47 Responses to “Does the Bailout Miss the Point?”

1. Comment by bill

   October 2nd, 2008 at 2:10 pm

   I just saw you on Trace and Martha’s show. I think you’re missing the point. You seemed to think this bill is a good thing because Warren Buffet says so. Oh my. The reason he wants it to pass is to benefit himself. That’s all. Of course he thinks it’s a good thing. Please don’t fall for this nonsense.

2. Comment by chuck

   October 2nd, 2008 at 2:20 pm

   First and foremost consumers and MBA’s know about the economy and what’s going than politician do. All Senator Obama can do is to say that McCain is out of touch with jobs. Has Senator Obama,the esteemed junior seantor of Illonios actually created any jobs in his South Chicago juirsidiction? There’s an old saying: you’re either part of the problem or part of solution. Obama is the one out of touch with the real voter. Has he lost a house in foreclosure? Why doesn’t he explain his relationship with Freddia and Frannie Mae? His party should get the blunt of real criticism. Hmmmmmmmm does the estemm acedemic Goolsby was he employed by Freddie and Frannie too? The party that generated this crisis should be held accountable. Should be questioned.
   Still the Senators didn’t take a hard look ar the root cause of the problem. Didn’t hold hearings how and why the depressed real estate market came to be. Now this depressed market didn’t happen over night this depressed marekt took its time. Then ‘05,06 it accelerated. In 2007 it’s followed by the subprime mortgage and the credit crunch which is affect liquity in the global marketplace. The HR bill missed the point and I suspect the senate bill may have missed the point. But the root cause should be looked at seriously. From there a souluion can be found.

3. Comment by Patti Muise

   October 2nd, 2008 at 3:10 pm

   This bill doesn’t just miss the point, it misses the entire conversation. Clearly, our “representatives” in Washington have no clue what’s going on in the real world.

4. Comment by Adam

   October 2nd, 2008 at 3:41 pm

   As I understand it this economic crisis was caused by lax credit standards. Yet, the goal of the bailout is to get credit flowing freely. The bailout is like giving a six pack to an alcoholic to fix a hangover. One commentator said that in the past 85% of people qualified for car loans and now it is only 65%. I say great that 20 % should not be buying a new car anyway and if a business needs credit to make payroll they are on the verge of bankruptcy anyway.

   I am 28 years old, I make 3500 a year, my house is paid off, I have 12 months emergency fund in the bank and I fully fund a roth for both my wife and I every month. I’ve been able to do that because I saved up 20% down on my house, bought a house I could afford and paid extra every month. I went without extras like cell phones, cable t.v., going out to eat and I always pay my credit card in full every month. I have never paid a penny interest to credit cards.

   Maybe if this country goes through a bad recession people will learn to value money and live on less than they make. Our economy has been fueled on cheap credit that people can’t afford; that is a formula that can not be sustained. If we don’t endure a little pain now it will be much worse in the future.

   thank you

   Adam

5. Comment by Adam

   October 2nd, 2008 at 3:42 pm

   As I understand it this economic crisis was caused by lax credit standards. Yet, the goal of the bailout is to get credit flowing freely. The bailout is like giving a six pack to an alcoholic to fix a hangover. One commentator said that in the past 85% of people qualified for car loans and now it is only 65%. I say great that 20 % should not be buying a new car anyway and if a business needs credit to make payroll they are on the verge of bankruptcy anyway.

   I am 28 years old, I make 3500 a year, my house is paid off, I have 12 months emergency fund in the bank and I fully fund a roth for both my wife and I every month. I’ve been able to do that because I saved up 20% down on my house, bought a house I could afford and paid extra every month. I went without extras like cell phones, cable t.v., going out to eat and I always pay my credit card in full every month. I have never paid a penny interest to credit cards.

   Maybe if this country goes through a bad recession people will learn to value money and live on less than they make. Our economy has been fueled on cheap credit that people can’t afford; that is a formula that can not be sustained. If we don’t endure a little pain now it will be much worse in the future.

   thank you

6. Comment by 6ftrabbit

   October 2nd, 2008 at 4:10 pm

   Something that you might consider: Even tho this “credit crises”, liquidity thing is ostensibly hurting the USA, I wonder if it might be hurting the enemies of this country even more. I suspect it is. In which case, I can cope with a little collateral damage. There is more than one weapon used to wage war. We whipped the USSR, Germany, Japan, and other opponents not so much militarily as economically. I think we might be doing the same now. And don’t forget we do have the biggest economic battleship on the planet.

