Are you kidding me with this $700 billion bailout plan?
This is the best they can come up with?
Are we seriously thinking about giving the former head of Goldman Sachs complete control over the money?
That's just insane. One of the sticking points is about compensation for the heads of all of the failing companies. Again, are you kidding me? How about none. That's a good amount for the heads of companies that are causing a nationwide financial crisis. I've got an idea. The rebuilding money we're sending to Iraq stops today. I'm not talking about troop support, I'm talking about the rebuilding money. Didn't we just hear that Iraq has a phenomenal budget surplus? Why are we still sending them money? I've got another idea. Instead of bailing out all of the companies why don't we bail out the hard working people who are losing their homes. I'm not talking about the people who should never have bought the McMansions in the first place, I'm talking about the people who were suckered into a mortgage with a 4 percent arm that ballooned when they weren't looking.
I've got another idea. Every pork barrel projects gets thrown into the slop bucket today. That has to be a few billion right there. This is ridiculous, folks. If this goes through our grandchildren are going to be paying for this one.
28 comments:
Stan,
How much would that be if they gave the money to all the working families in the country and the retirees who have mutual funds for their IRA and trying to live off of that? Long question, but maybe you have a big calculator in the newsroom. And I forget to make sure that the top execs who got us in this mess get nothing. They should be resigned to flipping hamburgers at McDonald's for the rest of their miserable lives.
Ok, what I do know is that Fannie Mae was established during FDR's Administration. The Federal National Mortgage Corporation was created a couple of years prior to WWII because of the collapse of the housing market and acted as a Savings & Loan. In 1968 LBJ privatized Fannie Mae in order to remove it from the national budget and followed a few years later the Federal Home Mortgage Corp. was created to prevent a Monopolization of the market. The two companies operated as a GSE, generating profits for stock holders and were exempt from paying taxes and were not required to inform the public about any financial problems they may be having. We, the taxpayers, could be held responsible for outstanding debts (billions). The SEC are now conducting an investigation and heads did roll...but a little too late, don't you think? This whole matter has been going on for decades. The foreign countries that invested in these secondary mortgages will feel the pinch as we go about correcting the free Fannie Mae and Freddie Mac Executives' handling of the whole process. NO more Golden Gloves - PLEASE..
What a day:
-- Obama wins the debate!
-- Phils clinch at least a tie for the division!
-- Stan figures out where his tax money is really getting stolen!
Now if I could only figure out why Democratic legislators are bending over backwards (or is it frontwards?) to give the Bush Administration what it wants, I'd be completely happy.
Stan, that cracking sound you hear is Hell freezing over because for once, you, me and Barack Obama agree on something.
-pb
Stan, I looked at my retirement investments because our bank does not have a retirement plan. Yes, my 401K is down as it was back in 1995 - $17,000.00, but all is not lost - I do not need the money now and I'm sure things will turn around - have a little faith my mother told me and she has yet to be wrong. Maybe some of the execs. will wish they had flipped hamburgers.
Let's play the "Blame Game". Franks, Chuck and Dodd are good at this and also they were in Congress in the mid '90s when the Dems. were pushing "housing for the poor" and Fannie M & M sold these same people a house that in no way they were qualified to receive a mortgage on - what? 2% hay any one looking at the figure would said WHY NOT !!- now payback - up, up goes the interest rates - Payments on this "Oh so good investment" on a home that you really knew down deep in your heart you could not financially afford are due. What to do? Some institutions will permit you to only pay the interest each month, but that is not forever. Get a Second Job, Friends sure come in handy, don't they because sitters make minimum now. Good Luck, you have a lot of company.
This bailout is wrong. I understand the bailout is necessary to keep the credit flowing but where does accountability come in? I am opposed to the bailout of AIG and in general, this entire bailout seems like we're just putting off an inevitable collapse of the American financial system....it's going to fail at some point b/c we have no assets! So, great, now the taxpayers own mortgages that have no certain value behind them. No one knows the value of these homes so how can we be even a little certain that we will get our money back. I think we've overpaid...I for one am sure that we will not see areturn on this "investment" and I can't believe we're having to do this when the CEO's of all of these banks are washing their hands of the mess and getting millions to do so...I feel like "SUCKER" should be written across my forehead!!!
