Comments on: Are Multibillion Dollar Bailouts Justified ? http://indiaspecial.net/business/are-multibillion-dollar-bailouts-justified/ Thoughts of India Wed, 24 Feb 2010 04:19:23 -0600 http://wordpress.org/ hourly 1 By: Siddharth http://indiaspecial.net/business/are-multibillion-dollar-bailouts-justified/comment-page-1/#comment-295 Siddharth Tue, 11 Nov 2008 20:13:45 +0000 http://indiaspecial.net/?p=1161#comment-295 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 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

]]> By: Madhavan http://indiaspecial.net/business/are-multibillion-dollar-bailouts-justified/comment-page-1/#comment-245 Madhavan Tue, 04 Nov 2008 02:45:33 +0000 http://indiaspecial.net/?p=1161#comment-245 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. 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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