Huge Bailout Proposal--$700 billion--Suck the bad debt out of the financial system

The more I read about he bailout the less I think it should be done. Bush is wanting to push the bill through quick with out anyone researching it and the cost could exceed 1 trillion dollars. The bailout is going to line the pockets on Wall-Street and the defaults have already occurred . The crashed occurred do the pushing of lowering the standards to give minorities and those that did not qualify a chance to buy a home. This was the results. We have rules in place to prevent Wall-Street from cooking the books and they need to be enforced. Our government is spending money we do not have and these types of bailouts will bankrupt the government into nonexistence.

 

Senator Shelby is really laying the facts out and ripping into the Treasury & Federal Reserve. He did a really good job of connecting the dots and showing how these two institutions were at every important development that got us into this mess in the first place.

The root problem: Rising mortgage defaults. The bailout? More inflation on cost of living, forcing more people into mortgage default.

The result? A trillion-dollar fraud.

 

he is the decider.
they should start a reverse auction for half the money.
let the market decide.
Their fear is the result of lack of oversight and regulation. The crooks don't trust each other but we should trust them.

 

It's people like you that is the problem with this country and why things are so bad.

You arbitrarily choose a group based on your racism and choose them as the scapegoats.

As far as I can tell, the biggest defaults are in places like California, Florida, Arizona, and Nevada.

Now, how exactly are minorities the issue here?

Why can't you people take responsibility for the mess you created?

That's why these problems just keep getting worse and worse because of irresponsible people like you.

 

I pay my bills. My houses and rental property are not in default. I'm a problem because I have perfect credit? You have lost your mind. I am saving almost 40% of my monthly income and have been for a while, trying to save enough money before the crash so that I can buy property at rock bottom prices.

You have to be a complete racist not to remember all the talk about the loan standards be bias against minorities. You got your wish and boom! market crash.

I'm not on Wall Street, I'm not a lender, I did not lower the loan standards so that people that can't afford loans would default.

Not irresponsible at all. It's people like me that employee over 100 people and provide rental and retail space to help the economy. Quit looking for government handouts and work.

We do not need the bailouts, socialized health care or any other handouts. Get off the coach, create a job and live below your means.

 

Big whoop-di-doo. You want a cookie.

I am quite sure the people at Lehman Brothers, Bear Stearns, and IndyMac were doing the same thing.

I do not know how you define the term racist. But my definition is someone who blames, scapegoats, or demeans another person based SOLELY on the color of their skin.

By definition, you are a racist.

How you come to this conclusion when the banks, mortgage originators, insurers, and investment banks were all in on this shows to me, clearly, you are a race baiter (probably a hate mongerer).

I don't think they were owned by "minorities" as you so euphemistically call them.

Then how are you in any position to say who is at fault.

You've just admitted you are uninformed, but not too uninformed to show your racist attitudes.

 

Are you finished patting yourself on the back?

You act like you are an island and you create something out of nothing. This crisis has shown no one is an island.

If things are good for you now, let's see how long that lasts without help from the banks, the financial system, the government, the system of credit, and the insurers.

If you are doing all this without any of their help, then congratulations.

If not, you are a leech just like everybody else.

I am not impressed, but it's clear you are a self-important, self-obsessed bigot.

But, that's what a bigot is and why this country is in the mess it is now. People don't want to find the real answers, get to the facts and solve the problems.

People like you just want to race-bait and ignore the problem until everyone is screwed. You are what's wrong with America.

 

Is anyone even watching the hearing on the bailout?

 

Are you looking for a handout. Do you think the taxpayer should shoulder bad loans, bad investments and mismanagement. You are what's wrong with America.

 

Why do you care?

You're the one targetting "minorities" and pointing fingers.

You're the one trying to place blame and avoid responsibility.

I guess you believe those poor, innocent, mainstream people could never do wrong. Only those "minorities" as you call them.

Unless you mean the "minorities" as in the rich and powerful. But you couldn't because why would they ever have trouble getting a mortgage.

I am always fascinated people like you can survive in the marketplace. Only a sheltered person would blame the poor for the problems of the economy.

 

Homebiz,

You and I usually agree, so I feel that I should correct you on one of your statements. I could agree with everything that you are saying in this thread, but I don't think loans to minorities are a problem. You should probably rethink that statement. PioneerGold seems to be hung up about that one word. I'm not sure where the rest of his anger is comong from.

From reading the rest of your posts in this thread I would applaud you and the work you have done to remain debt free. Dave Ramsey would be proud!

