$700 billion dollar bailout Posted by mitcka at 09/24/08 04:01 PM

Treasury Secretary Paulson says this bailout is the only way to prevent real economic harm to our nation. But this is a lot of money. How much? Here are some other things that cost $700 billion.

The Defense Department last year asked for a 2008 budget of $481.4 billion to support operations around the world and in cyberspace. So the bailout will cost taxpayers more than our national defense budget for this year.

Now, to be fair to the DOD, that budget doesn't include all our spending on Iraq and Afghanistan. The total cost of the war in Iraq was estimated at $500 billion back in January by Bush's former economic advisor Lawrence Lindsey.

The Washington Post estimated the entire 2008 federal deficit at nearly $500 billion on September 10th, before this announcement. Does this mean we are about to "double down"?

We spent $500 billion in 2005 to treat the ten most expensive medical conditions, according to a widely cited update by the Agency for Healthcare Research and Quality.

Here's an eye opener: $700 billion is twice what we spent on foreign oil in 2007. The U.S. imported 4.3 billion barrels of oil at an average price of $72 per barrel, totaling $352 billion.

Congress adjourns this week, and this is a weighty decision to make in just a few short days. This bailout may be the best thing for Wall Street, but will it be good for you and your neighborhood?

A lot depends on what happens should a bailout get approved. Here's the statement we put out this morning describing what any bailout agreement should include to give us a fighting chance to help taxpayers, homeowners and consumers in the future.

What do you think?

comments (384)

1 Posted by Paul at 09/24/08 09:29 AM

We should oppose this bailout. Why can't we forgive the mortgages people have. That would be a real economic stimulus package! Instead we are going to dole out money to millionaires because they screwed up.

2 Posted by George Kopczynski at 09/24/08 09:31 AM

What about Section 8 of the proposed legislation? Scary, isn't it?? More of Bush's shenanigans!

3 Posted by David Kozlowski at 09/24/08 09:34 AM

Any money given to Wall Street should be in the form of a loan to be paid back with interest and paid back before companies issue dividends and bonuses.

4 Posted by Tom St.Martin at 09/24/08 09:37 AM

There is a letter to the editor in the Minneapolis Star Tribune today, 9-24-2008, from an attorney who was involved in resolving a crisis in the 1980s when farm land values declined severly. He gives step by step procedures that use existing bankruptcy law to resolve this current crisis without giving away the store. I have passed this information on to my Senator, because what he wrote makes a lot of sense to me.

5 Posted by Avi Olifant at 09/24/08 09:38 AM

Since this is an economy based on caiptalism I think that these companies need to handle this themselves. The taxpayer should not be punished fo something that he hasn't done. Paulson was the CEO of one of the surviving banks. I believe that what he wants done is to prtect his former company.

6 Posted by zzx375 at 09/24/08 09:38 AM

There is an immediate cost here, as well as long term one.

The long term cost will be for the oversight function. This needs to be recognized. The degree of oversight and length of time are different discussions.

I can agree that executive compensation has become an elephant in the living room but government regulation concerns me.

I understand that lender who benefits from a bailout should not then put the screws on a borrow who is having mortgage issues and at a high level I can agree with that.

But much of what we are collectively reaping here is a "Get the credit you deserve!!" mentality. Pull the variable rate mortgage option out of the market place. Period. That will prevent many folks from owning a home, but it will also prevent those who start out shakey from going under when the interest starts to float.

Don't own a credit card. Period. Cut them up. Pay cash. If you want the big screen TV and don't have the cash, do without. Learn contentment.

Governement warrants to own a share in a company need to have an end of life so that government ownership ends. Governments should not own a piece of any company. That is bad public policy.

If a loan or business deal looks to good to be true, if that rate to borrow is 5% below market or if that "guaranteed" interest is 5% above market, then it is too good to be true. You will reap what you sow.

7 Posted by Gilbert at 09/24/08 09:43 AM

Congress should not be signing a blank check in our name! Didn't Sweden go through a very similar economic near meltdown in 1992? Didn't they solve it by requiring that their financial institutions conform to regulations and pay off their debts to their citizens? Aren't we as good/smart as the swedes?

8 Posted by JD Adams at 09/24/08 09:44 AM

Wall Street, large corporations, CEO's with golden parachutes.... these companies like AIG should simply be allowed to die the death deserved, and the assets sold off. Bailing out banks, insurance insutries, corporations and businesses.... people who have all gotten rich essentially through greed, are not deserving of bailouts from the taxpayer. As a taxpayer who has no golden parachute and six figure income guarantee, why should I be expected to bail anyone out. Bail me out. My small business is going under from the financial stress on the economy. My house is worth what it was in 2003, with property values destroyed. Bail me out. bail out middle America. Support the FAIRTAX Plan!

9 Posted by Dave at 09/24/08 09:48 AM

Bail out the people loosing their homes. Why are we always bailing out the rich losers? Wake up America!!

I say no no no to the bailout!!!

And no vacations until an equitable solution not compromise is reached.

10 Posted by C. Haessler at 09/24/08 09:49 AM

Well, first of all, don't blame Bush. Bill Clinton repealed the firewalls to keep banks and investing separated allowing this to happen. We personally feel let the marketplace determine if the banks stay in business or not. They did not control nor use oversight, therefore like any business in the capitalistic society, they go under on their own. We will, as a country and economy, survive. We should NOT bail out stupidity and cupidity, and we definitely CANNOT give power without oversight or constraints on any one person or group to run this proposed "program". Let the banks sink or swim - it is up to them to get their act together, not ours. This is a free society. They chose their path; they got lost (the greedy sods), now let them face the music. By reducing our credit needs, we, Americans, will not further into credit debt which is a great plus for the economy. The real culprits, of course, are those who wanted to purchase more than they could afford! They really started the whole mess and now they, too, want off the hook. We paid our mortgage and sacrificed to do it. They did not want to sacrifice but were greedy. They, too, need to wake up and smell the coffee and accept that they gambled and lost. Remember, any investment is a gamble! you may win, you may lose and if you can't cover your gamble, then you are in doodoo!

11 Posted by Jeannie at 09/24/08 09:50 AM

We should not bail out these companies with our tax dollars. We need other solutions to the $700 billion bail out that has been proposed. Each of us needs to contact our senators and congress representatives because we demand to see the pros and cons of several alternatives...not just get one option rammed down our collective throats.

This crisis has been predicted since Spring 2007. This is not new and we shouldn't be running around in panic mode. After all, the homeowners with these bad loans have been dealing with this situation for at least one year and no one has offered to bail them out.

1) Re-regulate to ensure banks must keep sufficient cash on hand to weather the storms.
2) Re-negotiate these bad loans so all Americans can get on proper footing...not just the big banks.
3) We should not own these bad loans. They should stay with the banks that have all of the MBAs that purchased them in the first place. (By the way, I have an MBA). But we might decide as a country that we can help insure them if the banks re-negotiate with homeowners.
4) Fluxuations in the value of real estate are temporary. Over time, real estate is a good investment. Some of these properties have lost value compared to the amount loaned. However, the solution is not to just dump them. We must have a long term view and realize that these home prices will eventually go back up. But the government should not be in the business of holding these assets!

12 Posted by Bizz at 09/24/08 09:54 AM

Why the hurry? All the betters on the Credit Default Swaps (CDS) should lose their money so we taxpayers do not have to give the rich MORE money.We need to eliminate the top pay in all the companies leaving us with a surplus. What is BUSH thinking?
...The crisis occurred (to greatly oversimplify) because the financial system allowed entities to place bets on whether or not those mortgages would ever be paid. You didn't have to own a mortgage to make the bets. These bets, called Credit Default Swaps, are complex. But in a nutshell, they allow someone to profit immensely - staggeringly - if large numbers of subprime mortgages are not paid off and go into default.

.....Lehman Brothers Chairman and CEO Richard Fuld Jr. made $34 million in 2007. Lehman (OTC:LEHMQ) filed for Chapter 11 Bankruptcy protection earlier this month.
...Goldman Sachs (NYSE:GS), which Sunday gained Federal Reserve Bank approval to become a bank holding company, paid its Chairman and CEO Lloyd Blankfein $70 million last year. Co-Chief Operating Officers Gary Cohn and Jon Winkereid were paid $72.5 million and $71 million, respectively.
...Morgan Stanley Chairman John Mack earned $1.6 million. Chief Financial Officer Colin Kelleher got a $21 million paycheck in 2007. Morgan Stanley (NYSE:MS) also received approval to become a banking holding company, a shift that allows Morgan and Goldman to bring in bank deposit assets which offer more solid financial footing.
...Merrill Lynch CEO John Thain was paid $17 million in salary, bonuses and stock options in 2007. Merrill (NYSE:MER) is being acquired by Bank of America (NYSE:BAC). BofA CEO Kenneth Davis earned $25 million in 2007.
JP Morgan Chase & Co. Chairman and CEO James Dimon earned $28 million in 2007.
Chase ..(NYSE:JPM) acquired troubled investment house Bear Stearns earlier this year with the federal government promising to take on as much as $30 billion in Bear assets to help get the deal done.
...Fannie Mae CEO Daniel Mudd received $11.6 million in 2007. His counterpart at Freddie Mac, Richard Syron, brought in $18 million. The federal government announced earlier this month it was taking over the mortgage backers with Herbert Allison to serve as Fannie CEO and David Moffett the new CEO at Freddie.
Wachovia Corp. Chairman and CEO G. Kennedy Thompson received $21 million in 2007. He was succeeded by Robert Steel as CEO in July. Steel is slated to get a $1 million salary with an opportunity for a $12 million bonus, according to CEO Watch. Wachovia (NYSE:WB) is one of the banks that could be sold in the midst of the financial crisis.
..Seattle-based Washington Mutual (NYSE:WAMU) will pay its new CEO Alan Fishman a salary and incentive package worth more than $20 million through 2009 for taking the helm of the battered bank, according to the Puget Sound Business Journal.
..CEOs of large U.S. corporations averaged $10.8 million in total compensation in 2006, more than 364 times the pay of the average U.S. worker, according to the latest survey by United for a Fair Economy. In 2007, the CEO of a Standard & Poor’s 500 company received, on average, $14.2 million in total compensation, according to The Corporate Library, a corporate governance research firm. The median compensation package received was $8.8 million.

Lastly let us see all the multimillionaires step forward i.e. Gates and Buffet,etc.(including John Kerry and the other rich Senators) assist with this bailout, NOT THE MIDDLE CLASS!!!!!!

13 Posted by Walter A Morgan at 09/24/08 09:54 AM

NO BAILOUT! Send the message to congress. They have no constitutional right to weigh tax payers down with this crap.

http://www.votenobailout.org/

This supposed to be a democracy not monarchy - Bush has a low IQ and done nothing but lie and twist the truth for 8 years. Wake up people!

14 Posted by Brad at 09/24/08 09:56 AM

It seems to me that the lending institutions are the ones that made the decision to push Americans into ARM mortgages with low APR which has now come around to bite them in the ass. The lenders should have made a killing and socked the monies away from the drastic APR increase. Let them die on the vine, I believe that the nations predicament is lending institutions fault for holding the candy out to the consumer and allowing them to bit off more than they can chew.

15 Posted by M. Smith at 09/24/08 09:57 AM

Who will be the hardest hit? Prioritize who, what, where, and the realistic consequences of several different actions. Play them out. Who were/are those who would most benefit a bailout? These questions must be answered before a decision can be reached. Our govermnent (already financially strapped) should not just hand over $700 billion to ..... who IS getting this money, anyway? Throwing money at a problem that was caused by money (or the love of it) is the wrong solution. How can we remain a strong country if we allow Wall St. to run it? No, help the little guy who can least afford a set-back.....honest citizens who were sold a bill of goods: a mortgage that they (inevitably) would not be able to pay. These people were set up for failure b/c of greedy, unscrupulous loaning practices.

