Is This Really a Long Term Fix?

[rayboyusmc]

But nobody should view even this effort as sufficient to keep the U.S. economy out of recession, stabilize housing markets or prevent the failure of additional banks, investment houses, insurers and hedge funds. Although more than $600 billion in private-sector credit losses have already been posted, a number of private and public-sector analysts now estimate that won't be even half the final tab from the bursting of the greatest credit bubble the world has seen.

The normally sure-footed Paulson stumbled badly last weekend when he rushed to the Capitol with a vague and poorly explained proposal that all but invited politicians and the news media to label it as a "$700 billion bailout for Wall Street" -- a moniker from which it nearly never recovered.

washingtonpost.com

 

[dilloduck]

washingtonpost.com

Of course not and they all know it.

 

[editec]

No.

They'll be back to fleece us again just as soon as enough of us recover from the shock to the system.

SAVING AND LOAN bailout? Remember that fleecing we took?

Well, here comes another fleecing, citizens

Just in time for winter, too.

 

[WillowTree]

I'm watching C-span, It sounds like this won't pass if they hold to Nancy's standard which is a majority of the conservative Republicans. I'm hearing a lot of no votes and some even from Democrats.

 

[WillowTree]

No.

They'll be back to fleece us again just as soon as enough of us recover from the shock to the system.

SAVING AND LOAN bailout? Remember that fleecing we took?

Well, here comes another fleecing, citizens

Just in time for winter, too.

200 Billion dollars lost that time. and we didn't even squwak. I hope youse guys are sqawking this morning.

 

[Ravi]

No, it's a bandaid, imo. Though I was just listening to Galbraith on NPR and he claims it won't cost anything near 700 bil. But, wtf knows?

 

[xsited1]

washingtonpost.com

Nope. It's political posturing. It'll just put us more in debt and give the government more control over our lives. Check out what this lady has to say about it:

[ame="http://www.youtube.com/watch?v=oAADyc6t4nY"]Insider Trading[/ame]

 

[WillowTree]

they keep trying to tell us the "taxpayer can make money on this deal" bullshit. if there was money to be made they would not be foisting this bad debt off on us.

 

[Mad Scientist]

Rayboy, aren't you old (experienced) enough to have heard this all before?
Congress yells "The Sky is Falling" and they want a lot of money, NOW to prevent disaster. Bullshit!
Now that it looks like the bill will pass, many are starting to admit that this won't work as advertised. What a surprise! I didn't see that coming at all!

Listen if someone came to your door with this same goofy "sky is falling" story you would say "go away" and shut the door. We should do the same with this bill.

they keep trying to tell us the "taxpayer can make money on this deal" bullshit. if there was money to be made they would not be foisting this bad debt off on us.

Can someone please point out to me when was the last time government made money doing anything?

 

[gonegolfin]

I'm watching C-span, It sounds like this won't pass if they hold to Nancy's standard which is a majority of the conservative Republicans. I'm hearing a lot of no votes and some even from Democrats.

Yes, the Blue Dog Democrats and most of the conservative Republicans are against this bailout. Good for all of them!

Brian

 

[rayboyusmc]

Well, it failed in the House.

Let them eat cake.


I didn't know that this remark came from Marie Antoinette. Cake was the broken crumbs that fell off the bread when it was baked.

Maybe we need some heads to roll figuratively like Marie's did literally.

 

[Mad Scientist]

Maybe we need some heads to roll figuratively like Marie's did literally.

Agreed. Let's start with the people involved with Fannie Mae and Freddie Mac and those that pressured them to give bad loans.

 

[Ravi]

Agreed. Let's start with the people involved with Fannie Mae and Freddie Mac and those that pressured them to give bad loans.

No one did.

 

[rayboyusmc]

I believe that the Bush Administration changed some of the loan process from mandatory to voluntary when doing the credit check.

At the end, all I had to do was say that I had a job and earned so much and I could get the vote. There was no check. In fact there was a whole new job category of experts who would say that yes if so and so applying for the loan was carpenter, fill in the blank, they could be making that much.

This is not all about loans to minorities. This is about a loan process that didn't check out in any reasonable way if the person making the loan was able to meet the payments. There were people who tried to buy more than they could afford and there were people who were speculating.

Let's talk about deregulation.

 

[Care4all]

Agreed. Let's start with the people involved with Fannie Mae and Freddie Mac and those that pressured them to give bad loans.

do you really believe the financial industry outside of fm/fm would not have lobbied and had enough power to push back at congress if this were what they really wanted, when they had enough power to get a $700 billion dollar bailout on to the hill in less than a week through an insider in the administration and insiders within congress???

I DON'T THINK SO....

the banks saw a lot of easy money in this....fannie/freddie aren't half the problem....

care

 

[Mad Scientist]

do you really believe the financial industry outside of fm/fm would not have lobbied and had enough power to push back at congress if this were what they really wanted, when they had enough power to get a $700 billion dollar bailout on to the hill in less than a week through an insider in the administration and insiders within congress???
I DON'T THINK SO...
the banks saw a lot of easy money in this....fannie/freddie aren't half the problem...

Yeah I'm sure FM/FM are blameless in all this. That's why the FBI is stepping in.:
FBI investigates Fannie Mae, Freddie Mac, AIG and Lehman Brothers - Times Online

The FBI is investigating Lehman Brothers and three other contributors to America’s financial crisis to determine whether they put pressure on ratings agencies to award top ratings to securities they issued.
Concerns that Fannie Mae, Freddie Mac, AIG or Lehman may have sought to encourage agencies to inflate their ratings — by offering higher fees or the promise of more work — form part of a broad inquiry by the bureau.
The agencies are widely regarded as having failed debtholders by attributing the top ratings to many securities that turned out to be extremely risky and have lost investors hundreds of billions of dollars.
The FBI, which is also investigating whether any of the four institutions deliberately misled investors about the true health of their assets, is expected to demand that they “hold all papers and e-mails under lock and key” as it sifts through the evidence, a source said.

 

[Care4all]

Yeah I'm sure FM/FM are blameless in all this. That's why the FBI is stepping in.:
FBI investigates Fannie Mae, Freddie Mac, AIG and Lehman Brothers - Times Online

yes, the whole thing was made up of a bunch of scams from a bunch of different factions....it was the perfect storm of scams, a house of cards, destined to fall....with or without the bail out...imo.

care

 

[WestCoastTruth]

I have never really liked this proposal, but I would have felt a bit better if they could assure me it would have worked and they would definitely not have to come back for more when they ran out.

I am sure I am wrong, but a part of me feels as if we dodged a bullet today.