Posted on 09/20/2008 7:03:22 AM PDT by TigerLikesRooster
Naive question:
If a family got in over their head, and can’t make their house payment, what do we do? The bank forecloses. (The family gets a bad credit rating, which they probably already had, and finds a house to rent. It turns out there are plenty, including the one they just lost.)
If the bank has lots of foreclosures in a down market, what happens? The shareholders lose their money.
If the bank can’t pay back depositors because they lent out most of the deposits on bad debts, customers with deposits in excess of $100,000 lose their money. Everyone gets their money back up that amount from FDIC insurance.
So, if this $700 billion in FDIC payouts? No? So who is getting the money (my money)?
It won’t surprise me if it goes up to $1 trillion before the end of this year. We are indeed in a big trouble, since derivatives started to go off. Some folks are even saying that there are other things bigger than derivatives. Anyway we are in a big trouble.
When you bail out institutions that did wrong things, you are REWARDING bad behavior.
How much salary are the company execs returning as part of their malfeasance?
The institutions that own the mortgage backed assets, but they'll be selling them at a deep discount.
They are trying to prevent big financial pyramid from collapsing, which could cause depression.
"...and I for one welcome our new Chinese overlords."
As Obama would say, you’re asking questions above my pay grade. :-)
I believe the $700 billion is for bad mortgages only with a new govt agency formed to dispose of the mess.
If we go into recession or are already in one then I assume the number of bad mortgages will increase with the govt continuing to pick these up to save the financial institutions.
Absolutely. HMO's, no drilling to drive up oil prices, force sub prime loans, all so the "Gummit" can come to the rescue and save the people from the failures of evil capitalism.
So many other examples, so little time.
Well we are talking about “lesser of evil” options, no? So I say let’s just confiscate all the accounts of the top 10,000 wealthiest people to pay for it. Most of them are likely responsible for this mess anyway!
1. In our first Great Depression, where money was tightened, we got FDR as a result and all the mischeif since. I don’t doubt that the Dems would love having another Great Depression to have another 50 years in power. Don’t put it past them.
2. 95% of mortgages are NOT in trouble. The ones that are bad are backed by a house. Even if the house is in Southern California and was bought for $750,000 and it’s current value is $600,000, the house is not value-less.
3. It was the Federal Government that started this cr*p with loans to inner city dwellers (thanks a lot for one MORE turd, Jimmy Carter) and was expanded in the Clinton regime.
4. The top dogs at Fannie Mae and Freddie Mac were politically appointed, primarily democrats, were paid huge sums and had to know there would be hell to pay. Their timing for this election, to pay the devil his due, was pretty good.
And thereby cemented his place in history, as the biggest spender of all time.
ping
No it doesn’t.
Nah, they would just get rid of football and replace it with ping pong.
Thomas Jefferson
The buzzards are setting on the dead carcass of the republican party.
So everyone who was responsible financially has to tow the line for every greedy deadbeat and irresponsible financial institution that got the country into this mess?
Am I understanding this right?
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