Wednesday, October 1, 2008

Lesson From a Crisis: When Trust Vanishes, Worry

This New York Times article breaks down the bail out story well. Read it, then decide if the Presidential debates from last Friday addressed the public concern. Explain your answer.
http://www.nytimes.com/2008/10/01/business/economy/01leonhardt.html

20 comments:

  1. I do not feel that the candidates touched the topic enough. I mean they both had good propositions, but neither Obama or McCain had a good solid plan to help out the economy. It seems that neither candidate has any idea of what we as a country, have to do in order for our country to get out of debt. No one knows what we have to do or what is going to happen in the future. Obama put up some pretty good topics, like more money in schools, and more health care, but more importantly he wants to get the United States out of Iraq. He said if we want to help out our economy we first need to get out of Iraq, because we just do not have the money to keep supporting this war, and for what just for oil. We are spilling innocent blood over oil, innocent children, and young men are losing their lives for what some people call "black gold." In order for the United States to become great economically, we have to rid ourselves of this giant weight off of our shoulders, and leave the middle east, we are spending money we don't have.

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  2. I feel that the presidential candidates touched on the topic, but not enough. None of the candidates had a clear cut plan that would help strengthen our economy. I thought that Obama touched on some key points though. He wanted to put more money into education which is very important. He also wants to help with health care. The most important thing that Obama said he wanted to do was get out of Iraq. I support his opinion because the only thing the war in Iraq is doing to our economy is making it worse. We are spending too much money everyday in Iraq when we could use it for other issues. The money that we spend in Iraq could go towards finding more efficient energy sources so we wouldn't have to depend on foreign oil for energy. Most importantly, the money that we spend on the war can go to help the Wall Street crisis.

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  3. I agree with Lupita but to be honest, I think our country has dug itself in to a big enough hole that no upcoming president could get us out of it. Everyone says our generation will be paying for the damage done decades before us and I believe this is true. Obama's opinions and ideas seem very influential and he seems extremely confident about them but as far as the money aspect goes, I'm not sure he can pull that off. Money in the United States, I feel, is spent in various places that are not needed and that is how the hole developed. Our oil cost spending is through the roof and to be honest, all the "go green" efforts have come too late.

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  4. The presidential candidates touched the story but really didn't have any plans for it. They were like saying it will work out eventually. This financial crisis is the worst one we had since the Great Depression and if we don't act soon enough we will have a second Great Depression. If the presidential candidates don't do anything about this, people will start panicing. When panicing starts, then we will be in some serious problems. I think whoever gets elected as president needs to come up with a plan or a huge bailout to stop this crisis. I hope in the next debate these presidential candidates really thoroughly discuss this and come up with a compromise.

    Source: http://www.nytimes.com/2008/10/01/business/economy/01leonhardt.html

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  5. I agree with Lupita, Obama is right about getting us out of iraq. We are already in debt and we still continue to spend money on wars. Both the U.S. and Iraq are losing lives and only for oil. The war only pushes the debt deeper. Our economy is failing because of this war. Now our banks fail and we have to spend money to bail them out too. The government should just let the banks die and allow international banks to come into America. The banks failed for a reason so why should we bring them back, so they can fail again? Many federal programs are being cut because of this problem. The rich CEO's should put their own money back into the bank so they can start again. If they don't want to, then their banks will fail and that will be their problem.

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  6. I do think that the presidential candidates touched on the concern but neither of them had a plan. They both talked about the issue and major key points but neither "comforted" American's with a solution. They also both acknowledged the fact that we are in debt but neither showed any sign of how to change the economy, or debt.

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  7. In the article, I feel like neither of the candidates went into enough detail on the big struggles occurring in the economy. It didn’t seem like they had any major ideas in mind to prevent our economy from erupting which kind of scares me. I don’t think a majority of the people in the United States realize how bad this issue really is. It needs to be taken more seriously and looked more into by our candidates. “We are facing a major national crisis,” as Meyer Mishkin’s grandson says. “To do nothing right now is to do what was done during the Great Depression.” In the United States we aren't doing everything as efficiently as we could. Things are going wrong and there is no kind of consensus involved in our government. "It’s not enough to say that markets could freeze up, loans could become impossible to get and the economy could slide into its worst downturn since the Great Depression." To make matters better, I think the people of the United States would appreciate some sort of sign that things are going to be handled proficiently. Right now it doesn’t seem like we are doing things to proficient due to the poor choice of wasting money in the Middle East as Lupita mentioned.

