2008 then I should get a bonus of 18.4 billion too. I also think that the 700 billion came in over 1 trillion with the extra cost options included. That means after the commercial meltdown this year thanks to the same banks not lending any money Tarp III will need to be about 5 trillion to cover those toxic assets worth 500 billion. New york wont need any help since they will get the taxes off of 100 billion bonuses for 2009. At least the government is promoting manufacturing. (even if its 100 dollar bills.) Voted most secure job 2009 Ben Franklins picture will be worth so little we will all need 20 billion bonuses to make it. Paulson, I know you got a lot of stuff now but if you buy these houses without BofA and citi kind of like pre forclosure or a short sale you might save up to 90%.
As far as the Stimulus package goes and the limitations on the income to recieve a refund.
Just because you may be over those limits does not make it THAT much easier. ALONG WITH THE ADDITIONAL INCOME: COMES OUT OF POCKET DENTAL, INCREASED COLLEGE TUTIONS AND TAXES!Why not add a tax credit of up to 5,000 for a verifiable home improvement other possible spending of 2xtime that amount. I have always wanted to add a gas fireplace to our house, I have the money but since I will not benefit and only pay for the stimulus, it is best for me to retain my cash considering the economy. The government would probably not loose that much because not everyone will do it. I think the problem with all these incentives being aimed at incomes under 150k is that these families are less likely to spend the money. I know at over 250k per year- between our mortgage(which is not high and we have a fixed 4.5 for 15yrs),utilies,oil,taxes,saving a little and our children’s expenses; it is very expensive every month. So while I have some money put away, i will not spend it because my taxes will more than likely go up and my chidren need their braces off and they need to go to college- for which I will get no financial aide.
On another note why invest in the stock market- I have already lost halk of my 401k but If I know made a profit I pay a huge tax. The people at the 250k level are rich enough to not worry about this environment but aren’t poor enough to get anything either. Like always in this country- if you work hard never expect to get anything – just pay more so everyone beneath you gets something – who says the couple making under 150k without 2 kids heading to college in 2-4years are not better off than my husband and I? Ultimately- give them the refund and increase our taxes. Seems like politics as usual.
/
Legal question=
Can the payment out of bonuses and the simultaneous accepting government aid be construed as embezzlement?
Rolf Kleinlein, Phuket Thailand
ex JPM
If banks need money, and taxpayers need money, why not give to the banks THROUGH the taxpayers?
We all know that money given directly to banks will virutally be gone by the time it gets to anyone that needs it. We could instead help taxpayers pay some credit card debt, and do something to get out of houses they can’t pay for and into something they can. Don’t just hand money out to individuals or organizations. Make it go where it needs to go. Banks with more money and taxpayers with less debt (more money) means banks will lend more and people will spend more, business improves, hiring goes up, spending goes up, economy improves.
I watched the “Summit” tonight and found it insightful. One thing, however, drove me nuts. Please stop your backdrop banner on the screen from swaying like it is blowing in a slight breeze. It’s extremely distracting and started to give me motion sickness. I loved the show, otherwise.
It has been said, “money earns money ”
But not if your life savings are in any of the “Big Banks”. ie. Bank of America, Merrill Lynch, They gave, at the last statment .39 of ONE PERCENT.Yet they lend it out at anywhere for 5 to 8%.
Many of the elderly that counted on a return of 3% to add to their Social Security check are now in real trouble.
Of course they can start spending their savings. But “money is supposed to earn money.”
Wouldn’t it be great if American returned to manufacturing what we need to rebuild our bridges, watermains, (our failing infrastructure) so more workers can return to work?
Why federal Stafford student loan interest rate is at 6.88% where as all other loan rates are lower than 5%? We are putting our future generation with no hope to recover from college loans for years to come.
Let’s see…Issue money and pay 2.5% (10 yr, t-bills), use the money to purchase $350B in mortgages from Freddie Mac/Fannie Mae and pocket the spread. Then, wait for institutional investors to line up to earn such a great rate and sell the securities at either break even or at a profit or worse case, wait for the mortgages to mature and use the proceeds to pay down the initial debt.
dang…I wish I could do that! The money they have invested has made a tremendous positive impact on the ecomony and it’s too bad we can’t measure how bad it would be had they not infused so much
like i have said befor,,bail the americans out,,not the companies that keep failing everyone,if you took,$300,000.00 and gave it to every legal american household,in wich they payed off all thier debts,and still had money to put back in the economy,how fast do you think we would end all these problems,and i am very very possitive it would be a whole lot less than the trillions they have spent now on companies like,,aig,,who knowing and willing lent money they know the people couldnt pay back,or like the auto industry who kept making v8 motor cars with price tags of $40,000.00 or better even though oil was $147.00 a barrel and gas was $.00 plus a gallon,didnt it dawn on them thats why everyone was buying mazdas,toyotas,hondas ans so on,,hhhmm,,couse they where and are getting 35mpg plus and the big three where getting 25 mpg at best,,bail out america,not the same companies who started all this mess to begin with just so they could do it again,,its our money anyways,you take it from us and give it to the same loosers who screwed this economy to bein with,,look at the suicide rate starting to rise over this,,matter of fact what happened yesterday to that family of 7 is just the beginning iam affrai,,keep it up and what will become of us,,couse you cant see the clear picture here,,stand up america,,fight back,,here is a case senerio to think about,,what if everyone in america stopped paying thier property and federal taxes,,you cant throw us all in prison,,but you sure do elect someone who owes 34 grand in back taxes to treasuery,,whats up with that,,its not even the end of the month obama,,and look at us now,,and by the way,,how much of that plan will acorn get..wake up america,,wake up
With all the trouble with the economy,banks,manufacturing , etc.. The goverment is working hard to fix,or help I have a question? I could use some help and it will not cost the goverment anything.I would like for us with 401k to be able to take some money out with out penalties. I do not like to use it but I need the help now to. Paying tax on the money that is drawn is ok. It was not taxed and have no problem with that. But do not penalize 10% because you can.Thats alot of money to loose. I could pay off a lot of debt with that. Be debt free and maybe be able to fix up the house with energy efficiant windows and etc.. Go green and reduce cost. Then maybe I could afford a new car. The money is there and it will not cost the goverment any thing. All I ask is to free up the money we already have with out penalizing it and taxing it to death and I think you will see a change in way some people can help get the economy started again. I know if the goverment can spend Billions on some fixes and they can certanly do this. Cost($0.00) Most of the people will not draw on their 401k if they are receiving 4% on their $ 1.00 . Helping us will help the economy. Thank you.
I am a newly widowed mother of one on a set income. I went to inquire about Medicaid, fortunately, my son received health benefits, I was given a few choices that would cost me quite a bit of money, considering my low income. How would this stimulus package help me?
Un-insured in Iowa
One does not have to be a genius to realize that property rentals are just ridiculously way to high. I mean, c’mon! $1,400 to rent a 2 bedroom apartment? What!
My husband got hours/pay cut.
Thank GOD he’s still got a job.