7. Comment by Ken

   October 2nd, 2008 at 4:29 pm

   There has to be more options than just dumping a bunch of taxpayer money at the problem? I have never been so disappointed in our government! DEM or REP

8. Comment by Docwilliam

   October 2nd, 2008 at 4:31 pm

   When this money is barrowed, it is barrowed against the American Public’s future. It is our money! Why over complicate this by giving the money to the banks and wallstreet, in a gamble that it might work? Give the money to the American Public and it is guaranteed…..we will stimulate the economy by paying off our credit cards, our mortgages and we will by cars! The Banks will not have toxic accounts, all people will buy cars, regardless of credit and the whole world economy will be stimulated as we by our big screen TV and other techno gadjets. This 700 billion dollars is OUR Loan, not the Governments loan! Stop lining your own pockets and helping out your banking buddies and selling us out!

9. Comment by Walter

   October 2nd, 2008 at 4:43 pm

   Simply writing a check for the banks won’t bring about needed reform and taxpayer restitution. We MUST do better then this.

   I am for a solution that will create main street liquidity, reform the banks, stabilize
   the markets, ensure we have assets that can be accurately priced etc..

   This gentlemans plan is not comprehensive enough.

10. Comment by Robert

    October 2nd, 2008 at 4:52 pm

    One point that seems to have been missed is that after the House defeated this abomination and it was taken up by the Senate, it ceased to be “the Bush bailout plan” and became the “Democrat/Wall Street bail out plan.” As more time goes by, the truth is beginning to surface. If the House continues to hold the line, more and more truth will come to the surface, and that is a good thing.

11. Comment by Jim

    October 2nd, 2008 at 5:02 pm

    I beg you to take an hour and read the now 400+ page bill. It is festooned with Constitutional travesties. It gives insane amounts of power to the executive branch and treasury. The balance of power staying balanced is absolutely worth every penny in my 401k. In other words I’ll take a depression over a new Constitution.

12. Comment by Robert H. Wriggins, Jr.

    October 2nd, 2008 at 5:10 pm

    I would like to propose what I feel would be a better solution to the financial crisis. Take that $700 billion and divide it up to all the tax-payers instead of Wall Street and the banks. It is the American people’s money after all. This I feel would do several things:

    1. Allow people who are in severe financial distress to pay-off mortgages, credit cards, etc. This would do away with all these so-called “Toxic” assetes that the government will be buying no longer making them “Toxic”. In fact, they would go away entirely. Of course, a stipulation would have to be imposed that this money given to people would have to be used to pay off said debts.

    2. Buy giving people this money and allowing them to pay-off these debts, you free up the economy in and of itself by people having more disposable income. This would create more consumer buying thereby raising demand for goods, creating jobs, and strengthening the economy.

    3. As a result of this, income for the government itself would increase through the generation of more tax income. This income, particularly from income taxes (by putting anyones yearly refund toward what was given to them intitially) would be used to pay-off the $700 billion dollars thereby wiping out the debt incurred by the government to implement this. Essentially, the government becomes the bank.

    As I said, this is just my idea. I’m no financial guru, but I do have common sense. It seems to me, if you want to help the American people, help the people that are in trouble, not the people who created the trouble. In this way, you help us all. I pray that God will guide you in these troubling times.

    Regards,

    Robert H. Wriggins, Jr.

13. Comment by Steve

    October 2nd, 2008 at 5:43 pm

    Banks have become a cartel just like OPEC.
    OPEC witholds oil to get more money and wall street and banks hold back money to get more money.
    We, the taxpayers get the short end everytime.
    This bailout is truly a huge mistake and only the fat cats will be heavier with cash while we, the taxpayers, get to lighten our wallets even more.

14. Comment by Susan B.

    October 2nd, 2008 at 5:44 pm

    Jim is right… everyone needs to read this bill very carefully. Downright scary!

15. Comment by Maggs

    October 2nd, 2008 at 6:08 pm

    First let’s consider If There Must Be a Bailout, Here’s How to Do It.

    If the government wants to save dying banks before they take others down with them, it should choose the clean and direct path: Inject capital into them. Take ownership stakes in return. And, where that’s not feasible, seize them and sell their assets in an orderly way, just as the Resolution Trust Corp. did after the 1980s savings-and-loan crisis.

    Only after a company’s shareholders and debtholders have been flattened should taxpayers take a hit. And for a $700 billion investment, U.S. taxpayers should get a lot more in return than a gargantuan pile of toxic waste.