16 Posted by Jeremy at 09/24/08 09:57 AM

Rep Marcy Kaptur from Ohio says it all..
Watch this and pass it on.

http://www.youtube.com/watch?v=mbD62gNi9WE

17 Posted by Barry Singer at 09/24/08 09:58 AM

If you take the $750 BILLION dollars, devide by the approx 250 million legal people in the USA, we each will get enough to buy a house (a nice one) for cash, and pocket about $100,000, and put the a**holes that caused this behind bars, problem solved.

18 Posted by Paul at 09/24/08 09:59 AM

This bailout is a big step toward nationalization of our economy. If we trust the members of congress to control our economy, we should take this step into socialization. It should work as well as the Soviet system did. God help our nation!

19 Posted by Josch at 09/24/08 10:01 AM

Our government is in NO position to bail anyone out right now. We are like around 9.5 trillion in debt right now. We need to pay off our deficit and own our country back again before we even consider such a large purchase. I think it is ridiculous that we are in so much debt, and continue to spend like drunken sailors as if we can afford it. Our Government SHOULD be carrying a positive balance before they even consider bailing anybody out. Our government and monetary system needs to be audited by the top accountants of the country and a serious plan needs to be designed to get our own finances back in order. Had our government set a better example to the people (about living within our means) perhaps this whole mortgage crisis would have never happened. But I guess of course, the government is ran by a sampling of its people, so we are one in the same. Shame on America for going so deep in the hole. PAY OFF YOUR DEBTS PEOPLE, and don't sign contracts you can't fulfill realistically.

20 Posted by Matt at 09/24/08 10:01 AM

What we have here is a hostage situation on a GRAND SCALE........Wall Street is the criminal and the American public is the hostage.

21 Posted by B Maddigan at 09/24/08 10:02 AM

WOE To them, ---->>> Wall St.

The sins (PRIDE & GREED) of the fathers,

Visited Upon the children (Us)

Coupled with a LOT of 'SELF' Exalting & DECEPTIVE practices

= our Present financial, RED/Black HOLE...

22 Posted by rich at 09/24/08 10:02 AM

700 Billion or 2 trillion, it's not going to solve the problem until the american tax payer's mandate that our representitive in Washington work off a balanced budget.
We continue to allow them to sell us and our children down the drain.

23 Posted by Rocky Gilbert at 09/24/08 10:03 AM

I agree, as a country we just continue to perpetuate the idea that if I screw up someone will bail me out. We have created a society that can't make smart decisions. When my wife and I bought our last house we made a budget and figured out what we could afford and based our mortgage payment on this information. I can't stand all of these people who are "victims" and the jerks who preyed upon the.
If you live in a city below sea level why should I have to pay for your house to be rebuilt, if you build in a flood plain I shouldn't have to pay to have your house rebuilt, if you buy a house or make poor investments I shouldn't have to pay for your bad decisions.

24 Posted by B Belina at 09/24/08 10:04 AM

It seems to me that the $700 billion figure was picked from a hat.

Why are we trusting the same people who got us into this mess to stop the bleeding?

I am opposed to the bailout in it's current form.

I want to see these changes:

a) Appoint an independent ombudsman to oversee this program, and to be accountable to the Congress and the taxpayer
b) Severely limit executive compensation for all companies that are bailed out
c) Makes sure that the government gets stock warrants of companies that are bailed out
d) Buy back the junk securities in stages. The objective should not be to prevent a recession - just to keep financial markets from completely locking up. Let the market force of creative destruction deal with some of the firms that were wreckless.

25 Posted by Leslie Hope at 09/24/08 10:05 AM

Why should we buy them out. Get new ways to loan money but responsible regulated people. NO way on 700M bailout. What about buying all the adjustable rate morgages and making fixed rates? There are MANY other options that are available without such a hurry. SLOW down, think this through!!!!!

26 Posted by debbie at 09/24/08 10:08 AM

No on the bailout!!! Not everyone going into forclosure is having financial problems or has a house they can't afford. Many have gotten ripped off by shady builders and corrupt politicians who allowed homes to be built with building code violations. These homes are now worthless and can not be sold by the consumer. The only option is to try and cash out all of your equity and let the place go into forclosure. You will never win with the court system or binding arbitration. How about a logical bailout for those who bought these problem homes so that they may be repaired instead of discarded????

27 Posted by Beth Gray at 09/24/08 10:09 AM

Giving these guys a check for $700 Billion without steep regulation on how it can be used invites the same sort of cooruption and greed that got us in this mess in the first place. That the Bush Administration could actually push for this to be passed without the right to review how and where the money is to be used, speaks volumes to the chutzpah of the Republican party. Think about it...eight short years ago we had a surplus! Now we are drowning in debt and being told we will go down if we don't double it again! And they have the nerve to blame the Democrates. They are SHAMELESS!

28 Posted by mikeg539 at 09/24/08 10:10 AM

Why is George W. Bush to blame for this
mess???

29 Posted by ER Hudock at 09/24/08 10:10 AM

I oppose the bailouts, period. I also believe the CEOs and people who made a fortune, retroactive to five to seven years, should lose all the money and perks they received during that time and that money should be put towards the company. Let them feel the financial burden they have put on the "little guy". In addition, these people who took out loans they couldn't afford I don't feel sorry for. No one bailed me out. I worked two jobs for years to support my family/household expenses. It's called living within your means.

30 Posted by Fred from Oregon at 09/24/08 10:11 AM

When a woman has a baby and has no employable person to support her, "welfare reform" has made it so she has leave the newborn just three months after it is born, to work a job or do 40 hours job search, or she will not be given any government help like food stamps, medical or cash. When people loses their houses to pay medical bills nobody helps them.

The the same neoconservative people who chanted "personal responsibility" lobbied the government into this laissez-faire capitalism. If we bail them out (even with strict payback conditions), we should have guaranteed universal health care (regardless of income) and subsidize families, new mothers, and children like they do in many European countries. Ironically, their money is worth more than ours. Responsibility is important, but so is helping each other when misfortune and hardship occurs.

31 Posted by Jimmy Porter at 09/24/08 10:11 AM

I have never been so damn mad at my political hacks as I have over this bail out fiasco. Right off they wanted to protect themselves, so the hell with the small guy and take care of the big dude that sends money to me. Well not this time. I am close to taking to the streets and assaulting my political representatives and citizens that vote with them. I mean really!

So listen up those of you who vote for this bail out. You may find yourself in a ditch with a big head ache and blood all down your face if us citizens can get hold of you. So, do not vote for this bail out. No, no, no! Don't do it!

32 Posted by kogarris at 09/24/08 10:11 AM

I agree with JD Adams...Bail me out...I have no health insurance,,,I have no six figure income,,,I have no retirement plan..so why should I have to bail these millionaires out of their self made delima....the leaders of this country are all mostly wealthy families who have nothing but to gain again from this bailout...I say roll with the punches like the rest of us...it is all I can do to keep my business running with a small profit ...but its enough to live so let them see whats it like for the average American citizen out here in the real world. Hangin tight in NC.

33 Posted by William Sharadin at 09/24/08 10:12 AM

The whole concept of the bailout is wrong, wrong, wrong! It is rewarding the crooks that caused the problem and charging the tax payers who had no part in the problem.
Individuals who signed for a mortgage knowing they couldn't handle it should be kept on the hook for the mortgage or let it go down. The lender who enticed the borrower bears responsibility, too, and should be penalized, not rewarded for this horrible business practice.
If this package goes through, the money should start from the bottom up and not from the top down. The crooks should be the last to see any of the money. Money given to the bosses for "a job well done" should have those bonuses and/or big golden parachutes upon leaving should be forced to return those ill-gotten monies. Let the bad companies die for their actions, and don't refund them enabling them to stay in business to continue fleecing borrowers.
It's sad. There just has been no oversight on anyone from Wall Street and all the way on through Washington. Both parties and the president bear responsibility for the current fix we and the world are in.
Thank you.

34 Posted by Jo at 09/24/08 10:13 AM

This needs to pass ASAP. Thereafter, adjustments can be made re: fat paychecks and other criticisms. Listen to Jim Cramer of Mad Money and CNBC before one ignorantly criticizes this!!! He called this back in August '07 so has some credibility. This is what he said yesterday (by the way, we don't need a Great Depression):

http://www.cnbc.com/id/26857498/site/14081545/

35 Posted by Robert Dye at 09/24/08 10:15 AM

If I make a mistake, I pay for it!

Let them pay for their mistakes.

36 Posted by ORD at 09/24/08 10:16 AM

Why not pass out the 700 BILLION to the taxpayers as 'credit vouchers' ?.....heck it's OUR monsy to start with. These 'vouchers' can then be used ONLY to settle OUR debts first....everyone wins....we get a financial burden off our backs, the bankers get their 700 Billion. Now THAT'S what I would call common sense. Let ME use MY money to pay MY debts FIRST.
The money goes to the banks anyway, but it takes care of its 'owners' first !

37 Posted by Top Hat at 09/24/08 10:16 AM

I do not think we are being told every thing. As usual, I think we are being kept in the dark. It seems our Government thinks we are a bunch of IDIOTS. Well, I think it is they who are the IDIOTS, because they do not take the time to read and understand most BIlls that are up for votes. They have others read the Bills and tell them what is in it, And how they should vote in some cases. Maybe we should require them to ask the people how they should vote. But this would not work either, I am sorry to say.

38 Posted by J. G. Ahler at 09/24/08 10:16 AM

If Congress doesn't put a cap on the obscene tens of millions of dollars that financial institution CEO's receive, then they are not serious about a remedy for the Wall Street problems.

39 Posted by bob marcy at 09/24/08 10:16 AM

Let those with mortgages spiraling upwarsds refininance at a reasonble rate. That would cost dramatically less than this proposal and help people stay in their homes and be productive members of society rather than a glut of empty, near worthless homes. How hard is that?
This bail out is madness of the highest sort

40 Posted by Leland Crenshaw, Sr. at 09/24/08 10:16 AM

Legislation must include a clause to deny any executive compensation golden parachutes for companies who apply for assistance. Also, there must be a "clawback" provision where illegal gains which were obtained by cooking the books must be paid to the Treasury. If these clauses are not included in the legislation, the whole thing will end up being another way to reward failure and corruption. I don't understand the administrations objection.

41 Posted by MR DEAN M HUFFMAN at 09/24/08 10:19 AM

We must oppose this bail out! A household with two wage earners could possibly be tagged with $4600 worth of additional expenses because of the cost of this bail out.

Send the trouble mortgage holders checks and let them pay off the bank. That way the bank gets paid. The creditor keeps their home. Put a lien on their home and if and when they sell the home, the government will collect the money back.

Real simple. And all of the CEO's responsible for this mess should not be denied their golden parachutes...no...they should be arrested and prosecuted.

Congress must not pass this bail out the way that it is worded and presented now. Give the thieves who robbed us to begin with more of our money? Absolutely ludicrous!

42 Posted by Charles Bieber at 09/24/08 10:19 AM

Bailout, this is not the American way. If I cannot pay my electric bill, no electric for us. The traders had a field day when things where going good, now we have to pay for their good times.

