Thank you for this post. It’s good to see the bailout plan broken down and explained. Does this bailout plan finally help the government to realize that banks need to be federally regulated and controlled. This privately owned bank system is what allowed for this crisis to develop into what it is. Taxpayers can only hope that taxes don’t become more than half of our checks in order to facillitate this plan.

UNITED STATES OF CHINA…

I don’t understand why these people would just give the automotive industry money without any reciprocity. By this I mean, don’t just give them money, give them money on the basis of, the first auto maker that comes out with a car that gives 100 mpg gets 8 billion dollars. This in the long run would decrease the dependecy on fuel because we would be going to the gas pump a lot less. I think this incentive coupled with innovative ways in introducing alternative energy, would largely decrease our dependency on fuel.

What this bail out money should be used for is actually wiping out the debts of people on th brink of foreclosure and giving them a fresh start. The total debts of people who houses have been foreclosed upon are approximately $1 billion dollars. In my opinion, that’s a drop in the bucket compared to$ 700 billion.

exactly right #1. The this should teach the government once again that they need to step up regulation, especially when it comes to what huge banking corporations invest in.

And how will this affect me ’cause I don’t own a home. Will this lower gas prices and taxes for low & high class people??? That’s my concern!

STUDENTDOC said: “Taxpayers can only hope that taxes don’t become more than half of our checks in order to facillitate this plan.”

U took the words right out of my mouth!

#3 I agree I have a non profit that I am working on now that does just that. Are you on the financial industry?

I think that with all that is going on Congress should really look at bailing out the homeowner first instead of the institutions. If we bail out these bad mortgages and keep people in their homes and put people back in their homes…much of this mess will clear up and it wouldn’t cost as much.
Why give more money to the same institutions that were greedy and corrupt in the first place. If washington is so concerned about the taxpayer…take care of the taxpayer. The volatility of the market is based on mortgages being directly indexed to other financial instruments…make the toxic un-toxic and enduse the economy with hope…and re-write the way we do things…Congress is using a top down approach…which has not worked in the past…lets try something different…insanity is trying the same thing over and over expecting to get different results…

all i have to say is that its dumb…and there using the working peoples money not the rich people still keep there money and we lose ours. DUMBASS DEAL

Hopefully the American automakers will get it together and design cars that are gas efficient. I seen the car that Chevy says will be there “hybrid” car however the price is not comparable to other hybrid cars like Honda and Toyota.

This is not good, they are putting a band aid, on something instead of fixing it. They tell you there’s no money for health care yet they come up with 700 billion, to bail out people who ripped people off. Do you wanna know where this money came from? Out of thin air, it was created the moment they agreed on it. They want to drive the economy back into debt because, that’s what the dollar is backed by debt, not gold, silver, or any such precious medal. Just a person’s promise to pay back a loan. That’s why they chose the automotive, credit card, and mortage banking industry. It’s really sad.

They could have taken 50 billion, and redistributed it the people who really need it, the American people, that’s enough to give each adult roughly 400 thousand, tax it by 30 percent and they’d clear 275 thousand. It’s called redistributing wealth.

Why are my comments not posting?

Anyways I said that why are they bailing out the people who put us in the situation we are in now?

Like Beauty QT I don’t own a home but I am not sure of I want one because of the chance I may lose it.

As far as taxes go I don’t catch a break because I don’t have any children and taxes already eats up most of my check now.

I don’t agree with the bail out- why as taxpayers we have to spilt the bill for greedy companies that get BIG tax breaks every year- if the governor seize the ceo’s multi million dollars homes, take away company jets, and their own chauffeurs they would not need a bail out
how about an america tax payer low class bail out - give us 700 billion to spilt. And by us buying homes, shopping at walmart, buying new cars, investing in the stock market that will boost the economic

this is scaryto me.
does this affect finding jobs?

I agree with you Fran Gadson, they should give us tax payers 700 billion to spend invest in stock to boost the economy. That sounds like a good plan to me!

