We Deserve a Better Bailout

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Mort,
This story struck me; because home prices were beyond market in 1996, and spiraled out of control by '02. My friends and I knew someth

of 5:43PM July 21, 2010

Mort,
This story struck me; because home prices were beyond market in 1996, and spiraled out of control by '02. My friends and I knew something fishy was up, though we had no idea how insideous it really was.
That said, American consumers are really at fault. If an offer sounds too good to be true, chances are that it is. My wife and I both work; we live in a home well within the means of an average income, though our salaries are both well above average. Had everyone taken a more realistic approach to their aspirations for home ownership, the "economic" disaster probably wouldn't have happened.

David of AL 5:43PM July 21, 2010

Are you out of your cotton picking mind?

Ralph of NY 1:00AM August 26, 2009

Are you out of your cotton picking mind?

Ralph of NY 1:00AM August 26, 2009

Mort,
My anger at the recovery plan falls primarily upon how Paulson tossed our tax money to the financial hounds prior to his departure from government and likely re-entery into the financial jugernaut from which he came. As he generously granted riches to his buddies near his departure, his actions, with no oversight, carried the stench of quid pro quo.
President Obama's recovery plan, however, has much to like. Health, education, infrastructor, housing, banking, etc. all play well into a sound recovery plan, which has at its core the recognition that our economy, if it is to regain its health, must be divergent.
Kevin Phillips in Wealth and Democracy argued our shift of wealth in recent decades from the working class to the investment/banking class has weakened our economy and the middle class, forcing us to shore up bankers and investors at a level and frequency we've done no other sector in recent decades.
President Obama's economic team is seeking our recovery with a multi-faceted approach, which, while hoping to strengthen our banking sector through investment and oversight, seeks, as well and intelligently, to strengthen other sectors, previously relegated to a secondary or lower tier in federal and state planning and funding, particularily in the last eight years.
You suggested during your appearance on Meet The Press (3-08)that the American public lacks trust in President Obama's plan, partially because it is so complex and it doesn't target recovery. I challenge your assumption.
A so-called recovery plan that ignores infrastructure, health costs, education, etc. is no true recovery plan. From the perspective of investors, who have nuzzled up to the golden trough, I can see where a, what's not to love recovery plan, would be feeding the beasts more of our money, no strings attached.
But if you're out here working, caught in heavy traffic, a recovery plan that helps get me to work and home more efficienty, safely and with lower pollution while providing good-paying jobs is a darned good recovery plan. If you're out here watching our children attend school in substandard buildings you would never locate your office in, I would argue President Obama has a darned good recovery plan. If you're a family that through no fault of your own saw your wealth shift to the investment class, leaving you without a job or home, I say President Obama's recovery plan is darned good plan.
The failures of the banking industry in its unfettered greed has stolen our prosperity. And we get what President Obama hopes to accomplish. You may not get it, Newt may not get it, but many of us out here do. It's not socialism or any of the hated "isms" Newt and his fellow conservatives ramble about. It is a recognition that a healthy economy is and should be complex and it is that theory which is apparently driving President Obama's recovery plan, and that is why his is a recovery plan which will breath life back into our economy.

Bob of AR 5:51PM March 08, 2009

The performance of the financial services sector of the economy has tarnished the image of other business sectors such as manufacturing, transportation, engineering and software services and the like. Their irresponsible actions and polices have provided support to the anti-capitalists in our society.

Roger of MA 4:52PM November 06, 2008

Mort-I have been a US News and World Report subscriber for many years and my wife and I always read your editorial before we read the rest of the magazine because in most cases your very timely with your perspective. I agree will you 100% in your assessment of the Big Bailout, and I would to add one more facet to this program. If the government is going to receive special shares for their investment in these various banks and investment firms, they are using our taxpayer money for this endeavour so every taxpayer is entitled to these shares based on how much tax each person pays. We are the people, therefore, we are the government, and are entitled to profit if these greedy organizations regain their momentum and become profitable again. Every hard working American should share in the profit as our economoy recovers because without our combined tax funds these suffering companies would not be able to borrow money from any where else in the world. I would like to see some Senator or Congressman introduce this idea as part of the bailout plan.

Tom Parnell of IL 1:07PM October 17, 2008

Treasury should buy securities only at market value. It is clear that the housing crises we are now in was the result of housing being purchased at a highr price than waranted, so why perpetuate the problem. The feared consequences of not buying the debt at inflated prices may not happen, and, on the contrary, better consequences are likely to occur if the debt is purchased at market value. I go along with treasury buying preferred stock in banks at a fixed rate of interest. I also go along with the plan to directly buy troubled mortgages of individuals from the banks and renogotiate the interest and balance. This is a very direct way of helping the homeowner.
Besides the troubled banks, and troubled mortagages, let's not forget the troubled Social Security System. According to the latest S.S. report, the federal government owes the S.S. trust fund over one trillion dollars, and there is no money to redeem the debt. That problem can be lessened if S.S. would be allowed to invest the yearly surplus in Municipal Bonds.Seldom if ever is there a default in Munis, and the S.S. system would be in charge of it's own destiny. As it stands now, S.S. yearly excess funds are raided by congress for earmarks and grants to foreign governments by incorporating it into the general fund.

Robert Worgul of MI 10:21PM October 12, 2008

Agree with the housing comment. When you have Congress enact laws that enable people with no credit, no job, and nothing to lose, to have the American Dream of home ownership and then be surprised that this house of cards comes toumbling down. It's beyond comprehension how incompetent members of congress are.

of FL 8:06AM October 10, 2008

I cannot understand how the Senate could have the audacity to pass a bailout bill that actually added $120B more in cost to an alreay unbelievable spending package! It is terrifying to me the disregard that government has for the financial well-being of taxpayers.

of 12:36PM October 04, 2008