Bailout Rejected

David Howard: No, we don't owe them anything, however, the bail out is the only chance we have to rescue our OWN assets that will be torn apart in this financial disaster. Let's get this clear - the Government have a duty to protect Americans, and they have let us down. The bail-out shouldn't be seen as rescuing greedy asses who deserve punishment, but saving Main Street and the savings of you and I. If we don't push this through then the results will be far, far worse than we can imagine. Yes, this was all started by a handful of greedy traders, but it is idiotic to put the halt on a bail-out that is designed to rescue the world from financial collapse. We shouldn't be so selfish to see it in that way and block its progress, and must also consider the rest of the world, who are watching our government and hoping that they can find a solution before we all go down with this ship. Plenty more honest people will be harmed than greedy bankers here, unless we allow this to go through.

Lily of NY @ Sep 30, 2008 09:01:16 AM

DOWNSIZE AND SHUFFLE THE DECK

Just a suggestion for an additional provision to the $700 billion bail out plan would be a form of downsizing and a shuffling of the deck. It goes as follows:

Take two types of homes:

a) Homes that have already been foreclosed

b) Homes headed for certain foreclosure

A new government regulated process, with accountability and transparency, oversees the transference of a current homeowner facing foreclosure into a smaller home that is vacant due to foreclosure. This would be done only if both parties are in agreement. The homeowner’s equities would be transferred accordingly to this foreclosed property. However, said property would have to be re-appraised to current values. The homeowner would have to be re-qualified based on their abilities to meet their current debt load and the new loan payment on said foreclosed property.

The new loan should be a (proposed) 30 year loan equivalent to the current interest rate (approximately 6%), but should be fixed so there can be no surprises later. No ARMS! This allows the current homeowners to retain their credit, their assets, and their will to continue making payments on all of their debts. The loaning institutions would benefit by slowing down this tremendous foreclosure rate and by eliminating some of their foreclosed properties as well as freeing up loaning monies.

This would bolster the economy in many ways. Debtors would continue to make good on their current debts and loaning institutions would be able to continue to make new loans. Maybe with this change and a few others this $700 billion bail out would not be so large or as necessary. The tax payers would be freed from incurring this burden and our economy might be able to rebound.

Thank you, Byron

Byron in Utah of UT @ Sep 30, 2008 00:41:00 AM

I'm glad they rejected it

I see it this way,I'm in debit myself.Do to my bad money management.But noone can bail me out,but myself. So I think the companies that or in bad shape need to sit down like I did and work on your responsibilty of how you got so far in debit.Cause getting loans doesnt fix the problem. If you end up going back into debit. So I think congress needs to rethink this.

Cause why give big companies loans to get out of debit.If we owe other countries money and we can't keep our schools open.Casue our children are our future.

Take care of the American people by helping them with thier homes and freeze these crazy interest rates that these bank put on people.

clay of MD @ Sep 29, 2008 19:27:18 PM

Bailout

My problem, as I try to understand the nature and depth of the world financial crisis, is that I don't know who to believe. I'm left with the unpleasant feeling that our 'representatives' in the House and Senate are less about doing what's right than they are about making certain they get re-elected. And that's not a new phenomenon; reactionary and self-serving decisions seem to rule the how and why things do or do not get done in this country. I believe that this behavior is the only truly bi-partisan activity in Congress. Perhaps this financial crisis, which will have effects, up close and personal, for every one of us, is the catalyst that will lead to true rehabilitation for our democracy which is, I believe, very frail and maybe even in its death throes.

Becky Hedstrom of MN @ Sep 29, 2008 18:24:12 PM

Bailout

Republicans, democrats, lenders and borrowers are all at fault for the mess we are in. We need leaders to emerge and try to fix this mess rather than play politics.

A good place to start is to replace all 435 members of the house with new members. Just vote against any incumbent member.

The people of the United States are ultimately responsible for the government we have. And we have the power to change it. Let's start this November.

Bob of TX @ Sep 29, 2008 18:02:06 PM

Bailout!

13 votes short of Passage

95 Democrats voted against it.

If it was such a great bill why couldn't the Democratic leadership (?) get 13 of 95 Democrats to vote for it.

Billie of TX @ Sep 29, 2008 17:52:08 PM

"Idiots, idiots, idiots. You just guaranteed a recession."

Bob Schwartz of WV and David Howard of CA along with every other person who was mislead into thinking that it was a good idea to fail on passing the bailout, needs to read the following comment titled "Bunning is an idiot" at this path:

http://www.usnews.com/blogs/the-home-front/2008/5/19/bunning-blasts-bailout/comments/

hopefully, it will become clear that congress screwed up hugely as if the 700+ drop in the DOW wasn't a freakin clue people! WAKE UP!!!

Tom of MI @ Sep 29, 2008 17:31:20 PM

These are the reasons it was rejected....

Because of the panic the Dems are hoping to take advantage and push these items into the bailout. The Reps are standing up for the American people and their money and not allowing it!

TRIAL LAWYERS – Instead of investigating the scandal-plagued American trial lawyer industry, the Democratic Congress has showed it in pork, tucking special benefits into major bills to benefit the industry at the expense of American taxpayers – and the economic rescue bill has been no exception. Working drafts of the bill include so-called 'cramdown' provisions allowing bankruptcy judges to reduce mortgage principal under the guise of helping those at risk of foreclosure. If enacted into law, the provision would be a bonanza for trial lawyers and undercut the effectiveness of any economic recovery effort by making it even harder to value mortgage-backed securities.

WASHINGTON LABOR BOSSES – Washington’s powerful big labor bosses – another special-interest constituency closely aligned with the Democratic Party – also get a big handout in the working draft of the bailout bill. So-called “say on pay” or “proxy access” provisions have been added to the bill by Democrats proposing to mandate a nonbinding shareholder vote on proxy access and other issues for all companies in which the Treasury Department buys a direct stake in certain assets. The proposal can and should include restrictions on executive compensation for participating firms in a responsible manner without allowing Washington labor bosses to have an undue say on corporate governance at the expense of American workers and their prosperity.

ACORN – The draft bill includes a left-wing giveaway that would force taxpayers to bankroll a slush fund for a discredited ally of the Democratic Party. At issue is the Association of Community Organizations for Reform Now – better known as ACORN – an organization fraught with controversy for, among other scandals, its fraudulent voter registration activities on behalf of Democratic candidates. Rather than returning any profits made in the long-term from the economic rescue package, Democrats want to first reward their radical allies at ACORN for their (often illegal) help in getting Democrats elected to office. Families, seniors, small businesses, and all American taxpayers deserve better.

MORTGAGE INDUSTRY BAD ACTORS – The draft of the bill includes “foreclosure mitigation” provisions that essentially establish a preference for purchasing assets with the goals of modifying or restructuring loans. House Republicans believe the goal of the rescue legislation should be to stabilize the markets and protect taxpayers – NOT to use taxpayer dollars to identify assets to purchase in order to improve loan workouts. Congress has already enacted one irresponsible housing bailout to deal with the mess created by the Democrats’ refusal to reform Fannie Mae and Freddie Mac. We don’t need another.

Northwestern of WA @ Sep 29, 2008 17:23:31 PM