A complete bailout, what will the govenment do with the junk?

I dunno Doug, The American Voter has proved remarkably willing to put short term tax breaks ahead of the soundness of the economy before.

Maybe the goernment should just co-sign on the mortgages of individuals who are having trouble paying their mortgages perhaps even loaning them money(at low interest) to get them through the next five years instead of letting all these houses hit the auction block, killng home prices.

That would eliminate the windfalls these sleazy banks get from undeserved Federal loans while giving them time to slowly recover from this debacle.

Plus, as a side effect, with fewer houses falling into foreclosure the supply of houses would drop, helping to restore housing prices and bringing the market for houses back to a normal situation of supply and demand..

You know I started writing this post as a sarcastic comment on the frustration I feel from rewarding companies that made tons of money taking risks they never should have by forcing the taxpayers to save them. But you know, there may be something to the idea of helping individuals and not the lenders. It would involve a massive beaurocracy to be sure but I wonder if it could actually work?

I'm sure some kind of "direct to the consumer" program like that would be loaded with fraud but it's not like the present system isn't.

The bail out of corporations is nothing more than corporate socialism. We the citizen do not have a voice about where OUR money goes. SOCIALISM is bad and it is even worst when the government uses it to bail out their college buddies. "We the people in order to form a more perfect union" What a crock of @#%*@!

Can anyone enliten me, why isn't the FEDS helping the 100,000 of thosands of people who created this due to the banks loan tactics and refusal to work out a plan with home owners and credit holders. Why shouldn't it be 2 fold, helping the LITTLE guy is the way to save the BIG guy. The problem with this current bail out is, the FEDS bail we pay that means we've done lost our homes and creditworthyness and now will lose more by taxes paying for it. What is wrong with you people !!!!!!

The proposed bailout is just like the Savings & Loan scandal of the 90's, when the taxpayers got one of the BUSH boys and JOHN McCAIN (remember the Keating 5) off the corporate hook.....My point? McCain is clearly the candidate with the most "experience" in these financial matters...

The issue with these assets is the "mark to market" accounting rules. Most of these assets are worth a lot more than the values they are forced to be currently booked at due to this accounting practice. When Lehman went out, they have to value all of their assets for immediate liquidation (as does every company). If another institution had a similar asset on their books, they are now forced to value it at the same "fire sale" price as Lehman, even thou they have no intention of liquidating the asset. The government is going to buy these things at the "fire sale" price from the institutions and then make a ton of money selling them for true value back into the system. This is going to be an all around winning move for everyone. It has brought stability to the markets and the governement is going to turn a profit. They are implementing investing basics 101, buy low and sell high.

Why doesn't the govt temporary lift restrictions and let other cos such as WalMart, MicroSoft purchase banks? I don't think they would do any worse.

I think the resolution to the goverment bail out programs could easliy be remedied by changing the tax structure.A flat tax or sales tax equal and fair to "ALL" and I mean "ALL" no exceptions would quickly curb those companies or business looking for a hand out by the goverment knowing it's their tax money now whereas before with all their tax loop holes could care less.In addition, the goverment would not be so wont with the nations tax money before doling it out.Our tax system has to be changed now to keep up with the way the world has changed and business is done. Technology can make things far more accountable where the stock markets should not dictate the health of the economy with pendulum swings.

There is something here that just doesn't click. People are relieved today because a country (USA) that is over $1 Trillion in the red, which has just taken on shoring up Freddie & Fannie, bailed out AIG and is committed to spending over $500 Million/day on an endless war, is now going to add bad debts and the liquidity problem to its list of woes. This is what Capitalism has come to: every proletariat slob (us) bailing out the fat cats who will somehow emerge with their multi-million dollar severance checks!
We the people who now own this debt should simply say: fine, we'll assume it, but the severance is cancelled - and if you don't like, sue US! Hell will freeze over before the suit is settled.

Some of you remember the S&L debacle back in the 80's? The people with money
came in and bought up assets for 15% on the dollar!
They set up shop and then proceeded to call in those loans, and were settling for
whatever margin they could get over the 15%. I saw stuff being paid off at 50
to 75% of note. Let me see that is about
300 to 500% of what they paid !
Of course some was uncollectable!
The people with the money and good collectors did make a lot.

Any company taking advantage of this taxpayer bail out should have to agree to an annual one million dollar salary cap for any officer and/or manger. In addition agree to a 2% above prime rate cap on all profits until the package sold by the government is sold at a profit.

Al , I actually have been thinking that too. The homeowners could be given a relief period with an extend payout, instead of selling these homes to a new owner at a lower price.
solutions that help everyone are what we need. We have come up with one ourselves. It helps the seller that can't sell , the buyer that can't buy and the realtor that can't get a commision.
look at this website. perfect place contest .com (no spaces when you type it)

What I am having trouble understanding is that with over a trillion dollars in bailout money, plus a billion dollars a day being spent on the wars in the middle east, how does does the US Treasury print all of this additional money for circulation without causing tremendous inflation?

I'm a Home Inspector - Your government is fixing to bail out a over priced contaminated decaying infrastructure. Letting buyer's to purchase homes with Lead, Mold, Asbestos, Poor Construction, substandard material, ect.. Bailing out the Top without fixing the bottom - Sounds Very Risky

A combination of grants and loans to improve the foreclosed loans may be a better way to proceed. At least the neighborhoods that need improvement most would receive it and there would be economic stimulus that some average Joes might partake. The banks would hold their foreclosed loans, and those that did the best job improving their properties would recover the most money.

Instead of giving $700 billion to wall st, why not just pay off a few hundred thouand poor loans and cap intrest increases at 2% per year on the rest. That way more middle class people would have money to pump up tha sagging economy. Of course we may have to outsource many CEO jobs to other countries where they are wiling to do the job for only 1 million a year.

THE "BAILOUT" IS A PROBLEM CREATED BY BARNEY FRANK AND LOSERS LIKE REED AND PELOSI THEY WANTEED EVERYONE EVEN FOREIGHNERS TO HAVE A HOUSE EVEN IF THEY HAD NO MONEY OR JOB...NOW THEY HAVE A HOUSE AND THE TAXPAYER OWNS IT THANKS TO BARNEY FRANK,HE CANT RUN FROM IT HE IS ON VIDIO SUPPORTING IT AND PELOSI, SHE WAS BUSY SPENDING 33 MIL TAX DOLLARS TO REMODEL THE HOUSE CAFETERIA GOOD JOB.PELOSI

Face it folks, we are headding into another Depression, because we learned NOTHING. We still cast our votes," unless it is the Supreme Court," and the Electorial Collage STILL tells us who we voted for, so what is the use? THEY put us in this mess, like 1920s'. This stupid little country of sheep had better wake up.