Microsoft releases statement on US bailout

Microsoft has released a press statement urging Congress to reconsider its bailout decision, saying government action is "vitally important."

Brad Smith, Senior Vice President and General Counsel released the following statement:

"Microsoft strongly urges members of the U.S. House of Representatives to reconsider and to support legislation that will re-instil confidence and stability in the financial markets. This legislation is vitally important to the health and preservation of jobs in all sectors of the economy of Washington State and the nation, and we urge Congress to act swiftly."

Microsoft shares fell 8.72% on Monday as Apple plummeted 17.92% on fears of profit margins. The U.S. House of Representatives voted down a $700 billion bailout plan by a vote of 228 to 205. The bailout plan is believed to be required to secure the future and stability of Wall Street.

View: Microsoft PressPass

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will re-instil confidence and stability in the financial markets.

I don't think the governments bailout of these greedy businesses is going to reinstill confidence in the financial markets. The entire system collapsed due to blatant greed and absolute zero concern for the overall effect of their actions.

I agree that we dont need a buyout what we need is them to regulate what happens on wallstreet. This whole mess started when they passed a bill that deregulated wall street. If they put tighter rules in place we would not have had this mess. Also I dont have any simpathy for those who forclosed on their homes because they were stupid enough to go with a adjustable rate mortgage instead of a fixed rate. My wife and I dont make much and yet we were able to buy a home with a fixed rate mortgage and it was a new home at that. All it takes is some common sense.

The problem isn't government not wanting to bail out...but they need to investigate fannie mae and the corrupt democratic senators knee deep in coruption...its not only the greed of CEO's...Kinda like Nancy Pelosi...who doesn't really want to expand off-shore drilling...but would rather see the increase in natural gas right away....not that she recently made 50-100K investment in 'Boone Pickens' Plan.

Ya, seriously..... I'll never understand how people can be so short sighted..... Do people not understand that, while corruption and mishandling of money was definitely the corporations fault, HOWEVER, Our economy, and the GLOBAL economy, are vitally dependant on big corporations. People don't want to foot the bill for corporations' mistakes.... sure, that's all well and good.... but i bet you'll change your tune once ur standing in 30's style "bread lines".... A bailout (Another poster correctly identified it as an INVESTMENT not a bailout) is Vitally important to the foundation of our global economy... U may not like having to foot the bill for it, but unless you like being poor and desparate, u better damn well accept that this is just the way it hast to be.

I think the same, Wall Street (aka greedy guys) will need a big crash so they can reinstall a fresh and clean system, may be a linux-commie distro ;-)

Anyways, currently USA doesn't have such amount of money, so this bailout means several new taxes, just for save the rich people.


No offence to anyone but I have a feeling that this $700B is going to be flushed out in no time leaving the situation back to square one.

(wrack said @ #12)
No offence to anyone but I have a feeling that this $700B is going to be flushed out in no time leaving the situation back to square one.

Totally agree. This is like your degenerate, gambler brother asking for $5000 this "one last time". He says it's the last time and like an idiot, you give it to him. A month later, he's back with another sob story.

I know I'll get crap for this, but the US needs a businessman like Bill Gates to run the country for a bit. Or at least have a political figure and someone who handles the business aspect of running a country but has as much power as the political head.

(Don Matteo said @ #10)
I know I'll get crap for this, but the US needs a businessman like Bill Gates to run the country for a bit. Or at least have a political figure and someone who handles the business aspect of running a country but has as much power as the political head.

Ha, they would just outsource Congress, lol

Ross Perot (one of the most successful businessmen in the country) already tried that. Unfortunately, people were too set in their ways at the time to vote for anyone other than a democrat or republican.

Ugh. Not Bill Gates! Though I did vote for Ross Perot. I believed that the US needed a business manager for the economy. I still do. I just hope that whomever gets elected gets some sound economic advice.

The bailout is a sham and will only hurt the average person. Finally nice to see that the legislators will listen to their constituents. Yes, something needs to be done, but rushing something over the weekend wasn't the proper option. Something that will affect us for the next few decades needs more planning than a couple late night sessions.

