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

The dems lead by Pelosi, Frank, SChumer and Dodd are going all out to get the bailout passed. They are hoping that the Whitehouse changes to a democrat and they will get to spend the money.

 

Pelosi seemed to go out of her way yesterday to piss enough republicans off to not get it passed.

 

The bailout wouldn't work. It's just a money grab by Wallstreet.

 

The bailout plan was rejected by the assembly earlier today. There were reports, that due to this rejection, stock markets all over the world saw a dip of 1.2 trillion dollars in just a matter of 6 hours!!!!!

 

Stockmarkets will go sideways for the next 20 years in real terms like they did between 1935 and 1955.

 

Its better than the government propping them up.



I can not believe that Bush, Obama and McCain are using scare tactics to try to garner the votes. The Treasury can buy the mortgages without going through congress.

 

Add one thing to my - help the borrower plan- they would have to take a 50pt to 100pt hit on their credit score if they do a loan change to a fixed (loss to lender) that way it still cost the borrower something in the long run.

 

Bad borrowers.
Bad lenders.
Bad brokers.
Bad derivative/bond traders.

I hope they all crash and burn. They all need to pay the piper. Any bail out of any kind creates a moral hazard and rewards bad behavior.

 

The bailout is a mess and will only bring down the people that weren't involved in the mess and didn't profit from.

If people are paying their mortgages they aren't going to lose their home. The problem is that they can't afford it. No amount of bailout is going to allo people afford to pay for overpriced homes.

 

All eight of our Arizona's House members, democrat and republican voted against the bill.

 

The opposition started to build when people found out that 20% of the money was going to be rediredted to ACORN (the Association of Community Organizations for Reform Now) and other radical community organizer groups like the National Council of La Raza.

The radical community organizer groups have been pushing for loosening lending standards to low income groups and are one of the reasons the US is in a housing mess.

Low income ppl can't afford to pay mortgages on 500k homes.

http://www.rushlimbaugh.com/home/daily/site_092608/content/01125109.guest.html

 

Wow! Low-income people are living in half-million dollar houses?

What states/cities is that?

 

Bogart: That is pure BS. No wonder it comes from the website of the ole big mouth himself.

Borrowing between banks is way way way down. Take a look at rising unemployment rates. This will be ugly.

 

That's a great idea! It's awesome that the average American can come up with great ideas on how to clean up this mess. Too bad we don't have people using their brains in Congress....

 

The New York metro has plenty of low income people that bought homes with stated income aka 'liar loans'. Many of the homes are now going into foreclosure. A lot of the homes are multi-family so they do have some rental icome to help cover the mortgage. But the ppl are one disaster away from foreclosure. The average home has $7,000-$9,000 a year property tax as well.

Newt Gringrich was talking about this last night on a FOX interview and also commented about how the mainstream media has not picked the story up.

The libor overnight rate was 6.5% last night. The credit markets are freezing up. Banks aren't making loans and some companies are having trouble making payroll. Unemployment will top 7.5% in late 2009. At the best case, we will have a '1991' recession.

The schiller index reported a 16% decline in homes from July 2007-July 2008. Over the next 12 months home prices will fall another 20%. But in the bubble markets home prices have doubled since 2001.

The reading of 43.5 from the Institute for Supply Management on Wednesday was down from August's 49.9. It also was worse than economists' prediction of 49.5, according to the consensus estimate of Wall Street economists surveyed by Thomson/IFR.

A reading above 50 signals growth. September's reading fell to its lowest level since October 2001, immediately after the Sept. 11 attacks.

The survey of purchasing managers found new orders fell to 38.8 in September from a reading of 48.3 in August. Employment, deliveries, inventories and manufacturers' order backlogs also fell.

http://news.yahoo.com/s/ap/20081001/ap_on_bi_ge/economy

 

http://www.nypost.com/seven/0924200...eds__heres_the_way_to_do_it__mayor_130516.htm
Obviously there were a way to give affordable housing mortgages and these banks just were incompetent or negligent. Newt is only trying to sell his book

 

The subprime loans were predatory and made with no down payments.

Good article highlighting a sucess story. Obviously Bloomberg in a lot smarter than the banks.

Only fixed-rate mortgages were acceptable, so there were none of the dramatic swings that are a fixture of adjustable-rate loans.

Downpayments of 10 percent were generally required, and every prospective buyer had to take a course in home ownership.

 

yes that is the point. It did not have to be the way they did this. They were trying to make their commission and did not care. On top of that they thought that they were going to sell them so felt safe also.

 

Rather than giving the $700 billion to the banks, the US should get Bloomberg and Buffet on board and create a $700 billion investment fund that could also buy distressed mortgages. If done right the fund could be used as a social security investment paying good returns.

 

I do not want to give them the money either. it seems that govt is spooked about something and they are not telling us what it is.
I do not think you can buy the mortgages. they are all mixed up and there are a lot of different people with interest in each mortgage bundle.
We must also be preventing these firms to accept fire sale prices because they think they can get more money from the govt