THERE IS NO REASON TO BE SCARED…U SHOULD BE SCARED IF NOTHING IS DONE….FOR EVERY PERSON WHO IS CRYING ABOUT THE RESUE PLAN, ARE THE ONES WHOSE 401KS ARE INVESTED IN THESE FAILING COMPANIES. WHAT DO U THINK HAPPEN IF THE COMPANIES FILE FOR BANKRUPTCY? YOU LOSE!!!! IT IS TRUE THAT THESE CEOS SHOULD NOT GET THESE 20MILLION DOLLARS PACKAGES, BUT THERES IS NOTHING THAT CAN BE LEGALLY DONE ABOUT THAT. YEA THE GOV’T CAN STRONG ARM THESE COMPANIES, BUT THATS ABOUT IT.

This election has now turned for me. I have always said no matter who president taxes will go up. What pepole have to remember is that it is not just Big Biz it’s also little things done by average people that have cause us to be in this state. As I have been saying we as indiviuals have to be more financially sound with the money we do have. It is not everyones right to own a house, every family doesnt need two cars.
If you cant afford it dont buy it. Thsi is not a lesson learned this will happen again as it keeps happening. Government own means government control. That means CEO being appointed like SEC and the FED and we see how well that worked out. Hopefully the next president will really look into this issues and fix what is broken and not just keep throwing money on it

YES, the bailout effects finding jobs because most companies aren’t hiring. They rely heavily on loans and businesses to run their companies. If banks aren’t lending money, businesses aren’t expanding or meeting their budget projections; therefore they are cutting costs whereever possible, both through overhead and employees.

Unemployment has gone up significantly, look at how many people were laid off at WallStreet, supply is no longer meeting demand. Those who are looking for jobs are competing against a significantly hire group of ppl hoping to get the same job.

What’s worse is that students now are unable to afford college, they aren’t getting homes, parents are losing jobs, and everyone is living check to check except for lawmakers, CEOs, the president etc. who are still acquiring a lot of $$.

In a perfect world, the world’s richest would put their money in a pot bail out those banks with all the the assets they already own, and the govt. would redistribute the wealth to homeowners who are struggling.

That unfortunately won’t happen.

What pains me worse is that Barack has to inherit this mess, and I won’t be surprised if the McCain camp sabotages their own campaign so he won’t have to deal with the problems of Bush. Unfortunately if Barack wins he’ll have very little money to deal with all those programs he proposed to help the American people.

Regardless I won’t give up and neither should you. There is no monetary value in heaven, and God will care for us regardless. Hope, dream, pray!!!

YES, the bailout effects finding jobs because most companies aren’t hiring. They rely heavily on loans and businesses to run their companies. If banks aren’t lending money, businesses aren’t expanding or meeting their budget projections; therefore they are cutting costs whereever possible, both through overhead and employees.

Unemployment has gone up significantly, look at how many people were laid off at WallStreet, supply is no longer meeting demand. Those who are looking for jobs are competing against a significantly hire group of ppl hoping to get the same job.

What’s worse is that students now are unable to afford college, they aren’t getting homes, parents are losing jobs, and everyone is living check to check except for lawmakers, CEOs, the president etc. who are still acquiring a lot of $$.

In a perfect world, the world’s richest would put their money in a pot bail out those banks with all the the assets they already own, and the govt. would redistribute the wealth to homeowners who are struggling.

That unfortunately won’t happen.

What pains me worse is that Barack has to inherit this mess, and I won’t be surprised if the McCain camp sabotages their own campaign so he won’t have to deal with the problems of Bush. Unfortunately if Barack wins he’ll have very little money to deal with all those programs he proposed to help the American people.

Regardless I won’t give up and neither should you. There is no monetary value in heaven, and God will care for us regardless. Hope, dream, pray!!!

The end is almost near…

I am going to have to agree with #8 CAMERON. And as far as “bailing out foreclosures,” I could get with that if you are going to bail out honest, hard working people that have lost their home due to the economy or because they have lost their job. Not these people who bought a house a couple of years ago cause that was the “thing to do” and they were just giving homes away. Someone should have informed them you don’t buy a home with an adjustable rate! Duh! And DEFINATELY not to those people who only make 60k a year and jumped into a 300k mortgage. That would be called “Living Above Your Means” right?