(Troll said @ #9)
The bailout is a sham and will only hurt the average person. Finally nice to see that the legislators will listen to their constituents. Yes, something needs to be done, but rushing something over the weekend wasn't the proper option. Something that will affect us for the next few decades needs more planning than a couple late night sessions.

I agree on all points. This was a stupid idea. It failed, so think of something less, er, bombastic? Yeah, bombastic...

The more I read into the proposed law as it was before the vote, this isn't really a bailout... its a loan, which the gov sets some strict rules for and they expect a return on their investment... its basically the gov playing lending bank... but personally, i think its bs... let companies buy each other's assets out... and change the laws in place to fix the regulation loop holes and gapeing holes in general

I can't support the bailout in any way shape or form. I don't have bad loans and I can't support having to shoulder any of the cost of the people and companies that got themselves involved in bad loans.

The banks knew exactly what they were doing when they issued the bad loans (predatory lending) and they knew exactly what they were doing when they leveraged those assets 30-1 on the open market. If you look it up you will see that banks are not typically supposed to leverage more than 10-1... so essentially the banks bet against themselves and now they expect us to clean up their mess.

I can't support this at all. The government should not be getting involved in the private sector anyway. I think a much better use for the 700 billion would be to give every person over 18 an equal share. Of course you would have to declare any debt up front and pay your taxes on the money plus pay off all debts.

At least with this approach we are not enabling the banks to go right back to their previous behavior and we will not be transferring wealth from the poor to the rich.

Check out votenobailout.org

Here is the letter I sent to my senators:

I am writing today to encourage you to stop the $700,000,000,000 (BILLION DOLLAR) bailout legislation that was proposed by the Treasury Secretary Paulson and President Bush.

I do not believe We The People should be shouldered with the responsibility to take care of companies that knowingly engaged in risky investment decisions. They need to suffer the consequences of those decisions. Buying bad loans and leveraging them 30-1 was clearly bad practice.

Any normal person or business, when faced with a financial crisis is not automatically forgiven of all debt on a whim. A normal person would file bankruptcy, their assets would be liquidated to settle some or all of the debt, and that person or business would have to start over.

As a Citizen who is financially responsible I do not accept the proposal to create an additional $700,000,000,000 of national debt for our country.

Congress has no right to give the White House and its Secretary of the Treasury the power to transfer the people's money to the richest bankers in the country.

Vote No to the Bailout legislation. The Bailout legislation is being rammed through Congress in a matter of days. This is an illegal power grab by the White House and their richest friends on Wall Street. Take Section 8 of the proposed legislation: "Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency."

This sounds like an attempt to keep the public from finding out information pertaining to it's own funds that would be spent on this bailout. I cannot support these actions as it looks like an attempt to cover up fraud.

The Legislation allows the Treasury Department to appoint the same bankers who created the crisis to administer and dictate the use of billions of our tax dollars. It is also one of the biggest transfers of wealth, from working families to the ultra-rich, in the history of the United States.

Congress should help families stay in their homes. Wealthy executives should be forced to give up their obscene profits, fees and bonuses that made them ultra-rich while they ran the economy into the ground.

It's time to make a decision that will benefit the American People and not the Big Corporations.

You do realize not getting involved is what got us into this mess in the first place.

When a situation like this can collapse the entire infrastrcuture of the United States, world.... I think it gives the government the right to get involved.

It's been ingored far too long... especially by the Bush Admin... we saw the warning signs... and did nothing.

Granted a 700 billion bail out might not be the answer were looking for... but they need to interviene now.... or we might not have a wallstreet to talk about...

(shockz said @ #7.1)
You do realize not getting involved is what got us into this mess in the first place.

When a situation like this can collapse the entire infrastrcuture of the United States, world.... I think it gives the government the right to get involved.

It's been ingored far too long... especially by the Bush Admin... we saw the warning signs... and did nothing.

Granted a 700 billion bail out might not be the answer were looking for... but they need to interviene now.... or we might not have a wallstreet to talk about...

Yeah, the bailout was always a bad idea. The economy needed to reconstruct itself, not add additional circulation. Of course, if people had been more aware of this rising problem, perhaps they wouldn't make such stupid decisions in relation to their houses etc.

