Now, do you want to live with Obama as pres and a much bigger house and senate majority if there is no bailout and the financial structure heads south and all we hear for the next 45 days is how Republicans don't "care about the little guy?"
I don't see how we get out of this without either a financial meltdown or a political meltdown. We get one or the other.
It would be interesting to see how many of those earthquakes and other disasters actually come if the Treasury let the market decide the value of these mortgages.
I agree. We are between a rock and a hard place. Whatever the bailout, taxpayers must be reimbursed with tax credits or rebates whenever the economy recovers. No taking of the earnings and “spending” them on taxpayer “benefits.”
Larry, I can’t see this bailout being a good thing. If banks get the insulation from their bad debt, they will be very quick to pull the trigger on foreclosures so the taxpayer will take over the “asset.” Then we have the scenario of having bailed out the fat cats while regular folks are thrown out of their homes coming into elections. And later, when the government fire-sales the repos, how does that help sagging housing prices?
No....no bailout. Socialism is never the answer no matter who is doing it
If this bailout passes....McCain loses, easily. He can forget any independent voters, and Obama will rant on about McCain and the “bailout”
“I don’t see how we get out of this without either a financial meltdown or a political meltdown.”
If this Treasury plan does not get implemented, you will have both. The economy will tank and the Dems will win the Presidency and gain seats in the Congress. Then the costs will be much greater than $700B. And speaking of that, it is not a $700B cost (i.e. bailout). It is a $700B investment to free up credit in the markets. The government has the luxury of holding these securities until maturity if necessary, these companies don’t because of capital requirements associated with decreased asset values. As the economy & housing market improves the value of the securities the government will increase in value as well (or at least the underlying assets). Much, if not all, of the $700B should be earned back.
I’d rather invest $700B in these securities than spend much more than that in the Dem programs that they will pass, along with higher taxes, if they gain control of government.
My guess is some version of the Treasury plan will be passed by next week.
Perhaps a partial bailout where the CEOs and board members of the failed financial businesses have to forfeit their paychecks and golden parachutes and all money donated to any and politicians have to be returned to help fund the bailout.
AND, laws that restrict gov’t from ever doing this ever again.
AND, turn all but the most essential gov’t programs into NAFI’s (non-appropriated fund instrumentalities, can get a start up loan but must pay it and run a profitable business in the free market)
LS, It just take a little imagination. If #142 isn't a good alternative, something like that is.
Agree 100%.