But, now that this happened we don’t feel confident enough to go out and “shop” as much.
Real Estate, renting, housing, whatever you want to call it, needs to
go wwaaaaaayyyy down.
Just unbelievable! We all know this mess is happening because of…$$$Greed$$$.
Does President Obama and his economic team have a clear statement about where will the over $1 trillion stimulus fund come from? It seems to me that we will have to either raise the T-bond yield to attract international investors or start printing cash by the FED. Either way, inflation will come as the result. I do not understand how can we maintain a lower mortgage rate under this circumstance to help the already beaten down housing and labor market?
Hyper-greed, easy credit, and massive over-extension (debt) got us into this situation and the government will reward this awful behavior by handing out money to those who got drunk through their avarice! Amazing! Here is what I wrote to my elected officials:
Dear Esteemed Congresswoman, As a citizen I am concerned about the government bailout. Although I believe action is definitely required, I do not think trying to re-inflate the “bubble” through pumping what could eventually be trillions of dollars into the economy (which will de-value our dollar and could lead to hyper-inflation). The “bubble” burst simply for the main reason that is was an artificial and unsustainable illusion. If an average worker in Orlando, for instance, makes $10 – $15 an hour, how can they afford an average home price of $250,000 or greater? The truth is, they cannot and that is why we are where we are at today – that is why the “bubble” burst in the first place. Obviously, action is required. I am concerned, however, that we are trying to get the economy back to an inflated level through massive bailout money which will create even more problems down the road. Please take action to stabilize our economy and place it on a realistic and sustainable footing – please do not re-inflate the bubble because, eventually, it will burst again and then possibly no amount of bailout will be able to help. Allow the free market to correct itself with some help to eliminate a total collapse but please do not artificially “fix” the natural correction with massive amounts of more US debt acquisition. Thank you for allowing me to express my concern. Very Respectfully submitted
I am disappointed in the greed and one-sided focus of the so-called stimulus plan Congress is proposing and President Obama is supporting. Congress is not taking seriously the needs of the American people but just lining the pockets of its special interests. Since I am not a construction worker or work in the infrastructure area of the economy, this plan will not impact my life in the least. Cutting taxes for workers does not provide any stimulus for those of us out of work. Adding a few dollars to the unemployment received also is of little help. If Congress was really concerned, then more immediate action would occur – action like reducing the corporate tax rate, repealing or modifying the mark-to-market rule, and foreclosure relief for homeowners. Further, put an upper limit on the percentage of job cuts by companies that receive Federal assistance. The foreclosure relief can come in the form of adjusting current mortgage payments by allowing the foreclosed homeowner to pay interest only and if having trouble with that, then having the government subsidize the payment up to 50%. The government gets its money back by tacking on what it is owed at the end of the mortgage agreement or, when the home is sold, to be first in line for payment. Another idea is to freeze the credit score of those Americans that lose their jobs due to the current economic conditions. When the economy improves and these individuals secure new employment, will they still have good credit that allows them to participate in the recovery. If their credit score is damaged due to late payments caused by unemployment, it will take years before they can improve it and participate in the recovery. How about helping those of us who struggle to make their Cobra payments that will consume any unemployment that is received? Speaking of unemployment benefits, they should not be taxed. They’re a small enough amount already. You could also target stimulus to housing and auto industry by offering cash rebates for buying an existing home, not a new home to reduce the current inventory. Offer existing home buyers who put down 20% another 10%. For those that buy cars or trucks from Ford, GM or Chrysler give a $10,000 rebate on 2.5 million vehicles. These are just a few practical ideas that would help millions of Americans. What Congress is proposing is just a lot of wasteful pork barrel spending. The stimulus should be short, timely and targeted. These ideas meet that definition. What Congress is proposing, for the most part, is not short, timely or targeted, except to its special interest. Maybe the American people need to be seen as a special interest group?
Are there no innovative or creative minds in Washington D.C.?
A business cannot run with w/o worrying his money in the bank which is more than FDIC 250k insured is safe. FDIC should do a no limit guarantee.
we are all in this together,so buy american,improve clients relation,believe we will recover soon.
the is no better place in a whole world
god bless america
A friend heard on tv today that credit card companies are now researching all customers’ card purchases and if they are using the cards at cheaper stores, i.e. WalMart, they will raise the card interest rates and apply lower caps. Sounds like Wall Street – those who have more money get more breaks. Is it true?
I am extremely pissed to say that the government bailed out all these banks out to help the citizens of U.S. struggling to make ends meet but wheres the money? I was told by a friend ( who works at one of these bank ) that citizens are coming in with A+ credit applying for loans and being denied. I believe the U.S. government needs to be accountable for where this money is being spent. Are they using it to pay for the CEO’s rediculous bonuses because it’s not benifiting the citizens who has lost their jobs and are not able to take care of their families.If Government is willing to bailout these crooked banks they should also bail us tax paying citizens out also.
why are the banks getting our money to bail them out and then they raise the interest rates on our credit cards
I am receiving unemployment benefits in
Florida for $275.00 a week, however I was told I do not qualify for food stamps. I was told l am over the income limit. This does not make any sense.
I truly hope this changes.
I wish I was Santa Clause and stop this recession. But we have a new administration who could do better in stopping the current economy and hardworking people who have been laid off.
Economy works only when people are employed, who has a purchasing power. “People with out of work cannot spend money, If they cannot buy then goods cannot sell, and when goods does not sell then manufacture industries cannot make goods. This ripple effect can destroy the economy and the country gets into recession.”
My idea to get out of the recession by taking the action below for at least one year and go from there.
Currently we have about 7% of unemployment and more are getting laid off.
1. Instead of laying off the people, have all the industry wide, cut the employees salary by 10 – 15%. It is hard to live by but it can be managed. This will keep the other employees on the job who would be otherwise get laid off.
2. Have a ceiling of $150,000 – $100,000 for all the CEO’s, COO’s CFO’s …..maximum and perks.
3. Bonuses should be tied to the performance of the company and creating a lay off. ” If the lay off is X% then the bonuses be deducted 2X%, which proves that the executive are not performing well in their work.”
Hopefully the above pointers will reduce the considerable unemployment and the government will not have to pitch in too much of a trillion dollar bail out.
4. We are spending lots of money in the jail system. jails are overcrowding and running out of space. This problem can be better controlled by recruiting them to fight in the war. They would be encouraged to fight for the country.
Let us all help in moving the economy.
When am I going to hear the following from Obama:
1) If you recieved federal bailout money, you cannot outsource jobs.
2) If you recieved federal bailout money, you must bring back all jobs that you outsourced to other countries back to the U.S.
3) If you do not do the above, payback the bailout money. Have other countries that you outsource to bail you out.
It’s about time America starts to take care of its own people.
Hi we were regeted by our mortgaage company today after months trying to modifide our loan they said the Investors/leander doesn’t want to except any modifications. Is this ture? They claim its all over the news I haven’t seen it.
Please help.