43 Posted by Mark Wolcott at 09/24/08 10:19 AM

$700 BILLION BAILOUT

PREMISE -
Our economy is danger of contracting because financial institutions are restricting credit. They fear that the debt will not be fully repaid.
REAL RISK -
Several banks have already failed. Shareholders have lost most if not all of their investment, reducing consumer confidence and spending. Financial institutions that held bank paper have lost some if not all of their investment, putting their own institutions at risk.
SUB-PRIME HOUSING LOANS
Resettable loans to prospective home buyers without adequate income documentation coupled with first a slowdown and then a decline in housing values resulted in mortgage defaults and losses for those holding the debt.
ADMINISTRATION'S PROPOSAL AND RATIONAL -
Buy the now overvalued securities. Banks will then have more confidence that debt will be repaid and loosen credit. Investment risk will be reduced. Homeowners in foreclosure or unable to afford mortgage payments adjusted upward will unlikely be helped.
ALTERNATIVE PROPOSAL AND RATIONAL -
Subsidize the now overvalued mortgages. Banks will then have more confidence that debt will be repaid and loosen credit. Investment risk will be reduced. Homeowners will be able to stay in their homes.
HOUSING BUBBLE -
Median house prices and median income got out of balance. Demand for housing increased faster than supply for several reasons. Among them:
- Overall interest rates were low
- Adjustable mortgages were promoted with low initial interest rates
- Loan documentation standards were lowered
FAIRNESS -
Institutions and individuals who sold and packaged sub-prime mortgages and their derivatives earned substantial fees. Speculators who bought property with little down payment or documentation who then resold the property profited. Home buyers who chose an adjustable rate mortgage believing that they would be able to refinance before the interest rate increased saved the difference between the cost of a fixed rate mortgage and an adjustable rate mortgage. The administration’s proposal seems to only benefit the first group.
Subsidizing overvalued mortgages directly rather than assuming liability for questionable institutional debt would not only help financial institutions but also individual homeowners, allowing them to stay in their homes even as the value of those homes may continue to fall. While complex, this seems no more complex than that involved in assuming toxic institutional debt.
ONE RELATIVELY SIMPLE SOLUTION -
One relatively simple solution would be to pass legislation with a one year sunset provision that:
- Created a moratorium on adjustable rate mortgages for one year
- Provided for a 2008 tax credit equal to the difference between the current national average 30 year fixed interest rate and the interest rate of each homeowner's current mortgage, fixed or adjustable. This credit would be progressive with full credit given to low income households, whether or not they owed federal income tax, and diminishing credit as income rose.

44 Posted by Bill Duke at 09/24/08 10:20 AM

The bailout is a scam to literally steal a trillion dollars from the American taxpayer....from the govs own figures...where is the mortgage crisis???

http://www.occ.treas.gov/ftp/release/2008-105a.pdf

45 Posted by Charles at 09/24/08 10:20 AM

This is simply welfare for the rich. The economy will recover just with less wall street types and a fewer banks. Why should the tax payer pay for executive pay and perks. This is nothing more then a reward for this calamity they are responsible for.

46 Posted by Fred at 09/24/08 10:22 AM

It seems to me that the people that got us into this mess should be the ones paying for it. I have 4 homes with fixed mortgages, I know what I am going to pay every month no matter what.
It would seem to me the banking industry would go back to the homeowners and try to re negotiate the loans say to a 6% 30 or 40 year loan. Then we get more people able to hold onto their property and less need for foreclosure

47 Posted by Bruce Arneklev at 09/24/08 10:24 AM

Just say NO!

The addiction to credit will only increase and the drug cartels (money centers) will increasingly corrupt the country, if we don't stop this vicious circle by holding everyone accountable.

48 Posted by Fred Viehe at 09/24/08 10:24 AM

Not one cent for the bailout! Billions for prosecution!

No federal funds should be granted to the failed financial houses in New York, overseas or anywhere else. That would only be throwing good money after bad. The only cure for this failure is to permanently terminate those responsible. All officers and directors of the failed financial institutions should be forced by law to resign, their golden parachutes outlawed, and they be forbidden from working in the financial sector ever again. To some, this may sound draconian, but inflicting such pain is a just reward for this monumental failure. And pain, like greed, does have a social benefit. It acts as a corrective for others in the future who may consider engaging in the risky ventures that has nearly brought our nation to financial ruin.

In addition, the FBI and other federal agencies should immediately launch a national investigation of all other financial houses to see if they have engaged in illegal activities. And those who are found malfeasant should be prosecuted to the full extent of the law. This will be costly, but it won't cost $700 billion!

49 Posted by Janis Schmidt at 09/24/08 10:26 AM

I agree with JD Adams, but with some explanations that no one seems willing to talk about. The investment banks, AIG and the like, have been gambling with people's home loans on the stock market, which is their casino. They lost, big time. When you or I lose at gambling, who picks up the tab? Why has it not been suggested that the same thing be done here. Consider that the first thing Bush did back in 2001, was to give all the surplus money in the U.S. Treasury, back to the rich. The rich then gambled and lost that money in the stock market. Doesn't it seem reasonable that the rich, who can well afford it, pay for their losses? Let's tax the rich, and have them pick up the tab, instead of scaring the hell out of people with threats of Depression if poor people don't bail out the rich. This is obscene.

50 Posted by Vic Bailey at 09/24/08 10:27 AM

People wall street are not companies that we can't do without. These are big corporations that sent their companies over to other countries that took American jobs and threw them away, and they want us to bail them out, NOT,NOT, AND MORE NOT.
I can't believe that our government wants to bail them out becaust they have costs this country deeply, let the S.O.B.s sink maybe we will have an American company buy it out for pennies on the dollar just like they would do you. All these un-American companies need run out of our country, and NOT let back in. They will just do it again they did it in the depresson, let the bubble bust so we can equalize the overpriceing of everything.

51 Posted by Mike R at 09/24/08 10:28 AM

Bail out Wall Street?
Bush Administration covering up it’s neglect?
Democrats distancing themselves from their own policies?
Homeowners that cannot afford their mortgage acting ignorant?

Who pays? You guessed it, same old, same old

52 Posted by KenC at 09/24/08 10:38 AM

The speed at which the Treasury says that the money needs to be committed is reminiscent of the start of the Iraq war. They want the funds before any thought is put into the process.

Most of us have been feeling the effects of a recession for a while now. We are already in recession. The billions now being requested are just to keep the major companies from feeling the effects of the recession like the rest of us and to allow the CEOs and board members to walk away with millions in golden parachutes.

The heads of the major Wall Street firms need to be held accountable. They had fiduciary responsibility to their stockholders and they failed to act responsibly. They should be fired, discredited and stripped of corporate benefits. Investigations should be undertaken to determine if any fraud is involved.

53 Posted by Donna Murphy at 09/24/08 10:43 AM

No bail out unless the American Public profits.

This sector needs to figure this out without depending on the taxpayer, unless they can assure us dividends, in addition, why not strike a Warren Buffet deal that is good for the American citizens, why not pay unending dividends until the country becomes debt free. How about some other caveats - why not bring all the financial jobs back to the U.S. too, which will bring back TAX DOLLARS – to help with cover the cost of helping the “social programs” for the poor and helpless.

When the top brass and all the parties involved made big bucks off the securities, they didn't need our help, why NOW? Where is all that money? CEO's bank accounts, Lobbyists bank accounts? Hedge fund bank accounts, Legislators bank accounts, and so on and so forth. If they're so smart to rake off the profits and create this current disastrous state they are in, why wouldn’t we let them duke it out with each other. Have some PRIDE, not another hand out - by American middle class. Some folks need to go to jail for “stretching” the books and deals. This country needs to get back to basics, keep jobs in America, make people accountable to do what they are suppose to do. Follow industry regulations, be audited. Where are all those SOX audit reports? Where are the FDIC Audits? Where is the government – IRS?

How much can you take from a country - without giving back - in some measurable form? A question to all our wealthy Americans, how much is enough? When do you give back? How do you give back? Set an example, do something big. Buffet is doing something good, for Wall Street and himself. Why can’t others step up to the plate?

Look back at the lessons that made this country great! American People - who care about one another and have pride in taking care of ourselves, and the majorities are not rich who care for each other. It’s time the greediest and richest help fix the debauchery that most likely lined their asset columns. Create a charitable Wall Street account, call your investment a donation – tax-loophole ( I repeat) to do the right thing (buy – their stocks)!

I hope “We the People” wake up and hold our Government Officials and Parties accountable.

Thanks for listening,
One upset American citizen

54 Posted by Rick at 09/24/08 10:46 AM

What-crises?

Could-this-be-another-WMD-scare-needing-an-immediate-fix?..Could-be.

We-rely-on-what-we're-told-by-the-media-who-has-lied-to
us-in-the-past-so-we'd-support-wars-enabling-the-White
House-to-raid-the-Treasury-for-hundreds-of-billions-for
Root-&-Brown-and-friends....Remember-the-DOD-can't-account-for-TWO-TRILLION....Anyone-looking-for-it?

What-crisis?...Does-one-actually-exist?....Remember-these-are
the-same-folks-who-wanted-to-get-their-hands-on-and-manage-our-Social-Security......They-didn't....And-now-this.

Funy-isn't-it?

Is-this-Chaney's-last-Treasurey-raid-or-is-he-setting-up-Paulson-to-be-his-constant-hand-in-the-till-guy-that-no-one-can-question-or-investigate?....Pretty-slick.

What-Crises?....I-think-it's-one-big-LIE....$700-Billion-reward-for-screwing-up.....Or-did-they?...Makes-you-wonder.

Low-"Interest-only"-flexible-mortgages-at-a-time-fuel-prices
were-just-around-a-buck....Hummmm...Fuel-costs-tripple..Credit-Card-rates-hit-31%....effecting-all-consummer-goods-like-food....Suddenly-people-are-short-especially-if-their-job-was-sent-over-seas......Makes-you-wonder.

Has-anyone-actually-read-any-bankers-financial-statements-showing-massive-losses?...How-about-brokerage-house-financial-statements?....Heard-losses-were-understated...Isn't-that-lie-punishable-by-some-jail-time?....Any-one-being-prosecuted-from-these-Ivory-Towers?...No?...How-come?

Instead-lets-reward-them-for-the-house-grab-with-$700B.

Aren't-Republicans-supposed-to-be-the-Consertive-Party-that's-fiscally-responsible-and-not-the-party-that-SPENDS?

Remember-the-S&L's?......Deregulation-then-bust..Brought-about-by-bankers-to-eleminate-their-competetion...$500B
missing...Anyone-looking-for-it?

Enron?.......Deregulation-then-bust....How-many-millions-went-missing?

30%-of-arms-shipped-to-Iraq-can't-be-accounted-for...Humm.
Anyone-looking-for-them?.....Guess-not....Mabe-they-weren't
shipped-at-all....10-Billion-cash-went-missing-in-Iraq....Anyone-looking-for-it?...

Do-you-smell-something?......I-hear-you.

Now-just-shut-up-and-pay-your-taxes-because-our-fine
leaders-know-how-to-manage-your-money-and-do-what's-right-for-the-wealthy-1%-of-this-fine-country.

After-all,-the-rich-need-your-money-more-then-you-do.

They've-(Bush-&-Co.)-finally-learned-how-to-combine-the-power-of-the-White-House,-Congress,-the-Media,-Bankers,&-Wall-St.,-to-steal-from-the-American-public-in-broad-day-light.

God-Bless-the-average-Jane-&-Joe,-cause-they-don't-have
a-clue-and-need-all-the-divine-help-they-can-get.

55 Posted by Mark Peltz at 09/24/08 10:47 AM

No bailout period! Corporate welfare is perverse. 99.9% of Americans had nothing to do with the current state the economy is in, and I personally don't want our government or government officials taking anymore money out of my pocket.

Treasury Secretary Paulson says this bailout is the only way to prevent real economic harm to our nation. This is the same type of panic message that lead to another boondoggle called Iraq.

Our homes are already devalued, our retirements decimated and our government wants more $$ for their lack of leadership and oversight? NO, NO, NO - I get in a fiscal mess and I have to get myself out of it - so should they.