THEM folks get a bailout, and we folks would be getting put-out saying “WHAT IS WE GONNA DO”.its a cheney/bush gift to his top 1% on his way out. to china and the saudi’s who hold all the notes and this is the reason why the dollar ain’t worth a damn…………. oh the debate obama DID SHINE but at times he ventured into the harold ford jr. and condi rice syndrome; which is making your point about an issue and or question and talking yourself out of the point you are trying to make. at times he seem to head that way. this deabte is about point -counter-point……. and ……. [ 2 SHEA ] AT THE END OF MAKING THE POINT. PUTTING MCCAIN ON THE DEFENSE. NOT TALKING AND MAKING A LONG DRAWN OUT point giving mccain the chance to regroup and reloaded to come at you like them rabid folks over at fox [hypocrite] news. at the next debate i hope obama reminds the people that in an obama admin. “THAT WOMEN WILL BE “WELL” REPRESENTED, on his cabinet and in his appointments that will be determined. that their will be MA ‘DAMN SECRETARYS around his table. since its no secret 95% of the white males won’t go his way. and you can take note on this to. it seems like mccain and palin are taking their cues from fox news and rush [blue pill exress] limpbraugh. last but not least ain’t bill clinton been showing his ass lately now you see what it means to keep your ‘friends close and your enemines closer’. in my book this man has broke his plate and that crack is always going to be there. and its a whole lot of JOES in FLA, MICH, PENN, and other swing states that frolick on the plantation thinking that whats in it for me he’s gonna win it. he must don’t know about the tom bradleys thats gonna pull that lever for them republicans and made you think they were for obama.and joe its maybe a chance to put down that cotton sack mentality us black folks have, thats what at stake here. and black folks KEEP YOUR ASS OUT OF “donald trumps casinos” he done showed ya his poker hand, he’s going to make it rain for mccain. so take note

This is just the beginning…. get ready there is more to come…. it’s not a bailout it’s a cover -up for the greed fest that has be going on for decades the entire economy will totally collapse before Bush leaves office… pre-planned collapse a financial 9-11

Thirteen BILLION dollars each month goes to finance the Iraq war;

We are losing jobs at a rate approaching 100,000 a MONTH; and,

One out of every ten homeowners in America are either presently in foreclosure, or are seriously behind in making their mortgage payments.

Somone please tell me what are they going to do with all the empty houses and property, assets owned by the failed bank? The bank isn’t in the real estate business so please tell me how they plan to re-coup monies? FDIC is only covered up to $100k. Tell me what happens to the rest of my money?

Protests took place on Wall St. to protest the bail out plan - and the mainstream news media didn’t even mention it. All of this financial happenings seem so choreographed right before the biggest and most popular election of the era.

The 700 billion dollar Bailout Plan is just like the Patriot Act, isn’t it? Only this time it’s maybe a 1 or 2 page document that confers absolute authority on the Executive Branch to do just about anything they want with the taxpayer’s money. And they want it rubber stamped now. Not tomorrow. NOW!!! Without discussion, or unnecessary congressional debate. Talk about Shock & Awe being used against the American people, and their elected representatives!?

People please do your homework before voting, on your local, Senate etc… offices.

thr government doesnt have to bail out any fucking homeowner, the wanna-be homeowners should have done their homework before taking out gimmick mortgages with fucked up credit..since this site is pro-obama…i hope you know the “messiah“ is one of the biggest fans of the bail out…lol

I hope you all realize your grandchildren will now be debt prostitutes to the Chinese thanks to our lovely elected officials.

This bailout was not necessary. Paying the debts was but there were definitely other options. But since the Feds got us into this mess with their bullying of banks to turn them into predatory lenders - they decided to sell us down the river to make up for their stupid mistakes.

If you want to continue down this path and continue to let a gang of thieves stick you up again, vote for McCain or Obama,

But if you care about the future of this country for your children and grandchildren - don’t vote for either. Vote for a THIRD PARTY candidate to teach these people a lesson.

This is just the beginning…. get ready there is more to come…. it’s not a bailout it’s a cover -up for the greed fest that has be going on for decades the entire economy will totally collapse before Bush leaves office… pre-planned collapse a financial 9-11

Thirteen BILLION dollars each month goes to finance the Iraq war;

We are losing jobs at a rate approaching 100,000 a MONTH; and,

One out of every ten homeowners in America are either presently in foreclosure, or are seriously behind in making their mortgage payments.

Somone please tell me what are they going to do with all the empty houses and property, assets owned by the failed bank? The bank isn’t in the real estate business so please tell me how they plan to re-coup monies? FDIC is only covered up to $100k. Tell me what happens to the rest of my money?

