Posted on 09/20/2008 7:03:22 AM PDT by TigerLikesRooster
Bush asks Congress for $700 billion for bailout
WASHINGTON - The Bush administration is asking Congress to let the government buy $700 billion in bad mortgages as part of the largest financial bailout since the Great Depression.
(Excerpt) Read more at newsok.com ...
Wrong. The RTC lost 120 billion. And this will lose far more that that. How is that you think we can throw garbage into a garbage can and have it come out as gold?
Exactly. Where is this $700 billion coming from? How will it ever be paid back? We take a loan from a country that hopes we will buy enough of their products to earn enough money to some day pay the loans back? It's a circular problem.
Pretty soon the bond market is going to say “see ya”. And the great USA is going to go bankrupt. And when it happens it will happen in a flash. This is all just throwing good money after bad. It is handout to the bankers who ran the scams. They get to suck the last little bit of life out of the US taxpayer.
Banks made home loans to increasingly lower quality credit risks because it was profitable to do so. The ability to combine poor quality loans into a single product and sell it off as AAA was the result of the financial ingenuity and fantastic salesmanship of Wall Street, not the heavy hand of government.
Attempting to portray banks as the victims in this whole sorry mess comes across as an uninformed partisan attack. You can keep repeating it on every thread, but it doesn't make it true.
I don't believe the banks are/were faultless. However, I don't believe they're the anti-Christ many on FR (and the Obama-ites/socialists BTW) wouold have us believe. I do believe heinous legislation is the greatest evil in this whole thing as many have been warning for years.
comes across as an uninformed partisan attack
What "party" do you feel you are being attacked by?
Tough new regulations forced lenders into high-risk areas where they had no choice but to lower lending standards to make the loans that sound business practices had previously guarded against making. It was either that or face stiff government penalties.
The untold story in this whole national crisis is that President Clinton put on steroids the Community Redevelopment Act, a well-intended Carter-era law designed to encourage minority homeownership. And in so doing, he helped create the market for the risky subprime loans that he and Democrats now decry as not only greedy but "predatory."
Yes, the market was fueled by greed and overleveraging in the secondary market for subprimes, vis-a-vis mortgaged-backed securities traded on Wall Street. But the seed was planted in the '90s by Clinton and his social engineers. They were the political catalyst behind this slow-motion financial train wreck.
The problem was setup by the Clinton administration. While Bush may have contributed to the problem at first, clearly the Democrats (and RINO's) prevented Bush from doing anything about it.
And about the banks, the required substandard loans caused most of the problem. How you, Chris Dodd and Obama can dismiss that I will never know.
I think the thing that bothers me most about all of this is the general population absorbing the risk for all these extremely wealthy bank CEOs etc.
If we do not share in the profits we should not cover their lossese.
I agree with you that those responsible should not be able to profit off of this crisis.
That's your opinion. I would call yours an uninformed, big-government, Chris Dodd talking point.
Was it that much? Ouch. The difference here is that these securities have actual value, although not face value, but since there is no money available to buy them, cash becomes king and you can extract a negative premium from the holders in exchange for liquidity. Then you release them slowly over time, once the market returns to normal, and you get your return. Hopefully.
2008? How informed you are.
Nevermind the CRA in 1977 and Bill Clinton's new CRA regulations in 1995.
Millions of American DID profit because banks were there to lend them money.
Sure, some banks got over-heated and engaged in fraud, but some didn't...yet they still were mandated to sell loans to people they really didn't want to sell to.
The populist rhetoric, of course, is to hate the banks and the "evil CEO's" but without these people the wealth that many average Americans are sitting on today would have never existed.
Also, it allows McCain to run to the right of the President.
Yes check out this article:
http://www.freerepublic.com/focus/f-news/2086534/posts
Over half way down is your answer. I think that the government is planning on paying far more than these are worth. And they will loose value from there. This bill is not going to stop what is coming. It might save some bankers, but it will not save us. So many different aspects of the financial system are starting to fail now. When you try to buy your self out of recessions(By blowing bubbles) as has been the case for many years now. Then you set yourself up for the great fall when the many excess’s of that period all come home to roost at once.
Now they are trying to buy there way out of it again. But it will not work this time. We always needed to live within our means in order to maintain an even level of reasonable, but not exorbitant prosperity. The price for not doing so is high. This bill will make it much worse in the end.
He could tell the nation that we cannot forever live above our means, that the era of government treating the dollar as if were monopoly money is over. I think his standing is high enough to embarrass Congress into actually taking constructive action rather than pass our problems to the next generation.
>>So who’s going to bail out the US government when it goes belly-up?
China, people. Communist China. They already own a serious percentage of our debt.
This country is being pushed headlong into stark Communism. Jorge Bush and his administration are selling our most basic principles up the river, and I don’t see the two leading candidates for president doing any differently. The government is no longer about securing the freedoms of private enterprise, but to now “own the means of production” in this massive power grab.
God help us all.
>It is a golden opportunity for McCain.
If he takes it, instead of falling in line with the rest of the mainstream GOP, partnering with the Dims in this despicable government power grab.
We can hope.
Jeesh. Why not ask for a trillion? Who in the hell is Bush’s financial advisor?
Socialist nonsense!
The Federal Reserve banks.
Or ANYWHERE ELSE IN THE WORLD worth living in. The only countries with what you goldbugs call a "real" currency are places with an economy that even North Korea wouldn't envy.
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