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  8. I really think that this huge NOSE DIVE in the economy is a lesson for those “rich scoundrels right.” It is about time that they were taught a lesson for being CARELESS about their business deals. The bail out plan should be a plan that benefits those of us who have to pay taxes, instead of giving another $33 million + to the CEO’s who don’t need bail out money. They are not the ones suffering WE are. I recently got an email that outlined a plan that could greatly benefit families who are having money problems. It said that every person in the us could be given something like $78 thousand. And couple would receive $156 thousand. And the really good part is that this is after taxes. And this money could be used for paying off any debt, and would in turn boost the economy because all those banks who loaned money would be getting their money back. Which benefits everyone instead of just the CEO’s. And this is because the people who own the house pay of their debt, which leads to banks getting money, so they don’t have to file bankruptcy or be bought out by other companies. Of course there is always the solution that doesn’t really involve use, which is to just leave them be. If they drown then sell the company to one who is going strong. Like what happened with WaMu and J.P. Morgan. These are two real bail out plans that I personally like.

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  9. In my opinion, in the presidential debates, both candidates merely mentioned the topic. They didn't really go into depth on the economic issue that is going on right now. Both McCain and Obama focused more on the war in Iraq than on economic issues and it seems like that is the most important thing to focus on right now instead of improving our country. Now this I would have to disagree with because our country right now is falling apart and not that many people realize this. The bankruptcy was a major cause for this. I have a feeling that something bigger is going to happen and we're not going to realize it until it's too late. So I say, put a hold on the issue in Iraq and focus on the issue in America, the homeland. It doesn't make sense to me why we would try and change another country when we can't even take care of our country.

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  10. The presidential candidates did talk about our economy, and are more then aware of how much trouble we are in right now, but they beat around the bush when it came to talking about specific plans as to how they were going to get us out of this rough time. I think that everyone has been caught off guard with this debt problem, and no one knows quite sure how to fix it. I think that they both had really good ideas for what they want to d when they get into office. For example, McCain, he wants to make the special ed. program better in the U.S, and Obama, how he wants to get us out of Iraq. I think they have good plans on smaller problems within the country, but either of them know how to get out of debt; which worries me.

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  11. .."beat around the bush"...classic pun, Lexi, and so true....the problem is oversight and the $700 Billion. I would like to personally oversee the money, since we are fighting 2 wars, and and we keep getting deeper into debt. No one is Washington seems capable of "balancing the books."

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  12. The debt covered well rounded topic. But known about the economy and the crisis we are in now. Bush sent us to the Iraq war and that is that. We owe a lot of money and we all get that. What is happening today with the stock markets and everyone loosing tons of money the economy is going to fall in some what of the Great Depression. Mcain I feel is wanting to help by spending more money than we already have too. He has ideas which are important but Obama has ideas that will change our enviornment, economy, health care, and everything else. All the ideas are scrambled and the dedts still leave the audience with questions. I am worried becuase it seems like nothing will work out. I agree with Lupita, we are spending more and more money that we do not have!

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  13. I though that the presidential candidates addressed the issue that we are in an economic collapse but both fail into mentioning any plans to fix this problem. They mention that they plan on helping the people with their problems but not mentioning how they can fix the problems with the economy or our debt to different countries. Right now they are explaining to the public why they are the better candidate to fix this problem if they were elected, but i don't think they each have steady plan ready to fix it

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  14. In the Presidential debates they touched on subjects in the Economy but not enough. Both Presidential candidates brought up good points to help make a stronger economy. I agree with both of their ideas, but they do not have a solid idea on how to get out of the billions of dollars of debt we are in. I think we need to focus on issues in America and not the two wars we are fighting in right now. If we do not do something soon, it will soon get a lot worse.