If the sole point of the stimulus package is to stimulate the economy, why can’t we have a month long sales tax holiday, aftewards the states fill for reimbursement to the Fed? Those doing the buying will stimulate the economy and those not buying are left out.
The Stimulus plan has to include major ways to reduce
1. Food Costs
2. Medical Costs
3. Insurance Costs
These affect mainly the household income less than $ 75,000.
Obama’s stimulus plan has lots of infrastructure projects and help for financial institutions. The stimulus should a good amount to help employers from making further layoff’s. The help can be in the form of long term loan with low interest. backing bad mortgage is a very great idea, but making a fair value on the mortgage and to write off the rest is a good idea.
Immediate action is required to control the rising costs of everything but the gas. The electricity and heating have especially risen. The next immediate action is to stop further layoff’s, these can be accomplished very quickly. Job creation will take time but by then things might get lot worse because even people who have jobs are struggling to meet both ends.
If we are in a credit crunch unable to get loans, how will the government borrowing money help. Won’t they just compete and take the loan that I need to open a business?
A balanced budget aimed at reducing the deficit will free money for others to borrow. Tax credits are not the answer. People and government spending money they don’t have has left an economy with no money left to save and lend to others.
Balance the budget.
I think that the government should spend money and improve not only highways and parkways in the country, becuase this would cause an massive need for jobs in the construction sector but it will also spread into the manufactoring sector as well because of the need for construction materials, the government should also increase spending in the energy fields they should invest strongly in wind power it would not only cut the need for cogeneration plants that are currently used but it would also cut the polution that comes from the plants it would also create jobs, the government should also give jobs to people that are currently unempolyeed and make them work on these projects, so they can pay there mortgages and other bills that they currently can not pay for, if the government does this it may not be a quick turn but it will help cut the job loss in the current encomony, which will help suffering Americans through this hard economic times
The investors cheer the continued mergers as a great thing and the stock market rallies, why is this? Everyone of the mergers I see cost jobs. Not just a few jobs but 10’s of thousands and if you compound the loses with the trickle down effect the losses are staggering. 70 percent of our economy is driven by consumers with jobs, I have a hard time cheering the mergers at least those in the near past. Please enlighten.
What is wrong with restructuring the financial industry after the model of a public utility, with strictly regulated charges, rates of return, what they can do and what they can invest in. Sure the financiers and bankers will squeal since they no longer will get their unearned salaries and bonuses but perhaps the people will again start to trust the financial industry, savings will increase and the rest of America will benefit. Another good thing would be to rein in the Bankers Protective Society known as the Fed.
I would like to know why the Feds raise the 30 year interest rates insteady of lowering it. How are people who are being foreclosed on to get out of trouble when their interest rates are to high as it is. Why not lower interest rates to thhe projeted rate of 4% instead of increasing it above 5% it just does not make any since people will never get out of debt or be able to buy a house and I mean all people the ones with good credit as well as the ones who made bad choices with sub-prime rates. Please explain this to me. Thank you.
Is anything being done about bringing jobs back to the U.S. by possibly lowering Corporate Taxes so companies don’t continue to move overseas?
During the debates for president, both McCain and Obama talked about a possible retirement plan withdrawl up to $10k. What happened to this? We have not heard anything about this since the debates.
I just became a widow 1-03-09. I am on disability my income is $994.00 my mortgage is $925 without my home Equity. My husbands long illness and my children in college exhausted all our funds. What is this president and this package going to do for the people.My son just Graduated College in Dec. Fantastic right? wrong. NO JOBS. My daughter has to go for all sorts of loans it is her first year of College. On my income she still has to get loans. Is this package going to help any of these kids or the people or is it loaded with PORK>
The tax credit in the proposed stimulus package is not fair. The cut-off of $75k across the nation does not make sense. In some places, like in the south, $75k can go a long way. While in places like CA, $75k is barely living wage.
What ever happened to Obama’s campaign promise that retired seniors with less than $50,000.00 of income, would pay NO Federal Income Tax. Is that proposal history now. I haen’t seen anything about in any of the reports about the new legislation
Some TARP money going to mergers & aquisitions: “The board of Pfizer, the world’s largest drug maker, agreed to acquire a rival, Wyeth, for $68 billion, the companies announced Monday” (http://www.nytimes.com/2009/01/26/business/26drug.html). “Pfizer’s bid is being financed by four banks that received federal bailout money: Goldman Sachs, JPMorgan Chase, Citigroup and Bank of America, the people involved in the deal said” (http://www.nytimes.com/2009/01/26/business/26drug.html). Isn’t former treasury secretary, Henry Paulson, a former CEO of Goldman Sachs? Didn’t he get on his knees and beg congress for money? Didn’t the Private Federal Reserve Bank CEO, Bernanke, back up Paulson’s request? Does anybody see corruption here? The merger of Phizer & Wyeth will be the world’s largest pharm. co., a giant corp. made during recession. How does this benefit the U.S. people? Certainly something to think about in this time of a transparent administration. And so many of these banks in the news lately. How many other mergers & aquisitions are going on with TARP funds? There’s no lending to the average U.S. citizen or the small businesses because it’s going to the large corps? No Wonder why they wanted a blank check and no oversight. What other shannigans have they been up to?Would somebody please check on this? I just don’t get it. Please explain this.
Why don’t they take a major portion of the 850 billion dollar stimulus package and divide it by how many TAX PAYERS there are and give it to them/us. Then I could pay my mortgage and property taxes. I would go buy a new car, go to the mall to purchase a new T.V. and a pair of jeans. I could afford to go out to dinner and maybe take a vacation. That would stimulate the economy. But instead they will make it a heavy burden for the hard-working, responsible Americans who lay in bed at night wondering if they will lose everything they have worked for because of corporate greed and corruption. This stimulus package is nothing more than a golden egg for special interests groups and welfare recipients. Things are changing for the worse. This is just the tip of the iceberg.
Where is all this money coming from for all the Bailouts and Stimulus Packages? How come we are told we need MORE bailouts and stimulus packages when we have already had Trillions of dollars worth? Is there a posibility of massive inflation due to a massive increase in the money supply? What if International Financing for these plans dries up? What will that do to the U.S. dollar?
Why do politicians think that more credit is the answer when cheap and easy credit is what caused the housing boom and bust in the first place? Greenspan lowered rates to record lows which temporarily stimulated the economy but led to what we are now witnessing. I’ve heard the same politicians who support all these bailouts and stimulus packages criticize Greenspan and say nothing about Bernanke’s current “quantitative easing.” They blame predatory loans yet say we need to get credit flowing again. Sounds hypocritical.
what is going on with MODIFICATION. Back in Oct we applyed with ower mortgage company and we were told we have to wait and not to make payments. Now today we were told that the trustee investor of the loan put a stop on modification loans, and American Home Mortgage will not take payments from us what is this about? What can we do? and how much time do we have before they put us on foreclosure.
Why performing home loans “under water” are not assisted? You have to become another “casualty” of the recession to be paid attention? Preventing loans in good standing to become a foreclosure could help the economy a lot more than keep adding vacant properties to an already huge inventory of real estate.
