What is it Really Going to Cost?

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  • Posted By: shawnmoul @ 09/25/2008 3:28:18 PM

    I agree. Many of these assets are probably more than 2 yrs old. But I repeat, Frank and Dodd have been big proponents behind much of the poor lending practices with Freddie and Fanny. Even though the DEMS have been the majority for only 2 years, they have effectively blocked and filibustered many initiatives. In addition much of this did begin with Clinton, during his administration. and if you recall, there was a huge economic failure during and because of Carter's administration. That resulted in interest rates in excess of 20%

  • Posted By: FREE-SAM @ 09/25/2008 3:27:17 PM

    I THINK THAT SOME OF THE DEMS. ARE UNAMERICAN IN WHAT THEY SAY AN DO.THEY TO GET BACK TO THERE ROOTS

  • Posted By: FREE-SAM @ 09/25/2008 3:23:54 PM

    some of the DEMS are almost not American

  • Posted By: jimbeck @ 09/25/2008 2:35:16 PM

    This is a huge plum for a limited number of well connected crooks who caused this mess. My Dad's house cost less than $30K. I sold it in 2003 for $339K and its value(?) climbed to almost $600K. What's its real value today - not what the Fed is willing to pay their buddies. There are thousands of good banks out there who didn't make adjustable "no doc" variable rate loans or any of the other scams the Fed wants to buy up. There is plenty of capital in this country. We are not even in a real recession (yet). If the old boys club can't handle the credit demand, get them out of the way and let some honest bankers step up!.

    Why are the taxpayers (including the honest financial community) not burying Congress with objections. Without expressing an opinion on that issue, the taxpayers got the immigration bill killed by thesheer force of public will! I've contacted my Representative and both Senators - have you?

    • Posted By: kas_wolf @ 09/25/2008 3:23:24 PM

      Yes, I have - all of them. Even the state reps - so they can bring poer to bear over the party.

      Jimbeck is right - call your reps!!!

  • Posted By: hydrodev @ 09/25/2008 11:30:37 AM

    I want to own a piece of each company my tax money bails out. If im bailing them out, then i should have a fair stake in that companies stock or assets.

    • Posted By: Flash McGruder @ 09/25/2008 3:22:31 PM

      If the $700 Billion is equal to about, say, $7,000 per person, maybe each one of us should get that much in stock?

  • Posted By: bbnn4747 @ 09/25/2008 2:39:31 PM

    My question is: Why does Paulson still have a job?

  • Posted By: SeanT007 @ 09/25/2008 3:21:01 PM

    Get the KY ready it is BOHICA time. If Chris Dodd and Barney Frank brokered this deal with the Fed and Treasurey, we are screwed. BOHICA=Bend Over Here It Comes Again. Will Chris and Barney give back the 100's of thousands of dollars they received from these companies that created this mess. What about the crooked Mortgage Brokers like redbrick mortgage that brokered these bad mortgages-what will they pay?
    Like I said, BOHICA.

  • Posted By: DUMPLIN @ 09/25/2008 3:01:44 PM

    DEMOCRATS ARE SUCH HYPOCRITES!! THEY KNOW EXACTLY WHO IS TO BLAME AND THEY HAVE TO HIDE BECAUSE THEY LOOKED THE OTHER WAY FOR YEARS. OBAMA WAS RIGHT IN THERE AS WELL BEING THE SECOND LARGEST RECIPIENT OF MONIES FROM FM/FM. IT WOULD BEHOOVE THOSE OF YOU WHO SUPPORT OBAMA TO ASK WHY AND DEMAND AN ANSWER. CHRIS DODD WAS THE LARGEST RECIPIENT AND THERE HE STANDS ON TV TRYING TO EXPLAIN WHAT HAPPENED. HE KNOWS , BUT LIKE ALL DEMOCRATS THEY CAN'T BE TRUTHFUL.

    • Posted By: judgejudy @ 09/25/2008 3:20:27 PM

      Well, now, come on. Who would you have us vote for? The guy who's campaign manager's firm is STILL receiving a monthly retainer from FM? Let's not be wilfully blind here. And when Clinton said everyone deserved to own a house, he was overseeing a robust, surplus-driven economy in which the rich were making a killing and it only seemed right for the middle class to have a share. Do you really want us to believe it was all a plot to bring us to this bailout? If so, and if you think he could plan this clearly and prognosticate this far ahead, man, that Clinton was a GENIUS. We need a Constitutional amendment so he can run the country again!!