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  15. Why are we talking about the Depression, anyway?

    Almost no economist thinks that even a terrible downturn would look like the Depression. The government has already responded more aggressively than it did in Herbert Hoover’s day. So a Depression-like contraction — a 30 percent drop in economic activity — is highly unlikely. The country is also far richer today, which means that a much smaller portion of the population is living on the edge of despair. No matter what happens, you’re not likely to see shantytowns.


    I agree with this statment, because the difference between now and then is everyone is not rushing to the banks to get the money they can out. Back in the day of the real depression everyone ran to the bank and dew out ALL there money this is what causes the banks to fail. This is why the government steped in and tryed to save the banks from failing.


    This is the exact reason why our schools have history classes. The secret was to try to stop us from following in our past footsteps and rewining our world or lives. In a way we have saved ourselves and created our own new footsteps.

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  16. Danielle, you are so correct. The Depression of the 1930's, lowest point being 1933, was quite different than the stock market crash of 1929. The governement acted quite different ly there as well. They taxed the people more, and stopped cash flowing into the banking system. This time they are poouring money into the system to stem the tide. If investors can remain optimistic, and not pull out of the market all together we may just have saved a worse situation from occurring. Still, it is not encouraging for businesses going into the holiday season...

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  17. I agree with Brandon, we need to focus more on what is going on here in America, not what has been started overseas. The politics running for presidency need to learn that. I feel as though they do not have a solid grasp on that yet. They talk about our economy, but don't have a plan that will work 100% in fixing it. Once they have a better idea, I think we will be better off as a country. until then, I personally do not think ether of them are really all that ready to handle our country and its problems.

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  18. I think the presidential candidates spoke on the bailout well but I think they could have said more. Neither of them had a set plan to fix our broken economy or a plan that would put faith back in the American people. Obama is gaining lots of support due to his ideas to remove the troops from Iraq. We are spending billions of dollars fighting a war that we can't win on our own. Obama also wants to make health care national and make if affordable for everyone which I think will also help our country. Our economy is coming close to the 1930 great depression and I think its going to take a strong leader to get us out of this mess. I think if we stop spending money on the war, we can help fix the Wall Street problem.

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  19. The candidates spoke briefly about topics, but not enough for me to fully understand their whole position. They could have added alot more to what they said. Both didn't really have a concrete plan about how to fix our economic crisis. I think neither of the candidates know how to really get us out of debt. Are main focus should be on our country and our problems.

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  20. Every day the stock market is fluctuating. One day it rises 936 points, the next day it drops 320 points. It makes us think of the future of our economy. Our economy is different than it was 70 years ago, yet it seems as though its going through the changes our predecessors lived through. “Hundreds of banks eventually closed”, during the 1930s, although hundreds of banks aren’t closing now, a few good ones are. Recently WaMu was sold to Bank of a America. “Financial markets are global, not local,” which means that not only is our market going down, but other markets as well in other countries. Now Obama is going to attack McCain for “favor[ing] deregulation and that deregulation of the banking industry is what led to the problems." Which is entirely true, the candidates are going to use the debates to attack eachother’s view points, while neither of them have a solid plan to fix the economy. The candidates didn’t talk specifically what they are going to cut off. Both candidates supported the bailout. McCain, believes that the gov’t should buy out the public’s morgages and Obama refuted the claim that it would encourage the banks to continue giving out bad morgages. In my opinion, they did not cover the economy well. McCain, went to Washington to discuss the rescue bailout, which almost led to the cancellation of the debate. McCain’s rash behavior to going to Washington escentuated that he was more frantic about the bailout, while Obama took time and more cautious approach. When the question on fixing the economy arose, neither candidate had a direct answer. Hopefully when the presidential candidate does indeed become the president our economy will improve, and they will finally come to a conclusion on to how to fix the economy and avoid another depression, that everyone fears will come.

    http://www.cbsnews.com/stories/2008/10/16/politics/uwire/main4525503.shtml

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