Better Ways to Sell the Bailout

The bailout

The fact is the taxpayer will be paying for the bailout. And I feel like that the taxpayer should get a % of each bank and company that got some of the money from the bailout. What do you think ?

Ric B of AL @ Oct 29, 2008 13:06:14 PM

private institutions

private institutions and greed started it all

Ric B of AL @ Oct 29, 2008 12:58:56 PM

just wondering ...

Not to sound like McCain... but i'm no financial expert. So i wonder: if the the CEO's and Execs of these failed banking companies walk away w/ millions, maybe billions -- and if this bailout is so financially beneficial - y couldnt they pool their monies together, buy the debt, and make a profit after the dust settles? Really - why involve the taxpayers? ..

T. Hampton of PA @ Oct 03, 2008 21:48:47 PM

Predictably irrational?

I think not. It surely isn't rational to gloss over a failure by a government mandate to allow unqualified person(s) to get loans. It surely isn't rational that corporations that then repackage (read that hide!) these high risk loans into "securities" for sale are then actually covered by government (read that taxpayers'!) money. And all of this AFTER the government has already subsidized Freddie Mac, Fannie Mae and AIG at well over a cost of $300 Billion.

Let's get real, if the boys and girls in charge of these corporations didn't realize that with potential reward there is always risk, they should look for a new job anyway. It's not without purpose that we have bankruptcy laws, let them be used.

And the final nail in the coffin of this bailout issue for me is that this all smacks of fraudulent practices, which should be investigated and prosecuted to the fullest extent of the law. The US doesn't deal with terrorists, so why the devil do we insist on rewarding white collar criminals?

Dan Lane of MO @ Oct 01, 2008 17:20:53 PM

Dartmouth/Paulson out of touch with real world

I typically dont post on blogs but the response from the Dartmouth Dean baffles me. I am in the mortgage industry (and no I did not originate this stuff) and I dont know how on earth he thinks America could possibly make money by buying these "troubled assets". The sliding scale that congress proposed starts at 70 cents on the dollar for the cleanest of the portfolios on down to 30 cents. Right now Hedge funds are coming in at 30-40 cents on the cherry picked loans. The problem is the values in Temecula, CA and Kissimmee Florida, WILL NEVER reach the proposterous values that appraisers were being forced to come up with all the way through 2007. This is compounded by the fact that the lionshare of these mortgagors couldnt afford them on the first day they moved in, let alone after the neg am, arm changes and escrow increases. Most servicers of this paper are seeing default rates on these loans in the high teens to mid twenties. The end of that road is foreclosure/REO or short sales which are even more heavily discounted. So you are back at the begining and have to sell the property. Where is the margin for profit in 70,60 or even 50 cents on the dollar with the depreciation we have seen. Oh, and I forgot, you are now trusting a government organization to effectively service and administer these assets and do it quickly. Let businessmen make these decissions not politicians or deans of ivy league politico factories.

RF of TX @ Oct 01, 2008 16:05:22 PM

modification

I dont see why congress doesnt put this money into modification companies. My sister used a company named www.proloanmods.com who charged her $2000 and got her rate cut in half and fixed. instead of borrowers having to pay these modification companies there processing fee government should pay it for homeowners and then that will curb all the foreclosures

bobbie mcguffin of MI @ Oct 01, 2008 16:05:06 PM

Bailout???

I am having a real hard time with this bailout thing. I am unhappy with all this help me stuff. Why is this the taxpayers problem? The Congress and Senate are the ones that let this happen. I understood that if we didn't pass this bailout by Monday that the world was going to come to a end. Guess what I'm still here. I think the scare tactics are alitte much. Yes some people will loose their homes, and still some will loose their jobs, and the financial institutions wont have money to lend at a whim, and new cars will be hard to come by, BUT, jobs will come, loans will come, and there's a car lot on every corner. We are still here and we will make it no matter what. We just don't need the "bailout, handout, or saleout".

It is time to reform our "give me government" It'a not enough that we pay them well and supply them with benfits that none of us will ever get...now they have to make us pay even more for their screw ups. Its not Wall Street that we are bailing out it's all the financial institutions that our government turned a bind eye to.

The media keeps saying that more taxpayers want this thing now. I'm not sure where they are getting their info, because I haven't changed my mind and neither has anyone I know. Maybe they think that if they keep saying it we will all believe it. NOT!

Rebecca S. of @ Oct 01, 2008 15:08:06 PM

The Bailout

The definition of Corruption is: "impairment of integrity, virtue or moral principle; depravity, decay, and/or an inducement to wrong by improper or unlawful means, a departure from the original or from what is pure or correct, and/or an agency or influence that corrupts”.

We hire lawyers , of all people, to go to Washington who accept money from lobbyist, who are paid money by large companies to convince OUR representatives to vote in a way that benefits their client. Hello, hello, is this thing on; is anyone there?

Aubrey Clark of GA @ Oct 01, 2008 14:25:14 PM