In 2007 and 2008, when the whole country was sitting on the edge of their seats waiting to learn if the bottom would fall out and the economy would tank like it did in the "Great Depression," our government decided to loan over $350 billion to banks. This money was used to keep the banks from defaulting on their assets, which would have ultimately hurt practically every American who owned a home or had a credit card or invested money in the stock market, not to mention small and big businesses, for which we work and make our incomes.
This was called the Troubled Assests Relief Program (TARP), and while it did help our economy and has lead to what may be a recovery (a very slow one, that will not result in the good economic times we have been used to prior to the mortgage crisis), there have been problems with the program, just like any other government run program in history.
This week, I'd like you to learn about this program and why it has effected you and your family. The big issue people are talking about right now are those pesky end of year bonuses. Should banks be allowed to pay a high-ranking executive $700,000+ for a year of "good" work, when normal people like us are still unable to get a loan for a new home or when these companies are jacking up credit card percentage rates to make more money off us? Does the government have the right to intervene and tell these companies not to fork over hundreds of thousands, in some cases millions, of dollars to executives for their efforts (?) within the banking industry? Hmmm, if you ask me, teachers should be receiving bonuses like that! :0)
So, this week, read about those bonuses, what President Barrack Obama is doing to ease tension between Americans and large banks, and develop your own opinion concerning this issue. Since we (the tax payers) bailed out these banks just over a year ago, do they owe us? Should large corporate banks be reinvesting these funds, and thus allowing more money to be available to small businesses and individuals who would like to buy a home but are unable to get a loan due to poor decision making a few years ago by the banking industry? You decide!
Subscribe to:
Post Comments (Atom)
yes i do believe that the banks do owe the country. they are lazy people who just get to set on their lazy buns in Maui while we blue collor citizens try to stay a float during this restion.
ReplyDeletei do agree that the banks owe us money. There are people that just sit and do noting. I think they should stop taking our money and start helping others that need it.
ReplyDeleteIn my opinion, no matter who owes who what, the United States is going to be in debt no matter what. Citizens could complain and debate whether or not the banks owes someone, whether it be the government or us. In all actuality, it will not be happening any time soon. The people borrowed the money from the banks, just as the banks borrowed from the government. Is that saying that the people should skip the banks, and pay directly to the government-take out the middle man? My fiance and I have discussed this topic previously, concerning our income tax. If you recall the stimulus checks given out previously, those were borrowed money from the government. Who should pay those back?
ReplyDeleteMy brother and I talked about the bailouts, specifically for the cars and motor companies. WE agreed that the companies shouldn't have received money from the government. There was one company who didn't ask for any money and that was FORD. why should they not receive any money for running a proper business when companies like Chrysler are still going bankrupt? They aren't going to pay back the government, nor the people who have to pay taxes for it. Also, why should they get bonuses when they ran their business into the ground? I don't agree with any of it. the above comment says we borrow money from banks. . . but we aren't million dollar people. I don't know about you but I couldn't pull 10 grand out of my pocket for the truck I bought. But I can also tell you that I have been making payments for a year always on time no matter what. So why shouldn't those companies pay their money back?
ReplyDelete