Make all current adjustable rate mortgages fixed at the current rate so people aren’t hit with the higher payments in the future, making it harder for them to afford. I think this would help save people from foreclosure and reduce the amount of time and resources the government has to put into fixing the housing problems
I am a single mom laid off right before Thanksgiving. Thank goodness for unemployment benefits but I do not know what I will do in the future. I received no notice and no severance. I make my mortgage a priority. It would help if I do not have to pay taxes on my unemployment benefits and it would help if the benefits would be extended. I never thought I would find myself in a position of not having a job or not being able to find a job. There has to be a way to help people without waiting for a trickle down effect that never gets to the bottom.
Why dont we just take the money and buy and install solar hot water systems on 100 million homes. This would employ 60,000 from the construction industry for 2 years. employ people in the manufacturing area building the panels/heaters. Save approx 6% of the electricity used in the us yearly to generate hot water(13.5 bill dollars electrical bill per year saved added back to consumers pockets to stimulate ecoonomy), plus any down side effect to oil costs. Use the rest of the money to install solar pv cells in areas of south west us. Just did the numbers real fast from what i know so dont quote me on this.
we need help with the cost of health care insurance,people who have to pay privately out of pocket,have no choice but to take early retirement,because after 30 years of commitment,companydecides to close doors overnight and move to china,receiving 1200.mo. paying 600.oo month health care,household bills and family to provide for,and currently to young for medicare 2 more years to go,what does a person do,please MR.PRESIDENT, HEAR OUR PLEA,HELP THE HARD WORKING AMERICAN PEOPLE. Thank-you MAY GOD BLESS YOU ON THIS DIFFICULT JOURNEY.
In my opinion the bail outs need to stop. The initial knee jerk reaction of the House and Senate to the “sky is falling”, “better to do something than nothing” mentality was very poorly thought through. They had/have no idea what their manipulation of the markets has done. These bailouts have taken both the “free” and the “markets” out of the free market system. Stocks now move based on government announcements of who is being bailed out next. Companies with poor performance are being rewarded with bailout dollars and in turn an artificially stimulated increased stock value. Meanwhile the companies that spent and borrowed wisely to position themselves for the opportunities that should present themselves during these times are penalized with no bail out funds and falling stock values.The government needs to allow the markets to correct and move on. They have no idea what they are doing to the long term stability of our financial systems.
I feel this person is on the right track. Putting money, not tax cuts, in the peoples hands is the way to go. Why not pay off mortgages at the banks for everyone who has one. This only makes sense. The little people are hurting and the government only worry about cutting taxes. As an example, I don’t have hardly any taxes taken out of my check because I do not make enough. How would this help me? It wouldn’t, until I file my income tax. People are going under every day and it is because of all of the rising prices of necessary item to live. Our incomes are not rising. People need help now! The Poor people of america are starving for help.
Stop Social Security tax.
Figure out how much people have put into the system and cut checks accordingly. Putting money in the tax payers hands is the answer.
We are the people who actually spend money.Let us spend the money that is actually ours. Instead of giving money to people that can’t be trusted.
I’m 42 years old if they cut me a check for what I’ve paid in the social security, I would have enough money to pay off my house, buy a new vehicle and possibly a new TV. THEN WHEN MY EMPLOYER SAYS HEY YOUR GOING TO WORK JUST 3 DAYS THIS WEEK, I’M FINANCIALLY CAPABLE OF MAKING ENDS MEET AND SAVE MONEY, However my savings will have to be put in a pillow case or hidden in a hole in the wall. WHY? Because you can’t trust greed.
to help economy i think if 700 billion puts 13,000 in each house in US people would be spending, morgages stabled, car payments paid, bills leveled. instead u still give to corp a—— and banks that keep money we must pay back then we should get it.
My comment about this situation is that for those people who has to draw unemployment because of job cuts and so forth should not have their unemployment benefits considered income for the 2008 tax year and also those who had to withdraw from their retirement plans because of being laid off because of job cuts should not be penalized for early withdrawl for the 2008 tax year.
Our country is sick and it is not going to get well anytime soon. We have a virus that has no meds to stop it more less cure it. So every person that comes in conatact with someone else just infects them too. This $850 B package is another JOKE. Why, (1) $500 a person will not pay the gas bill for a year, nor will it pay for food for a year, nor will it do much of anything else other than help walmart and all the folks overseas that make stuff and the last give-away did not stop what is taking place today (2) we are just setting ourself up for double digit inflation and very high interest rates down the road, (3) spending that kind of money could fix some material problems we have in this country – it’s like lets go to dinner vs putting a roof on the house,(4) rape is what the banks are doing to the american citizen with 20%, 25%, 30% or 35% interest rates on credit cards when you give the banks $150 a month in interest and $15 on principal, (4) the government spending will take up to 18 month to be spent – and how many more folks will be laid off while this comes into play? The help needs to be today – not in 18 months.
Are there easy fixes – probably not. Part of the problem is that everybody wants to get in on the free money give away. I do too; but that is not reasonable. Let the banks take their lumps – they made billions in the good times off of greed – let them suffer in the hard times. Nobody is giving me $20,000 to live on/pay off my bills or what ever. If the banks do not want foreclosures – then they should work with folks to help them keep their house, pay off their credit cards or what ever.
Business has been leveraged and this leverage has allowed for growth and the hiring of a lot of folks. With thin bottom lines now, it might be 5 or 10 years before the job market can soak up the 3 or 4 million folks that are now out of work. Unemployment payments will not pay for homes or cars. And, if you try to get any old job to help yourself, they just deduct what income you made from the unemployment support you got.
The government needs to do what they did with the interstate road system with hydrogen – they need to build a fuel station in every city that has over 15,000 people. Then give the public the opportunity to buy it at some point. This would get us off foreign oil and give the car companies a reason to make hydrogen fuel cars.
As for the housing mess, there is no bottom as long as folks keep getting laid off. And, even if the government takes TODAYS bad debt, there will be more tomorrow. I suspect the easiest thing might be to just let the bank talk to the person who has gotten 3 payments behind. If they believe that this is a temporary thing, then let the government make the 3 months payments + 2 to get them caught up again if they believe that they can stay current. Then add say $25 a month extra to their note which the banks have to pay back to the government each month + maybe a $200 transaction fee or 2% interest for the service. Another option would be let the house go to foreclosure, have the bank sell it to the government, then have the government turn right around and sell it back to who is living there at – thus they would have a new note with a new value with a better interest rate since the banks do not want to modify the loan anyway.
