Bunning Blasts Bailout

More Common Sense Needed in Washington

It seems like personal responsibility and sacrifice no longer apply in America. I am willing to bet the majority of people requiring help are up to their necks with other debt and would not give up luxury items like a cell phone, cable TV, or the internet to help pay their mortgages. It bothers me to think that more and more people are willing to pay for what they want but want someone else to pay for what they need. Why reward irresponsibility by punishing those who did the right things. We need more common sense in the Senate, thanks Senator Bunning.

Joe Naneville of VA @ Nov 11, 2008 08:52:31 AM

Bailout 2008

Bailout 2008,

Like a bloodied warrior,

laying broken and torn.

Like a dying soldier, hopeless and forlorn.

But the blood, it be green,

the color of money.

And the soldier is an economy,

and it is anything but funny.

Broken are it's people and shattered are their dreams.

Thanks to the ultra rich and their full proof schemes.

It is a tragedy with more pain to come.

Finance will be Hell, and their wills will be done.

Joe of AK @ Oct 19, 2008 23:35:15 PM

Congress didn't listen

I saw maybe 5 "economists" on the television before the bailout was voted in. All of them prefaced their opinions with the phrase, "If it works...." Is there some reason congress didn't pick up on the two letter word "IF"? What exactly are the odds in the bailout gamble? Maybe there's a reason most people don't invest in the stock market!

David from Arkansas of AR @ Oct 07, 2008 10:45:50 AM

Capitalism rescued by Marxism?

"I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a money aristocracy that has set the government at defiance. This issuing power should be taken from the banks and restored to the people to whom it properly belongs. If the American people ever allow private banks to control the issue of currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers conquered. I hope we shall crush in its birth the aristocracy of the moneyed corporations which already dare to challenge our Government to a trial of strength and bid defiance to the laws of our country."

- Thomas Jefferson, 1791 -

Bill of PA @ Oct 01, 2008 02:34:03 AM

The Bailout for Americans BY AMERICANS!!!!!

So let's assume a tax rate of 30%.

Every individual 18 years old and up has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam. But it means that every adult 18 years old and up has $297,500.00 in their pocket.

A husband and wife team has $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family?

Let's think about it.

1) Pay off your mortgage - housing crisis solved.

2) Repay college loans - what a great boost to new grads

3) Put away money for college - it'll be there

4) Save in a bank - create money to loan to entrepreneurs.

5) Buy a new car - create jobs

6) Invest in the market - capital drives growth

7) Pay for your parent's medical insurance - health care improves

8) Enable Deadbeat Dads to come clean - OR ELSE!!!!

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting

back. And, of course, for those serving in our Armed Forces.

If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ("vote buy") economic incentive that is being proposed by one of our candidates for President.

If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18 years old and up!!!!!!!!!!!

As for AIG - liquidate it. Sell off its parts. Let American General go back to being American in General. Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't. Sure it's a crazy idea that can "never work." But can you imagine the Coast-To-Coast Block Party! How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85

Billion.

"We Deserve It Dividend" is for the nation more than the geniuses at AIG or in

Washington DC.

And remember, The "We Deserve It Dividend" plan only really costs $59.5 Billion

because $25.5

Billion is returned instantly in taxes to Uncle Sam.

Ahhh...I feel so much better getting that off my chest.

Kindest personal regards,

A fellow AMERICAN!!!!!! that wishes best for other fellow AMERICANS.

PS: Feel free to pass this along to your pals as it's either

good for a

laugh or a tear or a very sobering thought on how to best use

$85 Billion!!

Keith of KS @ Sep 26, 2008 22:37:33 PM

Bunning may be an idiot, but Mr. Lesondak is not

I am glad to know someone out there does their homework! If everyone really knew how this all worked, maybe the ball could start rolling on turning this economy around. It makes sense to me, and I'm sure it makes sense to those who have proposed it. Why not explain it to those that it doesn't make sense to? Knowing is half the battle!

Barbara T of MI @ Sep 26, 2008 15:02:57 PM

Bunning is an idiot

First, why $700 Billion? Is it because that is the biggest number that the president can count to? Is it the number of collective brain cells of the congressmen and congresswomen in opposition to this proposal? No. As a matter of fact, that number $700 Billion represents approximately all the bad mortgages (THE ROOT CAUSE OF THIS WHOLE MESS) or 5% of all mortgages in the US.

