(3 votes, average: 3.33 out of 5)I often wonder when I read about the bailout packages dished out by Governments all around the world to aid banks and other financial institutions that are on the verge of bankruptcy especially the amount of money spent in bailouts in last couple of months is staggering. I am even surprised that there was not a single protest from anywhere and these financial criminals go unpunished. It is the common man who is going to bear the burden of additional tax and increased debt.
Why should tax payer’s money be used for bailing out greedy banks and corporations that have done business only with profit as motive and no concern for morals or ethics and absolutely no concern for the consequences for their acts. Putting public money in corporate coffers is just not acceptable. Financial crisis that has happened is a man made crisis done through substandard policies, deregulation and greed. I can understand putting in public money for natural disasters like earthquakes or folds. Governments all over the world have spent trillions of dollars on bailouts already
This kind of bailout is ABSURD!
We must collectively protest this .This is real money, my money, your money, our money which is hard earned paid in the form of tax.
Why should banks and financial institutions which never cared about the creditworthiness of people who lined up for loans or the soundness of derivatives business be rewarded. We should not allow government to write checks on tax payers’ account. This measure will increase the budget deficit by a significant amount, with no guarantee of recovering the amount and not holding anyone accountable for the misdeeds they have done.
What is the signal you are sending to the corporate world and investors through these bail outs? Do your businesses as you like and we will reward you for the blind errors you might commit. Is this the right way?
As far as I am concerned, there should be a thorough probe into the events that have led to this disaster and every CEO, Executive or Government who were part of this financial carnage should be jailed, their assets sold and put in a bailout fund.
It is time to wake up and realize that greed is the basis for all the financial disasters and find a way, may be strict disclosure norms, increasing the transparency in strategic decision making, making one responsible for his actions and
Few weeks back Finance Ministers of several Asian, Europe and Americas countries met and decided to act rapidly on the financial crisis
And now stock markets are being artificially manipulated by bailouts by governments.
When corporations see that the demand is coming down , it is natural for the stock to take a beating. But every other day we see CRR, SLR rate cuts which means our money is loaned back to us and the market stages a rally of any significance. FIIs and Badla traders slowly and routinely remove their money from our markets to invest elsewhere leaving the retail investor in a fix.
It is certainly not a good thing for a responsible, saving, taxpaying citizen, with no defaulted loans or credit card debt to compensate for the that Wall Street gamblers will go bust on their stupid and greedy bets, over-leveraged and poorly managed businesses with huge losses.
Let me tell you some interesting fact. Lehman has set aside $2.5 billion as bonus for their employees even as they went bankrupt for the great performance they showed in pushing the bank to bankruptcy.
What do you call this?
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November 3rd, 2008 at 9:45 pm
I share your anguish. The problem is that these banks have bought politicians of every party and those in the government close their eyes to “privatising the profits and socialising the losses”. In US at least, there was a strong public sentiment against the bailout and that was the reason why the first $700 bn bailout failed in the congress. The modified bailout proposal that was finally approved had several conditions which included a cap on the mindboggling salaries and bonuses to bank executives and also more regulations on lending.
But it is not clear if these conditions are sufficient to rein in on the banks. The proof being the fact that even after the US banks received funds from the US Treasury, the banks sort of stopped lending to needy borrowers.
Hopefully, the new US government and other developed nations will enforce enough regulation and oversight of financial institutions to prevent these huge economic disasters in the future without stifling economic growth.
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November 11th, 2008 at 3:13 pm
All right your poin tis taken , but just imagine what happens if the government actually thinks are you are. It decided not to bailout any firm inspite of what its repurcussions maybe . Banks will start failing , Financial firms will start filling for bankruptcy . The globalised world that we are , this will have a huge cascading effect taking with it big companies ,nations and the entire system on which the global commerce is based . We need to understand that the government is nt doing this favor as a charity but that it has no solution . If the governemnt doesnt bailout companies the situation might spiral out of control. Also isnt governmental help coming with strings attached . The AIG bailout , indeed , is the worst thing that could have have to the owners of AIG .
Its easy to critise a government move but we need to understand that business , government and people are all linked . Busineeses are run by people & give people their livelihood ; government is selected by the people . So I ask you what is the hard if business & government are linked in a common pursuit of wealth creation & sustenance
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