Protests took place on Wall St. to protest the bail out plan - and the mainstream news media didn’t even mention it. All of this financial happenings seem so choreographed right before the biggest and most popular election of the era.

The 700 billion dollar Bailout Plan is just like the Patriot Act, isn’t it? Only this time it’s maybe a 1 or 2 page document that confers absolute authority on the Executive Branch to do just about anything they want with the taxpayer’s money. And they want it rubber stamped now. Not tomorrow. NOW!!! Without discussion, or unnecessary congressional debate. Talk about Shock & Awe being used against the American people, and their elected representatives!?

People please do your homework before voting, on your local, Senate etc… offices.

lol @ # 10’s name!!!!!

this bailout is not fair…it’s sad that the people with the least money gotta look out for the people with the most again….anybody read about mccain and the gambling industry in USA today yesterday…that man is bout as shady as the devil!

You know it really bothers me to hear people say that the homeowners that lost their homes due to foreclosures deserved what they got. My sister was a victim of the subprime lending mess. She bought a home for her and her two children about 5yrs ago. She had an adjustable rate mortgage. Her mortgage payment went from being $800 a month (which she could afford comfortably) to $1800 a friggin month within 3 damn years that she was in the home! Now, she didnt have the best credit which is the reason why she didnt question the interest rate. She wanted a home for her and her 2 children. She didnt go out and get a 500K house, on a 60K a year job. Her damn house was under $100K, and she was making about 55K income. I think that she deserved the chance to own a home. Everyone that failed victim to this mortgage crisis wasnt out there trying to leave “above their means”! I just feel like its very silly to say that those people that lost their homes due to foreclosure ” deserved what they got”!

If anything the bailout plan needs to be tailored to me, my sister and every other middle class American that needs it! Hell, we are the ones that suffering! If they distributed that 700 Billion amoung the working class people………….. that would stimulate the economy. I understand that utlitmately the plan will benefit everyone in the end. But, lets have a plan for EVERYONE! Not just the big banks! How about splitting that 700 Billion among the banks and the working class people.

There goes the IRA account. At this rate, our kids will not even know what Social Security meant. The U.S. government is a pimp and a half.

This economy is goin to hell in a handbasket. Seriously, no Republican nor Democrat can save us. And what makes it so bad is that, we have 2 of the most weakest candidates running for president! I have to wonder if this was a deliberate set-up to keep our country from progressing. This is just so sad.

What i dont understand is why do they have to bail out those greedy financial business when they got themseleves into the mess that there in, with all their foolishness like giving people mortages they know people cant repay…

This sh*t right here is scary.

…and yet they still refuse to say we are in a recession????

F*Ck that a DEPRESSION

I have an idea…why doesn’t Bloomberg just pay the $1.5B that NY needs and leave folks’ property taxes alone. I’m sick of sh*& always falling on the taxpayers’ salary. Don’t even get me started on the welfare mess we have supported for far too long.

I meant ’shoulders’ and not ’salary’ - but heck, they one in the same.

for anyone who wants to see the draft of the bail out bill - http://i.cdn.turner.com/c...es/09/28/ayo08c04_xml.pdf

also do anyone see the first debate-i turn it off and watch a movie both mccain and obama made me mad when they dance around forever when ask about the bail out bill-just please tell me what is the hush hush about and why did they make a comment that with this bill the gov will make sure that the moeny don’t get in the pockets of the ceos???
i’m not sure what’s more scary the next four years or the next generation that are suppose to take care of us-

What do we do now??? Who knows… But I will say when all of our asses go to hell, hold your breath and make sure you dont dive headfirst.

@WillPwr

Slow down, son. A recession is when your neighbor is out of work. It is only a depression when YOU are out of work….lol

@ #1 STUDENTDOC

No we need the banks to be privatized, if anything it was the government run Freddie Mac and Fanny May organizations that caused this problem. The Fed reserve and Treasury need to start encouraging better bank management as in the case with JP Morgan Chase, by giving the incentive of buying out troubled companies for next to nothing.

The let’s rob the tax payer, put the dollar further in the ground, drown us in more debt “bailout” plan could have been avoided by having strong companies buy out the weaker ones. McCain and Obama supported this mess, uggh.