    For that much money, at yesterday’s prices, the government could buy 23 of the 24 banks in the KBW Bank Index, including Bank of America Corp. and Wells Fargo & Co. And it still would have money left to buy a stake in JPMorgan Chase & Co., the largest company in the index.

    Infusing capital directly, though, was too simple for Paulson. It lacked subterfuge. He decided the way to save the financial system from the evils of structured finance was through more structured finance.

    Instead of asking Congress to let Treasury recapitalize needy banks, he proposed buying some of their troubled assets at above-market prices. This would have let other banks create phony capital by writing up the values of similar assets on their own balance sheets, using Treasury’s prices as their guide.

    Small Wonder

    In short, Paulson’s plan was one part robbery (with the banks doing the robbing) and one part accounting sleight of hand. No wonder House members rejected it.

16. Comment by Maggs

    October 2nd, 2008 at 6:11 pm

    That Giant Sucking Sound we all hear was sponsored by the “party for smaller government” and embraced whole hog by the “party for bigger government”.

    Stop The Largest Tax Increase In History

    I call on Democrats and Republicans alike to stop the taxpayer swindle. This $700 billion bailout of Wall Street will be the largest tax increase in history.

    Paulson Proposal Will Bail Out Foreign Investors

    Today I listened to Representative Brad Sherman on how the Paulson proposal will purposely bail out foreign investors.

    Here is the shocking text as translated from CNBC in an exchange with Larry Kudlow.

    Rep. Brad Sherman, D California:

    Larry I am glad you have a few seconds to talk to someone who voted against this bill. I am not changing my mind. I want to thank my colleagues who stood up to the purveyors of panic and voted against a very bad bill and voted with 400 eminent economists including three Nobel laureates who wrote to us and said don’t panic, don’t act hastily, hold hearings, work carefully. The fact is Larry if you read this bill, even you would have voted against it.

    It provides hundreds of billions of dollars of bailouts to foreign investors. It provides no real control of Paulson’s power. There is a critique board but not really a board that can step in and change what he does. It’s a $700 billion program run by a part-time temporary employee and there is no limit on million dollar a month salaries.

    Larry Kudlow:

    Let me just ask you one question. I think you are referring to foreign banks headquartered in the United States. I do not see how foreign investors get bailed out.

    Rep. Brad Sherman:

    Larry you have to read the bill. It’s very clear. The Bank of Shanghai can transfer all of its toxic assets to the Bank of Shanghai of Los Angeles which can then sell them the next day to the Treasury. I had a provision to say if it wasn’t owned by an American entity even a subsidiary, but at least an entity in the US, the Treasury can’t buy it. It was rejected.

    The bill is very clear. Assets now held in China and London can be sold to US entities on Monday and then sold to the Treasury on Tuesday.

    Paulson has made it clear he will recommend a veto of any bill that contained a clear provision that said if Americans did not own the asset on September 20th that it can’t be sold to the Treasury.

    Hundreds of billions of dollars are going to bail out foreign investors. They know it, they demanded it and the bill has been carefully written to make sure that can happen.

    Please scrap the Paulson proposal in entirety and try something that might work, that is constitutional, and does not put taxpayer money at risk. The actions of Treasury Secretary Paulson go far beyond disgusting, to outright betrayal of US citizens.

    US citizens should not spending $700 Billion to bail out foreign investors.

    What Would $700 Billion Buy?

    It is time to start over with fresh approaches. Have you thought about what $700 billion could buy? How many jobs would $700 billion create if spent on infrastructure? How many banks would it buy?

    $700 billion would buy 23 of 24 banks in the KBW Bank Index

    Bloomberg commentator Jonathan Weil noted:

    “At yesterday’s prices, the government could buy 23 of the 24 banks in the KBW Bank Index, including Bank of America Corp. and Wells Fargo & Co. And it still would have money left to buy a stake in JPMorgan Chase & Co., the largest company in the index.

    Infusing capital directly, though, was too simple for Paulson. It lacked subterfuge. He decided the way to save the financial system from the evils of structured finance was through more structured finance.

    In short, Paulson’s plan was one part robbery (with the banks doing the robbing) and one part accounting sleight of hand. No wonder House members rejected it.

    Such simplicity might feel unnatural to someone like Paulson, who used to run Goldman Sachs Group Inc., or a congressman such as Barney Frank who depends on campaign checks from bankers like an infant needs mother’s milk.”

    Barney Frank and Nancy Pelosi Beholden To Special Interests

    It’s time for new leadership and it’s time for Congress to truly watch out for the taxpayer instead of paying lip service to it. It’s time to kill the Paulson proposal and consider a dozen ideas, any of which would be better than Paulson’s.