The $700 Billion is not to bail anything out. It’s a means of buying low, cheap mortgage debt now, in an effort to take away the bad debt on Wall Street only to sell back to them at a later date. And with all the bad debt out of the market banks will begin to lend to other banks, the stock market will soar, you and I will become better off, the economy will heal and home prices will begin to rise because people will be able to borrow money again.

At that point, when home prices rise, some mortgages that were attached to foreclosed homes that were sold, will be paid off upon sale (that money will go back to the Government to pay back a portion of that $700 billion) the ones that aren’t paid off, the government will sell back to the banks they bought them from, or to other banks. These banks will buy the mortgages because they are attached to the asset, that is the home, of people like you and me. You and I won’t have our homes paid off, so that means the banks can make money from the interest rates they charge us on our mortgage. This will most likely pay back ALL if not more of that $700 Billion….so, once again, tell me exactly how this is a bailout? At that point, it will be extremely important that you and I don’t live beyond our means so as to not get into this fubar-ed situation once again...so everyone needs to take a friggin econ class before they graduate high school and into college as well.

If nothing happens….we are screwed… Have you heard of an economic index called “The TED SPREAD”? It measures the change of interest rates that banks charge other banks when they borrow money. The TED has been increasing dramatically since this whole mess started. Who cares right? It’s how banks tell which other bank they can trust will pay back their loans. It’s a good way to see what other banks think of each other. If they see loaning out money as a low risk, it will be cheap for banks to loan and borrow money and the TED will be low. Why has it been increasing? Because banks have been increasing the rates they charge other banks to loan to them. It is too risky to borrow money since no one knows who is holding all the bad debt, no bank knows which other bank will screw them over and not pay back their loan. Therefore banks either lend at high rates, or don’t lend at all. Why does this matter? It matters because, this lending trickles down to us. If we know that the government owns all the bad debt (because of the $700 billion) and the banks know that too, then the risk drops, the TED drops, and commerce will continue as usual, and the DOW will rise, and so will we.

Tom Lesondak of MI @ Sep 26, 2008 14:00:06 PM

Bunning is an idiot

The term “Bailout” is wrong and misleading. A true bailout is when someone gives you money that you don’t deserve and thereby bails you out of your debt typically getting nothing in return, and that’s the end of it. That is not what the government is trying to do here. They are buying low now with an intention to sell high later. Buy low and sell high, isn’t that the smart way to do things? Then why do people think this is a bad idea? They think it’s a bad idea because they don’t understand. Let’s say there was a home worth $100K and you were to buy it as a foreclosed mortgage for $50 K, if you fixed it up, you could sell that house for more than $50K and make a profit. If you took a mortgage out on the home, the company that did the title search would find out who owned that crappy mortgage and that owner would get paid FIRST when the house is sold. That is essentially what the Government is proposing to do here except on a massive scale, so multiply that $50K by a factor of 14 million and you get $700 Billion. When the homes that house these foreclosed mortgages are sold, they, the U.S. Government…or YOU the TAX PAYER would be paid FIRST just as the 1st lien position on a home is paid when it sells, you also would be paid….so who is getting bailed out?

They want to do a reverse auction to these banks holding the crappy debt (in much the same way that a foreclosed home drives the price of itself down as compared to other homes, these banks competing with each other to unload their smelly debt will drive down the price so that the Government can buy them really cheap.) That means that they won’t over pay for them. The Government will buy the mortgages from whichever bank will take the least amount of money. Then, in a few years, when the economy rises, they will sell them back and get their $700 billion back…possibly more because like the example of the $50K above, the Government will have bought the mortgages for much less than the house attached to those mortgages is worth.

I am mad that the president wasn’t more clear and concise on his explanation of what is going on. Many people I have spoken with have no clue what is going on. To use a stupid term like “Bailout” is beyond reckless, but rivals the legendary iceberg that sank the titanic because misinformation is spreading like a virus and this confusion will eventually sink our ship. If it is allowed to continue to spread, we will inevitably believe people like Kentucky republican Jim Bunning who said the plan does nothing to help struggling home owners or bring a stop to the slide in home prices…this massive bailout is not a solution. His ignorance on the subject is staggering and serves to drive us deeper into this abyss. Does this man not know that it is supply and demand that raises and lowers home prices and not some Government plan? Let’s look at this $700 billion plan, shall we? First, why $700 Billion? I need more room...look for my next comment below :)

Tom Lesondak of MI @ Sep 26, 2008 13:57:59 PM