No bailout it failed

******BREAKING NEWS*******
THE HOUSE REJECTED THE PLAIN!!!!!!!!!!!!!!!!!!!!!!!!!!
WTF, WHERE DO WE GO FROM HERE!

@Mississippi Gurl,

Sorry to hear of your sister being one of the many who had their homes foreclosed upon. Listen, I am in a CPA and as a side business I do small financial advisories. I have been telling folks all along, during the housing bubble to stay away from anything named ARM or Piggyback. Those are just euphemisms for disaster. A lot of people who have come to me for financial advice, have gone against my guidance and acquired many of these ARMs and are now homeless. Why? Not because they are stupid, but the banks’ influence was stronger than mine - they were misled by these banks. The banks packaged these ARMs in such a manner that to the untrained eye, are sometimes hard to resist. The banks tell you “Oh, a lot of people usually sell their homes within 5 and 10 years, or if not you can refinance.” That is so true, but only if you are in the real estate business of buying a flipping houses for the value. If you are a regular person that is a bad idea because even in a good market, selling a house is not like having a garage sale, it is a very tedious and arduous process. And frankly, you might not get a buyer for the house. Then you are stuck. Plus, financing are costly because you pay closing costs, hire lawyers, the whole nine.

anyone else considering a move to canada?! LOL

i’m too through…

What I think is funny there are people who think it is there right to own a home. If you cant afford it leave it alone. This is not like education. I’m with #20. Adjustable means “subject to change”. That means the prices will go up. It is written into the contract. This is common sense. But people want to blame everybody else. Nobody want to say maybe I should taken the time to fix my credit, or i dont know say for a down payment. yes I agree that companies like Fannie Mae and Freddie Mac should be held accountable, but they were only doing what we allowed them too. We’ll get back in a up swing but people will still go out and make bad money moves, like adjustable rate. Lets just hope the next president, who ever it maybe, fixes all the little problems( there is no one big problem, or person to blame) instead of trowing money at it.

IT FAILED

#7 took the words right out of my mouth. I don’t understand how we as a society got so corrupted that we’ll put the ones who are killing us FIRST! Its like seriously… you say you’re worried about us (citizens) but you look out for them (big companies) before us? WE MADE THEM! We spend our checks so they can receive their paychecks; our needs should be first priority! Man… I’m seriously turning speechless w/ disgust. Its like logic and morale is not here anymore. The govt’ should be more watchful because the devil’s playground is always in the hands of the idle and ignored.

Wow..this mess is crazy. I know this is totally unrelated, but did y’all see Gov. Palin’s interview with Katie Couric? LMAO. This broad is straight stupid. But I have to commend Tina Fey cause she did a number on her on Saturday Night Live. I couldn’t stop laughing. Y’all have to see it…

Oh and as for giving us the $700 billion to boost the economy, that’s a bad idea too. Why do you think we are (partially) in this mess? Why do you think so many ppl are having problems in this drought? Because they were too busy keeping up w/ the Jones instead of saving and putting their money to good use! We were breed in a very materialistic society ERGO why ppl don’t need money. If you do, spend it on bills and save… not “boost the economy” which by the way isn’t really boosting it since majority of goods are IMPORTED thus boosting the monetary futures in OTHER countries. Giving ppl billions of dollars to do the same mistake is NOT the answer. Giving companies to improve life and make it more sufficient IS which unfortunately, I don’t think the govt’ is doing either.

@ Dukesman2000

Thanks for your kindness!!

You are so right with what you said. They told her that she could refinance her mortgage after 2 yrs, and that its not uncommon for someone to want an ARM, and that people did it all the time when they were not intending to stay in their home for a long time. But the truth is……………. its all B.S! My sister tried to sell her home after those two years, worked on her credit, paid bills off, got her credit score up trememdously……………. and she still had no luck in getting her home refinanced. No one would finance her even after she cleaned up her credit. She had everything on her credit report paid off, and her score was its highest that its ever been.

She did everything that she was advised to do before even purchasing her home, and all that failed. She cleaned up her credit, she paid her mortgage on time! But when her mortgage kept increasing from month to month…………….. she just couldnt pay it anymore!

@ # 13, yes very much so, i ‘ve been looking for a damn job 4 the past 3 months, still in vain.

Sooo, if i wanna take out loans to go 2 school, can i do that? Or am i pretty much screwed?