Stan,
This is nothing more than a money grab for Democrats that control congress. the Democrats can pass this bill but are gutless weasels afraid to take a stand on any issue at any time. This is the time for their chosen one to stand up and demand that his party that controls the house vote to pass this bill. but Barack Obama is a shallow man with hollow shoes that is taking orders from Peliosi and Reid like a puppet on a string. I have called or emailed all of pa's reps and the major players on the hill to vote no. I am a strong supporter of McCain and this is the email I sent to him...
Dear Senator McCain,
I am a strong supporter of your Presidential campaign and believe you will be a great President if elected. But please do not burden yourself with this bailout bill. You must stand up for the American people and vote no on the 700 billion bailout bill. The reason is simple. American's must return to the values of being responsible for their actions and how those actions will effect their fellow citizens.
Stan, my boy, I completely agree.
Stan,
I believe this is just a money grab for the Democrats to spread around to their beholden constituencies. The Democrats can pass this bill anytime because they have the votes. The reason they will not is because they are gutless weasels that are afraid to take a stand on anything because they stand for nothing! This is exactly the time for the Democrats chosen one to stand up and order his party to pass this bill. The reason he will not is because Barack Obama is a shallow man walking in hollow shoes taking his marching orders from Pelosi and Reid like a puppet on a string. I have called or emailed all of the PA reps and the major players on the hill including this email sent to John McCain....
Dear Senator McCain,
I am a strong supporter of your Presidential campaign and believe you will be a great President if elected. But please do not burden yourself with this bailout bill. You must stand up for the American people and vote no on the 700 billion-bailout bill. The reason is simple. American's must return to the values of being responsible for their actions and how those actions will affect their fellow citizens.
Stan,
I believe this is just a money grab for the Democrats to spread around to their beholden constituencies. The Democrats can pass this bill anytime because they have the votes. The reason they will not is because they are gutless weasels that are afraid to take a stand on anything because they stand for nothing! This is exactly the time for the Democrats chosen one to stand up and order his party to pass this bill. The reason he will not is because Barack Obama is a shallow man walking in hollow shoes taking his marching orders from Pelosi and Reid like a puppet on a string. I have called or emailed all of the PA reps and the major players on the hill including this email sent to John McCain....
Dear Senator McCain,
I am a strong supporter of your Presidential campaign and believe you will be a great President if elected. But please do not burden yourself with this bailout bill. You must stand up for the American people and vote no on the 700 billion-bailout bill. The reason is simple. American's must return to the values of being responsible for their actions and how those actions will affect their fellow citizens.
Hey Stan, can you get the $25 million back from Sarah for the gravel "Road to Nowhere"? And, ask her for whatever hasn't been spent on the "Bridge to Nowhere", since she has all that oil revenue money to give away to Alaskans.
http://www.washingtontimes.com/news/2008/sep/20/alaska-town-opens-road-to-nowhere/
Alaska Gov. Sarah Palin's transportation department has completed a $25 million gravel road leading to the site of a bridge that Palin, as John McCain's vice presidential candidate, now boasts that she stopped, so as to save taxpayers money. The road was built with federal tax dollars.
Ketchikan Mayor Bob Weinstein said the 3.2-mile road will be useful for road races, hunters and possibly future development. But with no bridge to serve it, that's probably about it.
"I think it will be good for recreational things like a 5K and a 10K," Weinstein said. "And instead of people walking through brush, it may be used for hunting in the area."
Palin repeatedly tells campaign crowds she said "thanks but no thanks" to Washington when it came up with $400 million for a bridge linking Ketchikan to an island with 50 residents and an airport. In fact, she turned against the bridge only after it became a national symbol of wasteful spending and Washington had backed off financing the project.
She supported the bridge during her campaign for governor in 2006, then pulled back state money for it a year later, after Washington had pulled the plug.
Alaska received about half the bridge money anyway, on condition it be used for other things. Palin's predecessor and the Legislature redirected all but $60 million in 2006 to other projects, and Palin has left the remainder untouched, to be used eventually to improve access to the island, her spokeswoman has said.
09292008 1:05 p.m. 0004
Something needs to get through.
Random thoughts…
Unless the legislation has provisions in it to take back the monies given on the golden parachutes, this is all a farce.
The bubble on this has been building for years. All of a sudden, when it looks like the Republicans are going to get shut out of the government the bubble bursts. Their solution is to give a hurry-up blank check to themselves.