I'm not sure where is rage is coming from, but it honestly sounds like Homebiz is doing his fair share. He's not part of the problem. he's making a positive contribution toward the economy.

 

Whose at fault. Under qualified mortgage holders, lenders, Clinton, Bush, Wall Street, Democrats and Republicans. Everyone knew of the problem and it has been addressed by politicians as far back as 2001.

Giving loans to minorities that were qualified was not a problem. I agree with that. The CRA under Clinton lowered the qualification or standards to give more loans to minorities even though the lenders knew the loans would be difficult to impossible to pay back. The standards were lowered to give more loans to minorities. I know that lenders lowered the standards per government request to give out more loans. I can also see people wanting to own a house that have bad credit and low income. "In order to put low-income minorities into home loans, they were ordered to suspend lending standards that had served the banking industry well for centuries. No one wants to talk about it, so they just scapegoat Wall Street."

Community Reinvestment Act, or CRA, a law that forces banks to make home loans to people with poor credit risks. The CRA was passed into law by the 95th United States Congress in 1977 as a result of national grassroots pressure for affordable housing, and despite considerable opposition from the mainstream banking community.

http://en.wikipedia.org/wiki/Community_Reinvestment_Act

 

Good job, Homebiz!

 

Direct from the Whitehouse.

http://www.whitehouse.gov/infocus/achievement/chap7.html

 

If you are looking for a handout you get no sympathy from me.

I think everyone is pointing fingers. Whose at fault. Under qualified mortgage holders, lenders, Clinton, Bush, Wall Street, Democrats and Republicans. Everyone knew of the problem and it has been addressed by politicians as far back as 2001. The bailout should not happen.

I am not responsible for any of that mess.

The people in default are part of the problem. The talk shows are yammering on that just Bush and Wall Street are at fault.

People that payed there loans were not part of the problem. The problem are the people in default, the people that lowered the standards, and the book cookers.

Its called drive and determination.

The poor? You contributes the least but leeches the most of government? Help yourself. Stop looking for a handout and get to work.

 

America won't be the same. How great was 1920s, The Roaring Twenties. Decline of America is on the way. Dumb Americans get what the deserve. Ponzi the Italian, look like an amateur. Mother of all Ponzi Scheme and worthless US Dollars.

Many idiots fall for Ponzi Scheme and they all deserve it.

 

All the idiot posts (like the the one above) aside:

Here is the real crux of the matter. Bernake wanting a full bailout at above market rates:

"One of the tricky issues confronting policymakers is how to price the distressed assets that the government would ultimately buy.

Bernanke suggested buying the assets at a "hold-to-maturity" price, which would be based on an estimate of what the securities would eventually be worth as payments came in over the years.

"If the Treasury bids for and then buys assets at a price close to the hold-to-maturity price, there will be substantial benefits," Bernanke said. "First, banks will have a basis for valuing those assets and will not have to use fire-sale prices. Their capital will not be unreasonably marked down."

In contrast, if banks use existing "mark-to-market" rules that require them to value the holdings at what similar securities have recently sold for — in some cases pennies on the dollar — it could make the whole bailout futile because it would hurt many banks' balance sheets, causing some to fail. "This creates something of a vicious circle," he said."source​

Bernake wants a bail out of the bad positions these banks are in not just taking the debt off their books. He wants to get them the best deal for them and make the taxpayer pay the higher price. Is anyone else offended that at this?

 

Bernake is too much of a theorist. Too engrossed in books IMHO.

I said it before I'll say it again. If there is one buyer, the treasury, and lots of sellers the laws of demand and supply are going to drive prices down. Way down.

makes for good buys. The ONLY thing the treasury should be concerned about is not buying so low that the banks go out of business.

Crap....keep em afloat. that is the purpose of the bailout. it should be the only purpose. Keep banks operating. Keep the financial system operating.

Save our damn deposits.

You don't have to buy high at all. Suck the bad debt out of their system. Let em have a chance at going back to business without getting involved in lots of risk.

I guess my response is a matter of degree from what Bernake is saying....but if I was overseeing who'll do the buying and the prices my group had to pay...that guy would be off my team.

The treasury has every opportunity to buy low if this thing goes off. It will be spending tax payer money. Cripes they should be responsible.

I think Bernake is overthinking this thing.

 

Here is another article which makes it sound like Bernake is taking the opposite position. Ahh, confusion abounds...

http://www.reuters.com/article/mark...23?pageNumber=3&virtualBrandChannel=0&sp=true

 

The more I read about the bailout the more I am against it. Abandoning fair value is insane. I am against everyone wanting a quick passage without knowing all the details.