Well the plan failed and what happens now? Someone made a comment that the rich will not be affected but only the taxpayers. the rich are in a higher tax bracket because they are rich, so they do have to pay their taxea, but as we have seen with some celebs, they try to avoid paying because they do have to pay so much We are in a terrible place right now. I guess we just sit back and watch everyday as one company after the next fall to pieces. Unfortunately none of the ones I owe money to is doing that!!!! LOL.

Well, like Kay Kay said…the proposal is down the drain. What I hope to happen is that some researchers who are really concerned about fixing this problem, do just that…research what really needs to be done. Maybe they can start here with some of the complaints. I like the idea that was first brought up about an incentive/reciprocity deal with the motor vehicle industry. I still think its crazy that we are pulling invisible money out the wazoo trying to fix a money prblem… it doesn’t make sense…or maybe I am just confused. Maybe they should recruit whole graduating economics to architectural classes and ask them to help fix the issues…Atleast the information about need would be more accurate and from a young higher educated citizens point of view. We are supposed to be the future aren’t we? Isn’t that why we are going college—to prepare ourselves to be contributing citizens? If not then what, any suggestions?

@ Theworldwillendin2012
yea pretty much!

Everyone is t blame for this mess. I bought a home in 2005 and THANKFULLY my Realtor told me to get the tried and true loan so i went with 30 year fixed. Those who got sub prime loans to get a cheaper mortgage for the most house means that they really couldn’t afford that home.Less regulation is another reason, people would not have been able to get a home had regulation been stricter. Banks tried to make a profit by investing heavily in mortgages but since mortgages failed so did they.

I don’t agree it should be 700 billion but something needs to be done.

By the way. Check your credit cards…some banks are decreasing the limits on those.

#2 you are correct…its just a matter of time before China takes over and everything becomes One World. Get right or get left people!

I’m glad that the bailout failed!! I hope that this gives congress more time to research and make the right decision. I wish Obama would come out against this thing…is there something that he knows that we don’t know because it seems that it’s against what his campaign stands for. President Bush just showed his hand with this one and McCain is lookin like a huge CLOWN for tryin to run and save the day and his party played his face.

well didnt the house reject the bailout plan today??

What? stated “I am going to have to agree with #8 CAMERON. And as far as “bailing out foreclosures,” I could get with that if you are going to bail out honest, hard working people that have lost their home due to the economy or because they have lost their job.” Part of the problem is that many people who homes were foreclosed on took out loans that were well above their means. The “Bailout” wouldn’t neccessariy fix anyting if we put those families back into their homes. Within a year the nation would be in the same situation. What needs to happen is that the “Bailout” needs to occur and congress needs to create new regulations for the industries.

I Agree with # 22! The government doesn’t care about us, this is all about greed. I’m tired of seeing the poor get poorer and the rich richer, stop trying to save the greedy people’s behinds. They are talking about what’s best for the economy and what is best for the people. People think the economy is bad but they haven’t seen nothing yet, people better get stronger spiritually because we are going to need it. They were pushing for this to happen and they are probably pushing for another Great Depression. I’m tired of hearing people say Obama this and Mccain this, the truth is it doesn’t matter who you choose because your going to be screwed no matter what, if you really want change then research the other party’s that are running, it’s not just the dems and repu, I was going to vote for Ron Paul but he dropped out. Stay strong in the Lord! God bless and do your research! This is the end of the time no matter who doesn’t want to hear it, we are getting closer

error in my above statement:

I meant talk about what’s best for the people

Thanks But No Thanks to the Bailout. Let’s really think about the whole issue. Let’s take a small town with a population of 200 people. Overall 175 of them have jobs within their town or city, with benefits, and paying into the goverment c/o taxes. Now let’s take away the jobs of 125 people, due to shipping their jobs across seas for cheaper labor, and higher profit margins for the investors. Now these same people who were working are now going to probably receive some type of goverment help for financial assistance.So this is really what’s going on. If you want to bail the everyday american citizen, bring the jobs back to America. I’d rather pay a little more for an item, and have the money to pay for it, than pay less, and don’t have enough to put food on the table for my family, and etc. Bring our jobs back, and we will have our benefits, aas well as paying into our Goverment by paying taxes. This would help pay down some of our debt. We would be willing to pay our bills on time, and save money in these financial institutions, but our goverment is continously taking away the tools (jobs) that we need to fix the problem. Made in America, Bought in America, and Invested in America!!!! Goverment…Bail Us Out!!!

