It would buy two million houses for $350 thousand dollars.

Hey, just think, that would make those useless mortgage-backed securities worth something. Why not bail out the companies AND stop people from being foreclosed. How about some percolate-up instead of trickle-down economics. I think it would help the economy more, and we might as well bail out everyone who didn't deserve it. Call it the Forgiveness Act, or the Jubilee Act.

I think when this woeful betrayal of a buy out goes through, we're going to regret that we didn't do this.    

First of all, let me be clear that I don't like this.  

But to get pragmatic, it is not costing $700 billion in the sense that $700 billion will be spent and nothing gotten.  At the very worst, it is buying overpriced properties that are not worth zero.  If the properties are over overpriced by double the amount, it is only "costing" half the amount, since it is getting half the amount in assets.

In fact, many properties may only be at 10% over value.  What ever it makes it worth it for the borrower to have walked out, is the value.  If it represents a house that is worth $900,000, but has a million dollar mortage, the feds are getting it at 10% over,

Second, the property may well to up in value in the next few years.  A lot of the Dems backing the bill think that it is possible that for this amount the Feds could make a trillion - i.e., a profit of $100 million.

In fact, past "bailouts" have worked that way.  Chrysler did not cost the feds anything in the long run, and in fact they made a profit.  The profit the U.S. made was IN ADDITION to keeping a major car company running, employing hundreds of thousands of people and all the benefits that go with it.

Finally, the money is buy peace of mind for Wall Street which opens tomorrow.  Wall Street is valuable to every teacher, fireman, plummer, doctor, lawyer, supermarket cashier, and actor who has a pension.

As I said, I am not wild about the deal, but there is not need to make it sound like a give-away to the "fat cats."  That is why the left is accused of engaging in class warfare.  (If it is just a give away, then the Dems are really to blame as well, since they are the ones opening the trough.)

-- Modified on 9/28/2008 10:13:09 AM

Say yes and I'll quit making payments this month, quit my job if required.

I actually suggested this one week ago, tongue in cheek of course. The absurd comes true.

-- Modified on 9/28/2008 10:56:38 AM

THE ONE better hope the REPs like DEmint Shelby and the House REps are not able to get their portion of the bill passed that does not favor Wall Street because if they do Obama is screwed

RightwingUnderground and dncphil  

I can't remember which righwing personality promulgated this idea tongue in cheek but instead of buying a bunch of houses,  why not give every "LEGAL US CITIZEN OVER THE AGE OF 18 250k INSTEAD OF BAILING OUT....."

What do you think of that 9-man-monster-man?

The right wing personality called it "a legal citizen dividend."   Truthfully, I think it's interesting.  I think it's just as good as the dem proposal of bailing out FannieMae.

-- Modified on 9/28/2008 11:53:31 AM

-- Modified on 9/28/2008 11:57:21 AM

And don't believe all those dumb emails circulating.

700 billion divided by 200 million is only 3,500/person.

250k X 200 million= 50 trillion.

[sarcasm]Yes, if a problem can't be solved by individual effort, it's not worth solving, right? [/sarcasm] Every time conservatives say this, they sound more block-headed and more out of touch.

The government is about to make the biggest buy out and nationalization in history. And you suggest that a guy do it. How? By putting together a handful of volunteers to work a hundred million in their spare time rescuing the finance industry. Not the people taken by these crooks, mind you, but the actual crooks.  

There are some things that can ONLY be done by government. You should know that, but you have a cynical disregard for the reality of it.  

-- Modified on 9/28/2008 9:10:14 PM

are each totally responsible for their own success?

Yep. They built and attended their own schools, paved their own roads, test their own water and air for safety, insure their own deposits, and protect themselves form evildoers.

are always looking to blame someone for their lack of success, or for a handout.

"are always looking to blame someone for their lack of success, or for a handout."


What a timely post given that Wall Street is standing there with their hat in hand, asking, "Brother, can you spare $700 billion?" all the while looking around to blame someone else for their misfortunes.