Analysis: Washington's Trillion Dollar Wall Street Bailout

OBAMA and McCAIN

BOTH THESE PUKE-BAGS VOTED FOR THE AMERICAN TAX-PAYER TO PAY AN ADDITIONAL TRILLION OUT OF THEIR OWN POCKET.

SADLY enough, the American will vote mainly for these two.

I'M VOTING INDEPENDENT, THE GOP AND DEMOCRAPS BOTH SUCK.....

AL TRAUTMAN of LA @ Oct 02, 2008 09:51:07 AM

A positve solution for all

We have more EMPTY foreclosed homes in America now than ever before. Why are there so many EMPTY foreclosed properties not sold? It's because the price tag is inflated. If the federal government seized these EMPTY foreclosed homes and liquidated them immediately at an affordable price tag they would sell. Why are these banks/mortgage/loan companies holding on to overpriced EMPTY foreclosed homes? Is it because they are waiting for the bail-out money from the government and then sell the homes at the inflated prices to people who do not qualify? Stop the real estate bubble inflated cycle now! This solution will provide much needed affordable housing to mainstream America, increased tax revenue and will revive our sagging economy.

Respectively Submitted,

Rhoda Pack

Rhoda of CA @ Oct 01, 2008 20:58:08 PM

The Wall Street Bail Out

Why not le Wall Street bail out Wall Street. This is how it could work for every trade pay 7 dallars. For every negaive trade when you bet the stock will go down pay 50 dollars this would create a tidy sum of money. The most difficult task would be to keep people from stealing the money in no time this plan would generate 700 billion. I realize this would be a tax on people and institution that do trading but I think it could be absorded without great ill effect.

arilyn Ricketts of MO @ Oct 01, 2008 19:49:01 PM

Bailout?

It's worth recalling that our country dealt with far more credit problems in the 1980s in a far harsher economic environment than it faces today. About 3,000 bank and thrift failures were handled without producing depositor panics and massive instability in the financial system. The FDIC could announce that it will handle all bank failures, except those involving significant fraudulent activities, as assisted mergers that would protect all depositors and other general creditors. This is how the FDIC handled Washington Mutual. It would be easy to announce this as a temporary program if needed to calm depositors. An additional benefit of this approach is that community banks would be put on a par with the largest banks, reassuring depositors who are unconvinced that the government will protect uninsured depositors in small banks. Having financial institutions sell the loans to the government at inflated prices so the government can turn around and sell the loans to well-heeled investors at lower prices strikes me as a very good deal for everyone but U.S. taxpayers. Surely we can do better.

Steve Walker of AR @ Oct 01, 2008 15:34:34 PM

wall street bail out

In no way should the government use taxpayers funds to bail out wall street or any company. If politicians in Washington had been representing the people instead of themselves and the special interest they have sold out to it would not be necessary. Instead the politicians have let the greedy crooked corporate executives run free way too long and continue to expect the taxpayer to bail them out. Let the greedy bail themselves out, even if it means the country goes into a depression. Maybe then people would wake up to what the politicians and greed corporate executives have done to this country and start doing something about it.

Jimmy ray of FL @ Oct 01, 2008 13:38:32 PM

wall street bailout

People seem to forget that Wall Street was still buying these loans on the secondary market and somebody was providing the original mortgage money in the first place. Wall failed in

anticipating the end of the housing bubble (that the Fed helped

to create) and drastically overestimated the value of these mortgage back securities in the first place. Why was anyone

in their right mind letting these CDO corporations, Hedge funds, etc. get so leveraged is beyond belief.

Peter Principal of MO @ Oct 01, 2008 10:50:27 AM

Wall Street Bail-Out

The truth of the matter is neither Wall Street nor Main Street can afford this scheme to "pump" the American Economy where everyone gets a slice of the pie. There will be lives severly hurt on both street corners by this fiasco. It would be nice if just the principals were to be "insured" by the American taxpayers and companies holding those "bad" mortgages would have to break-even, not break the backs of families that perhaps have been trained by our consumer culture not to live within their means but help "stimulate" the economy so they "might" get a job. Just a trickle more debt credit per household should definitely save the American way of life and free business enterprise. While congress "must" act quickly to save us...I hope those fixed income, unemployed, uninsured and totally economically disenfranchised bankrupt people will be able to survive long enough to have the "opportunity" to foot the tax bill. Oops...I think Bush changed the rule about individual eligibility to declare bankruptcy and payback rules or was that the guys who are suppose to be trickling down a dollar or two. Hmmm...whether encouraged to lend money to the otherwise ineligible and misinformed...I don't think the Govermnet could demand a business to do anything and I'm sure the business did what they believed would make money...get as many of those "greedy" consumers to pay as high a interest rate for as long as possible; discount sell off and let the next guy try to run the scam until the well runs dry. Who would have thought that people barely making it would actually have less purchasing power over time in America...certainly not the trickle down guys James.

Janice of GA @ Oct 01, 2008 03:23:09 AM

Banks say: Take my losses, now give me back my taxes for the last 5 years.

On one of the blogs, one of the many items on an alternative senate bill is the following:

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Allow companies to carry back losses arising in tax years ending in 2007, 2008, or 2009 back five years, generating a tax refund and immediate capital.

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Wow! Now the banks are saying... Granted that these Mortgage Backed Securities are losses, and granted that the government is going to buy these waste paper securities, can you allow us to retro-actively re-distribute these losses over the past 5 years, and re-write our INCOME statements for the past 5 years, and since the INCOME shown will be lower, ask the US government (tax payer) to give us back the taxes we paid on the lowered profit TODAY, instead of claiming over the next N years.

FINANCIAL ENGINEERING?

Spread the word!

TechBustSurvivor of CA @ Oct 01, 2008 02:05:56 AM