The whole bailout thing is bogus.
The one thing it does expose is that McCain runs around like a chicken with his campaign cut off. It sounds like the Hokey-Pokey – put your campaign off, put your campaign on, play with the debates and shake it all about…
The second CBS interview with Palin made it look like McCain had a sock ready to jam down Sarah’s throat if she misspoke.
They obviously can’t keep total control of Palin. It is especially scary when it is a real crap-shoot whether McCain will survive a full term. This is not a cheap shot on his age, but a commentary on his health in general.
It is laughable that Barney Frank was the voice of reason after the bailout failed. He essentially called the manhood of the Republicans into question with his “their-feelings-were-hurt” comments.
It is surreal watching the Congressional Republicans (read: weasels) blame the Democrats for not having the requisite support for a bill generated by a Republican President. I love seeing Republicans abandon their own leader.
In the end it is Obama, calling for calm in the storm, while McCain crashes on the rocks.
I posted most of this over at Gordon's blog, too, but it's worth repeating here since there is so much mis- and dis- information out there.
First and foremost: NOBODY and I do mean NOBODY knows what the right answer is to get us out of this crisis. No matter how sure they sound about themselves, they are all just guessing. It;s far easier to see how we got her: that's all a matter of record.
Blaming this crisis on Bush is a gross oversimplification of what's actually going on. Let’s agree that greedy corporate fat cats, predatory lending and George W. Bush are easy populist scapegoats. If that’s where you thinking is, you need to think harder.
The origins of this crisis did not begin eight years ago; it began in 1989. Congress amended the Home Mortgage Disclosure Act to begin collecting racial data. It only took a few years for Democrats in congress to start using this data to paint banks as racist for denying loans to minorities—loans that the banks underwriters denied because of the applicants inability to pay back the loan, not because of race.
This mattered little to congressional members who see an easy point to demagogue for votes. In 1993, the Boston Fed adopted new “relaxed” lending standards under the Community Reinvestment Act. By 1995 we had “no doc” loans, where verification of income was not required, and 80/20 mortgages where buyers could finance 100% of their home purchase, including closing costs. These actions had the intended consequences of increasing homeownership, albeit for folks who probably couldn't have afforded to qualify for a mortgage traditionally: by proven cash flow and reasonable debt to income ratios coupled with 20% down money.
The Fed playing around with interest rates and the re-fi boom gave us a few more years before the bottom fell out.
In 2004, Republicans started sounding the alarm about Fannie Mae and Freddie Mac. Democrat after Democrat—notably Barney Frank and Chris Dodd and members of the Black Congressional Caucus repeatedly told us that all was well at Fannie in the face of Repulican pressure for more oversight. It's just a coincidence that these folks were all on Fannie & Freddie's payrolls for campaign $$.
We are told now that we should just ignore the incestuous relationship between the Democrats in Congress and the failed Fannie and Freddie.
Personally, I applaud the congressmen, Dems and Reps alike, who defeated the Paulson bailout plan. Anything this large is worth taking the time to do right--if in fact, we do it at all.
The most important thing to remember about the whole mess is this: It begins and ends becuase 5% of mortgage holders nationwide are not paying their loans back. Yes, many people got rich and many questionable loans were made, but ultimately, isn't the individual resposnible for determining their solvency before they take on debt?
Stan wrote in his editorial on Monday that we shouldn’t be bailing out fat cats on Wall Street, but we should be giving that money to the American people to use to pay down their bills.
Americans are not “getting screwed” by the fat cats; they’re getting screwed by the little guys who had no business getting mortgages and who now are no longer paying those mortgages. Besides, the last time the government gave out free money to victims of a crisis during people used those $2,ooo check cards to buy big screen T.V.s, not to pay down their bills or rebuild their homes. And further, if we deny the money to corporate America, all those hard working Americans Stan was talking about will have no where to work hard.
I believe that this country functions better with less government, not more and a massive takeover of Wall Street by our government is a big step towards socialism that we may never be able to take back. The market failure is not the result of de-regulation but the result of an implementaion of the wrong regulation interfering with sound lending practices. What we’re seeing is not a failure of capitalism, it’s a failure of a bastardization of capitalism.
The really big deal about the Bailout is that it represents a big first step in a systemic shift from a market based economy to an economy based on heavy government management. Maybe this is necessay for the moment, but the long run consequences could be worse than the panic of the moment.
