Lawmakers Reach Accord on Huge Financial Rescue (ACORN's out)

Washington Post ^ | September 28, 2008 | Lori Montgomery and Paul Kane

[refermech]

If there truly is a run on the banks I wonder how much money the Fed would have to print? I think we know the effect of printing money. There are no good outcomes to this situation in my opinion.

[garbanzo]

There are no good outcomes to this situation in my opinion.

There are only less bad outcomes here. At least this one will buy us some time to fix the other issues.

[Allegra]

and there will be no set aside for an "affordable housing fund" that's just a cover for groups like ACORN.

And there you go.

I'm not thrilled about the bailout, but I'm glad our side was able to get that unmitigated cr@p removed.

[Goreknowshowtocheat]

No wonder Buffett is in..who wouldn’t be if I(your honorable servant taxpayer) was the warranty for your success. I just about lost it seeing Harry and Nancy strutting around the my capital after the “deal”.

[Goreknowshowtocheat]

Yep..that gives Barney, Nancy and Harry more time to fix other problems.

[Eric in the Ozarks]

Goldman has not been associated with the sub prime mess. They’re a pretty cold eyed bunch who probably pass on the martinis.

[dr_who]

Incredible.

[ding_dong_daddy_from_dumas]

>>Media silent and will leak nothing .............. check<<

Actually, FOX has been covering the attempted ACORN swindle.

[XR7]

Bush will sign this then the MSM and Democrats will blame him for giving his Wall Street cronies 700 billion. If a dumb schmuck like me could figure this out, wonder why no one else has.

That's why.

[Tempest]

This is kind of sad and funny. First Paulson came and wanted 100% a hundred percent of his demands. Then the democrats came and added 50% more pok to it. Now we the taxpayers are giving the pirates a 125%, yet somehow we’re all supposed to feel better about this?

[Mike Darancette]

BUMP

[SupplySider]

If there truly is a run on the banks I wonder how much money the Fed would have to print? I think we know the effect of printing money. There are no good outcomes to this situation in my opinion.

Good point. I don't know the answer to your query, and hope we never find out.

Since the S&L crisis some years back, I've thought that every bank and brokerage should be required by law to offer two types of acccounts: federally insured accounts where the bank is required to keep 90% of the balance in T. Bills and pay commensurately lower interest, and normal accounts that are not guaranteed and pay normal interest.

The papers you sign to open an account would be required to state in big red letters above the signature line either "This account is federally insured for the full amount of the deposit" or "This account is not insured. You may lose up to 100% of your deposit. The safety rating of this bank is "A" or, excellent (or "B" good, "C" fair, "D" poor, "F" unsafe). Please read the paragraph below for details on the federal safety rating of this bank ( which would be based on the bank's liquidity).

Then, in a crisis like we're having now, you simply let the bad institutions fail, and the people who lose money due to desire for risk and return accept their fate.

A similar warning could mandated for a mortage contract: "THIS IS AN ADJUSTABLE RATE MORTGAGE. IF INTEREST RATES RISE YOUR MONTHLY PAYMENTS WILL RISE. IF YOU CANNOT MAKE THOSE PAYMENTS YOU WILL LOSE YOUR HOUSE TO THE LENDER". Then, as with banks (and brokerages, insurance companies, etc), let the chips fall where they may.

Sorry for the rant, this has been a pet idea of mine for years!