David Kirkpatrick

October 14, 2008

Winners and losers in the bailout

Filed under: Business, Politics — Tags: , , , , , — David Kirkpatrick @ 12:44 pm

If you’re looking for a quick, dirty and dense breakdown on the Emergency Economic Stabilization Act of 2008 — the “bailout” — check out this article from CFO.com. Keep in mind the details are pretty dense and probably require some understanding of the underlying finance and tax principles.

From the link:

The Emergency Economic Stabilization Act of 2008, popularly known as the bailout legislation, contains tax provisions that will benefit some taxpayers and penalize others. Among the widely-reported authorities the new law grants, the $700-billion government bailout legislation allows the Treasury Department to buy troubled mortgage assets from banks and other financial institutions, and invest directly in sputtering banks to bolster their liquidity position. But the new law changes some of the tax rules, too.

Here’s a rundown of those provisions and the affected tax law.

3 Comments »

  1. The “losers” are the savers! People who saved money and live within their means are being screwed.

    Comment by Robert — October 14, 2008 @ 1:27 pm

  2. Robert,

    Thanks for the comment. You’re preaching to the choir here.

    Not sure what the answer to this problem is, but I know as all the bad actors in the mortgage aspect of this debacle get “bailed out,” I question why I’ve been so prudent over the years.

    Then I remember I’d rather have stuck to my fiscal conservative principles than stick my hand out to DC.

    Comment by davidkirkpatrick — October 14, 2008 @ 1:36 pm

  3. Tired of Bankers having all the fun.

    Bailout! The Game the hilarious parody of the government bailout where when you lose, you win. In this role reversal of the classic board game debt is king.

    Bailout! The Game gives you an endless supply of T.A.R.P funds, laughs and fun.

    Be the bank, lose billions and get a bailout.

    Play as one of six banks: Bankruptcy O’ America, Worth Farless, No Cashvia, Liquidation Brothers, Greedy Investors of America, or Washed Up Mutual.

    Land on or pass over Frantic May and Frivolous Mac spaces and get slammed with bad debt.(MBS’s and CDO’s)

    Just as Monopoly was born out of the Great Depression, Bailout! The Game was born out The Great Recession.

    Winner of the Mr. Dad Seal of Approval. http://www.mrdad.com

    Creators of Bailout! The Game and Bailout! The Card Game
    Liberty Street Games
    http://www.bailoutthegame.com

    Comment by shari — December 30, 2009 @ 8:41 am


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