Not surprising since government creats nothing.  They can move wealth from one pocket to another, but creation must come from the private sector. 

Trader55 350 days ago

Cody,

I don't know what to think. Worse than that, all of the faith I used to have in the economic system is gone. The more the government tinkers with the market the more I want to pull up stakes and move to the hills, check out and live on barter.

landlord44460 350 days ago

I can only conclude that the government is manipulating this mess on purpose.  What else can be the explanation?  Bail outs don't work and this is what's better than what would happen if government didn't use the bail out plans?  Either Washington is doing this on purpose on its march toward socialism, or, there are some very dangerous stupid people making decisions they are clearly not qualified to be making.

Laws and protocols are already written and in place for weak companies and banks to follow.   What's the harm in allowing them to play out?  Because preventing those laws and protocols to play out is working so well, isn't it?

Destruction of a robust economy 101.

JosieBee 350 days ago

It is hard to know what to think since Washington seems intent on getting us deeper into this. Rational people think about things before they act or react. They look at history and seek the truth. These guys and gals won't be honest with themselves. But, spending is stimulus right?  Obama and his cronies, both parties, want to spend, spend, spend, but then say the gov't. has to live within its means just as working families do. What a laugher. What hypocrisy. We the people will have an impact in the next election. I just hope it isn't too late.   Thanks for giving us the opportunity to be heard and passing that along.

Tony 350 days ago

READ THIS ON THE AIR IF YOU DARE,

THERE ARE NO PROFITS BECAUSE THERE IS NOBODY TO BUY ANY GOODS OR SERVICES FROM THESE COMPANIES BECAUSE SAID PEOPLE HAVE LOST THEIR JOBS. ALL 3.5M SINCE SUMMER 08'

THERE ARE NO PROFITS BECAUSE UNEMPLOYMENT IS AT 7.3%

THESE COMPANIES ARE USING GOVERNMENT "WELFARE" TO STAY A FLOAT UNTIL THE RECESSION RECEEDS.

IF THEY GO OUT OF BUSINESS THAT MEANS THERE WILL BE MORE UNEMPLOYED AND MORE COMPANIES WILL NEED GOVERNMENT "WELFARE" AND THE DOWNWARD SPIRAL CONTINUES...... CODY ONE....

wordup2010 350 days ago

Several of us at SpokeUp have mentioned our intention of avoiding business with companies that have taken the bailout money.  My wife and I are looking, for instance, for a community bank for our household bank account, moving it away from Bank of America.

Steve Parker, M.D. 350 days ago

I believe the government knows what is doing they are big friends of socialism, they have to be able to see that the WORLD economy is falling along with us so is this the way the US wants to go globle by everyone but us owning the united states???   Im not a smart person and even I know you can't get on your feet by borrowing money you have to grow as your money grows and if it dont grow then you need to find another way, it's a different market out there now. People are going to have to adapt and get some new ideas on how to be successful in this new market.. Of course some will fail has always been that way. The money these ceo's are making it shouldn't even be a challenge or is it possible the money hungry thieves were being over paid!!!!! Oh I'm sorry over bonused.... The ceo's of these banks knew the market would not support these outrageous prices for homes and OMG the interest that was being charged but as long as they had billions coming in they didn't care. I also want to mention that I do not want to pay for a house that my neighbor bought that he dam well knew he/she couldn't afford.. and if you own more than one house in foreclosure you really need to go under... What ever happen to paying cash for what you wanted..

Toxic Asset 350 days ago

Government is intent on injecting capital into certain companies to instill confidence in people. Too bad their syringe is three quarters filled with panic. Government needs to realize that sometimes the patient does not pull through. So can we please let these copanies rest in peace!

Michael Intravartolo 350 days ago

I can see that not too many of you guys were ever farmers- you plant in the Spring, and harvest in the Fall.  Or had your car battery die back in the old days when you lived check to check, and had to use a credit card.

The government has no choice here.  At least not a better choice.  Wordup, I think you are one of the few on this site that have a decent view of the big picture.

Our only other choice here is to let things fall into a depression, deflating asset prices and killing our currency.  Are you prepared to sell Alaska and Texas in order to pay off our debt?

As nasty as it tastes, we have to keep propping asset prices and reinflating the currency until we can pay off our debt, hoping all the while our creditors don't catch on. 

UKPort 350 days ago

But UK  by propping up asset prices we are deflating our currency.  You can't spend more than your GDP and that's exactly what we are doing.

We have a choice.  We can let those companies who are on the brink, fall into it.  They will either re emerge leaner and meaner and ready to do good business or they will languish and die and provide fertilizer for a new company with a stronger vision.

What's going on now is paying companies and unions to continue dragging the entire economy down.

Let 'em go.  What's the worst that can happen?  A Rebound? 

JosieBee 350 days ago

UKPort- I wonder if the creditors are reading this?  You may have just given us up.

bluebutterfly 350 days ago

I take it that UKPORT already lives in a socialist UK with a name UKPort, and fact that he thinks propping asset pricess and reinflating currency is a good idea.  I think we should all go "JOHN GAULT". If all of us capitalists just up and "moved to the hills" as my colleague, LandLord44460 Points out, it would be great.  We could create our own Socialist/Marxist FREE eutopia, and would thrive.   All of the socialist in the world would be banging their heads against the wall trying to figure out how to "spread the wealth" that doesn't exist...   Wealth creates more wealth.  Government cannot print, finance/borrow, or tax their way to building wealth and capital.  Government produces nothing. That is the problem and the Irony in this PROGRESSIVE  Socialist Agenda.   Socialism needs capitalists to exist in their model...  Producers in the marketplace is how government gets funded.  To bad we don't receive a fair and equitable return of government services for every dollar sent to washington.  Instead,  studies have shown we get back between 17 and 26 cents on the dollar.  Really nice!!! That's socialism at its finiest... Evaporating Value and Capital into the Eather!  What a joke!  I know one thing.  In the end Liberty will prevail, and we cannot spend our way to prosperity, nor can we legislate our way to freedom!!!  It will take revolution to turn the tide of this thing.  Instead of buying gold as a hedge against inflation, maybe you should stock up on can goods and get yourself a weapon to defend yourself.