56 Posted by ALM at 09/24/08 10:48 AM

When I (like MANY other Americans)was going through my divorce, it would have been nice if my attorney would have "bailed" me out and allowed me to keep everything that my spouse and I had worked for and accrued as "assets." Instead,I had to retain an attorney, of whom I also had to pay a LARGE fee, our property was divided by what a judge deemed "equitable," and we had to CUT OUR LOSSES, and start over. That is what Wall Street needs to do....learn from past mistakes so as not to repeat them, and MOVE ON....AT THEIR OWN EXPENSE!

57 Posted by J Lubatty at 09/24/08 10:50 AM

I think that we should dole it out in smaller parcels and get it back with interest-set it up as some type of loan.
If salaries need to be paid to employees-start from the bottom up.
Look at tax returns and put tax surcharges on those who made money by buying and selling the financial products that have created this mess.
Establish bipartisan oversight and government relations on any company that wants taxpayer money to operate.

58 Posted by Larry at 09/24/08 10:50 AM

We should not bail out these firms or their investors all of whom took risks and profits. Let the investors take the hit.

If we need to free up credit let's set up a direct loan guarantee program similar to VA loans and require high standards to qualify whether a business or an individual.

Existing mortgages that are unfair to home owners could also be rescheduled on terms appropriate to each situation.

But please no gifts of taxpayers' money to the greedy. I would also point out that the leaders in both parties and the Administration have personal conflicts of interest as most are wealthy and probably are about to lose their investments.

59 Posted by mary at 09/24/08 10:52 AM

JUST SAY NO!

60 Posted by Bruce at 09/24/08 10:57 AM

The current rescue plan proposed by the Treasury Secretary is another bad idea from what may well be the worst Administration ever. Just the circumstances should be setting off alarm bells all over Washington. When Bear Stearns collapsed in January, the reason we needed to bail them out was the potential impact on the insurance industry (read AIG). Lehman Bros. recent collapse had the same result, the only thing different was the timing. Now, the Administration has this great plan that must be passed THIS week. This is a classic example where everyone agrees that something must be done but no one knows what to do. They step into the vacuum with this plan, which Congress rushes to pass so they can recess to go home to campaign. The whole thing stinks to high heaven.
The audacity of this plan has worked. No one is questioning the bailout; mostly they are debating the details of how it will be implemented. It is past time for Congress to show some backbone and leadership. Put off the recess if necessary, question if the bailout is the only solution and if it is the correct solution. Handing the rescue (and a trillion dollars) to the last 90 days of an Administration that brought us the war in Iraq, made Katrina a household term for disaster, and presided over the meltdown on Wall Street is foolish beyond imagining. This would be the reason that Congress has a lower approval rating than the Administration. The best course of action may be no action at the moment. I would rather trade three tough, uncertain months now, than to repent being manipulated into hasty action by an Administration that has made the manipulation of Congress its hallmark.

61 Posted by Barbara M at 09/24/08 11:03 AM

It seems everyone blames Bush for the present financial crisis,it's Congress that is the problem they always been the problem.All these committees wheel and deal,they make policy.Congress can veto the President's proposed bills,one man doesn't run the country(that would be a dictatorship)After the 80's Savings and Loan taxpayer bailout,regulations were enacted,but since have been loosened,and this is the end result.Congress and the Law Enforcement Watchdogs were asleep or worse ,even invovled up to their eyebrows.Everyone should call for jail time for the many of the corrupt,whomever they may be.The taxpayer should be placated,they are paying and will be paying a heavy price.

62 Posted by Fred from Oregon at 09/24/08 11:04 AM

We always hear "it's your money" when the neoconservative are appealing to our base instincts for tax cuts, in order to elect them.

They should be telling us "it's your money" that is paying interest on the debt. "It's your money" we're giving to the insurance company moguls and Wall Street multi-millionaires who screwed up. "It's your money" they need because they sold our manufacturing infrastructure to the Chinese, and they created a credit house-of-cards Ponzi scheme in this deregulated environment.

63 Posted by Frank Gerlach at 09/24/08 11:06 AM

I wasn't given any help on my problems on selling my house to avoid foreclosure by Chase-Manhattan bank. I got behind 1 payment. Would they set that aside and let me pay it off a little at a time and keep up the regular payments at the same time? I asked and the answer was no. Because of my divorce I missed one payment so was any help given? Nope, so the same goes for them as far as I'm concerned nope, no bailout, no golden parachutes, not emergency loan, just like me.

64 Posted by Margaret at 09/24/08 11:06 AM

Forget it! Do not bail out the people who got themselves into this mess. I grew up when we had ration stamps and no money to buy what there was. I can live through it again, and maybe, just maybe, the American people will learn how to live "green" again and quit being so wasteful.

65 Posted by Edward Phillips at 09/24/08 11:07 AM

It there is no bailout there will be a "complete" financial collapse of our financial system. Most people don't understand what the consequences would be. Sure I don't want any golden parachutes for any executives but I also want complete oversight by the justice dept. to see if there were any criminal acts.
I hear some in congress talk about "Insurance for Kids" will I do not want Insurance for anyone because "Insurance" is a scam and they will steal 50% or more of the so called insurance.

Let's fund the hospitals that provide health care for the indigent. Let's not provide more income for the insurance companies.

Let's keep people in their homes. Let's stop funding of the phony war in Iraq but let's kill the "real terrorists" the criminals that keep the Drug war going and the billions of wasted funds.

You can rant on and on but will anyone listen. I think everyone has an ipod in their brain and not common sense.

Remember the American People are no longer stupid because stupid is to intelligent for them.
Ed

66 Posted by Edward Phillips at 09/24/08 11:07 AM

It there is no bailout there will be a "complete" financial collapse of our financial system. Most people don't understand what the consequences would be. Sure I don't want any golden parachutes for any executives but I also want complete oversight by the justice dept. to see if there were any criminal acts.
I hear some in congress talk about "Insurance for Kids" will I do not want Insurance for anyone because "Insurance" is a scam and they will steal 50% or more of the so called insurance.

Let's fund the hospitals that provide health care for the indigent. Let's not provide more income for the insurance companies.

Let's keep people in their homes. Let's stop funding of the phony war in Iraq but let's kill the "real terrorists" the criminals that keep the Drug war going and the billions of wasted funds.

You can rant on and on but will anyone listen. I think everyone has an ipod in their brain and not common sense.

Remember the American People are no longer stupid because stupid is to intelligent for them.
Ed

67 Posted by T. Ton at 09/24/08 11:09 AM

Who invented the credit report/credit score? No one can buy a house, rent an apartment, or get a job without one. "They" rewrote the bankruptcy laws to make sure every consumer debt has to be repaid. And yet "they" have the audacity to demand a tax-payer funded bailout. "At long last sir, have you no common decency?" Enough.

68 Posted by Kai at 09/24/08 11:10 AM

The last time that we gave the current administration a carte blanche we ended up in two wars - well that did amazing things for our economy didn't it? The current Wall Street firms who are collapsing are the same ones who are taking advantage of the London Loophole and speculating in foreign markets to artificially inflate the price of oil, above that of supply and demand, so that the average American gets gouged yet again, not only with a recession, but with outrageous gasoline prices. If congress once again concedes to the President's demands and sells out the American people then, when these firms are back on top, we will have nothing to show for it but higher taxes as a yearly thank you - because Bush is resisting all calls for ANY accountability on the part of the firms. Why is that? Why should we GIVE them OUR money? WHY do I not have a say in this? WHY IS NO ONE LISTENING?!?!?

69 Posted by Ruth at 09/24/08 11:11 AM

If they do not do this bail out, many of us will lose our life savings that we have in annuities.
And the taxpayers will then get to pay for welfare and health care for us.

Consider that if you are opposing the bail out that you are in favor of us retirees losing a good part of if not all of our live savings.
Is that really what you want?

From my point of view this bail out is a good thing. If and when I can I will close out this annuity - at a loss of 7%.

70 Posted by cleat at 09/24/08 11:12 AM

Get over the price tag of $700 billion. They are buying real assets and may or may not make money, but if they were to lose say $200 billion but managed to help avert the Great Depression II or the 10 year malayse Japan went through in the 90's, it would be the best $200 billion the government has ever spent.

Think about you and a third of the poeple you know potentially losing their jobs and then decide if a few hundred billion is worth it.

71 Posted by David at 09/24/08 11:14 AM

How about using the $700B to get energy independent and fixing infrastructure around the US. That would give jobs to middle class and benefit the people that will be paying back the money (or children and grandchildren).

72 Posted by Bill at 09/24/08 11:14 AM

What is not disclosed in these documents is the arm twisting that liberal members of congress used to force mortgage lenders to loan to people who did not qualify for mortgages. They wanted to expand home ownership at any cost and brow beat the companies into giving things like 80/20 loans where the borrower takes out two loans, one for 80% and one for 20% with zero down and zero equity in the home, often with no proof of income stability. So long as prices continued to climb, eventually they gained equity. But when prices stayed the same or fell, the borrower had/has no reason to stay they simply walk off leaving the mortgage holder hanging. We all know the mortgage companies could have resisted but congress can be hard to deal with. Add on top of that several well placed members of the previous administration took power position in Fanny and Freddie where they could convince the mortgage lenders to continue loaning while they used their position to buy up these bad documents and take home multimillion dollar bonuses based on volume.
By the way I agree with David "Any money given to Wall Street should be in the form of a loan to be paid back with interest and paid back before companies issue dividends and bonuses".

73 Posted by Joan at 09/24/08 11:14 AM

I think the government should give each adult in the US an equal share of the $700 billion. We could then bail ourselves out and also bail out the government by paying the required taxes on that amount. Our tax payer dollars would not then be needed to bail out the "big boys" and they would have to live with what they have done

74 Posted by M. Hardeland at 09/24/08 11:16 AM

I am completely opposed to any bailout! Who's bailing us out? If a company goes under, so be it. If these guys were so smart (instead of greedy), let them bail themselves out!

Many companies go out of business every year. Why should these companies be any different?!

People make bad decisions. Let them live by them!

75 Posted by Cleat at 09/24/08 11:20 AM

Having read most of the responses, apparently most of you have no clue about what is potentially taking place.

The ability to borrow, save and lend is the backbone of any industrialized economy. When this shuts down, as it is doing now, it affects everyone, not just those on Wall Street. If the government fails to take action many of you will lose the jobs you have and those of us who have investments will lose most of it.

You are all so worry about ancillary issues and not focusing on the fact that this is a MAJOR CRISES that, if unaddressed, will impact us all in a none to kind manner.

Sure let market forces address the issue - Do any of you remember what happened in 1929?

76 Posted by Philip at 09/24/08 11:21 AM

We have to bail out the banks or risk nuclear implosion of our economy, fair or not unless the numbers are wrong that appears to be the fact of the matter and no anger is going to make it go away. The cost of the bailout is miniscule in comparison to enduring a economic catastrophe, visualize 25% unemployment, visualize losing ten trillion in GDP productivity over the next several years.

Four steps to make the bailout work. In order to restore certainty and integrity to the financial system, at the least expense to the taxpayer:
1. Buy nonperforming real estate mortgages and underwrite credit default agreements, in exchange for:

2. An extended loan to the bank and guarantors, 20-30 years, for the losses incurred after the properties are sold over the next few years.

These first two measures are what should be enacted immediately.

3. The federal government should keep ownership of the purchased properties until the real estate market completes its deflation, perhaps renting them at market value to the defaulted mortgagees. Within a few years people will start buying houses again, the government can sell them at a reasonable price to recover the cost.