      Seriously, when you're so vehement and biased and, well, silly, nobody listens. Tone it down a little - you might have some good points, and America needs this discussion.

    • Posted By: Flash McGruder @ 09/25/2008 3:10:22 PM

      Typical Republican rant: It is always the faul to Democrats regardless of who has been in control of Congress or the White House or whatevr. If Republicans poop in their pants or pee on their leg, they will blame it on Democrats. The largest percentage of the National Debt has been caused under the last three Republican presidents, but Republicans will say that it was not thier fault. Republican sheep: Baaaa, Baaaa!!!

  • Posted By: Struggling MoM @ 09/25/2008 3:12:13 PM

    I would like to know how many CEO's and higher ups will lose their homes and jobs if nothing is done? How many of them will continue to collect their high paychecks and live in their lap of luxury while the paycheck to paycheck people are trying to make ends meet, to feed their kids, and to keep a roof over rheir heads? To me, it sounds as if the CEO's and the government will make out with handfulls of money while the little guy goes under loosing all! Let the CEO sell their million dollar homes, loose their high paying jobs and pay back the money that they scammed from the working people. I pay my dues, let them pay theirs. ENRON did, now it is Fannie Mae and Freddie Macs turn. McCain wants to be in on "doing" something about all of this, while Obama wants to talk, talk, talk, it's time that the talk stop and the action begins.

    • Posted By: basedrum777 @ 09/25/2008 3:18:05 PM

      Umm... do you want to read the letter Obama sent Paulson last year detailing what the problem is with letting the loan systems in america operate as they are/were? Did you also understand what McCain meant when he said I"m a deregulator? What this problem needed was oversight. Obama is for it, McCain is against it. Plain and simple.

  • Posted By: judgejudy @ 09/25/2008 3:12:12 PM

    You at least take into account the many variables that Mr. Paulson, I think, would like us to forget. But I still think you don't go far enough. How do you know how bad the economy will get even with the bailout? Manufacturing's still dead. The family farm is dead, mom-and-pop businesses are dead. We were losing jobs before the bottom fell out, and have been since Clinton left office. And, should the majority of Americans be lucky enough to survive this, if they have any remaining sense at all, they will save, save, save, and consumer goods will sit on the shelf.

    As long as we're at it, can we please get out of this stupid a$$ and expensive war that's just going to flare up the minute we leave anyway - regardless of whether it's next year, or next millenium?

  • Posted By: kappy @ 09/25/2008 3:09:19 PM

    Here I am barely making it who is bailing me out ? I think if a business cannot make it it needs to go under ! I know I have no plan to be soaked for any money it is going to take to bail out the banks or mortgage companies thru my tax money I barely make it as is now ! Are they going to wipe out my debt too ?

  • Posted By: mj it @ 09/25/2008 1:07:09 PM

    it's not a rescue. it's a bail out. And it's not going to cost a cent. All of us Americans should go to DC and demand it be for by big oil windfalls, Bush's Saudi buddies, Haliburton, KBR, Blackwater and all the private contractors who have made a killing off of this illegal war. There it's paid for.

    • Posted By: blackcourt @ 09/25/2008 1:10:39 PM

      You do realize that the war in Iraq has nothing to do with people taking out loans that they couldn't afford and banks giving loans to people they knew couldn't afford them.... right? Or do you just blame everything on the war because its easy and it means that you can point all the blame on Bush?

      • Posted By: Redburn @ 09/25/2008 1:43:44 PM

        Do you relize the same liers tht got us into the sensless war in Iraq and are responsible for this mess are lying to is again?

        • Posted By: Iconoblaster @ 09/25/2008 1:55:45 PM

          I'm with Redburn... the same people who asked Congress for a blank check to invade Iraq ("or else the terrorists will kill you with WMD"... and wasn't THAT special?) are now asking for a blank check to bail out rich bankers ("or else the economy will collapse and kill you...or at least ruin your whole day"). Give this lot a blank check, and they will max it out and CASH it.

          • Posted By: blackcourt @ 09/25/2008 3:07:28 PM

            How exactly is the Bush administration responsible for Americans taking loans that they couldn't afford and Banks for giving people loans that they knew they couldn't afford again?