As far as lending goes, this is a mess. Everybody starts out at the bottom. This makes it very hard to get ahead. Looking at 8% interest on $10,000 is not too bad, looking at 8% interest on $30,000 is really bad. This is why cars must now be financed for 7 years. And as cars get to be $40,000 or $50,000 or $60,000 for an average car – before you know it we will need to finance cars for 30 years just to have a payment that folks can afford. Something needs to be done to address the ever higher dollar amount paid in interest to purchase goods and services. Business has resorted to leverage to generate cash that has allowed them to expand and grow and hire massive amounts of people. Without leverage – just the day to day sale of goods can not pay for all the infrastructure and labor required to bring products to market. In Dallas, rent is around $32 per square foot. That means for a 1000 square foot space, you have $32,000 in rent expense + utilities, + wages + insurance + taxes. This means that the business needs to generate about $200,000 per year in sales just to break even. No wonder there are so few mom and pop stores now. One location is not enough anymore. You need many locations so that several better locations will offset the not so great locations.
We have a material problem on the cost to do business. And, this is going to put a major damper on any effort to pull out of our current day mess.
I say, lets look at the source of the infection. Lets also look at what we as a country need to do to make things better tomorrow and not just put a band aid on the problems of today. Then set a plan in motion. Maybe it will require to a 120 day freeze on layoffs and a 120 day freeze on foreclosures and a 120 day freeze on prices – buy some time to look at this in a rational way and make rational decisions as opposed to making a decision while the boat is sinking and folks are trying to bail water and think at the same time.
With all of the problems that the American economy is facing and will face in the upcoming years, is the government looking into financial responsibility education for the American consumer? How about making financial responsibility part of the core curriculum at all high schools? One of the reasons we are in this current downturn is because everyday Americans do not know how to responsibly handle their own finances. If they were better educated as to how mortgages, loans, credit cards and other financial instruments work, would we be in this mess in the first place? Just a thought.
Why can’t a bank take a faiing 3 year arm loan, for instance, and re-write it to a 40 or even 50 year mortgage at low flat rate. The bank then presents the original figures and the new figures to the Fed, who is holding the stimlus money, showing the lost interest they realize and collect this difference. This way the bank does not lose out and it directly helps the home owner. I imagine there should be guidlines showing that the homeowner has a real change of keeping up with the new payments. This way banks do not get money without actually helping Joe homeowner.
Why won’t the government suspend State and Federal taxes, with a regulatory catch. Every person would have to use these “tax break” dollars to pay down “documented debt”(credit debt, mortgage, auto loans, loans, medical debt, etc…) Therefore the financial community balances their sheets, consumers reduce their debts, companies get paid for services rendered… This totally avoids the past failure bailout, by knowing that the correct debt gets paid off… Money that isn’t paid to reduce debt, would be due as previous pay roll taxes…
My question is why are people so concerned about 800 billion, when the government has already spent well beyond 8.5 Trillion?
Why are we sending aid to Mexico to a tune of 400 million, for a war on drugs we have never won, nor will we ever win.
Why do wage a war on drugs, when the banking system took in laundered drug money to help boost their books?
Why can banks steal Trillions of dollars from American’s and buy new lear jets, pay huge salaries, etc… if they are in BAD financial shape? If they aren’t in bad financial shape, then why did they get a bail out to start with?
These are just a few of the MANY questions I have to ask.
oh, good. The same ‘experts’ who advised us into the mess will advise us on how to get out of the mess.
Doesn’t that seem somewhat foolish to you?
***
If you really want to do the American people a service, please get the lonely voices from the wilderness to explain what went wrong and what to do about it.
Here’s some starter questions:
1. What are the real causes of economic growth in America?
1b. What are the citations to the economic literature that suggest your answers aren’t just self-serving malarkey or vote buying?
2. Could you explain where increases in labor productivity [and therefore wages] come from?
2b. What economic literature since Adam Smith supports your claims?
3. Why does specialization of labor lead to increased welfare for every participant?
3b. What implications does this have for foreign trade policy?
4. What constitutes a sound basis for lending on real estate?
4b. Why is it that the collective banking regulators haven’t enforced such lending policies [afaik, ever]?
4c. Why is it that the Directors of the major banks continue to choose CEOs who apparently don’t know how to make sound real estate related loans [I've only been watching the business since the early 1970s -- maybe Directors actually knew something before that, but the evidence suggests otherwise]?
5. Why is it that no one has filed a class action suit against the debt rating agencies who so mislead investors about the safety of CDOs and similar financial garbage based on real estate lending?
6. If company treasurers are rightly afraid that their bank may collapse overnight, and bankers are rightly afraid that their lending customers may collapse overnight, is there any exit short of either
a. guaranteeing everyone’s debts
b. nationalizing all the banks
c. requiring FULL risk disclosure of all borrowers’ real situation [you're a counterparty in swaps totaling how many times your total capital?] backed up by felony fraud statutes and prison terms.
7. Why is it that the good or service provided “free” is always of poor quality and demanded in such enormous volume that it can’t possibly be delivered to everyone?
While this list isn’t enough to sort out all of America’s problems; it is a start and real answers might actually serve the public.
January 27, 2009
A one page Stimulus Package
A sane, conservative, effective non-political stimulus package that will work and reassure the people of the United States.
I am concerned with the 825 Billion Dollar Stimulus Proposal. I do not believe it is even close to being a good plan. Consider: 825 Billion Dollars divided by $46,000, which is the average U.S. household’s income for a year. This gives a result of 17 Million 934 Thousand 782 households with $46,000 in income.
This means more than 17 million unemployed people, people who have a verifiable tax payer’s history with the IRS could receive a years income. We only have 8 million people unemployed. We could give $46,000 to one sixth of all the families in the United States!! But let’s start helping them now and the unemployment numbers won’t ever reach 17 million.
Incidentally, using the existing unemployment compensation infrastructure, (through the states, 16 of which are beginning to run out of money) will cost about $250 per recipient. This means that one job equivalent will cost 46,250. The proposal now in the Congress is going to provide a job for $271,000 each. We can help 6 households for the cost of one created job.
Why not pay these people $4,000 per month for up to a year, while they look for a new job? This is a very direct way to get the money into consumer’s hands. They could retrain for a new job or look for a job full time. Some might loaf off, but most people, knowing that the help is only for 12 months, would use the opportunity to look for a new way to support themselves. And, the people who receive this money at a rate of $4000 per month, will pay their bills and spend the money directly back into the economy in the most direct way.
The remaining money, probably about $400 billion dollars could be loaned at a reasonable rate, 5-6% to existing businesses with solid track records and credit ratings, that already employ people, in place of the loans the banks are no longer making to them.
This really would make the people responsible for getting the country out of the present economic downturn. And the people will put the money back to work and do a better job of working it into the economy, than a lot of pork projects handed out by the Congress.
Please share this with others if you think this is a good way to stimulate the economy.
Staffers for all elected representatives in Connecticut have discussed this idea and are sharing it with their principals, both senators and representatives.
Jim Cramer often talks about a tax credit of up to $25,000 being a great tool to help create a bottom to the housing market. I think this is a great idea because it would make me and others get off the sidelines instead of just waiting for the market to drop another 10-15% as projected by some as to happen in the next 12-18 months. My question is how likely is it that this 25,000 tax credit is actually enacted?