History shows that once oversight of this scale enters the economy, it just does not go away once the crisis passes. Difficulties of this magnitude (in the form of deleveraging household balance sheets....and its not just housing) take a long time to work through. Over time a government driven economy becomes entrenched and expected. It took 50 years to end government growth after the New Deal.
With Obama now in the driver's seat combined with the spectre of Pelosi, Dodd, Frank and Reid controlling Congress, we are looking at an American system that may be set for a massive fall in any event, and I am getting the sense that certain groups in the Congress knows that blocking this plan is a form of "last stand" for market based capitalism. Like George Custer, this last stand is futile. Americans are now throwing in the towel and embracing government solutions. Obama, after all, is "stronger on the economy", right?
The only thing keeping the USDollar from being in freefall is the fact that the rest of the world is no better and is in many cases worse. Fortunately, there is no default currency. Soon, however, the US could well be sitting right next to France, Germany, China etc. at the big government managed economy game.
Good luck trying to make any decent money for the next generation or so or until the next Ronald Reagan comes along (McCain certainly won't be remembered as the second coming of The Gipper). The day of the businessman has ended, the era of the bureaucrat has begun.
I guess lisa can't stand that people are complaining about her in the two cents column about her long winded hot air blogs/tabloid reports that are basically unreadable. She's bouncing all over the place trying to spread the lies. A real expert at mucking up the truth. Thought about putting on some boots, but it’s a waste of time trying to wade through her horse pucky. Besides, I can use the aspirin for real issues that are bothering people today. Can you say $10 billion a month in Iraq, lisa, while the Iraqis pile up the oil revenue? Come on, I know you can do it.
100108 3:20 p.m. 0005
Just when you thought the whole "I can see Russia from Alaska" thing couldn't get any funnier...CNN's Gary Tuchman delivers the goods: it turns out that Sarah Palin has never seen Russia from Alaska.
Tuchman went up to the part of Alaska from which you can actually see Russia, a remote island called Little Diomede located just 2.4 miles from its Russian twin, Big Diomede.
It turns out Gary Tuchman's trip to Little Diomede sets him apart from Sarah Palin -- because she's never actually been there, nor has she set eyes on its neighbor in Russia.
Tuchman says that only 150 people live on Little Diomede, and that the town of Diomede has no streets and no cars. The poverty rate is over 40%, there is no television, and the only practical way to reach it is by helicopter. Anchorage (near Palin's hometown) is 550 miles away.
No Alaskan governor has ever visited Little Diomede, though indicted U.S. Senator Ted Stevens has made the trip. The town's residents barely knew who Palin was, and one of them didn't know she was the VP nominee.
It's going to be fun watching McCain-land spin this one, and it's going to be even more fun watching Tina Fey parody it.
That's right. I lose tons of sleep because I can't seem to get the approval of anonymous wimps who don't have the guts to assign their names to their lame comments.
Did anyones else's jaw drop last night. Beiden and Obama support bankruptcy courts not only reducing peoples interest rates, but also reducing principles?
I was fired up!
What happened to responsibility. What happened to being proud and paying for what you own. What happened to owning up to your mistakes and making them right. God forbid someone would get a second job!
Don't live within your means people, UNCLE SAM IS GOING TO GET YOU WHAT YOU DESERVE.
Correct me if I am wrong, but if a bunch of us start getting our mortgages cut by a third, aren't we contributing to the mortgage crisis.
I hope to God these two don't get in.
I would rather play leap frog with a unicorn, than to have Obama as my president.
Lisa said...
That's right. I lose tons of sleep because I can't seem to get the approval of anonymous wimps who don't have the guts to assign their names to their lame comments.
October 2, 2008 5:19 PM
October 2, 2008 5:19 PM
What's the matter, lisa??? You're the columnist that is getting the comments from a lot of people about your lousy columns. I just enjoyed their comments and whether someone posts anonymously or not, that's their prerogative and you are just crying the blues that your columns are being ignored so you have to call people wimps. Boo hoo, boo hoo. You can take your ball and go home, too. I tried to read your columns, too, but after two of them, it's a waste of my time. I need wading boots to get through the "stuff". And, apparently, there are plenty of others that agree. Some professional, huh? Why don't you do a column on anonymous posters/bloggers and bring your crybaby feeling out into the newspaper for all to see, as some people, who may not have access or even want access to a computer, will enjoy a laugh. 100608 2:19 p.m. 0010
Back to pork barrel earmarked palin who did such a wonderful (cough,cough, hard to get that out without LOL!) job at the debate. Just found this comment from a Conservative...