4. But this will not work unless defaulted homeowners are able to refinance and pay off modified (reduced) mortgages that reflect current market values. While this used to be possible under bankruptcy law, the Bankruptcy Act of 2005 precludes this.
The the Bankruptcy Act of 2005 should be repealed. This act is perhaps the single most egregious piece of legislation of the Bush administration, creating 21st century electronic debtors prisons with a host of booby traps for the debtor. Restoring the prior law creates a simpler system that would restore the integrity of bankruptcy law.
This Act has not even served the interests of its backers, banks and credit card companies, to prevent those with assets from escaping payment for just debts. Instead it has ensnared millions of homeowners and disaster victims who have no prospect of paying their debts and have no viable incentive to dissolve what assets they do have in exchange for a fresh start. Debtors now simply walk away from their debts, leaving them in limbo. The Bankruptcy Act of 2005 has been the disaster most bankruptcy law professionals predicted.
In this manner the markets and economy are stablized and can continue to function while the housing market completes its deflationary to real (market funadamentals) values.
-- The taxpayers would be reimbursed for the bailout to whatever extent they can be.
-- Homeowners could again seek relief under the Bankruptcy laws and perhaps keep their homes.
-- The government will avoid becoming entangled in joint ownership of vast numbes of private banks and corporations, and
-- The banks and other institutions will have to incur the costs of their foolish financial practices, by paying back those losses over a manageable period of time.

Executive "golden parachutes" are an annoying but wholly petty matter in the face of the current crisis. This issue could also derail a successful recovery. There is the danger that curtailing executive bonuses might cause the managers of these companies to avoid taking advantage of a bailout altogether, instead seeking bankruptcy protection and causing further damage to the economy.

Bailouts have worked in the past. The net cost of the S&L bailout was about $125 billion and we avoided a decade of recession. The Chrysler bailout was successful too, with the entire loan amount repaid to the government.

77 Posted by Peggy Klopfer at 09/24/08 11:22 AM

Let's see: How is the best way to get our economy moving with 700 billion dollars. The problem is that people cannot afford their mortgages.
1.We could use the oil reserves that are supposed to be used for just this sort of emergency. That would take off some of the food and fuel pressure and everything else that goes with higher oil prices.
2. We could invest in infrastructure to give much need jobs in the construction industry so that people could pay their mortgages with a higher paying job.
3. We could put the money into high tech jobs creating solar and wind power along with fuel efficient cars which would put car factory owners back to work.
4. We could invest in universal health care which would take a substantial burden off the families trying to meet their mortgages and it would also provide high paying jobs in the healthcare sector.
5. We could invest in education which would create more high paying jobs by hiring qualified teachers and build better schools which would create jobs in the building sector.

We are talking about a lot of money. If we work from the bottom up, less default on homes, healthier families, healthier economy and healthier stock market. Bailing out AIG is a cheap shot to nowhere. If we are going to use that much money let's get our economy on solid ground by paying attention to the people who provide them and who pay the taxes to keep this county going.

78 Posted by JStern at 09/24/08 11:23 AM

History is repeating itself, Mr. Bush is Mr. Hoover in disguise and the unregulated practices that were in place in 1929 have been around since 2003. We as taxpayers and voters should not give Treasury Secretary Paulson a blank check. The regulations that were in place to stop these practices were rescinded in 2003. The executives who approved these predatory practices should be fired and not given severance packages of any kind.

79 Posted by Douin at 09/24/08 11:26 AM

The timing of this financial catastrophe and it's government prescribed 'fix' seems too reminiscent of 9/11 and the government's ill-conceived actions in too many ways to discount. It appears , from this person's viewpoint, that this Situation came to light prematurely, thus the rush to push it through just before recess of Congress. This situation did not happen in a fortnight and it sure can't be Fixed over a weekend. If Congress breaks for 'campaigning' before taking care of the problem that their lack of oversight brought about, then they all can forget about any re-election. Won't happen.
They are being paid to take care of the People's business and will continue to serve only as long as they do just that. From where I sit, that means that most of them have to go.
Sec. Paulson insists that He be given 700 Billion in one lump sum, to be used at his discretion and with no oversight whatsoever. If this happens there will be hell to pay. That is our money he is talking so nonchalantly about, earned by the sweat of our brow. It will not be allowed to happen. This insane Administration appears drunk on it's bloated and unearned feeling of importance. It is way past time to dump that whole bunch of bloated do-nothings in Congress, sweep the House and Senate clean and start over.
I say let them that caused this problem pay for it themselves or close down. Take that 700+Billion and dole it out to each individual in this country, tell them to use it to bail themselves out, sink or swim. If government gets out of the way, I do believe that we all would learn how to swim real fast. If not, we deserve to drown. Who needs a government like what we are saddled with ?

80 Posted by Paul K at 09/24/08 11:35 AM

Absolutely no bailout for banks and other greed ridden corporations. They all collected obsene bonuses,wages and stock options at expense common folk on the street. If they want bailout, let them return all money above 100K/ per year from last 8-10 years including any property they have gotten along the way. I'm sure they all cleverly transfered property and accounts under names of ther family members. All of those must be surrendered as well.

81 Posted by Anna at 09/24/08 11:36 AM

It's blackmail...again! Bush and boys had a bail out plan for months, why wait until it became a crisis? No one is talking about the biggest gorilla in the room threatening the average American: credit card debt that the banks hold. It's not like mortgage debt that has collateral (houses,etc);it is unsecured personal debt. Is this why the bankruptcy laws were changed so that you have to repay credit card debt and student loans? Some of us are not so stupid but feel helpless as we watched the repeated fiascos starting in 1984. Interesting year 1984.We are there yet.

82 Posted by Adele Gilbert at 09/24/08 11:39 AM

This bailout is very troubling. Looks like the rich are all for capitalism as long as they're getting richer. Sharing their wealth is out of the question and socialism is a dirty word until they face bankruptcy. Now it's fine for the government to bail them out, putting huge losses on the backs of the American people who are already hurting. Where's capitalism now?

83 Posted by LO at 09/24/08 11:39 AM

If they get this bail out then there need to be a helluva lot of strings attached to rein in the greedy, tax the wealthy and otherwise put some controls on what is becoming the death knell of the American middle class. This bail out is an opportunity to get these Wall Street jerks under control.

84 Posted by Stephan Hanna at 09/24/08 11:40 AM

I promise if they forgive my mortgage I will spend more money on non-mortgage related things. You can hold me to it! That's an iron clad guarantee.I promise. I promise. I promise...Oh please oh please oh please!

85 Posted by Joe at 09/24/08 11:42 AM

It hardly gets mentioned, but Paulson holds around 250 MILLION in Goldman Sachs' stock. Is this a vested interest in bailing out Wall Street?

86 Posted by Carole at 09/24/08 11:48 AM

Why are we considering bailing out people who KNEW they couldn't afford the house the bought, but planned to sell for a profit in two or three years? They're just as bad as the financial giants. Besides, if we're going to give them a house, I want one too. I'd also like to have a bit more interest on my IRA, it's all I have besides Social Security, and it's disappearing fast at 2 & 3 % interest.

87 Posted by Fredric F. Myers at 09/24/08 11:49 AM

What is wrong here is that when you allow people like Nancy Poloci to ascend to power and openly pronounce that she will not impeach the corrupt president Bush, therefore you end up with a flawed system of government that "...will continue business as usual..."

For your information people, "white-collar" crime are worse then a thief stealing to feed his family. The persons that commited these "crimes" must NEVER be allowed to keep any money, what so ever, nor be allowed to work in any area similar to that where they have or again cheat the public.

88 Posted by Bob Nelson at 09/24/08 11:51 AM

We cannot undo eight years of bad decisions and bad laws in one week. Congress should stick to the basics. Approve the $700B bailout/rescue plan plan with a few caveats: ongoing congressional oversight, equity in participating companies, executive pay limits and some relief for homes in foreclosure. The next administration will have to deal with the rest of the mess. I will ante up my $2,300 or $4,400 or whatever $$ to keep my IRA from taking a bazooka shot.

89 Posted by DB Johnson at 09/24/08 11:53 AM

I agree with the Consumer Reports letter.

Having taxpayers bail out at any cost the financial companies whose greed and bad business decisions(and possible corruption) got them into the current situation makes about as much sense as repaying everyone in the country who had a gambling loss during the past year or as forgiving all of the bad mortgages that people have.

90 Posted by Mike Evans at 09/24/08 11:54 AM

Help for Main Street – stop the foreclosure hemoraging!

There are many simpler ways to staunch the bleeding in our real estate industry and economy in general The first priority and action should be to materially reduce the number of foreclosures that are happening. Some simple strategies that would work if only tried:

1. Loan modifications for troubled borrowers:
· Offer to extend the repayment period out to 40 years, thereby reducing the monthly payment burden.
· Offer to add current arrears to the end of the loan by extending the term for a few more months. Invite the property owner to resume payments at existing level.
· Offer to reduce loan terms for a period of time to interest only, for say, 1 to 3 years to allow time for the property owner to recover their ability to pay. Establish a ‘hardship policy’ that accounts for sudden job loss or medical costs.
· Reduce recent reset interest rates to the current FNMA level.
· Offer a fixed rate replacement loan to replace a current variable to produce more certainty for the borrower.
· Initiate direct personal contact with the borrower at first sign of missing payments and find out more about borrower’s situation. Be of friendly help.
· Offer to waive pre-payment penalties if borrower is capable of a refinance.

2. Repossession management by lenders:
· Immediately list the repossessed property for sale with a local realtor.
· Give the realtor the authority and a budget to keep the property maintained.
· Keep the utilities connected so that the property can be shown and maintained.
· Price the property realistically but not at a fire sale level. Support the price asked with an independent appraisal.
· Give the realtor time to locate a qualified buyer, at least 90 days. Create a marketing plan and budget.
· Offer stable rate, competitive financing to any prospective buyer who meets income and creditworthiness standards.
· Make cosmetic repairs quickly to preserve value and appearance. Do a property inspection to determine the need for major work. Do not disclaim responsibility for structural defects by selling ‘as-is.’
· Prior to auction sale by a trustee, work with the borrower to maintain the property, and attempt to secure a deed in lieu of foreclosure if no workout seems possible. The incentive to the borrower might be some preservation of their credit rating. Also consider renting back the property to keep it occupied and maintained and employ a rental management company for oversight.

3. Regulatory activity:
· Allow banks and mortgage holders to hold properties during the default period without demanding an increase in equity set-asides for non-performing assets.
· When a property becomes real estate owned, revalue the asset at 80% of the loan amount and thereby reduce capital offsets required of lenders.
· Give lenders a 90 day grace period in which to market property under a responsible listing agreement before any further capital offsets are required.
· Require loan servicers to notify borrowers when their loan is resold to another lender or investor including contact information.
· Institute a moratorium on pre-payment penalties and prohibit their use on new mortgage lending.
· Use FHA standards for credit, appraisal and property condition as the benchmark for every mortgage loan made by any lender. Require each transaction to be accompanied by a summary report indicating how the property and borrower measure up to those standards. Require disclosure of the summary report to all subsequent loan repurchasers and to the borrower.
· Prohibit ‘desk appraisals’ by lenders who attempt to use automated valuation models (like Zillow) to determine a property’s loan to value ratio.
· Prohibit home equity loans or lines of credit that when combined with existing debt, would exceed 90% of the value of the property, as determined by a licensed independent appraiser.
· Require FHA or private mortgage insurance for any loan exceeding 80% of value.
· Prohibit ‘collateralizing’ mortgages into derivative investments. Only the mortgage itself should be allowed to be sold.
· Set a standard rate spread for resale of mortgages from the originating lender to FNMA or FHLMC (e.g. currently 1/8th of a point) and prohibit origination fees (points) charged to the borrower from exceeding 1% of the loan amount.
· Prohibit ‘buy-downs’ of interest rates by sellers or builders which will later rise to imperil borrowers’ ability to make the required payments. Such discounts should be a part of the actual purchase price negotiation and not a gimmick to increase salability.
· Require that lenders reselling mortgages to any government agency fulfill standard audit, credit review and appraisal review criteria. Lenders who fail to comply would not be able to resell their loans.