[...] Monday, the House of Representatives rejected a $700 billion plan 228-205 to bail out the financial system, making a clear statement that they didn’t want to [...]

As the country’s financial system teeters on the brink of disaster, you need a game plan to minimize the damage.

1. Check that your bank accounts are federally insured.

The Federal Deposit Insurance Corp. (FDIC) guarantees deposits up to $100,000 per person. If you have to hold more than that, spread it across multiple banks. As a taxpayer, you are paying for this insurance, so use it.

DO - 2. Make sure your brokerage accounts are federally insured, too.

The Securities Investor Protection Corp. (SIPC) guarantees you at places like Lehman Bros. (LEH, news, msgs), Merrill Lynch (MER, news, msgs) and E-Trade Financial (ETFC, news, msgs) up to $500,000, including $100,000 in cash. The same rules apply: If you have more to invest, spread it across multiple firms. Note that the SIPC only makes sure you get your shares and bonds back if a brokerage fails. It does not, obviously, guarantee those investments’ value.

3. Put money in thy purse.
If this market and this economy get any tougher, cash isn’t going to be just king anymore. It’s going to be king, queen, emperor, lord high chamberlain and the whole court. The easiest way to make or find a buck is to save it. So take an ax to those family budgets — the restaurant meals, the Superduper Everything Cable package, the rip-off checking account with the high fees and low interest. It’s all costing you.

4. Set up a home-equity line of credit while you still can.
Normally it would not be advisable to take on more debt, but if access to ready cash might be a lifesaver, it’s best to line it up now. That’s true especially if you are worried about your job. Credit is already tight, and it may get a lot tighter.

D0 - The panic on Wall Street just caused a collapse in the interest rate on long-term U.S. Treasury bonds, as lots of investors rushed there for safety. And that usually leads to a fall in long-term mortgage rates.

6. Don’t wait for your worst investments to “recover.”
If you ever saw John Cleese and Michael Palin perform their famous skit about the dead parrot, you know exactly what I mean. No, your Fannie Mae (FNM, news, msgs) shares aren’t “resting.” They’re lying at the bottom of the cage with their feet in the air. What more do you need to know? Stop waiting for them to “recover” before you sort out your portfolio.

7. Don’t panic.
Journalists, like markets, tend to move in herds. And by the nature of their jobs, they write about the plane that crashes instead of the thousands that land safely. Remember, too, that pundits want to seem really wise by putting on serious expressions and saying things like “We don’t know how this thing is going to play out” and “The situation could get a lot worse.” Bah.

Guess what. We never know how things are going to play out. And the situation could get a lot better, too.

DO - 8. When it comes to your short-term money needs, nothing has changed.
Any money you might need within the next year or two should be held in cash or equivalents. That was true two years ago, and it is true now. The stock market is no home for money you may need urgently. It could fall 30% or jump 30%. Nobody knows. You can get a one-year CD paying 5% right now, and it’s federally guaranteed.

9. If you are investing for five years or more, buy some stock.
The investment outlook is much, much better today than it has been for several years, because shares are much cheaper. World markets overall have fallen 27% from last year’s peak. They’re not a steal at current levels, but they are not particularly expensive either. Invest globally. Vanguard Total World Stock (VTWSX) gives you the whole world and low fees.
If you are looking for a value, Morningstar analyst Bridget Hughes likes Oakmark Global (OAKGX). Another good one is Tweedy, Browne’s new Worldwide High Dividend Yield Value (TBHDX).

This list is not comprehensive. Remember: I am not trying to call the bottom of the market. Things could fall quite a bit further. No one knows. So invest little, often and broadly.

10. If you want to worry about anything, worry about your taxes.
The worse this crisis gets, the more the feds will end up putting taxpayers on the hook to prevent a meltdown. Taxes will go up sooner or later anyway, no matter who wins the election, because of our gigantic federal deficit. If you think Lehman Bros. was bad, you should look at Uncle Sam. You can forget about any talk of tax breaks. Oh, and if you want a break from worrying about taxes, worry about Treasury bonds. Deficits won’t do anything good for them.

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