In Liberty,

BronoSherm

BronoSherm 350 days ago

Sorry for the misspell..  Eather = ether

BronoSherm 350 days ago

Miss Bee, we have a semantical problem here.  Propping up asset prices should cause inflation, which is devaluing to our currency.  Our debts would then be paid with less valuable dollars (instead of Alaska).

The effect of deflation on our currency is bad.  Very bad- for debtors.  It makes currency more valuable.  And unfortunately we are all in debt about 44 grand each for the past lunacy, and who knows about the future!  So we actually want inflation.  Crazy, huh?

And Brono, UK has many other possibilites than Great Britain.  Assumptions can cause all thoughts afterwards to be invalid.  You sound like an Ayn Rand, fan.  Me too.  But I think she wrote some fiction, got famous, and spent the rest of her life capitalizing on that.  Philosophy is not reality.

I tell my friends to stock up on ammo.  With enough ammo, you don't need gold or food.  As long as your neighbor stocked up, anyway.

UKPort 350 days ago

UK If you truly belive the ammo thing then you do not belive in open and honest trade. Honest men have have firearms to protect themselves from people with your beliefs. If this is your honest feeling then you believe we must have a totalitarian society to keep everyone in line. Which I might add, since you have proclaimed here, that you do not believe in a higher power, is what Washington, and others of the founders said would happen when we ceased to be a God-fearing nation.

landlord44460 350 days ago

I don't agree with any of these bailouts.

If we are already going to dump billions into these failing banks, why not just create new banks, put that few billion into those new banks, and let the failed banks fail. That way we can get money moving again.

I have a '93 buick. It worth $750. It has a leaking radiator, bad brakes, worn tires, and a broken rod in the motor. Should I dump $6000 + to fix the car, or just buy a new one?

Why can't the govenment look at the situation the same way? I can only speculate why...........

silvergator 350 days ago

"People with your beliefs"? 

A little presumptious, are we not?

I was kidding about taking what you need.  My firearms are for hunting game only.  But they would quickly become useful for protection if it was not for government keeping the masses fed.  It doesn't have to be totalitarian.  What is with you guys?  Is there no grey in your black and white world?

UKPort 350 days ago

silvergator,

I would say dump the car, except it owes a trillion dollars to China, and they have a lien on your house.

UKPort 350 days ago

I just thought of something the government creates.  Debt!

Wait, and Anxiety.  Ohhhh, and Moral Relativism.  And Market Instability!

Wow, they're on a roll!

;-)

I have only one question for any politician.  "Have you read Economics in One Lesson by Henry Hazlitt?"

The Follow ups:

Yes - "Then what about it did you fail to comprehend?"

No - "Here's a copy.  I'll quiz you next week."

jeffrey wooten 350 days ago

I seriously think that most people on SpokeUp.com don't understand the economic plight.  The recession has nothing to do with Government STIM, TARP, AARP, Mortgage plan etc.  The recession is based on basic supply and demand.   There is enough supply but no demand.

In addition to the suppy/demand crisis.  Here are the 5 bullets that hit the banks square between the eyes;

1.  People can't pay back their loans aka mortgages

2.  Because of #1, there is no credit

3.  Because of #2, Small and Big Businesses and individuals suffer

4.  Because of #3, People get laid off.

5.  Because of #4, There is no Demand.

"The five bullets", Wordup2010, Feb 24th 2009, SpokeUp.Com.

wordup2010 350 days ago

That is because they read Atlas Shrugged and confused it with an epiphany.

UKPort 350 days ago

AMEN

wordup2010 350 days ago

Loved the book, Atlas Shrugged.  It's not a manifesto though.  Great novel, important framing of important topics.

Back to the chart...back to the impact on our real lives that this government white collar welfare culture is having on our economy and markets RIGHT NOW!

Talk to me.

Cody Willard 350 days ago

Hey Cody,

I believe the Illuminati are at work and in cahoots with the folks being discussed in the "Strategy Room" we need to be afraid, aware and prepared.  http://budurl.com/z7pw

Jim Allen III 350 days ago

@ Cody - OK- this is like reading algebra to me but here goes.  I just saw that this is a new NASDAQ index.  Cool idea.-

1) you have this index that basically proves the govt is on the wrong track completely. Who is listening enuf to reverse policy?

2) how in the heck does this compare with Bernacke saying "Never fear, the end of the recession is near.  Probably by Christmas" (paraphrase by me).  How in blazes can this thing be turned around so quickly  with Larry, Moe, and Curly (House, Senate and Executive branch) acting like teenagers in the mall with stolen credit cards???

3) how does this index reflect the old "backed by the full faith of the U.S Government"? - you know, what my one -time financial planner told me, to get me into treasuries (or some such) even 10 years ago, I never believed that *anything* backed by the govt was safe.  I could be a bit on the extreme w/ that.  The OMX says that whatever the US govt backs or bails - "RUN AWAY"!

So someone is wrong - either the index you showed, (which also correlates to common sense) or Bernacke.

Karen M Hurd 350 days ago