I have a problem right now with JP Morgan Chase who just purchased Washington Mutual for around 2 billion dollars. As we know WAMU was saddled with enormous debt in the mortgage arena. For about two years I have had a Providian Visa card with a credit limit of 6k. This account has always been paid ahead of time and over the minimum balance. The early payment strategy is used to keep the overall daily balance down ergo lower finance charges. A few months ago for some unknown reason my FICO dipped below 600 to 598. I was informed I was now a credit risk and my APR would rise from 11.99 to 20.9 percent. Last week I received another notive from Chase telling me my APR was now 29.99%. Nothing has changed except my FICO score is now at 621. An email to Chase requesting my APR rate be returned to 11.99% based on Experians numbers as it appears on their website when I sign on. They told me they were unable to “accommodate” me at this time. Then the increase to 29.99. Also under the provisions of my card through WAMU one of the services was to be able to access my FICO score at NO cost. Chase has informed me after March 9, 2009 I will be access my score for a fee to be determined at a later date.
I’m wondering how many folks out there are being put in the sames situation as JP Morgan Chase takes billions of bailout money from taxpayers on one hand and extorts higher rates from their WAMU clients due to the acquisition.
I wonder if the person who thought this idea up for JP MOrgan Chase got his bomus this year and how many of us paid for it.
I also wonder if anyone who oversees this part of the credit picture really cares at this point.
I hope you post this comment I’d like to see the feedback.
Until something is done to protect those losing their homes because of current layoffs, nothing is going to get better. It’s now snowballing and you must do something drastic to stop it. Stop foreclosures for those who have a job loss causing their foreclosure. If you were part of the foreclosures caused by a sub prime loan, you are part of the reason we are in this mess. You and the greedy bankers caused the housing bubble. The government needs to help those who did nothing wrong and punish those who’s greed caused all this.
Please tell me why the government gave financial institutions $800 billion? They still don’t lend out money. And why did the car dealerships get part of the bailout money?? We can’t afford to buy a car let alone a house. They have plenty of money, they just don’t want to dig in their pockets. But why not? We have to! The banks are jacking up interest rates, groceries are going up every week and gas prices are starting to rise again. The bailout money should have been given to the citizens of this country. Minimum wage where I live is only $6.55 an hour. The bailouts should be given to the people to be able to get themselves out of debt and provide for their families. Small businesses would be able to open back up and people could get their jobs back. As long as we aren’t spending money, the economy will not get any better. We just don’t have the money to spend. I understand what President Obama is doing, but it is going to take years to accomplish. I just think another bailout(stimulus package)is not the answer. The original bailout should seriously be RE-EVALUATED!! The more bailouts, the worse this country is going to get because, eventually, we the tax payers have to pay it back. Then we will be in a worse recession than what it is right now.
I read an article in a magazine called the Plain Truth,back in the early 80 s. It was written by a gentleman, who lived through the 1st Depression. I forget his name, but he said that all the signs for a 2nd Depression were here in the 80 s.
My thoughts were…yes, a 2nd Depression was coming…but, not yet. Reason being, Presidents can get into office , and they have their “short term patching” projects. They can plug the holes in the dam, but they can’t stop the water(national debt.) from rising. You have to be a President, who wants to do something about it. I believe it took alittle too long, to get a President, who wants & will do something about Americas economic situation.(even if, it means stepping on a few feet) It took too long for a man like him to get in the White House !! With every Politicans help, he may be able to put America back on its feet. Which we all need..If, he President Obama does’nt get the cooperation he needs..and does’nt get it done…then my fellow Americans…were all sunk.
Why are they considering tax cuts and capital gains cuts as part of the stymulus package? Everyone is affaid of wall street because of all the crooks and tax cuts will not help the unemployed once their checks run out not will the cuts help them get a job. These are just tricks to help wall street not main street.
I would like to suggest an unconventional approach to deal with the current economic situation, from the perspective of a common person, who is not familiar with the technical intricacies of Banking, Taxation and Government finance. It seems to me that borrowing 825 Billion dollars ($ 1.2 Trillion with interest) to solve the current economic problems is not fair to the future generations of Americans because they will be saddled with the extra national debt. We, the current generation of US citizen, collectively created this problem by consuming more than we produce. Therefore it is only fair that we accept the punishment for our excesses. Therefore, I am wondering, if the proposed $ 825 Billion stimulus should be financed by printing more US Currency, rather than borrowing it. I am sure that this approach has several technical flaws and unintended consequences that might hurt many of us, especially the elderly who have a need to keep their investments in liquid cash and other people who have a short time horizon. However I would like to point out the following advantages for this approach.
1) It will effectively devalue the US Dollar and make all of us (US Residents) poorer. That will be just, because we collectively created this situation due to our greed, and we deserve to be punished for it. We should not be allowed to pass off the burden to the unborn future generations.
2) If deflation and lack of spending is indeed the problem we face for the next 2 years, it seems to me that the threat of diminishing value of cash might actually spur current spending to the extent that nobody will be willing to postpone the spending on necessities. The definition of necessities varies a lot from individuals, to businesses to local governments.
3) The US really needs to drive home the point to all of its trading partners that their strategy of suppressing their own consumption and manipulating their currencies to maintain unfair advantage in trade will backfire to their own grief. If the US allows the dollar to devalue dramatically, the foreign governments will loose the value of their investment in US Government debt. We have to make our trading partners realize that they are much better off using their trade surplus to purchase US made goods and services rather than using it to finance US Debt.
4) There is nothing else as powerful as high cost of imported commodities such as Oil, to make us improve our conservation and spur investment in homegrown alternatives – solar, wind, and non-corn biofuels as well as replacements for other commodities. Notice the fact that as soon as the price of Oil came down, we have abandoned our quest for Priuses and we are back to bad old ways of demanding Trucks. We need a situation where Oil becomes relatively more expensive to us in US dollars, but it does not become more expensive to the rest of the world. Printing more US dollars will move us closer to that situation.
I am really hoping that the new adminsitration will take the time to prosecute and indict a lot of people on Wall Street for fraud and misabuse of the public trust. IF we can get at least a couple hunderd of the heavy hitters at the major banks to do some serious prison time I think this would be great.
Ray
Why doesn’t the government give the 800 billion to successful businesses and responsible home owners? After all, we know how to be responsible with money.
With much of the layoff and job cuts, it seems that there are some companies that are laying off and job cutting with no public announcement etc. In my opinion, each layoff will drag the economy down further. Beyond that, consumer and employee confidence takes a big hit too. Case in point, I work IBM that has layed of 1000’s the week of January 21, myself included. There is no indication of how many, no announcement (internally or externally) and covertly. Those layed off will obviously lose confidence not just in the economy but in the future employees that hopefully will figure into the recovery. Those left behind will be functionally vegetables running around with total fear.
In my case, I would have preferred a full disclosure of the layoff as opposed to such covertness. The main stream media appears to not be too much aware of such covertness.
Further, I estimate around $30b of the TARP went to IBM via the banks etc in the form of IT spend, which appeared to be on a roll right up to 12/31/08. I know I worked in that domain.