This is not a BAILOUT. It is an INVESTMENT. Buying failed mortgage-backed assets at fire-sale prices have the potential to provide a greater return in the long run (the market notion to make money is buy low, sale high - this does apply to mortgage-backed assets too). Believe it or not, corporations have also bought failed assets by acquiring banks, so now it is up to the government to takes its share. If only individuals such as myself could have the option to buy these assets, as undoubtedly I would. Maybe a system could be constructed to allow individual investors access to these assets, although the ramifications of such a system would need to be deeply investigated (in theory).

Members of the House of Representatives will be demanded by their constituents to back the government investment after this drop in the market (and the resulting media frenzy). Hence, money is everything - and people will serve their self-interests when they realize the impact of inaction has on their wallets. Quit blaming corporations and politicians because people are irresponsible consumers (buying houses they can't afford). The market is correcting itself, as a good system does.

Well said, esp this: Quit blaming corporations and politicians because people are irresponsible consumers (buying houses they can't afford). The market is correcting itself, as a good system does.

Spot on, good sir. Spot on.

Not often I read a comment well written and intelligent enough to say thank you for, but when I do I'm very happy to leave a comment.

Thank You.

(RAID 0 said @ #6.1)
Well said, esp this: Quit blaming corporations and politicians because people are irresponsible consumers (buying houses they can't afford). The market is correcting itself, as a good system does.

Spot on, good sir. Spot on.

Keep in mind that not everyone who you are classifying as "irresponsible consumers" are that at all. Many people (myself included) took out mortgages on houses many years ago when gasoline cost less than half what it does now, and groceries were much cheaper than they are now. Salary increases simply have not kept up with rising costs of living, which has led many people to have to default on mortgages in order to survive. That is also a large part of the reason for the rising number of bankruptcies. If you really believe that everyone who bought houses 5 to 10 years ago and are now having financial problems are "irresponisble" then you are either ignorant or brainwashed by the media (or both). While I do admit that there are people who DID take out mortgages that they could never afford, I suspect that they are a much smaller percentage of the broader group of people for whom the cost of living has simply outrun income levels. The media loves to blame the consumer when it is really the fault of the greedy oil companies and other large corporations (including banks) who have been trying for the last few years to suck every last cent out of the average consumer.

(roadwarrior said @ #6.3)

Keep in mind that not everyone who you are classifying as "irresponsible consumers" are that at all. Many people (myself included) took out mortgages on houses many years ago when gasoline cost less than half what it does now, and groceries were much cheaper than they are now. Salary increases simply have not kept up with rising costs of living, which has led many people to have to default on mortgages in order to survive. That is also a large part of the reason for the rising number of bankruptcies. If you really believe that everyone who bought houses 5 to 10 years ago and are now having financial problems are "irresponisble" then you are either ignorant or brainwashed by the media (or both). While I do admit that there are people who DID take out mortgages that they could never afford, I suspect that they are a much smaller percentage of the broader group of people for whom the cost of living has simply outrun income levels. The media loves to blame the consumer when it is really the fault of the greedy oil companies and other large corporations (including banks) who have been trying for the last few years to suck every last cent out of the average consumer.

Correct.. if the oil industry wasn't the no. 1 source of money in the world, we would have readily advanced in many areas of both economy and technology.

Ex. More companies on new tech > New types of cars/etc. > More $

(DClark said @ #1)
This is not a BAILOUT. It is an INVESTMENT. Buying failed mortgage-backed assets at fire-sale prices have the potential to provide a greater return in the long run (the market notion to make money is buy low, sale high - this does apply to mortgage-backed assets too). Believe it or not, corporations have also bought failed assets by acquiring banks, so now it is up to the government to takes its share. If only individuals such as myself could have the option to buy these assets, as undoubtedly I would. Maybe a system could be constructed to allow individual investors access to these assets, although the ramifications of such a system would need to be deeply investigated (in theory).

