Do you think the govn’t should give Wall Street the $700b?

@Sunflower 177881 wrote:

I vote no.
I want someone to pay my mortgage too! Most of these people where trying to live beyond their means so why should tax payers pay them for being stupid?

Think how many millions of taxpayers have a mortgage.

The taxpayer money the government spent to bail out bear sterns could have assissted how many millions of famalies?

Like Obama said last night, “economics from the bottom up”.

And another thing… You say people are at fault for biting off more than they can chew…
A lot of people simply don’t realize how many times over they are paying for the same house because of the interest charges associated with a mortgage. But the greedy bankers sure know… Lower interest rates would lead to fewer defaults. That’s one area where regulation is needed.

@GamTrak 177892 wrote:

Well if the house republicans have thier way the private sector will get involved and they also feel that the banks will have to pay into an insurance fund so it’s not a done deal that Main Street is going to foot this crap just yet.

I hope they can find private investors but usually the private sector gets involved long before the fed does. Like Buffet investing the $5 billion.

@Foots27 177901 wrote:

The taxpayer money the government spent to bail out bear sterns could have assissted how many millions of famalies?

Like Obama said last night, “economics from the bottom up”.

Exactly! This money is not going to help those that are at the bottom of the problem!

Take the money to clean of the mess after we see exactly what needs fixing instead of giving the banks more money to piss off. We will see more banks close and jobs lost even after the money is released.

I understand what you are saying about the private sector, but Corporate America needs to step up and offer to pay a percentage of taxes more in line with what you and I do. If no one has any money or can get credit then they will fail anyway.

Warren, Trump and others need to buy up some more stuff and then wait for it to increase in value since they have gotten richer from this mess.

@GamTrak 177907 wrote:

Exactly! This money is not going to help those that are at the bottom of the problem!

Take the money to clean of the mess after we see exactly what needs fixing instead of giving the banks more money to piss off. We will see more banks close and jobs lost even after the money is released.

I understand what you are saying about the private sector, but Corporate America needs to step up and offer to pay a percentage of taxes more in line with what you and I do. If no one has any money or can get credit then they will fail anyway.

Warren, Trump and others need to buy up some more stuff and then wait for it to increase in value since they have gotten richer from this mess.

Unfortunately, It’s not a monetary problem, it’s really an honesty an intregrity problem or lack thereof. Hard to fix that.

here’s blog I stumbled upon that predicts the leman bros failure way back in March.
http://www.bloggingstocks.com/2008/03/15/is-lehman-brothers-next/

“The Wall Street banks hold the cash and securities of corporations, hedge funds and other investors. If a Wall Street bank files for bankruptcy, the bankruptcy process freezes those assets so that the customers can’t get access to them. Thanks to bankruptcy law, the courts get to decide which creditors will get their hands on those assets. The reason Bear Stearns failed is that its customers withdrew their funds so they would not be frozen by bankruptcy.”

Remember the “Bankruptcy Abuse Prevention and Consumer Protection Act of 2005” the Republicans pushed through.
http://en.wikipedia.org/wiki/Bankruptcy_Abuse_Prevention_and_Consumer_Protection_Act

@slotplayer 177908 wrote:

Unfortunately, It’s not a monetary problem, it’s really an honesty an intregrity problem or lack thereof. Hard to fix that.

If there are folks that have money (like the government) to buy these junk instruments then it does not matter where the money comes from it’s still money.

There are other options available to stimulate the economy and get things moving.

I thought that they said that everything was going to collapse on Friday without action? That was crap. I’m not saying that nothing has to be done, but I’m not liking being told that the world will end in five days unless we give Hank Paulson and Wall Street $700 billion dollars with NO oversight or accountability! WT@ is that about? Any time someone puts a time limit on me I don’t trust them.

They’re politicians they can’t be trusted.
I’m more interested in them not getting golden parachutes.

Yep, and that is why we should not give the money to them. I can see them bailing out in them just as soon as the government writes the check. hehe

I am truly amazed by how many people are against this “bailout” for reasons far beyond the current situation.

First – If you walk in your house today and found a steaming pile of :bullshit: in the middle of your living room, will you a). Clean it up first and then search for the one who did it; or b). leave it in the middle of the floor and go look for the one who did it?

If McCain or Obama are serious about this issue – they can show us by holding people responsible later on, when one of them becomes the President. But for now, let’s clean the :bullshit: in the middle of the room, yes?

Second – is it a bailout? Yes. But the problem must be solved, because thanks to the millions of irresposible borrowers, the banks have turned into real estate agents – they have plenty of homes, but no money. It should be exactly the other way around. At this point WHY it happened is completely irrelevant. Bottom line – it must be fixed!

What people fail to understand is that for every 1 bank collapsing, there will be 1,000+ businesses collapsing, as well, since they won’t be able to pay their bills. Not only because they won’t be able get credit, but their debit accounts will vanish, as well. Every business account carries the same protection as the personal account – up to $100,000. Most local medium businesses have accounts with 1-2 million and more per bank, millions of jobs are at risk. Then not only you won’t be able to pay your mortgage, but you won’t be able to buy food for your kids. And this is just one of the many effects on the Mainstreet this collapse will have.

This is one of the few instances where I would welcome the fact that politicians don’t care what Avergae Joe thinks, because it’s obvious that Average Joe has no idea what he is talking about.

The problem here is that the mortgage backed securities are held by tons of banks and businesses and are used as collateral for loans taken from each other. Today they have no way to value, according to GAAP (Generally Accepted Accounting Principles) rules, so they must report the value as $0. This means they are now in default of their loan covenants and must repay the money or go bankrupt. Hence we’re going to set off a dominoe affect of banks failing. according to numbers i’ve read various articles for every $1 in loan losses, the amount of credit available in the US banking system declines by $18, so $700 billion or about 1 year of US economic output. No credit for cars, credit cards, mortgages etc.

The reality is that these Mortgage Back securities are worth more than $0. Not all people will default, especially if the crisis ends and the economy begins to grow. so the gov. could potentially buy the current debt for less than it will be worth in a few years and not only not lose money, but even profit.

One other idea, besides a bailout: Have Government declare that the reported value of these securites is “35% of original price”, instead of 0%, for a temporary period (i’d say 12-24 months) in violation of GAAP rules. This will keep their balance sheets showing assets until a market price is established, thus preventing loan defaults.

I think the average person understands what happened and knows that something has to be done, but it does not mean they want to keep :bullshit: in their face. Get a grip! :sarcasm:

I’d like to ‘rubber stamp’ the forehead of everyone in Washington (or anywhere) that sais “I SAW THIS COMING” with a word or two.