So, IBM being a TARP recipient (albeit, through a middle party) netted $30b, announced a positive earnings, upbeat future earnings AND a covert layoff.
I do hope such covert coverup is rewarded by the magic invisible hand called the market (financial, buyers and ultimately consumers). If indeed such rewards are positive, then so be it if the market has spoken. As for me, I will now be a competitor along with my other layed off peers, who all appear to be quite skilled and “old”.
When the current stimulus package does not work then what? We ride it out and go where the markets take us but are now in the hole another $800 billion? We put through another “quick fix” that has no long lasting effect?
I think that the government needs to try and stop putting small sums of money into the hands of the people but rather spend the proposed money on some infrastructure projects that could create jobs (construction, manufacturing, banking) and help rebuild our infrastructure at the same time. Rather than wasting my hard earned money and give it to some bank, I would rather see that money invested in our own infrastructure to help put America back in the driver’s seat. I have heard a lot about Obama and comparison’s to FDR’s “New Deal”. Well right now we need the “Real Deal” to get this country back on track.
The Treasury, Fed, and FDIC all need to work together to examine the books for each bank that accepted TARP funds. These banks need to have all assets and liabilities brought onto the books, no more games or lies with off balance sheet gimmicks. The assets then need to be valued (no more FAS 157 level 3 fair value tricks) and written down. The haircut taken should then be crammed down the other side of the balance sheet in a debt to equity cramdown. Common and preferred equity holders are wiped out because they sat around while the banks participated in risky business practices and former debt holders now become now equity holders as their debt is now equity. This costs the taxpayer zero. It punishes those owners who sat on the sideline and reaped huge profits at the expense of the financial safety of the entire nation, and it gives the debtholders at least a chance of one day recovering their money down the line if they can trade their stock higher in the future. Why is this option not being explored or discussed? It saves the country from spending itself into ruin and punishes the foolish. Sure a lot of equity wealth would be wiped out but this equity already has and will continue to be wiped out anyway! We considered debt cramdowns for the automakers because they were a failed industry. The same option should be considered for the financial industry because it is a fundamental failure as well.
What is your definition of “success” in this attempt to turn the tide of recession? Obviously it cannot just be in terms of jobs saved/created or forclosures prevented (or Wall Street fat cats saved). There has to be some “bang for the buck,” free market, fairness and/or other constraints too. What is the goal?
Or heaven help us are we going to keep leveraging up the federal balance sheet to deleverage the rest of this country? (Insert your own sarcastic remark here).
I still hear republicans saying that Regan’s supply side economics, trickle down economics, is the only way to fix the economy now. Fortune just had an article (I believe through CNN) where the author proposed the same thing. That is, to fix the economy, give more tax breaks to the business owners, the wealthy, then they will hire more people and everything will be fine. I am surprised to continue hearing all this when I learned in school that the vast majority of economists say the supply side economics is nonsense. Who is right? Is this just a strong Regan myth???
Thank you,
Ron Sowa
The corruption and malfeasance that lead to our current situation in mind bogling it is so large in its scope. Without regulatory reform, coupled with a large quantity of people going to jail for a long time for the creation of this mess we will see the pilfering of america continue unabated.
When I got my mortgage in 1995, I had to put several thousand dollars in down payment and pay mortgage insurance. Many of the people who are in foreclosure today got a second loan to pay for their down payment and did not have to pay mortgage insurance. Basically, they had nothing to loose. Many of these same people overstated their incomes on their mortgage application. But now they are going to have the principal lowered by mortgage cramdowns.
Should people who lie and have nothing invested in their house get bailed out/rewarded by the taxpayers?
I would like to suggest a bailout for the American Taxpayer after all it is our money it realey belongs to us not the goverment!! Anyone that owes the IRS money will not have to pay it back it will be erased from our IRS files and we will be a free American again to start over ? And if we do away with the IRS we will save the Taxpayer about 1Billion Dollars a year DUH !!
My question is, define “to big to fail”? These companies that are allowed to grow to where they become unmanagable making huge mistakes or perhaps calculated fraud, take tremendous losses and then look to the taxpayer for a bailout is unconscionable. It actually sounds to me like an enormous ponzi scheme perpetrated on the American taxpayer. The federal government can’t let the music stop or the whole thing comes tumbling down. The only reason Bernie Madoff isn’t still in business is the result of the market meltdown and the fact that he didn’t have the American taxpayer as a benefactor.
We need Federally controlled green engineering related to all energy
sources. We should hire the best engineering graduates from our
Universities to develop new technology.
These services and advances would not be hampered by conflicts of interest.
PS- A source of $ from industry to offset the cost.
Well with 4trillion being talked about to bailout banking why not uses my theory for solving the problem. I call it Zero-Economics, we just zero out all the debt owed worldwide and bingo we can do it all over again LOL, just like a reset button. Hey it is just transparent paper as the financial world likes to states, so if we can’t it see then we don’t need to pay it.
The news brodcasts talk about the dollar vales for parts of the recovery program but they don’t mention the time scales when the parts of the program will become effective. Things like the medical records update. This will involve setting some requirements, acquiring a staff,evaluating existing methods,….. parts of the programs wont show for months or years. In yous economics news you couls show a time line and indicatewhen the parts of the recovery plan will be efective.
to the students saddled with loans, as unemployment ravages the countryside: how does it feel knowing our government is shoveling mine, and your tax dollars into the bank vaults where it just sits. why dont you raise your collective hands and ask for your bailout ?
My issue is i heard Obama say (while campaining) he was going to go through line by line and eliminate pork from new spending measures… i’m waiting to see the list of stuff he crosses off.
I’m an avid reader of the business news, and in the past few months, I’ve often heard something mentioned that I don’t understand the enthusiasm for–wiping out shareholders. Lots of experts recommend this as part of bailing out this company or that one. But what real good does this do? It’s never the shareholders that caused the problems at the company. It tends to be the excutives. Why punish the shareholders for the actions of the executives?
When the Federal Reserve last cut its benchmark rate, it was described as being done in a narrow range that was “effectively zero.” At no other time have I heard of the Fed setting the rate in a range. It was always a fixed amount of a cut and the new rate number was given. This time, it’s different–why?
Here is what I wrote to my congressmen: I am extremely concerned about the current “stimulus” package that is being looked at in the congress. This is just more of the same, and after the country spends another $800 billion dollars, when will someone realize that this didn’t work either. This country cannot continue to throw good money to bad when it comes to businesses that just do not understand how to make their business work. Perhaps if there had been changes within the Companies who were given the money in the first place, it might be different now, but probably not.
The ultimate problem (as I see it) is that the Amercian public is not spending money due to many factors. Rather than spend the $800 billion on something that will not work, perhaps the government instead could use the money and just give each taxpayer a gift card for say $2000 (the card could be used at a retailer, car dealership, etc.). The card would expire within 9 months, and must be spent, could not be used to pay bills or put into savings. It would be a use it or lose it option. If all Americans were to spend $2000 then wouldn’t that help the economy more than giving the money to businesses that have not prudently used the money already given to them?
