How can Paulson and Bernanke honestly negotiate a price for mortgage assets?

I really don't know all the details , BUT something needs to be done soon. I believe E (the taxpayers) should be able to have the firms who we help out NOW have a few future asset checkpoints/reset stages if the bundle of toxic assets don't appreciate as plannined planned. Kinda like a very expensive margin call we can cash in with these firms 4-6 years if needed.

In the proposal, there was a provision that no court or agency could review any decision Paulson made during the conduct of business concerning this bailout. Unbelievable. Forwarded is message sent to Senator Shelby:
Thank you Senator Shelby for understanding the road this bailout will lead us down. We as Americans understand hard times and know when they are necessary. No easy way out this time, this bailout only moves the problem down the road and makes it worse. Let's unite behind this cause and do it the right way this time. I listened to the hearing and Paulson and am astonished by his requests. I don't need to go into detail, you were there. People like you and Senator Bunning may be the only people standing between us and socialism. God Bless You, all of Congress, and all the citizens.
Sonny

Re: Fixing sub-prime loans

Fixing sub-prime loans

As of 9/20/08, its not hard to see the direction the Feds are going to fix the sub-prime mess. When in doubt the politician always seems to choose the solution that costs the taxpayer the maximum amount of money.

Rather then setting up a federal agency to potentially spend a trillion dollars or more to buy sub-prime loans at a discount from banks, why not approach the problem from the opposite direction at a much lower cost to the feds and therefore the taxpayer.

Solution - Freeze sub-prime loans written in the last say 7 years at the original teaser rate. Credit funds paid by the borrower in indexed payments made over and above the teaser rate. The credit or excess paid to date by the sub-prime borrower, to be used to offset future payments until the book between borrower and originating lender is balanced.

The cost to the feds would be passing and enforcing mortgage loan regulations. The cost to the originating lender would be a calculated specific amount based on the value on the asset frozen at the teaser rate.

There are generally two types of borrowers in the residential lending market, each with huge quantities of sub-prime loans. Both are necessary in the marketplace. In the past lending practices were regulated. Today there is little oversight. In many instances the typical borrower choose a sub-prime loan because that was probably the only product that was offered to them. The two types of borrowers :

1. Owner occupied borrower. Typical profile, emotionally involved in the home ownership, conservative, slower moving and less sophisticated or savvy in terms of financing.

2. Speculator (non-owner occupied borrower). Typical profile, less emotionally involved in ownership, less conservative, faster moving in terms of entering or exiting the real estate market.


Simple Solution:

Re-establish regulations to make and enforce conforming loans with a properly qualified borrower. Proper regulations be put in place to assure and enforce accurate and separate appraisals made by non lender employee appraisers.

1. Owner occupied borrower. Four year freeze period at the original teaser rate.

2. Speculator (non-owner occupied borrower). Two year freeze period at the original teaser rate. While I have little symphony for the speculator, they are a huge part of the sub-prime mess.

I believe that the above would provide a timeout for the real estate market to recover and at less cost to the taxpayer. It would also stabilize or reduce the foreclosure rate and stabilize property values in the residential real estate market.


Monte

'Honestly' is the key word here. As honesty isn't in the Bush administration's armamentarium of con tools and accessories, they can't really 'honestly' do anything.

You've got to be kidding. This is a bipartisan issue. They all had their hands in the cookie jar and those who looked the other way knowing all this was going on in order to grease their own palms (will the Democrats please stand up) are JUST AS GUILTY!

Fire them all and bring in independent auditors to sort our the liquidity from the silt -- if there is any. Then put Clinton, Bush and their cronies on trial for international fraud and treason.

Americans need to take back our country from the slime that is infecting the halls of Washington. POWER TO THE PEOPLE!

You forgot the part where he says we also have to help foreign companies, with American Taxpayer money!

We have a fiat currency bubble burst.

Financial Crisis Fundamental Foundation Flaws and Solution

Congress is tapping into this info today.

On http://coinage.me/

The flaws are articulated in detail as well as the solution which involves a New Global Value Exchange Accounting System they have a list of power questions that media and journalists can ask.

One interesting ironic insight is a small fortune can be made off pennies as a result of the amazing paradox resulting from current market conditions. 1 lb of pennies is worth $6.00 tangible and only $3.00 intangible.

They make an interesting point why shouldn't the bail out (citizens going into debt) go to pay off the mortgages and then trickle down to those firms needing to be bailed out?

Read the power questions. http://coinage.me/power_questions.htm

The last time congress signed a blank check for this administration without oversight, because we had to "act now," we ended up in Iraq and billions of $ latter we're worse off. Hmmm.... does this request sound familiar? Why would anyone make such a request if everything is on the up and up? They don't know what happened but we're supposed to trust them to make it all better. i think not!

I know I couldn't believe what I was hearing. Not only would they be overcharging the tax payers for junk, they'd use that new price to reprice all the junk on their books. Then what, sell the rest to people who don't watch the news? Plus, no oversight, golden parachutes, broad powers, no court reviews, not even any details or plans. They gave Congress 3 pages and asked for $700 billion and by the way hurry up and sign under duress. Yeah right?

NEW BANK BAILOUT PLAN: How about we loan the banks the bail out money with a 30 year A.R.M with a prepayment penalty? Since the banks credit is garbage now, lets offer them high subprime rates. Then let's bundle these loans and turn them into morgage backed securities and sell them to China as AAA securities. After that lets sell some Credit Default Swaps to investors that think the banks will default. Then lets all short them and become billionaires. Sound like a plan? If it doesn't work out we can always cry "bail out". :)

does anyone really believe that the current one party system (Dems/rep.) will do what needs to be done on behalf of all of us? hopefully this will wake up a few more people to the fact we need to clean house, kick out ALL incumbents and start fresh, no lobbying allowed. it can't get much worse people, unless you keep letting them get away with it. wake the f$#@ up already...