Emotions shouldn't cloud decision on the bailout plan!

Your solution to the credit crisis is to create even more credit?

wow ...

Thanks for telling the American people what we want. Thanks ...

We have a big problem but it is a world problem. In fact any bailout would send US taxpayer money all over the world.

We are in this mess because mortage backed security pools were sold to hundreds of thousands of investors all over the world. The reason why there have been very few refinances is that most people can't actually figure out who owns thier mortage. It is easier to default than refinance. Then someone in Poland loses 5% of thier investment pool.

This is another reason why the bailout will not work. The US governemnt will not be able to pick and choose to buy bad mortages inside of investment pools. they will have to buy the whole thing just to get at the bad debt.

The solution to this mess is a massive tax cut. Welfare and Medicaid cost the US government nearly $800 billion a year. Suspending welfare could give every working American a 30% tax cut. For the average person this would mean an extra $300-400 a month. But what about those on welfare you say, screw them. We are in a crisis and we don't have the money to give out $700 billion more. The welfare class is a drag on the economy and it just so happenns that the drag they create is the ammount the government wants to fix the crisis.

Cut the capital gains tax. Cut the tax rate. Cut out welfare. Cut property taxes in half. Cut, cut, cut. Then we will be fine.

What is your solution, Ben?

There were several problems which probably sank the first plan before it ever got to be voted on & best be solved before anything is tried again.

1. In this era of sound-bites the term "Bail-out" is a loser. I see that Mr. Lazzaro uses the term 'Rescue" & this is a much better idea.

2. The Bush Administration has announced any number of "Armageddon" causes over the last 8 years & leaving the truth of the issues (Saddam & Al-Quaida, Iraqi WMD, etc.) they have gone to that well once too often.

2a. The President's speech early last week was spectacularly inept. We were joking that the speechwriters had gotten together to write really dumb things into the speech & were wagering how long it would take the President to realize he was being had.

2b. Bipartisanship it tough to come by these days. The chance to nail the other party with 5 weeks to go before an election is far too tempting. I am surprised that so many Democrats voted for the plan, not that so many voted against it. & the Republican House leadership completely dropped the ball.

3. Very few persons have explained exactly why the rescue is needed. Here on Blogging Stocks doesn't count. You need someone to explain it to all & make it personal & immedaite to everyone.

The rescue plan will help middle class Americans. Those claiming it will only help the rich don't understand! When a business can't get a loan (or has to pay high interest) they may not be able to meet payroll & purchase materials mandatory for business. As companies fail, more people unemployed, less purchasing power so more companies fail. The Dow Jones lost 1.4 trillion dollars (which is more than the rescue plan)! That was investments for retirement, college funds, etc.. which greatly hurts the middle class. The wealthy investors can afford to wait out the storm & even buy up stocks at low prices that will make them more money later on. Not approving this rescue plan is helping the rich get richer. Save middle class America! We want to keep our jobs and be able to put some money aside.

A massive tax cut? Exactly what about the Bush tax cut prevented this from happening?

Blah blah blah ... If the powers that be are correct the market should be DOWN another 4% today. There is no crisis; the market is up 3%-4% today. You fear mongers are a joke! Credit is only necessary for people who do not know how to live within thier means. I have worked and saved from the age of 13, and I have never sought a loan for anything. Why shoud I help Bankers and "free markets" ghools. Plus by definition this bailout would make this market a not-free market!

You know what hurts the middle class even more? Unable to buy a home at a reasonable price.

You talk about retirement, lol how do you retire when you still have to pay for mortgage.

And no we don't need a solution. Let's just say each and every company in the DJI collapses in 2009. What's the big deal? Some other company will come in and take over it's position in the market. Maybe it won't be an American company, but hey what's the big deal. It's called capitalism.

People have been retiring with mortgages left to pay for generations.

And what businessman is going to build you a house at this "reasonable price"? What the heck does that mean? Is it below market? Cheaper than it costs? One that lacks a profit?

You know it's not reasonable when the same house was sold for 299k and 3 years later it's "worth" almost 1 million.

And you know what's scary? I went to BoA this weekend and they say with my income I can get a 1 million dollar loan... seriously I am not even sure how I can pay that off either. lol ...

Question, we buy the bad mtgs what actually happens to the houses?

For JHC: a "reasonable price" is what the buyer will pay. That is the only way to value an item (be it a hot dog or a house). As for this market, the pundits are not using the normal language for the movement up and down. It is blatant manipulation when they call up: a bounce (instead of a rally) and down: a loss (instead of a correction.) And you eat it up! This is the problem with your [JHC] fear based thought process, you do not see the houses are overvalued (we are still in the bubble): the wealth is not there and was never there. But you refuse to see the housing correction for what it is.

Ooh, the hard sell is coming ... this how they talked all them rubes into them variable-rates to begin with?

Look. A bubble is a bubble -- get it? It has no substance. It cannot be sustained indefinitely. And try as hard as we might to preserve one when we create one -- they ARE really beautiful, after all -- the damn thing pops every time.

That is the nature of bubbles, whether they are made of soap or made of paper. The very constructional features that make it happen, that make it so (temporarily) flexible and expansive, are the same features that ultimately destroy it.

Too bad, huh? And you know what else? Cotton candy don't last forever, either.

Pitch another $700 billion at it -- hell, pitch another three trillion -- and all you are doing is giving those left holding the bag as the pyramid scheme topped out a chance to recoup their investment by sticking the US taxpayer with the bill for that final "Pop!"

You cannot climb out of a shit-heap by burrowing deeper into it and pretending it's clover.

We are in that shit-heap even as we speak. You wanna pay for showers and a fresh suit of clothes for the guys who got us there, while we stay stuck in the muck, well ... I suggest that you exercise your charitable instincts by selecting the StockMeister or SuperBanker of your choice and writing he or she a personal check for $8,000. You KNOW they'll do the right thing with it, right?

Market up, recession is over! Congress cancels all mortgages.
------Ok maybe not, but the market is up 485 points today and all of the sudden there's talk of the fallout from this crisis not being so bad after all. Don't kid yourself, the only reason the market is up today is because there's BS going around that the "savior of the stupid (SOS) bill" is going to pass Thursday. Don't count on it!

The bill to buy $700 billion mortgage backed securities, looks like $350 billion now with more later if needed (like they wont need it later. Come on people!), the FDIC insurance limits moved from $100k to $250k (this should have been done decades ago) and now their adding tax cuts and a "bridge to nowhere" in addition to....
continued at -------www.mortgagebreakdown.com