4. Stabilizing the economy in general:
· Deny the Federal Reserve the ability to secretly and arbitrarily adjust interest rates. The extremely low recent rates only encourage investors to seek riskier avenues to maximize returns. Their surprise actions only exacerbate uncertainty and market fluctuations.
· Establish a targeted and narrow interest rate range within which banks, credit card companies, auto finance companies and personal loan makers can operate. Revise that range only by congressional advise and consent. Eliminate sudden rate resets triggered unilaterally by credit holders.
· Create a separately required truth in lending financial disclosure for any ‘teaser rate’ loans. Protect borrowers from being misled into a bad loan or speculators from trying to leverage their way into a property-flipping investment.
· Establish limits on the amounts of short term deposits that can be used to make long-term loans.
· Stop tinkering with the economy through monetary policy that relies on outdated and often inadequate statistical data.
· Suspend stock trading when shares fall dramatically in a single session and in cumulative sessions. Allow time for further analysis to take place before a stock or financial sector is allowed to gyrate wildly. Protect stockholders’ interests by reducing the risk of them being wiped out in a single day or week’s trading.
· Require stock and financial instrument rating companies to submit their analysis to the SEC prior to publishing online or in trade journals.
· Limit the fall or rise of shares to a 5% fluctuation on any trading day. Require programmed trading to be reviewed according to its effect on the market as a whole.

91 Posted by Damaris Ramirez at 09/24/08 11:56 AM

Help the consumers and regulate the banking industry!!!!

92 Posted by Keith Bettencourt at 09/24/08 11:57 AM

The United States is in a financial crisis. We have been spending more than we have been collecting in taxes for over eight years now, borrowing from the Chinese (and others) to make up the shortfall. 40% of every tax dollar now goes to pay the interest on the money we continue to borrow.

If China stopped loaning us money tomorrow the United States would go into bankruptcy within a month.

The failure of the five largest investment houses is the culmination of years of a gluttonous “spend and borrow” economy. It has become so pervasive, it is affecting markets worldwide. So yes, it is time to “buyout” (not bailout) the economy.

For 700 billion I expect government ownership of any organization whose debt we assume, immediate dismissal of all high level officers of those companies with no severance pay, dismissal of all high level officers in the government who were supposed to be overseeing this business and a repayment plan put in place to repay the United States Treasury every nickel used in the buyout of these debts.

In addition, I would like to see a government sponsored plan to extend five years of credit to anyone involved in a subprime loan. Also, anyone in an Alt-A loan who falsified their income to get a loan they did not deserve should spend a year in jail.

If we do not do this buyout, there is a very good chance the economy will collapse, money will not be available to borrow for any purpose, the government’s credit rating will drop and our creditors “may” call due the loans we cannot repay.

There is a reasonable chance this could be very, very bad. Just as you and I cannot spend more than we make, neither can our government. Eventually, it comes back to haunt you and unfortunately, that day seems to be today.

Spending on anything other than debt repayment has to be strongly reigned in. The next three years are not going to be pretty, but they are necessary.

93 Posted by R. Anderson at 09/24/08 11:58 AM

This looks like the run up to the Iraq war. The Bush administration comes in and scares Congress with "Doomsday" tactics. If no private companies will touch this "toxic" debt, why in the world should the taxpayers be put on the hook? Let the market sort it out and the chips fall where they may.

94 Posted by Sheila Pack at 09/24/08 11:59 AM

George Bush, Dick Cheney,John McCain have all embraced deregulation of financial industry claiming that Gov't should keep hands off. Now, they have started to nationalize the industry. This truly is reminiscent of Mussalini's fascist Italy.Then they want to bail the industry out at the taxpayers expense, without any penalties. All monies given to these corporations should be loans to be paid back with interest. Golden parachutes should be prohibited as well as other perks. The CEO's should be held accountable and if necessary, there should be criminal charges.
Certainly, the small home-owner should be assisted with gov't loans to save their homes.
The President should be impeached and some of the cabinet members charged with crimes, like withholding information that might have stopped this great slide. Congress should be held accountable too. Don't talk the talk, walk the walk!

95 Posted by craig at 09/24/08 12:05 PM

NO BLANK CHECK!!!!!!

These corporations should be allowed to prove their worth in the "free market" they tout so loudly. Live or die on their own efforts. They had a good ride, now it's time to pay. Figure it out CEOs. That's what the rest of us have to do every day. Figure it out. Dig ourselves out, and keep on going. It's time that our financial "overlords" learned a little something about working for a living, and stopped living off of OUR work.

96 Posted by Mary B. Rooney at 09/24/08 12:05 PM

I was unable to change your generic letter to read: Dear Dick Durbin and Dear Barack Obama--also was unable to put my name and address at the bottom. Sure hope your computer automatically did the above for me.
Sincerely,
Mary B. ROoney

97 Posted by amanda at 09/24/08 12:07 PM

The richest bankers in the world need to figure out their own mess instead of looking for a handout. They are the ones who ran this economy into the ground. NO to the bailout. No to the biggest transfer of wealth from working families to the ultra-rich in the history of the United States.

98 Posted by John Dorgan, III at 09/24/08 12:08 PM

In the S&L crisis, the government could have actually made a profit by managing it's asset portfolio from the bailouts. Instead, it sold everything for pennies to the super-rich and all the profits went to them - the public was only left with the bad debts.

I'm very concerned that this will happen again. If we bail out these institutions, we should do it like a business - for profit!

99 Posted by Tricia Gibson at 09/24/08 12:14 PM

We should not be responsible for the bail out for what the democratic government allowed to happen.
This should be against the law.
It doens't take a rocket scientist to figure out all of these people that were allowed to apply for a loan with zero income, for homes way beyond their income, is stupid on the part of the banks, etc letting them get approved!
I do not see any government agencies helping me out with my loans.
They should 'eat' their error!

100 Posted by John Kerhlikar at 09/24/08 12:15 PM

Any Government bailout should have enough strings attached to assure foreign banks don't swoop in for a bargain basement purchase of our banking or security institutions.

101 Posted by janinsanfran at 09/24/08 12:16 PM

When we see Wall Street firms begging for help, saying that they are about to go under, then, maybe, the taxpayers should "bail them out" -- actually acquire them if there are any actual assets, not just phony baloney "instruments."

But as long as Paulsen insists we have to sweeten the deal to get participation -- let the finance guys keep their bonuses (like his and pay what they pretended the mortgage paper was worth in the first place -- Hell NO.

102 Posted by James L. Turpin at 09/24/08 12:20 PM

Wall Street wants something for nothing. You the "Tax Payer" purchase my bad debt so I can make more mistakes. The answer is no you created this mess Wall Street so you correct it!

You want a hand out we the "Tax Payer" our willing to give you a hand up so hand up all your assets and we will give you dollars for them.

103 Posted by john at 09/24/08 12:22 PM

Why not put this up for a vote? Add it to the presidential election ballots and let the voters decide!
I am not in favor of this bailout because it does not address all of the issues in the forclosure market. Even with this bailout, forclosures will continue at an alarming rate. Apprx 30% of all new home construction is plagued with building code violations that render those properties valueless. These people will ultimately end up in foreclosure for lack of better options. The banks will then sell these problem homes to unsuspecting buyers who will repeat the cycle. All of these people will contribute to a failing housing market.
Also, there are currently too many vacant homes on the market creating a glut of inventory further depreciating real estate values.
If this bailout comes to fruitition then there needs to be an adjustment to our housing laws enabling those with code deficient homes to recoup their losses, a slowdown in permits untill the excess becomes resonable and better laws to prevent all from happening again.
Those who are in default strictly because they bought more than they can afford are relatively small compared to those who were out and out ripped off!!!

104 Posted by Spense at 09/24/08 12:24 PM

NO, NO, NO bailout! The people responsible need to be held accountable! From the excecs to the people who borrowed too much. Interest rates are incredibly low, mortgage payments should be easy to make for those who aren't greedy. Those who cooked the books and "stole" bonuses need to be put in prision! Obama's decision to appoint Franklin Raines as a top economic advisor is desipcable!!!

105 Posted by Morton Pasco at 09/24/08 12:28 PM

One of your recommendations addresses a pet peeve:
Stop Excessive Executive Compensation: Executives whose actions have caused the bailout should not reap the benefit of bad decisions. There should be strict limits placed on the severance, bonuses, and stock options and grants these executives receive.

This also extends to the "Big Three" auto manufacturers that provide exorbitant bonuses to the executives that have driven the gas guzzling SUV era while their overseas competition concentrated on gas stingy.

Additionally, the lack of oversight and regulation of mortgage banking allowed the big lenders to drive this country into bankruptcy. Allowing this industry to police themselves is tantamount to allowing the prisoners to run the jails. Even lawyers don't trust bankers!

106 Posted by Joe G at 09/24/08 12:30 PM

These companies lobbied for deregulation for years, and finally thats what they got. Unfortunately it seems they couldn't handle it (huge surprise!). They wanted what they got, and thier gross mismanagement screwed it up. The politicians that always push for deregulation are usually the ones chanting "accountability, responsibility".... Why doesn't that apply now? These companies can go bankrupt and die. When President Hoover tried this very same bailout tactic, they banks failed anyway. Japan tried the same thing in the mid 90's. Didn't work. This is also doomed to fail. I think its obvious that this is designed to buy the republicans six weeks until the election. This is going to be the hugest waste of money in our nation's history.

This whole financial crisis is proof that the "top-down" model is outdated, and doesn't work in a world economy. The problems with our American economy is systemic. We can't keep outsourcing our jobs. We need heavy trade regulations to get our trade balance back. We need to make it so it doesn't make much financial sense for these corporations to outsource jobs. The middle class is the backbone of america, and its largely being ignored. We're already paying for that neglect.

107 Posted by Judy Kennedy at 09/24/08 12:32 PM

We should make the third item the number one: stop excessive executive spending/bonuses, etc. The rest would naturally fall in line.

If the bio on Henry Paulson is correct, he was an executive for Goldman Sachs and earned at least $16 million a year while there. During his employment, he supposedly traveled to China 71 times. Now, he is favoring a bailout that would only benefit outfits like Goldman Sachs. Isn't this a conflict of interest?

From my personal experience refinancing our mortgage, we were encouraged to borrow more than we could afford and almost charged a fee because we didn't. But most reports blame the consumer for this debacle. Aren't the "industry leaders" supposed to know what they're doing? In fact, they probably know just what they're doing.

The worst part is the sinking, helpless feeling I get when I see that we, the American public, can do almost nothing to stop the fiasco.

The politicians have practically stopped even trying to placate us. They laugh at our petty attempts to save ourselves. How would this play out in the World Court I wonder?

108 Posted by Cuong Bui at 09/24/08 12:32 PM

Back in August 2007, Paulson and Bernanke both insisted that "subprime is contained".

Why is the need for 700B "now and immediately" ?
Give the taxpayers 700B, that'll boost the economy. Give the bad banks 700B, that'll just put money in pockets of bad companies.

109 Posted by DH at 09/24/08 12:33 PM

and the dishonest rich get richer, just like the congress people and the senators!

110 Posted by Roger Hull at 09/24/08 12:33 PM

No way on this bail out! This is the perfect opportunity to drive our standard of living and lifestyles DOWN to where they belong. We must stop living on the future disposable income of our kids and grandkids. This "let the economy adjust itself" fix will be as painful as hell...for a while, but when the dust settles, we will be a much stronger and wiser nation for having endured the experience. More importantly, our progeny will have a future worth looking forward to.