Members of the House of Representatives will be demanded by their constituents to back the government investment after this drop in the market (and the resulting media frenzy). Hence, money is everything - and people will serve their self-interests when they realize the impact of inaction has on their wallets. Quit blaming corporations and politicians because people are irresponsible consumers (buying houses they can't afford). The market is correcting itself, as a good system does.

Yes this is a bailout, no one would want to invest in to that.

"...support legislation that will re-instil confidence and stability in the financial markets."

That's the point! There is NO confidence and stability in the financial markets! It's equivalent to vaporware!! Doctored books; padded bonuses to CEO's larger than the salary of the average american income; government mandating home loans be given with very LITTLE proof of income or identification. There is NO confidence and stability in the financial markets because Wall Street and Politicians are corrupt and greedy and have done NOTHING to instil Confidence OR Stability.

It makes sense Micro$$$$$$oft jumps on board with the bailout - they don't want to see their REVENUES decline. It's all about $$$$, NOT the american people - make no mistake.

(POWER2112 said @ #5)
"...support legislation that will re-instil confidence and stability in the financial markets."

That's the point! There is NO confidence and stability in the financial markets! It's equivalent to vaporware!! Doctored books; padded bonuses to CEO's larger than the salary of the average american income; government mandating home loans be given with very LITTLE proof of income or identification. There is NO confidence and stability in the financial markets because Wall Street and Politicians are corrupt and greedy and have done NOTHING to instil Confidence OR Stability.

It makes sense Micro$$$$$$oft jumps on board with the bailout - they don't want to see their REVENUES decline. It's all about $$$$, NOT the american people - make no mistake.

Since your bashing microsoft you do know that apple was hurt in all this too and that apples stock price dropped more then microsofts did. Atleast microsoft is doing something about this mess.

(majortom1981 said @ #5.1)

Since your bashing microsoft you do know that apple was hurt in all this too and that apples stock price dropped more then microsofts did. Atleast microsoft is doing something about this mess.

Apple is nothing in an economic standpoint compared to Microsoft. Microsoft could probably buy Apple 10 times and still have enough cash to buy Google. Therefore, it is obvious Microsoft is impacted a lot more, just by seeing its massive scale. Microsoft definately lost ALOT more money than Apple. Also, the US Government will not listen to Apple as they will Microsoft. So don't go hating on Apple.

But in response to POWER2112... he has no idea what he's talking about. Microsoft has nearly 100K employees, and Apple maybe 25K, not to mention a large portion of Apple is Customer Service, while for Microsoft it is developing.

And also, in a business, it's always about the $, unless it's a non-profit organization, which usually doesn't occur until there is some base $ to start with. So his arguement is pointless.

Microsoft is correct on supporting the bailout. It is not the stock value but this is an economy concern. Did you see what happened when they didn't pass it? 1 Trillion wiped out. $100bln in Canada.

The house was stupid not to pass it. They will cause massive layoffs and global slowdown if it will not go through.

BS.

All these fat cats made all this profit for the past decade. Now they can eat the loss. That's Capitalism after all.

Seriously, if Bush is for it, and he's always lying and using to fear to convince Americans to give graft to his cronies, why would you believe him now?

It's just stock valuations. Which were massively overinflated to begin with. Those values weren't EVER real. Let them go back to what they are truly worth.

they need to increase visa's cause there aren't enough SKILLED workers in America and most of the people who are taking computer science degrees in American universities are not US citizens. You can't have a 40 year old who's never touched a computer before develop software can you?

It's a highly contested issue, executives and human resources are going to tell you there is a shortage of workers. IT workers on the other hand, are going to say that compensation and incentives do not promote workers to stay with their company in the long term, nor do companies provide adequate compensation to assist with continued education in the IT study.

http://it.toolbox.com/blogs/managing-infos...bandwagon-13298

The executives over at Microsoft have proven themselves not to be concerned with the prosperity of the American worker time and time again by insisting for Congress to increase the number of available work visa programs to bring more foreign workers into the fold because they do not wish to match industry wages for qualified American workers. This press statement continues the track record that the "bailout" plan is only in the best interest of their stock value, not to the American worker, nor to the democratic and capitalistic principals this country was built on.