  • Posted By: kappy @ 09/25/2008 3:05:34 PM

    I think this is crazy ! Here I am struggling to make my mortgage payment,car payments and cc payments and no one is bailing me out! If a business cannot survive let them go under period! If the government is going to bail them out than they need to pay off my debt as well and let me get a fresh start. The US tax payer should not be stuch with any of this cost !

  • Posted By: ndrock @ 09/25/2008 1:11:14 PM

    In case you missed history class 101: the Clinton Administration and the Democrats are the ones who did the bank deregulation, not Bush and Republicans.All the liberal news media, which covers 99% of journalism in the United States, has tried to bury that horse with the fact that OBAMA has never really done a damned thing but talk a good talk. He and the Democrats are bought off by the special interest groups and big business, and if you don't know that YET, you will when congress has to again raise taxes and they start pulling it out of the average Joe and Jane's butt!
    The Demarcates past a little tax relief bill to make themselves look good, and show just how in touch they are with the average guy on the street.
    We have hundreds of social programs that need money. Where do you think that is going to come from? It will not be coming from big business and special interest groups, they have the Democrates shorts tied in a big knot! Who do you think has been funding Obama's campaign. NOBODY can be that ignorant to believe he has gotten this far with our nickle and dimes.
    WE the People will pay for this bail out, while the executives are overseas in their mansions, laying the beach, drinking a cool drink and spending their billions.

    • Posted By: saulmelissa @ 09/25/2008 2:54:38 PM

      Per McCain's 60 minutes interview, he still thinks that Deregulation was the right thing to do. He was all for it then, what's up with that?

  • Posted By: paulte @ 09/25/2008 2:49:10 PM

    I think the companies should be required to pay back as much as they can over time. There is no free lunch! It's kind of hard to understand but from what I can make out, the govt will own the properties of the bad debts it pays for. So in better economic times, it can sell the properties off. This will pay off some of the $700B. The rest of it should be paid off by the bailed out companies over time by a special tax of about 3% on their profits for say 30 years. That way they will be less inclined to pay out exorbitant bonuses or inflated compensation. Also, they should pay back the the $700B (minus the govt's sales) with interest at a fairly low rate of about 3%.

  • Posted By: LOLOSMITHJOHN @ 09/25/2008 2:48:48 PM

    THE BAIL IS GOING TO COST TAX PAYERS ALOT. SO I WNAT TO MAKE SURE THE LEADERS OF THIS COUNTRY GET'S THIS THROUGH THERE HEAD, " THE MONEY IS TO HELP OUR ECONOMY, NOT TO BE USED IN ANOTHER WAR" LISTENING TO MACCAIN IT LOOKS LIKE HE WOULD ATTACK MILLION OTHER COUNTRIES, NOOOOOOOOOOOOOOOOO, NO CHANCE MAN, THIS MONEY IS NOT GOING TO BE USED FOR TANOTHER CRULE AND NONSENCE WARS. LIKE THE ONCE WE HAVE THAT HAS PUT OUR ECONOMY TO THIS STAGE.

  • Posted By: wrkdhrdfornada @ 09/25/2008 2:37:36 PM

    I agree that the banks should not walk away clean, but does anyone here have a 401k? Its not just the bigshots that have money invested in the market. Its people who have worked hard for many years saving little by little hoping for decent retirment because they were told they were doing the right thing. There are few work places with full blown pentions anymore. This is one of the reasons the bailout is so important.

  • Posted By: olderwiser @ 09/25/2008 11:31:26 AM

    How would you like to be able to see when your favorite sausage is made? If you are fearful of what it's ingredients might be, then you don't want to see it being made. If you feel that the ingredients are healthful and nourishing, then you would like to see it made.
    The bailout is much like sausage with unknown ingredients. This is written in the article above and both Paulson and Bernanke admit that they do not know the full extent of the ingredients.

    Not bailing out would result in all of the ingredients of the failure being visible and out in the open. She all crashes to a certain level, all of the violators go broke, congress legislates preventive measures so that it won't happen again, and then we start from scratch, broke but wiser.

    Those who weathered through the great depression tell of hardship, but they also tell of the warmth of family and friends through all of the hardship and the lessons learned by all of the failure of markets, and the pride that was taken in the hard work of rebuilding a secure system is evident in all of the stories. We seem weak and fearful now of the unknown. But, I wonder if maybe instead of trusting a goodly part of our nation's wealth to people who will work behind the scenes to "rescue" us, we might opt for the known instead of the unknown and just go ahead and face reality today instead of eating a sausage made of unknown and questionable ingredients.
    Just a thought. Could be just as wrong as right.