111 Posted by J. Dunham at 09/24/08 12:34 PM

700 billion ear marked for the bail out, but lets not forget the 300 billion that Congress has already passed for Fannie Mae and Freddie Mac. That adds up to a trillion 100 billion. How did this happen? What caused this? Does oil speculator come to mind. Our economy was doing just fine until these people started pushing up the price of oil. Congress must put a halt to these speculators or our economy will never recover. As for those that are asking for the bail out; "Money was their God, Greed was their driver and Bankruptcy and Shame will be their reward." Do not bail them out.

112 Posted by Robert at 09/24/08 12:37 PM

IF we bail out anyone it must be with the understanding that this is a loan not a gift and must be repayed. We must look at each loan and evauate them before approving. No gift.

113 Posted by Anita at 09/24/08 12:39 PM

I like the idea of forgiving the mortgages but how would you do that for everyone in the country? People who made huge profits from this should not get any help from us and their bonuses should be returned and used to pay this mess they got us into.

114 Posted by marilyn at 09/24/08 12:39 PM

Anyone who would give 700 billion to a bureaucrat or two is absurd. Not one of them can say what they are going to do with it. No way

115 Posted by Steve at 09/24/08 12:40 PM

Give Bush his due! The three page outline of the "No Dollar Left Behind Act" is a masterpiece rivaling the urgency needed in our entry into Iraq.

116 Posted by Wayne Ware at 09/24/08 12:42 PM

Another Enron and WorldCom just to name a couple. Evidently there are more rats in the wood pile. Seek them out and take them to court.

117 Posted by Jenny L at 09/24/08 12:42 PM

I second the "let them die a natural death" opnions expressed.

I also think Americans would not mind buying Bailout Bonds at say, 5% for ten years or so, to help their fellow citizens...but not greed mongerers! Nothing should go to the banks themselves.
We are merely going to perpetuate the greedy life with Paulson's proposal. Further, his threatening Congress that THEY would be causing a recession if they do not act hastily in this matter, is school-yard bullying! Shame on him! We all know the lax regulatory policies of this administration caused it, and he was there!

118 Posted by at 09/24/08 12:44 PM

When are we going to make people responsible for their actions? Isn't that why we are in the mess we are in right now because we have not? If we are going to throw money at someone give it to the folks that have been financially responsible in the form of a Stimulus Package. It would be a lot less expensive, they would invest it, buy products, payoff mortgages, buy new homes – thus putting people back to work and generate more tax revenue

119 Posted by J&J at 09/24/08 12:45 PM

As long as a good share of the voting morons take to heart the Republican mantra of gov't is the problem or get gov't off our back or shrink gov't and we'll all be better off, meltdowns like the present one will periodiclly continue to happen.
Responsible oversight and regulation is smart, proper and the right way to protect the public from overreaching and greedy corporate america.

120 Posted by Steven Overstreet at 09/24/08 12:47 PM

Trickle down economics doesn't work for the people. Yes, some money trickles down but only in a trickle as all the mechanisms are in place to make sure that the greater mass of money flows up to the already wealthy. I'm tired of being trickled on by the very rich. Instead of socializing big business losses and privatizing their profits while small businesses go belly up because of the greed of Corporate CEOs our government should allow free market forces to run their course and distribute any bailout monies to the victims of their greed.
Not to worry, the money will flow, as it always does, upward to those companies surviving due to more prudent (and humane) business practices. In the process those billions of dollars will pass through many deserving hands, stimulating the economy.

121 Posted by Rene Lemieux at 09/24/08 12:50 PM

There has to be a way to get the relief directly to those individuals who deserve it based on their current home value and the payment terms they have.

1. Do not pay the mortgage holders a penny for the mortgages they want to unload.

2. If they need capital after unloading the "bad" mortgages, the govt could loan them money at a commercial rate of interest.

3. The government should renegotiate all mortgages it receives to current fixed rates, extending terms of payment if necessary to preclude foreclosures. It must be understood that the renegotiation applies only to those who meet acceptable credit rating standards.

4. Judges should be allowed to renegotiate mortgages for individuals during bankruptcy proceedings. Same credit rating standards as above should be applied.

5 the last changes to the federal bankruptcy laws have to be reversed due to the intense burden imposed by holders of unsecured debt (credit cards) and other factors.

6. I agree that any variable rate mortgage on a person's home should be prohibited, I don't know how that can be done though.

7. Many of the people who are caught by the foreclosure problems are either dupes or they were taking advantage of the laxity of the credit market. In either case, they have to face up to the fact that it's time to get real and live within their means even if they have to go back to renting.

122 Posted by gail owen-smith at 09/24/08 12:52 PM

I heartily approve of the things proposed in your letter to Congress. I was appalled to learn that there was even the slightest possibility that Congress would grant this power and funding to the Secretary of the Treasury with no oversight. If the American people are going to bail out these companies then they should share in the results when they turn around.

Thank you for all you do.

123 Posted by K. Bradley at 09/24/08 12:54 PM

I don't think there should be any bail out. They want a blank check, no overview, no chance of any questions regarding the legalities. Give me a break. I think they (Treasurer etc) should all be fired for not doing their jobs. They failed the American people. Sounds a lot like FEMA. The Bush Administration set out to bankrupt this Country and it has managed to do so. We have a long fight ahead of us to reach a level plateau.

124 Posted by Paul McDonald at 09/24/08 12:56 PM

Where is the $700 billion bail out money coming from?
Remember when our government "Loaned Chrysler" money in the 70's , It was paid back with interest early . Did you get any of the tax money back and interest back Chrysler paid to the U.S. Government. I DID'T ! So a loan isn't going to work for the people loaning the money. US!
This isn't a bail out its a give away of our hard earned money and we will never see it back.
Let them file bankrupcy just like I would have to do.Our government should be doing something to help all the people not just a few!

125 Posted by Robert at 09/24/08 12:57 PM

This unconstitutional measure should be voted down unanimously. Any congressperson voting for it should be tried for treason. If it passes we should vote them all out, and quit paying taxes until the law is repealed. The power is in our hands. We can't all be arrested.

126 Posted by Celeste at 09/24/08 01:03 PM

We should opposed this bill. It sound like another political strategies to convince us taxpayers to pay for their doing. they really thing we are dumb. they make all the profits, we do not really how these money it is going to be apply. To whom and for whom? this is what I call welfare for the rich which are the only people that will benefit from all of this, aws usual. what about the poor and the middle class who is going to bail them out? Is that fair. They will get the money, will share the loot and go about their business "as usual". Nobody is going to make accountable for anything. It just makes me sick to my stomach. I am accountble for what I do at work what these politician get away with so much.

127 Posted by Frank Herrmann at 09/24/08 01:03 PM

Please, NO BAILOUT of any kind.

Any bailout hurts all of us who have been prudent and followed the American work ethic. It penalizes hard working taxpayers while rewarding Wall Street Greed and people who have been irresponsible with their mortgages.

Let the Free Market fix the problems over time. Allow foreclosures of people who have been irresponsible.

The Economy is sound. The Stock Market is not the Economy.

THERE SHOULD BE NO BAILOUT OF ANY KIND.

Frank Herrmann

128 Posted by Ken at 09/24/08 01:07 PM

There should be no bailout for Wall Street period. All the current administration is doing is once again lying to the American people. Wanting this to be done immediately is telling you lawmakers that this is another scheme to destroy the American people and the economy.No one is making a big deal about the foreclosures and saving peoples homes, the bootom line is its all about the richand greedy getting richer.Congress and the current administration should only concerned about bailing out the people with bad mortagages,that is the root of the problem and Wall Stret caused the problem and knew it all along. Wall Street itself and their rich,greedy CEO's need to correct the problem not the American taxpayer. If they go bankrupt so what, America will bounce back,we always have.The other factor is Congrees needs to impeach Bush and Cheney Now.

129 Posted by Merlyn at 09/24/08 01:10 PM

I'm disappointed to see you suggest that the credit card bill be attached to any "bailout" bill. This is the kind of crappy procedure that polutes the law making system system.

130 Posted by martin Flores at 09/24/08 01:18 PM

What's at stake here? If you haven't been watching the hearings, then you need too. I too don't support the bail out nut, the what can be lost do we really have a choice? We're talking about 401k's, pension plans and the like. What really needs to looked at is how do we, the tax payer, get our money back!
These company's have assets and they should be sold off and that money returned to the tax payers.

131 Posted by joyce kaye at 09/24/08 01:19 PM

It is welfare for the rich! It is the poor financing the wealthy! It should be opposed! The government and the corporations are in bed with each other. It is a revolving door. Noone protects the middle and poor class!

132 Posted by angelina thomas at 09/24/08 01:21 PM

this is a trick to throw a monkey ranch in obama's plan to our country
this is the last straw for out president

133 Posted by lywood at 09/24/08 01:22 PM

It's time to worry whenever Bush rushes congress with his hair on fire needing fast action. The obvious first response has to be "back off" and give us your reasoned plan. That would have ended most of his bad decisions including this one.

134 Posted by David W. Dwight at 09/24/08 01:22 PM

Floating around Congress, there are many better ideas than the $700bn/3-page giveaway proposed my the administration. I favor a peacemeal buyback with several conditions....it should look like any Main Street Loan: interest, oversight, restrictions on contributions to the institution's payroll, transparent real-time accounting, NO money for lobbying, etc.

135 Posted by Richard Blenz at 09/24/08 01:23 PM

I was born one mile from Al Capone's hotel headquarters in Chicago in 1924. Al was the master con artist of all time until we put him away for income tax evasion.
I was raised under Al's corruption for which the Chicago and the Calumet Region in Indiana (Lake County)is still famous.
The hobby (con game)of the day was to buy common stock on margin (pay 10% down and pay the rest from the profits of the stock). Stocks went to nothing and the nation went broke. Margin buying too late was then made illegal. It took Adolph Hitler to lift us out of the depression with the result of World War II.
So today the con game is credit cards and selling of worthless mortgages. The only solution I see for the economic mess we are in is to allow the con artists who deal in bad mortgages to go broke.
Then eliminate credit cards!!! Credit cards are a frightful and unnecessary drag on the economy which simply raises prices on everything we buy. The benefit of the card is to make a few people wealthy for giving us the privilege of collecting groceries in a store and walking out without paying for them. My solutions for the economic problem would probably cause (excuse the use of the "D" word) a rollicking DEPRESSION which would probably cause 1929 to look like a slight adjustment to the economy. SO BE IT!!
What with the $9 trillion debt of the government, the huge debt in the credit card racket, the expenditure of 700 billion dollars, which we don't have, to rescue a bunch of con artists, and the ongoing billion dollar daily increase in the year's deficit tells me that we are in a dangerous situation which could bring this country to its knees and could result in basic changes in government which we would not tolerate.
Get out of debt! Cut up ALL credit cards!, quit buying things like $8.00 a gallon for water in plastic bottles! and try to become a bit responsible in our use of money before this country comes crashing down around our heads in an economic tornado.

Today

136 Posted by Jwhitty at 09/24/08 01:25 PM

BailOut my @$$!!! Its got to be a loan. I agree with David Kozlowski (09/24/08 @ 09:34 AM). I may be a little more flexible than he on the terms but, absolutely, no golden parachutes until the loans are repaid in full.

137 Posted by Typeanote at 09/24/08 01:26 PM

Having been a mortgage broker for 10 years; having NEVER originated one of these adjustable loans that are now wrecking havoc among world financial markets; having counseled many individuals AGAINST these loans; having refinanced many individuals OUT of this type of loan; having common sense and ethics, I feel the financial institutions should stand on their own without a bailout from US taxpayers.