Just my thought, and maybe a way to help the middle class people who are truly struggling as well as helping the businesses that are struggling as well. Sounds like a win-win situation!
Best of luck in trying to figure out how to solve something that is spriraling out of control at this point!
Sincerely,
Janeen
Is anyone talking about REPLACING rather that bailing out the banks’ sorry a—s. A $4 trillion bailout will bankrupt the country. Will anyone benefit besides the greedy, irresponsible bankers who got us into this mess in first place and got rich off of it?
I am now earning less than 2% on my savings and have lost 30-40% of my investments in stocks and mutual funds. Are any of the bailout and stimulus plans geared toward retirees? It seems that the retired population has been overlooked.
Many individuals have been downsized and are receiving unemployment compensation. However, unemployment compensation lasts for 26 weeks. In the meantime, employers continue downsizing methods, cutting costs, and not recognizing an experienced workforce. In the meantime, individuals require basic necessities for subsistence. Thus, what efforts can be made to extend unemployment compensation, which can help to minimize increased homelessness on American soil?
Why are we bailing out all these companies who have poorly planned for the future of the organization? The ruts of the country go start with the idea of everyone working together to succeed. Everyone was give a peace of land and had to grow crops or build something out of the land that would help the rest of the committee. If someone or in the case a corporation did not do there part in helping everyone out they did not eat. So why should we bail out all the people who did not work or help us as a country become grow. All they did was bring us down.
January 27, 2009
Dear President Obama,
Subject: The Devastation of Misapplied Mark to Market Accounting – Proposed Resolution
Since October of 2007, an increasing mortgage foreclosure rate led to an ever expanding credit crisis. By the end of September of 2008, banks had written off $760 billion in bad assets. In early October, 2008, we researched the size of the various pieces of the credit market, their normal bad loan rates, and their actual bad loan rates over the previous twelve months. Where loans are backed by assets, the assumed recovery rate was 50%. Bottom line, we calculated that the actual impairment or losses in the credit market was $292 billion. Yes, that is 38% of the amount actually written off by banks in the U.S.A.
The culprit causing the disparity between actual impairment and the amount of write downs is inadequate guidance for mark to market accounting. A lack of confidence in securitized books of loans results in an illiquid market. Take for instance mortgage loans, the annualized foreclosure rate has averaged 2.5% over the past 15 months. Therefore, the impairment on the total book of mortgages in the U.S.A. should be 2.5% of the original amount.
Mark to market accounting has one very large benefit, transparency. But, reason needs to be applied in deploying the accounting policy. On September 30, 2008, the SEC provided all non-bank corporations new and reasonable guidance on mark to market accounting. The guidance basically allows for the measure of intrinsic value. Intrinsic value allows a corporation to write down assets by their known impairment if a market doesn’t exist for the asset. If this were applied to banks, the collective credit market write downs would have been limited to the failure rate less the amount recovered on asset backed loans.
If our research is accurate, 62% of the credit crisis related bank write downs could be eliminated.
Why, in any measure of rationality, has the guidance (intrinsic value) for mark to market accounting provided to non-bank corporations on September 30, 2008 not been extended to banks?!!!
This guidance must be provided to bank corporations post haste! This step alone would stop the unnecessary magnitude of bank write downs, significantly reduce the amount of additional bail out expenditures, eliminate the conversations regarding nationalization of banks, and provide for the return to confidence in the banking industry, economy, and securities markets.
Very sincerely yours,
Dave Dickmeyer
President, Dickmeyer Boyce Financial Management, Inc.
Ian D. Boyce, CFP®
Certified Financial Planner™
Vice-President, Dickmeyer Boyce Financial Management, Inc.
The Republicans are critical of Pres. Obama’s plan because it will give money to people who don’t pay taxes. On CNN today, they said 1/3 of tax filers pay no income tax after deductions. What is the typical profile of people who pay no income taxes? Are they middle-class families with three kids? Are they rich people with tax shelters? Are they the ‘working poor’ who wait our tables, pump our gas, mow our lawns, and bag our groceries? Who are they? The Republican complaint sounds like they are free-loaders.
I am graduating in May with a degree in Finance and a degree in Real Estate. I hear about these thousands of jobs being lost everyday, it’s very discouraging knowing I am looking for a job and either A) there aren’t any or B) there is that much more competition. What should a soon-to-be college grad do??
Over the past several (many) years, a large number of jobs were moved by U.S. businesses overseas where labor was abundant and available at a lower costs. Is there movement (incentive/hope) of bringing those jobs back into the U.S.? Are there any numbers available as to how many jobs were moved to foreign lands? Could there be any incentives put in place to retrieve those jobs and locate those jobs on U.S. soil?
I am a first time home buyer, is it right time to buy house by considering mortgage rates and house prices declining or should i need to wait some more time?
what is the right investment considering current economy investing in stocks or investing in housing? Is market further go down to invest in stocks?
I have worked hard and saved for retirement all my life. Now I am afraid that the inflation that will result because of all this government spending will surely destroy the value of my savings. Is there anything I can do about this?
The total amount of mortgage debt in the United States is roughly 10 trillion dollars. Back in the late summer when the TARP program was originally conceived, the foreclosure rate was approximately 3%. Assuming that 3% is evenly distributed across the range of mortgage values, those foreclosures should represent roughly 300 billion dollars, which is approximately what the treasury doled to buy preferred shares of a number of banks. Shouldn’t this have been enough for the banks to at least recoup a majority of their losses and stabilize their balance sheets?
Jaime
The country provides ways to pay for college. Government student loans and scholarships are available by application. There are also ways to get much more money by volunteering (enlisting) in our country’s armed services.
You are the only one that can ensure that you are successful in reaching your goals. This is not the government’s responsibility to solve. However, they do have programs to assist.
How do I get help with making energy improvements on my home (purchased May 2008). Are there grant/loan programs available? Who is best source for an energy audit?
My credit card companies keep raising interest rates. I am never late and pay at least minimum (plus). When I contacted Citi (Sears Mastercard) about reducing my rate and freezing my account – they “don’t do that”. My rate is fixed and no one in Citi can lower it or work with consumers. This seems to be common in the industry. Citi got billions and consumers are getting hit at both ends. Is there anyone who will help us?
Has the housing market tanked out or is there still another wave of price fall expected considering the fact that the banks owning the foreclosed houses are still not updated in the market or listed on MLS web sites for a large public disclosure?If yes ,what are the near expectations and when do you think this segment will see a platform?
Can we get a break on withdrawing our retirement money? I know the purpose of the tax penalties, but some people need their well earned money… desperately. And on top of penalties, we have to claim the gross amount as taxable income!
I’m a single mother of two who makes under $47,000 a year; however due to this economy I feel like I’m low income. What is in this stimulus package that would help me?
I agree with Brandon. I owe $47000 in student loans from my undergrad degree. I’d be more than willing to volunteer for my country part time while working my full time job to get a little tax break or help with some of my student loans.
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