    “What Congress must remember is that Americans don’t exist at the pleasure of the country’s banks. It’s supposed to be the other way around. There’s still time for the politicians to come up with a rescue plan that will work. The important part is making sure you and I get something of value in return for our money.”

    Senate Hypocrites

    Scores of hypocrites spoke out against the bailout on Wednesday, then after stuffing the bill with more pork, voted in favor of it anyway.

    I ask that you not do the same.

    Paulson Bill Is A Disgrace

    This bill is so full of holes and toothless provisions it is a disgrace.

    Paulson Bill Creates No Jobs

    The bill will not create a single job, it will not solve the underlying economic problems, and it will not protect taxpayer interests. Over 190 major economists agree.

    Amazing Authority To The Treasury

    The Paulson bill gives an amazing amount of authority to the Treasury Secretary when we don’t know who he or she will be on 1/20/2009 or even which party that person will be from. Does this make any sense?

    If you vote for this Bailout Bill I will vote against you.

    I will do more than that, I will work actively for your opponent, no matter who that person is, doing everything in my power to contribute to your defeat.

    If you vote for this bill I will contribute my time, energy and money to your opponent, whoever that may be.

17. Comment by Ludlow

    October 2nd, 2008 at 7:12 pm

    Karl Marx.

    In his Communist Manifesto, published in 1848, Karl Marx proposed 10 measures to be implemented after the proletariat takes power, with the aim of centralizing all instruments of production in the hands of the state. Proposal Number Five was to bring about the “centralization of credit in the banks of the state, by means of a national bank with state capital and an exclusive monopoly.”

18. Comment by Paul Shuman

    October 2nd, 2008 at 8:08 pm

    The only way we are ever going to get this country staightened out is every legally registered voter goes to the booth over the next 2 to 3 election cycles and votes every incumbent out of office.
    After seeing the pork that they through into this bill, let alone the fact that the bill is only going to delay even more reprocutions is astounding to me. Then the democrats in the senate stand their and pat themselves on the back that they did the right thing. It truely blows my mind at how greedy and out of touch they are. Congress should bring in the best economists out there and get their answers to the problem. Would you ask a plumber how to fix a roof? Congress does not know how to fix this.
    I say vote them all out of office, maybe the next batch will get the message.

19. Comment by Christine

    October 3rd, 2008 at 1:45 am

    It seems like all the politicians and people “in the know” are pushing this plan pretty hard. I think it’s a travesty that a bill could be defeated, then be rammed down our throats 3 days later. No ought to mean no! It feels like a date-rape only this one’s going to cost us a fortune, and it’s going to take away some more of our freedom in the process.

    They say if the measure isn’t passed we’re going to suffer huge losses in the market. Yeah that’s probably true… but funny thing about the market…it has a way of coming back. People who invest in the markets know that there is a risk of losing everything. But now, just because the financiers created a huge mess, there are fears that the market may collapse. And because of this fear, they aren’t subject to the same rules everyone else is…they can recoup their money from the taxpayers?!? No!

    It’s common knowledge that we we’re growing too fast, and that a correction was coming. My advice to congress: Don’t exacerbate the problem by forcing taxes higher through increased deficit spending. Credit needs to slow down, banks need to draw in the reigns, and people need to start living within their means. Yes, a bitter pill, but one that’s much more palatable to Average Joe Taxpayer than Washington seems to realize.

20. Comment by Kim Barley

    October 3rd, 2008 at 6:33 am

    Paulson’s original Plan, about 3 pages long or so, was the correct plan. He also indicated an entire study on revisions of government agencies overseeing. Good.

    Quick strike with simplicity would have us working on something else now. The plan is now over 400 pages and we are still arguing.

21. Comment by Carla

    October 3rd, 2008 at 6:43 am

    Frankly I don’t see why every single politician, Democrat and Republican alike, that blocked the regulators and lied to regulators in 2004 (going as far to call them racist for picking on the sub-rime loans!) are not reaching DEEP into their OWN pockets. Frank Raines should be the FIRST to pony up- his house, his car, his big screen t.v., and that big, fat golden parachute he got. Obama needs to hand over all of that campaign money he’s received from A.C.O.R.N. and give it to the financial institutions they protested against and bullied into making these bad loans. Put your money where your mouth is boys and girls! Oh yeah…that’s right…it’s not YOUR money so you couldn’t give a crap.

