Posted on 09/24/2008 4:48:17 AM PDT by Renkluaf
CONGRESS and the Bush administration must address the underlying issue in the financial crisis - foreclosures. The only real solution is to restructure mortgages based on what the homeowners can afford. This solution can be achieved on scale with little or no taxpayer money.
This unprecedented bailout of the predators is beyond comprehension. Wall Street and its advocates say the crisis is so complicated that no one could have predicted it. Yet now the administration is so sure of the solution that the American taxpayer must sign a blank check for $700 billion to purchase these "toxic" mortgages and bail out these companies. We have trusted the government before and are still paying the price in Iraq. Now Congress is ready to support it on a second request for a blank check.
It is unacceptable to provide such a huge amount of taxpayer money to be used under the sole discretion of decision makers who use the "idiot" defense.
(Excerpt) Read more at boston.com ...
On Fox News this AM, it was reported that bailout money is going to include money for mortgage companies, auto loan companies and credit card companies.
Atta boy, Sen. Biden(D-MBNA), Sen. Carper((D-MBNA)and Rep. Castle (RINO-MBNA). That’s looking out for the people!
The entire US Congress is a “den of thieves” and they will go to the guillotine muttering “What did I do wrong?”
the banks were predators when they didn’t make loans to deadbeats, greedies or the stupid, and now they are predators because they did
Why not? I mean we are already talking a trillion plus, now wrapping in credit card debt, car loans, student loans etc etc. What the hell, it’s all play money anyway at this point. sure, just GIVE all the poor souls their homes. Toss in a hundred K check to everyone, and we can all be RICH! /sarc
“From each according to his means,
To each according to his need”
-Karl Marx,
The Communist Manifesto
--Ludwig Von Mises
I like “no bailout”. See www.fedupusa.com.
http://www.freerepublic.com/focus/f-news/2089062/posts
For the last five years, I’ve reported on the rapidly expanding illegal alien home loan racket. The top banks clamoring for their handouts as their profits plummet, led by Wachovia and Bank of America, launched aggressive campaigns to woo illegal alien homebuyers. The quasi-governmental Wisconsin Housing and Economic Development Authority jumped in to guarantee home loans to illegal immigrants. The Washington Post noted, almost as an afterthought in a 2005 report: “Hispanics, the nation’s fastest-growing major ethnic or racial group, have been courted aggressively by real estate agents, mortgage brokers and programs for first-time buyers that offer help with closing costs. Ads proclaim: “Sin verificacion de ingresos! Sin verificacion de documento!” — which loosely translates as, ‘Income tax forms are not required, nor are immigration papers.’”
According to Tax Foundation.Org:
an estimated 135,660,228 people will have filed tax returns with the IRS in 2006.
Of that number 43,362,718 returns will have zero or negative tax liability (all pay no tax - some get money paid to them).
That means the actual number of returns filed that will have a tax liability are 92,297,510.
We have already had a $300 billion bailout for mortgage assistance and a bailout for AIG. Now they are asking for another $700 billion with no strings attached.
So lets assume that the current bailout schemes will cost one trillion dollars ($1,000,000,000,000).
That means that, on average, for each person (or household) that actually pays taxes the government wants to give away about $10,835 for a $1,000,000,000,000 bailout.
That does not take into account any interest to be paid which will increase the final cost by a factor of two, three or more, depending on the time it takes for the US to pay back the deficeit incurred for this boondoggle.
That would increase the average final liability to $20,000 to $40,000 or more for each one trillion dollars handed out.
BUT - the estimates from people hyping this program are no doubt very low because they really do not know how much bad debt there is or how much we will pay for it. And they don't want to scare off approval with a higher estimate at the start - they just want to get the money rolling in their direction.
When is the last time any government program came in under the original estimate?
There are other estimates floating around that the final bailout money cost could run up to $3, $4, or $5 trillion dollars.
At only $3 trillion plus interest we could see an average tax liability of $90,000 to $250,000 or more per tax paying person or household added to the national debt over the long term.
That will take at least another generation to pay off, assuming there are no other huge liabilities like war, famine, $25 a gallon gasoline, etc.
That means Goodbye America, at least as we have known it.
We won't have to quibble with each other about fighting the War On Terror or Ammerica fighting Europe's battles because we won't be able to afford it - and we won't be able to afford much else either.
As an example, even if we still had the military strength, how could we confront an aggressive move by China if we owe them $10 or $20 or $30 trillion dollars in money borrowed plus interest?
That's because the sub prime mortgage collapse is only the tip of the iceberg. I read that an estimate of $62 trillion of bad debt is floating around out there in the global economy.
I'd prefer a direct solution:
Fiscally sound taxpayers in each county directly pay the mortgage each month for a mortgage holder in default in that county.
This would allow the giver to know who they're helping, be able to give fiscal advice to the defaulter, and eliminate federal overhead.
.
how about just restoring the 2005 lien stripping of bankruptcy law.
This author is pushing an agenda not real solutions.
If a lender over inflated or assumed an unreasonable valuation, then the loan under the bankruptcy laws could be stripped of the unsecured portion of the loan.
People forget the lender is assuming the risk the collateral may LOSE value.
If a borrower can’t afford the ACTUAL VALUE of the collateral then they can’t afford the house.
including the auto loans is the auto dealer bailout,
however does this include FOREIGN car makers?
Mercedes? BMW? Rolls Royce?
Toyota? Hundai?
“This unprecedented bailout of the predators is beyond comprehension.”
This man is totally absurd. What’s beyond comprehension is why he wants to recreate the the situation that caused the problem in the first place. His choice of language also indicates that he is a liar.
I think the fiscally sound taxpayers in each county should seize the foreclosed houses and sell them for market value, using the proceeds to reduce taxes. Since banks, such as BOA, were so willing to give NINJA loans before, it should be easy to force them to give out sound loans now, even if they whine that they have no cash. The banks would get servicable loans and the ones who couldn’t pay their mortgages and property taxes would be removed as a burden on the county tax rolls.
I’m starting to think it would have been a lot simpler and no more expensive if we had just bought all of these CRA beneficiaries a house.
“it would have been a lot simpler and no more expensive if we had just bought all of these CRA beneficiaries a house.”
Not really....
90% of the CARTERVILLE’S (Habitat For Humanity) housing I’ve seen over the last 15 years has become a den of crime and drugs.
Last week, I watched a couple of Hispanics stripping wire and copper from one, in the middle of the afternoon. They were gone long before the cops got there. It was just another HUD repo.
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