    • Posted By: does not work @ 09/25/2008 12:50:51 PM

      There should be no bail out and there will not be anything like the great depression as there are too many safety nets in place that will provide a means of support for people that may be hurt in this. On the other side are people who were smart and saw this coming, positioned themselves in a manner to make money on the downside and now the government steps and cheats causing them to lose money. If we do not go through this correction we are just putting off the inevitable.

      • Posted By: palmbeach1 @ 09/25/2008 2:35:37 PM

        yes, I completely agree....they are taking away the opportunity for the intelligent to make something out of this mess. Completely UNFAIR!

  • Posted By: pinkpanther87413 @ 09/25/2008 12:35:58 PM

    What did we lose? The peoples pride!! For some reason I feel like I was just blamed for the market, and having supported a family of 4, on no more than 20,00 per year,but it's MY fault. The Economic policy is all my fault,, we the peoples,, not the Gov, but we the people are all at fault,,,that's what i herd Bush TELL me last night!!

    • Posted By: blackcourt @ 09/25/2008 12:43:22 PM

      What does the Government have to do with individuals taking out loans that they could not afford and banks for giving them? Really... please explain why it is "the Governments" fault that Americans no longer accept responsibility for their actions.

      • Posted By: pinkpanther87413 @ 09/25/2008 1:01:36 PM

        I never borrowed a dime, 8000 per year prevented it, but this IS STILL MY FAULT? We the people, or we the crooked, I'll walk away rich no matter what, bankers?

        • Posted By: palmbeach1 @ 09/25/2008 2:32:52 PM

          Exactly!!! I say let the economy collapse, maybe the baby boomers will wake up and realize they can't have it all just because they think they deserve it!! What happened to hard work and ethics?? I worked in the mortgage biz during the boom, it was crazy and I know people put others into loans that they couldn't really afford. I know people frauded the banks...i know appraisals were done incorrectly and so on.....

          But I see a generation handed everything today form mommy and daddy's credit cards to cell phones and ipods and new cars and 2 carat diamond rings!!! People never had 2 carat rings unless you were a doctor's wife, today every Joe Schmo has one. People live way beyond their means today and everybody has to feel like a celebrity. I think a real wake up call is needed....I SAY LET IT COLLAPSE, IT'S ALL OUR FAULTS FOR BEING GREEDY OR NOT STOPPING THE GREEDY BECAUSE WE HAD WHAT WE WANTED ANYWAY!!!

        • Posted By: blackcourt @ 09/25/2008 1:08:42 PM

          You're in the same boat that I am then Pink. I rent an apartment because I know that I could never afford a House. But there are millions of Americans out there who bought into getting a home loan that they couldn't afford with the idea that they would be able to restructure their loan or sell the home for a nice profit. Speculation has ruined it for all of us.

  • Posted By: JENNY 21 @ 09/25/2008 2:28:20 PM

    I THINK IT IS A GOOD IDEA FOR THE PEOPLE WHO HAVE WORKED HARD AND THIS ECONOMY HAS HIT THEM BAD
    NOT FAIR TO LOOSE EVERYTHING YOU HAVE WORKED SO HARD FOR WE NEED SOME RESOLUTION THE GAS PRICES, THE ENERGY COST'S, THE FOOD COST'S HAVE SOARED LEAVING PEOPLE WITH NOTHING I THINK ALOT OF PEOPLE WENT IN OVER THEIR HEADS TAKING FOR GRANTED THAT THIS ECONOMY IN THE U.S. WOULD STAY GOOD AS WE CAN SEE IT HAS NOT AND ALOT OF PEOPLE ARE SUFFERING BECAUSE OF IT THE AMERICAN PEOPLE NEED HELP HERE AND IF YOU PUT A HEFTY DOWN PMT ON YOUR HOUSE AND CAN WORK SOMETHING OUT WHY CAN'T THEY HELP YOU FIX IT
    HOPEFULLY IT WILL ALL WORK OUT FOR THE PEOPLE THAT ARE IN NEED... IT'S NOT JUST THE POOR ANYMORE
    THAT NEED THE HELP AS WELL. THE UPPER MIDDLE CLASS AND MIDDLE CLASS WORKING PEOPLE ALSO NEED THIS BAIL OUT.....

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