    I’m told that adjusting the mortgages on a case by case basis would be impossible since the financial institutions arranged their stocks based on blocks of mortgages as opposed to individual mortgages. Fine. Lower ALL mortgages to 2% interest and increase life of the loan by 10 years. That would lower the monthly payments so that the people that could afford them can make their payments and leave more money left over monthly for those that still make their payments on time, stimulating the economy a bit as they’ll have more left over. The financial institutions would recover most of the loans over a longer period of time, but they won’t be broke…and more importantly, neither will we.

    This is simply a matter of panic vs. plan. Our heads are panicking. Chop them off!! Where did they get the number of $700 billion? Oh, they just pulled it out of the air. They really have no idea. I also don’t agree with adding 110 billion in incentives, tax breaks, relief aid, etc. that have NOTHING to do with a bail out that they’re trying to slip by the American People through this bill. Sneaky little butt heads!!

    The stock market is going down regardless of the bail out. The market went down 400 points AFTER the Senate Bill passed. Sad to say we have to cut off the head to save the body. And the head is every person in the Senate, Congress, and House that are in favor of this bill. I won’t be voting for ANY of them and that includes Obama and McCain. It’s time to step up and say we’re not voting for either of the pieces of trash that Washington is trying to make us choose between. I’m on the hunt for my write-in for president because I WILL vote. Otherwise, we get what we deserve for not standing up and saying NO MORE.

22. Comment by Carla

    October 3rd, 2008 at 6:52 am

    By the way, George W. Bush is a horrible president. Period. I hear people say all the time that they wish they hadn’t voted for him….as if they had a choice! If you think on it, I mean REALLY think on it hard, do you think Kerry would have been much better? Especially when it comes to this bail out and the reasons for the crisis? NOPE. Bush was the best option of the two we were given. Again. Pick from the two pieces of trash. Not me. Not again.

23. Comment by Jim

    October 3rd, 2008 at 7:10 am

    Alexis,
    I still say the free market economy should be allowed to straighten itself out. If you can’t afford it, you can’t buy it. simple!
    We are supposed to trust out representatives, yet here they go again. Get everybody’s blood pressure up. Tell everyone something has to be done now, and then add a bunch of pork. The original Bill was 3 pages. The House had it up to about 100 pages. The Senate now has it to 451 pages. 6 pages of pork for Alaskan fishermen. Tax rebates for Puerto Rico and Virgin Islands. Tax breaks for film companies. $10 million credit to help employers who have employees who commute to work by bycicle. Hurricane disaster releif breaks. Just amazing, yet we are supposed to believe that they can control a $700 billion dollar slush fund. What crap.
    I say Nov 4th we vote everybody out. Can’t be any worse than it is now.

24. Comment by Wally Banwell

    October 3rd, 2008 at 8:32 am

    The Senate in its infinite wisdom spent days getting all the pork in the bill to buy of different politicans. Not one item in this bill addresses the root cause of this problem and that’s bad lending practices.

    Not only does the bill make any attempt to right the wrong, it attempts to bailout the organizations who created the mess so they can continue making the same mistakes unabated.

25. Comment by Alana

    October 3rd, 2008 at 10:44 am

    I absolutely disagree with this bailout bill. I cannot believe that our Congress is so close minded that it will not even consider any other option. God help us if it passes. As if government did not already have enough power to screw the American people over. I am so mad and upset, I am seeing red. Could Washington be any more selfish and grasping?
    I second the comment by Jim. I would rather take another Depression than a rewrite of our constitution.
    And Adam is exactly right. I am 24 years old myself, and my husband and I are very good at living within our means. We do not even have any credit cards and the only debt we have is our home mortgage. We pay extra principal every chance we get, and we have a low fixed interest rate. We were smart enough to refinance after a year since our mortgage rate was set to go up in two years. If people are not smart enough to refinance their variable rate mortgage before the interest rate balloons, they have no business buying a house. Let the credit freeze. People borrowing outside their means with the help of the federal government is what got us into this mess. So now we are supposed to give the government a blank check and unilateral power so that people and businesses can continue to borrow outside their means? AAAAUUUUUGGGH!

26. Comment by chuck

    October 3rd, 2008 at 11:29 am

    The good news for my state in congress: both Democratic and Republican delagations in Congress voted against the bill.
    Still I don’t blame we the people for being angry from sea to shining sea. Afterall at least those of us who commented who oppose the bill presented some problem solving ideas. One thing Cody Willard pointed out in Scoreboard yesterday is that “Finacial Agents” would be Sec Paulson. That’s enough to generate anger from Wall Street to Mainstreet.
    But last night Davis Asman brought up the subject of property rights. That the senate bill could endanger/violate the consistution on this issue.

