Is this 700 Billion dollar bail-out--really be a MONEY MAKER?

Discussion in 'Congress' started by oreo, Sep 24, 2008.

  1. oreo
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    oreo Gold Member Supporting Member

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    I just heard & it makes sense. We are buying these bad mortgages for say .10 cents on the dollar. We all know that property values always go up eventually--so they sell them at .40 cents on the $1.00.

    That's a huge profit that could be put toward our deficit!

    Your thoughts?
     
  2. jreeves
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    jreeves Senior Member

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    There needs to be transparency is this bailout. By that I mean a website should be set up to allow the average voter to log in and view exactly where this money is going. I don't care who the hell is in charge of shelling out the funds, Republican or Democrat.
     
  3. CrimsonWhite
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    CrimsonWhite *****istrator Emeritus Supporting Member

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    The only way it would work is if there is a moratorium on foreclosures and the mortgages would have to be rstructured to be affordable before they are resold. But yes that is the idea if actually put into action.

    I just don't trust this guy to implement it without oversight:
    [​IMG]
     
    Last edited: Sep 24, 2008
  4. Chris
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    Chris Gold Member

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    I have a question. If the Federal Reserve is still loaning money at low interest rates, and the banks can borrow that money, why are we bailing out Wall Street?

    I have to explain this a little. As a realtor part of my job is to find mortgage money for my clients. Throughout this entire "crisis" I have had NO PROBLEM finding mortgage money. I called my loan officer today and asked him if there was any problem with him making loans. And he said that they had plenty of money.

    Now here's the other part of it. Bush suddenly sends this 4 page request to Congress for $700 BILLION DOLLARS. Part 8 of this request says that Secretary Paulson will have complete control over the money, and that there will be NO OVERSIGHT. WTF???

    Plus the timing of this thing is suspicious. They are telling us it has to be done before Friday or our whole economy is going to collapse. Bullshit. And this all is happening right before the election recess, so Congress is under enormous time constraints. It reminds me of Phil Gramm's derivative ammendment being slipped in to the appropriations bill right before the Christmas recess in 2000. Is this a last ditch effort by Bush's puppetmasters to raid the Treasury before they ride out of town?
     
  5. CrimsonWhite
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    CrimsonWhite *****istrator Emeritus Supporting Member

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    It stinks like hell. I highlighted the part that I believe to be true.
     
  6. frazzledgear
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    frazzledgear Senior Member

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    I've heard quite a few economists talking about this now. The real price tag for the buy out is not going to be $700 billion except in the short run. In the long term, it has real potential to end up as a profit for government. Still doesn't make me happy about it though. Whether government makes a profit or not isn't even on my list of priorities.
     
  7. editec
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    editec Mr. Forgot-it-All

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    If we take ALL the paper, yes.

    If we only take the banks bad paper?

    This is a collosal rip off.

    A massive transference of cash from the American treasury to the richest people in the nation.
     
  8. Toro
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    Toro Diamond Member

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    It could be.

    But I'm not sure what happens if home prices fall another 10%-20%. Homes are still overvalued based on rents and income. My guess is that there is still a lot of pain to go.

    To me, making credit more available at a lower interest rate so that mortgages are cheaper for people to buy - which is a big part of the proposal - is akin to having easier terms on margin for people to buy tech stocks in 2001.
     
  9. Ravi
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    Ravi Diamond Member

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    Why would they do that? Is it because they really do want to destroy the government and are anarchists at heart? I am mystified.
     
  10. CrimsonWhite
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    CrimsonWhite *****istrator Emeritus Supporting Member

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    Who the fuck knows at this point?
     

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