In fact, one of Palin's most prominent doubters, conservative columnist Kathleen Parker of Townhall.com and the National Review, wrote in PostPartisan, a Washington Post blog, that she "experienced the uneasy feeling throughout that I was witnessing a data dump from a very appealing droid. Even the winks and jaw juts seemed slightly programmed. And the question remains: Is she ready to be president should the need arise?"
Last Friday, Parker made news when she had called for Palin to step aside because she was "out of her league."
Parker said that Palin's performances during her interviews with the networks television anchors had revealed that she didn't know much about anything. The columnist's most damning line: "If BS were currency, Palin could bail out Wall Street herself."
So, send her to Wall Street to fix it... ROFL!!!!!!!!!!! 100608 3:01 p.m. 0011
Lisa said...
That's right. I lose tons of sleep because I can't seem to get the approval of anonymous wimps who don't have the guts to assign their names to their lame comments.
October 2, 2008 5:19 PM
And another thing... you seem to think you're in school or something with your trying to get people to "assign" their names. Assign? Are you the names po-po? Doesn't work on a "public" blog, does it? So, why don't "ya" just stay in your own corner "blog"? "Ya" know, where you answered a "2 cents" post, instead of calling the number and waiting for your "2 cents" to be heard. LOL! Enquiring minds want to know... "ya" know, you betcha, wink wink... ROFL!!!!!!!!!!! 100608 7:34 p.m. 0012
Just saw a news report this morning about some Civil Rights people getting an "audience" with Ben Bernanke in 2007, where they said they expressed concerned about the mortgage lenders preying on the poor. They said he didn't do anything about it which could have given the green light to the crooks that it was okay to keep up their "loan sharking". Not the exact quote, but close to it. Care to investigate? 100708 1:34 p.m. 0013
What was that remark by Obama and affordable Healthcare Institutions moving to Delaware if ????? Maybe Biden will be able to explain how/why his state is so easy on large corporations. No taxes is one reason most will go the extra mile to purchase electronics and liquor. Maybe all states should follow in their footsteps...no new or any taxes...let's see how that rings.
Need a Bailout??? Go to Delaware that's where local townships and counties go when they are in need financially. Will we ever learn to live within our means?? No matter who is in charge - the pointing always at the other party. Use a budget and know when we truly are in need and then explain to the public how it happened we need to seek W.T. in Delaware to help to bail us out.
This Bailout is interesting and in some ways down right dangerous. Our candidates for Pres. and also our Federal Reps. seem to have a dream that will cure all, if not a few of our financial ills with their various programs. When looking at the whole picture I think back to Kings much quoted saying "I've Got A Dream" - well the financing for all the changes that are seen/wanted by our wantabes is stagering and if you are in favor of health plans that include more or government running the show ... think again, who do you think the government is? That means we will, in taxes, pay for all this great care & the same people that now make $$$$ will then make $$$$$$$$$$. Next - Your Savings? Use your head before thinking Stock Market if you only make $60M or less - you may end up broke - use CDs,IRAs or Savings Accts. at your local bank that has always been run by local people that are well trained on what the community needs not Wall Street. Check the Yield of your local banks for any of the above and place your $500.00 in a place that is safe - not these BIG Institutions that are now being gobbled up by other/foreign institutions.
I know Roosevelt was trying to make life easier when he gave to the poor and started the CCC Camps. But, my father was so upset,he changed from Dem. to Republican, because as a farmer/day worker he felt Hoover was the one when he started the the Dam project and of course he probably was correct, but Roosevelt with his slick way of talking convinced people he was the "light" that would save us from all ills. Well, we never applied for any relief and my parents and my siblings all worked in the neighbors fields, plus our own truck patch and we did survive. In one way, we all benefited from SS, but what it did in return made us more reliable on the government & unable to learn to live within our means and do without. Growing up our neighbors had more than we did, but, right now their children are feeling the pain of not learning to use a budget and save for that rainy day that is sure to come and it did "NOW". So, teach your children well, so they do not make the same mistake as you have.
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