27. Comment by Steven Lafleur

    October 3rd, 2008 at 11:44 am

    Alexis,

    I’m not commenting on your blog, so I hope you’ll forgive the digression…

    I wanted to commend you on your performance today during the phone interview with Christopher Whalen. I don’t know who this jerk is, but I’ll be doing research to find out and will not be doing business with any company with which he is associated.

    Not only did he not have enough sense to find out the names of the people he was interviewing (Has he never watched your show? I mean, who could forget a name like “Alexis Glick”??), he also showed an extreme lack of professionalism and an extreme degree of rudeness in telling you to “stop talking” and then hanging up like a child throwing a tantrum!!

    I hope his boss was watching. You should have that idiot back on your show just to tear him a new one in front of a national audience. I thought you handled the entire episode with grace and tact, and you continue to demonstrate why FBN is still the unequivocal leader.

    Best regards, and keep up the good work,

    Steve

28. Comment by Steven Lafleur

    October 3rd, 2008 at 11:53 am

    Now I will comment on the blog, or, more specifically, the comments, and even more specifically, the suggestions that the money involved in the bailout package be given to the American people.

    I like that idea in the populist sense, but it wouldn’t do any good to do that. If you estimate the population of our great nation to be 300 million, then that’s only $2333 per citizen. Granted, I wouldn’t turn down an extra $2300, but I owe much more than that on my mortgage (which is paid every month, on time, by the way, because I was aware enough of the terms I was signing, and didn’t overreach when I knew my budget wouldn’t be able to take it), and as for the person who said that we’d all buy cars….well, I don’t know of many cars with a $2300 price tag, and I’m not sure I’d want to drive one that did.

    Was this problem created by a bunch of greedy (expletive deleted)? You bet. If they broke any laws (and I’m not sure they did), should be be in jail? They should be under the darn jail. But until that’s determined, then I stay reminded of a quote from “Full Metal Jacket,” ‘it’s a big old (expletive deleted) sandwich, and we’re all going to have to take a bite.’ You wanted more house than you could afford? Too bad for you, deal with the consequences of your irresponsibility. I’m the one, the rule-abiding, bill-paying, responsible one, who’s going to have to pay for your idiocy. Now, who should be maddest?

29. Comment by j t (r-co)

    October 3rd, 2008 at 12:10 pm

    here’s an idea america. not only should we fire our congress members that vote yes, but lets take a stand.

    if they do pass this bill, i say we take all of our money out of whatever banks they are bailing out and put our money in the other banks and credit unions. these banks deserve to go out of business for their poor decisions and greediness. if the government wont do it, i say we as americans take a stand and stop these banks from ruining more lives and costing us more money.

30. Comment by Steve

    October 3rd, 2008 at 1:57 pm

    The last nail in our democratic coffin was banged in today. We are now officially a socialist country.
    My question now is: where do I send my bills to so that the government can pay them? These bills include but not limited to my mortgage payment (currently on time), my grocery,fuel, medical and of course fuel cost for both work and pleasure?

    My congresswoman who voted for this bailout will not be getting my vote in November but maybe I should start sending her my bills.

31. Comment by Melinda Allen

    October 4th, 2008 at 12:00 pm

    I just saw the interview with Ann Coulter, and Im so thankful that someone is speaking the truth. The bailout isnt going to work because their not admitting that this mess happened because the majority of the loans were given to people who aren’t hard working people, but people who want handouts! Frankly, Im sick of paying for lazy people to have nice homes and greedy banker’s large bonuses! I dont think the hard working people are going to get any of this money back. The people who didnt pay their bills, greedy bankers and wall street will be the only ones to benefit from this bailout. The Democrats need to admit that they made a big mistake for passing laws that allowed loans to go to people they knew couldn’t afford them or had bad credit.

32. Comment by Dave Swiderski - Penn State University

    October 4th, 2008 at 2:48 pm

    The Republicans sold out all the free-market conservatives in this country without a doubt. If America re-elects these crooks back for another term this November, then we get the government we deserve.

33. Comment by B Scott

    October 4th, 2008 at 2:58 pm

    I don,t know why everyone is so afraid of this bailout rescue plan, this is not the first time such a plan has been implemented.. Argentenia, Zimbabwey and a host of other countries have introduced similar rescue plans.Many people fear the unknown, a simple google of say, “middle class Argentenia”, will take away these fears of the unknown.The truth is everyone should be “petrified”.

