RK77

How does buying the bad debts from the mortgage companies for almost 1/2 trillion help????

What happens if people default then?

W.M.DEEEZ

First, I'm assuming that the terms of these criminal loans will be restructured to avoid default...although, the artificially inflated price of the property, coupled with the 100% financing, will still make for a bad mortgage.


It's the same reason we give tax breaks to the billionaires...we can't let "those who drive our economy" go down. Heaven forbid nobody has money to speculate on oil, or invest in pharmaceutical companies, with the promise of astronomical returns.

Sort of a "reverse wealth redistribution", if you will. We need them to rob from the poor, because we know they can be trusted to do the right thing....create jobs, and all that other important crap the elite supposedly do for the economy.


What I don't understand is this...those that sit atop the heap in these now defunct lending companies, have milked (collectively) billions of dollars in salary/bonuses over the last ten or so years.

Why don't they have to pay this money back, now that these companies are circling the drain? If there's going to be a bailout, why do the execs. get to take the money and run?


Now, the middle class will once again be paying (in taxes),for the well being of those who least need it.



And I just keep hearing how tax cuts for the middle class would be an unfair "wealth redistribution"...


Funny how money is only supposed to flow one way in this country.

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Don't it always seem to go, that you don't know what you've got til it's gone

leftparadise

I want to know why we don't have a special pre-emptive asshole tax for everytime they come up with a hot new financial instrument (unregulated) to save up the money to pay for the inevitable bail out. The tax could be on the obscene income these guys will make in the days before their grand new idea crashes and burns

THX1138

Geez, that sounds word-for-word about like something I would have written myself.^ lol

Imagine all those rich folks out there now snapping up foreclosures.

Thx

W.M.DEEEZ

Yea...before they put the muzzle on the senile old bastard, McCain spoke of the economy being "fine".

"There will be plenty of opportunities to get good deals, with all the home foreclosures"


It's no wonder they got a beauty queen for a running mate.

"Pay no attention to the man behind the curtain!!"

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Don't it always seem to go, that you don't know what you've got til it's gone

hotair

It does not work that way.

There will be no more defaulting. The bailouts will end the game.

Essentially the government now owns a few million pieces of property. These properties include undeveloped land, under-developed land, and developed land. The government will sell off these pieces of property, and get whatever they can for them.

Then the government will pay off all of the various mortgages that are held against these properties. The difference between what the government can get for selling these properties, and what the mortgage is on these properties will be comprised of tax dollars.

So that in the end, the investors who are holding all of these mortgages will eventually receive all of their money. The investment houses and AIG will no longer be over extended, and there will no longer be any reason for people to not invest in them any more.


It may not help at all. Then again, by promising investors that they are not going to loose all of their money, it might save the system from a complete meltdown. The hope is that investors will stop selling off everything they own.

The bailouts alone are not going to do anything. In order to convince investors that it is safe to invest their money again, it will be necessary to make it impossible for this sort of thing to happen again. Fat chance of ever getting the Republicans to buy into that one!!!


Without the bailouts, we are looking at “The Great Depression” all over again. Except that this time there are a number of nuclear arsenals waiting to be used.

People tend to can get kind of funny; when they are forced to helplessly watch their children die of starvation.

Farmers will still be able to grow corn in Iowa. It is just that with a systemic meltdown of the market, they will not have anyone to sell their crops to. Once the stores run out of food, then the real fun will begin.

This is the down side to a ‘free market’ economy. Everyone gets their operating capital from the sale of stock in the market.

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So long, and thanks for all of the fish!!!

hotair

Actually we used to. Though it was not called an ‘asshole tax.’ It was not even a single tax, but a series of taxes along with a number of regulations that were put into place to prevent these things from ever happening again.

A key tax of the entire system was called the Unemployment Tax. The government would tax businesses in order to raise the money to pay unemployed Americans for being out of work. The more people unemployed the greater the tax. This tax encouraged American businesses to employ Americans to do the work that they wanted done. While also allowing Americans to pay their bills while they were out of work. Which in turn allowed American’s to pay their bills with real money instead of credit. So that having real money in the system would help keep the money markets from being overextended with credit. Etc., etc., etc.!!!

The problem with laws: Is they can be changed as soon as people forget why they were put into place in the first place.

Getting rid of them is how Reagan became one of the most popular presidents in US history.

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So long, and thanks for all of the fish!!!