34. Comment by Bob C

    October 4th, 2008 at 3:48 pm

    The bailout is not of financial institutions but a bailout of the American people. Someone asked why isn’t the money being approved to be given in part back to the people? The money was already given to the people the first time. That is the crux of the $700 Billion of mortgages that can’t be or some people just don’t want to repay. The $700 Billion represents both people who can’t pay and a high percentage of those that now have a bad investment with the drop in their house value who have decided not to pay even though they can pay. Can anyone see an investor calling their broker and telling the broker they don’t want that stock they paid $20 for last year and is worth $10 now and to just give them their original investment back?

    The media and some well intentioned but misinformed people are quick to find someone with which they have an ax to grind to place blame. There is enough blame to go around. The people who received mortgages, the financial institutions and the government all had a stake in this problem. As noted, many people who can pay have chosen not too. The government for lack of regulatory oversight on all the industry especially mortgage companies(not banks) that were motivated out of greed. In addition, the undue and misplaced pressure by the government on the banking industry through the Community Reinvestment Act (CRA) to make loans that were high risk in urban markets on homes in poor condition, lacking value to people ill equipped to pay for a long term mortgage. All this was done to promote the American dream. Republicans and Democrats can take equal responsibility. I was one of those bankers that had to manage mortgages made in this environment knowing that many would not be repaid and if not made, the regulators would have rated our CRA unsatisfactory which would have affected my job security and my bank’s ability to build branches, merge, or do business in other ways until its rating became satisfactory. Finally, the Financial Institutions for creating STUPID high risk mortgage products such as 100% financing based upon the euphoria that home values will always go up.

    This is a law that was passed with rules yet to be determined. The rules should have only one intention which is to unlock the credit gridlock gripping our nation. This will hopefully assist in bolstering employment and improve the viability of a financial industry that is so vital to our economy.

    Bob

35. Comment by Bob C

    October 4th, 2008 at 4:12 pm

    Responding to the comment by jt. jt, you have figured that the greedy banks are to blame for our crisis. Many of our banks have problems because they bought securities from repuatble issuers such as FNMA and Freddy Mac with the historical experience that these securities were a “Titch” less risky than U.S. issued securities. Why do we penalize these institutions? Also, you suggest we take our money out of the greedy banks and put it in other banks and Credit Unions. As I said, some banks were innocent in this. However, Credit Unions may come out of this in decent shape for one important reason. Credit Unions have no legal responsibility (Like banks do) to support the credit needs of the communities or members they serve primarily, the housing needs. Credit Unions do not follow the Community Reinvestment regulations nor is there any legal requirement to do so. If the financial crisis is not thwarted, your money won’t be safe in credit unions as a result of the trickle down concept.

36. Comment by Carla

    October 4th, 2008 at 5:41 pm

    Or, better yet, we have a tax protest. Let them know that they’re not getting any more of our money unless they stop spending against the People’s wishes.

37. Comment by John Arant

    October 6th, 2008 at 12:53 pm

    The bailout missed the point….lees government is the correct response. The Treasury should have guaranteed all deposits. Congress should have removed capital gains tax, truly opened drilling…not fake like we got, removed nuclear energy walls, and stand back. It was, in case anyone forgot, the energy spike pushed everyone over the edge. Energy can lead us back with new jobs

38. Comment by Heather

    October 6th, 2008 at 2:54 pm

    I would like to know when we the tax payers will be receiving our stock certificates. As our money was used to fund this venture we should be considered “owners” in each of the financial institutions.

39. Comment by chuck

    October 7th, 2008 at 12:36 pm

    Now the real story is this. Would u believe a SNL skit which was suddenly pulled by NBC but SNL exposed two of the culprits: William and Marion Sandler who had thier own subprime mortgage company. Now Rush Limnbaugh has exposed this just this morning. But the Sandlers are friends with George Soros who also got spoofed. But the Sandler should be profiled becouse interlinked with this financial crisis. So credit SNL for exposing them.

40. Comment by Mike Dude

    October 7th, 2008 at 1:49 pm

    Now, What’s at stake with the homeless? Jointly efforts within -Freddie and Fannie under Housing Dept.- will be the real deal ‘no more excuses’ to get them out of the woods, I believe. Is not now when then? I wish someone in ‘Washington’ remember these peoples one of these days or nites as they been waiting since ever for rescue out of the streets. I think this is the moment of the true for them. With the few already overcrowded shelters is unbelievable that budgets spending cuts are directed to so much poors communities programs all the time, doesn’t?

41. Comment by harveydawabbitt

    October 7th, 2008 at 4:26 pm

    after yelling about this problem for the last two years or so i find it amusing that NOW all the experts are comming out of the wood work giving their two cents worth.
    it is true the little fella doesnt get heard in this country.
    at every turn i was stonewalled when i tried to bring this to the attention of our “law makers” our “law enforcement”
    fox news didnt give a rip either, they arent alone though. senators didnt care congressmsn.women didnt care those other news networks didnt care. everyone was fat and happy all is well, stop yer whinning shawn.lol the sec was probably the worse one. who cares if naked short selling takes down lehman or bear stearns? it sure took me down. i guess for anyone to make a difference to be heard to actually be taken seriously you have to be a ceo of a failed investment bank or some hedge fund that is stealing the life blood out of america and her citizens. apparently those are the good guys. i find it disgusting. these folks should be stripped of all their wealth and tried in a court of law. and all those ftd’s??? yea you know the ones…. they should be settled starting today.

42. Comment by Amanda

    October 7th, 2008 at 4:31 pm

    As a country we have been considered wealthy because we all overspend with credit. Now they want Americans to give up their tax dollars so we can all continue to overspend? This is not a “correction” for the market. This is a band-aid to cover up an underlying infection. Does anyone in Washington dare to say our basic concept is WRONG? We need new measures of economic health rather than spending. The signs of this monster have been lurking for years. If a regular person like myself could look at their numbers and see the obvious flaws why couldn’t the supposed experts see them?When “experts” kept talking about new home construction as a measure of how well we were doing, did anyone else feel confused? I kept thinking. They are encouraging home construction, but if everyone who wants to own a home builds a home what happens to those with older homes that can’t sell them when they need to? Let’s vote out all the experts and find some good Americans with common sense to take their place. You will know how to find them… They will be the ones telling you what you don’t want to hear.

43. Comment by McConnaughey

    October 8th, 2008 at 8:57 am

    Suppose hypothetically that every American in the USA was a million dollars in debt. There is approximately a little over 300 million people in the United States; which a percentage of those are probably not even home owners. Why does it take 700 billion dollars to bail out Wall Street if it is due to faulty mortgages. They could of paid off everyones debt in the United States and I’m sure it wouldn’t come close to that figure. I think the middle-class is being taken for another ride.

44. Comment by Randy

    October 8th, 2008 at 9:14 am

    The bailout is a bandaid when we need an operation. The problem did not occur overnight but has been in the works for years going back to the 1970s when President Carter signed legislation making it easier for low-income families to buy homes. Credit is easy. I get several credit card applications in the mail a week. The banks freely offer credit, at 18% interest and a $40 fee if the payment is late. They don’t renegotiate their interest and offer to help customers meet a minimum payment. Now we, taxpayers, are asked to bail them out-no way! I’m accountable in my job, I have to pay my bills, I don’t gamble on risky investments. The banking institutions do not seem to have the same responsibility as everyone else. They were rewarded for risky investments, made a lot of money, and now can’t pay their bills and seek a bail out from the government. Where is the accountability and responsibility? Why do they get off free with their money? These people should be going to jail, not riding off into the sunset while we are saddled with the bailout. We don’t need more regulations, we need prison sentences. That will help control the market.

45. Comment by John Milligan

    October 8th, 2008 at 10:26 am

    Alexis, you and the other government, wall street, and media elites operating out of Washington and N.Y. City are just not getting it. Here on main street Florida banks are lending, offering no down mortgages, credit card companies (American Express) are as of right now offering 12 month no interest credit cards. Many of these companies Ditech are advertising on Fox. We have more autos than we need (both my neighbors have 3 each). This is a government, wall street and media created panic limited to those who are gaming the system. Yes auto and home sales are down but they have been inflated and need to come down. This would be nothing but normal business variation if the media and our leaders had not panicked. Stocks and retirement accounts are down but only due to the beating Paulson and Bush have given them. They will recover.

46. Comment by William Bauer

    October 8th, 2008 at 12:23 pm

    DEMOGRAPHICS!!!!!
    This market is plunging because of deleveraging in the face of horrible demographics in the United States. Housing will continue to plummet and with it the market as we unwind are still highly leveraged economy.

47. Comment by Bill C

    October 8th, 2008 at 1:27 pm

    Yes, It misses the point. The people most affected by this disaster are the last ones who will see any of this money. I’d love to see a breakdown of the administrative costs! I like Ted Nugent’s solution better.