Since these institutions are completely unforgiving to a borrower who falls upon hard times by either losing a job or a family wage-earner or struggling with the inflationary pressures imposed by Bush's policies, these institutions should be subject to their own policies and figure a way out on their own, just like the average American taxpayer.

They should apply for loans from whatever sources available to them to handle their financial crises, or liquidate their assets and cancel those huge salaries for their CEOs and FAIL, thereby leveling the playing field. Let those with the wherewithall to whether this storm swim and those without sink.

These institutions should research the causes of these bad loans in their portfolios and demand accountability and retribution from the MANY CROOKS who made their fortunes on these bad loans.

This "bailout" should not happen. George Bush is asking America to "trust him again", even though he's lied to us repeatedly. He wants us to give him a HUGE check to help his wealthy friends, while most of us have to decide how we will make ends meet on a regular basis. His administration has not provided any details concerning the who, what, where, and how's of this plan. Only the "when", "right now" before he leaves office, since after that, the next president may not be so generous.

138 Posted by angelina thomas at 09/24/08 01:26 PM

this is a nother of the republican tricks to throw the election to their corner

139 Posted by Howard Schwartz at 09/24/08 01:28 PM

I do not believe in executive welfare. If the US taxpayer has to bailout Wall Street, there must be checks, balances and oversight. The banks and the investment companies wanted, and got, a free hand to issue credit. Now that it is known that the decision makers were not as wise as they thought they were, the executives should not be rewarded.
The homeowner who took out a mortgage that has balooned up and is unaffordable needs to be helped before executives receive a bailout. Allow the courts to renegotiate the mortgage a person has taken out on their primary home and then help out the executives. Let the executives sell off some of their properties, stocks, luxuries and assets they have acquired before helping them out.

140 Posted by Roger at 09/24/08 01:28 PM

give everyone in the US 2 billion dollars and let them pay off their mortgages and have a little left over to pump the economy back up.

141 Posted by GJ Moore at 09/24/08 01:30 PM

To have each taxpayer pay $2300 to bail out the greedy home buyers is ridiculous. What ever happened to saving your money and then, when you had enough, you could buy a house that you could afford? And what happens if more banks declare bankruptcy? Is the federal government going to keep pouring money that they don't have into poorly managed financial institutions and corporations? Contact your representatives in Congress and your Senators to vote NO on the bail out. If unemployment rises much more we are going to be heading towards a depression.

142 Posted by Colleen at 09/24/08 01:39 PM

We will be paying for this for years to come. Bush and his cronies have brought us to almost bankruptcy, I blame alot of people. The last congress, Hastert and his greedy Republicans. All are responcible. All should go to jail!! Acountability!! Is the only word I can think of now. What the hell were all these idiots thiking may I ask. A regular guy could of done a better job. God bless all of us!! Make everyone responcible pay back the taxpayer. Colleen Betsinger

143 Posted by cee lee at 09/24/08 01:39 PM

I am confused. Where is this bailout money coming from? And of course if we bail out those companies who made obvious greedy and stupid mistakes they will learn good, solid, forward looking business practices, right?

144 Posted by Robert M. Cerello at 09/24/08 01:39 PM

I am Ayn Rand's successor as the leading objective min on the planet. And I sat this is a problem of destroyed realism toward money and individuals' rights, The statist neocon Republicans, preaching infallible leader and wageslave enforced obedience have twisted our once predominantly capitalist economy into totalitarianism. the Proof? Simple:
1. The Supreme Court said last month "single party complainants cannot be hard in the courts." that means you the individual hane no rights in the former marketplace of hiring and the achievement of idea-level leadership at work, no matte what injustice, bigotry or defalcation si committed agains you.
2. All that's required to fix the economy is to reintroduce realism into the money supply. This requires only 2 changes:
A. Set the Fed rate at some sensible amount, matching our actual growth rate, to be changed solely by Congress incrementally--not 2 or 3 percent for 4.25, etc.
2. Require corporate CEOs and executives to be paid no more than 10--12 times what their highest paid worker is allowed except as they are paid by fully-informed agreeing stockholders out of net profits, not up front.
This will take the price of their massive overpayments out of the price of the product. This will allow US citizens to buy more goods, make our products competitive overseas and still allow anyone who has earned ti to be paid as much as he can convince his fellow citizens to allow him to earn.
3. This one change will allow the government to help individual mortgage holder and citizens instead of interfering in the marketplace of finance and manufacture. Shoring up motrages, 85--90% of them or more, will be cheap compared to a 700 billion$ bailout of criminal junkloaners. The money coming in will keep them solvent; bak loans and deposits will be safe; and the executives can eve make a buck on renegotiated loans, decent credit card rates to be reset by Congress, and the success of the loans--that allow citizens granted a second stimulus to buy products and allow business owners to continute doing thjeir job f offering foods and services.
4. We need regulations on non-fictional utterance, ads, election speech, job descriptions and news--along with honest reporting of data and definitions of science, which will include the reports of expenditures, earnings and profits, safety conditions, etc. supplied by corporation officers.
5. A windfall tax on oil and other energy corporations, to be used to rebuild the nation's energy gird for future green eneergy to return the money they did zero to get.
5. Other actions such as taxing the superwealthy who have paid next to nothing for 30 years and nothing at all for 8 interminable years of neo-fascist trickle-down insanity.
But I warn you, as solemnly as I can, if the relief is not paid to mortgagees given decent rate loans and the regulation I cited requiring executives of corporations to be paid on a basis of reality are NOT adopted immediately, the unreality in out money will go on. And those who have been handed 85--95 of the nation's wealth and power will prevent all meaningful reform; and a total Depression that can never be fixed will occur.
There's nothing wrong with individual capitalism--investment of positive values; nothing wrong with the 'private sector'--such individuals dealing realistically with one another. What's wrong is the unrealism introduced into that system in 1902 by changing the Constitution from individual rights protected by limited government to public interest totalitarianism invoked by
as in this crisis by would-be limited caesars.
The US is threatened by neocon dictator-slave institutionalism--not by freedom for individuals, not by capitalism,. and not by the restoring of the rights of Americans to a Constitution of regulations and protections from would be collectivists aiming to steal their liberty, their economic safety and their future.

145 Posted by Karen Miller at 09/24/08 01:39 PM

The only sensible solution is to limit the salaries of everyone working fro any firm receiving assitance from the government to not more than the equivalent GS salary scale with no bonus possibility.

146 Posted by Ward Welch at 09/24/08 01:40 PM

What about the Credit Default Swaps being held by some unknowwn entity somewhere. These instruments were created that allowed entities to place bets on whether or not those questionable mortgages would ever be paid. These Credit Default Swaps were written as private contracts. They are complex but in a nutshell they allow someone to profit immensely if large numbers of subprime mortages are not paid off and go into default. there is no regulation on them and NOW banks,Investment banks and insurance companies, owe the buyers of these Credit Default swaps on junk mortagage debt, trillions of dollars.
It is this liability that is the bottomless pit of liabilityfor the financial institutions of America.SO what is a measely $700B going to do to retify the situation???

147 Posted by Ron at 09/24/08 01:41 PM

Why not give everyone in the country $1 million dollars each? This would allow the majority of the people to pay off their mortgages and still have plenty of money for retirement, etc. After all there are approximately 305 million in the US, so the total cost of this program would be $305 million. What a novel idea, helping the taxpayers rather than taking more money away from them by bailing out large corporations and enriching their CEO's.

148 Posted by HDO at 09/24/08 01:41 PM

This is enough to make most of us middle income, grind it out folks sick. Get rid of the top 3 or 4 layers of any big dog company you bail out, and put the Attorney General on them all to recover all he can. Thats what they would do to me to make
their bottom line look right for the big bonus.

149 Posted by JW at 09/24/08 01:43 PM

Let us all remember the root cause of this financial crisis. Our elected representatives, primarily The Senate Planning and Finance Committee and our complacency regarding these government officals. A recent Wall Street Jounal outlined the "politcal contributions" received by members of this committee from Fannie Mae and Freddie Mac. This is like the fox guarding the hen house.
These people and you know who, or should know who they are, should be replaced poste haste. There are four Democrates and two Republicans. Let's wakeup!

150 Posted by George at 09/24/08 01:50 PM

Hey guys, lets be clear, the bailout cost is not 700 billion as most media and politicians claim, the bailout cost (or gains) will most likely be in the range of +/- 200 billion, if it end up being a gain or loss will depend on what will be the selling price of those mortgages once the housing market get out of the panic mode it is now. Remember those mortgages are backed by houses, some markets may show a 20-30 % decline while many other markest the declines are much smaller than that. So please use your brains and leave your emotions out of the debate.

151 Posted by JChaney at 09/24/08 01:52 PM

I don't have a problem with the bail out if the bill includes a mandate for the all the lenders to work out plans for homeowners to keep their homes, whether the lenders are our government or private companies. Some owners were misled by money hungry greedy lenders.

152 Posted by Mick at 09/24/08 01:54 PM

These C.E.O.s who created this mess are the same guys who have private planes, several multi-million dollar houses, take multi-million dollar bonuses to their already over-inflated base salaries. They have screamed "deregulate, deregulate" so they could take advantage of a system with no checks and balances. They have stolen from the people who trusted them to monitor their retirement savings. They have given friends and associates advantages with insider information so those people can withdraw their funds w/o incident, while at the same time denying the same consideration to their own employees. The government should freeze all CEO salaries and hold their funds in escrow until every last penney is distributed to those who have been wronged. Then, send them all to prison where they all belong.

153 Posted by Scott Baker at 09/24/08 02:05 PM

Get a clue, people. $700 billion is a drop in the ocean compared to the size of the problem. Please read my letter to the president, treasury secretary and every member of the Senate Banking committee below.
================
The president will have to assume FDR-like powers to solve the derivative collapse.

He should declare all derivatives placed outside of legally regulated markets (90% of them) null and void. These "bets" - worth $180 trillion according the U.S. Office of the Comptroller of the Currency in America alone, and up to $450 trillion worldwide - could not have been made in regulated markets, because the players had insufficient collateral.

If the parties object to the elimination of their derivative bets, they should be reminded of the penalty for fraud; it is inconceivable they did not know they were establishing positions far beyond their ability to repay.

For every buyer there is a seller, so the amounts lost would zero out and no party would gain an advantage. We would just get to reset the clock. This is as fair as things can be made, given where we are.

What is causing the panic in the markets right now is the realization that the losers have insufficient money to pay the winners. The domino effect of multiple collapses cannot be stemmed by any government, even by running the printing press overtime. The only solution is to wipe the underlying derivatives off the books and ensure these bets are never made again by creating laws to send those who make them in the future to jail.

154 Posted by Peter L. Everts at 09/24/08 02:13 PM

No bailout. Let the "free markets" take care of themselves - or not.

155 Posted by ajewel at 09/24/08 02:15 PM

The government should institute a department that will provide liquidity into the marketing system directly, like a bank. Homeowners in default should be able to go to them and be refinanced at a price they can afford and stop the foreclosure mess. Businesses and citizens should be able to apply for loans based on equity that will keep the citizens from incurring anymore debt and losses. And lastly, the Federal Reserve is responsible for this terrible scenario just as its actions have caused inflation all along and should be eliminated. Money is too important to any nation to be in the control of private bankers who cannot resist getting rich at the expense of the citizenry. Please request this of all our politicians. Bailing out the bankers would cause taxes to greatly increase on the citizenry for decades to come. Protect your families and children. Fight them!

156 Posted by Arlene at 09/24/08 02:18 PM

No bailout no matter what strings are attached.
Why should we make the rich richer. Why should I pay for someones mistakes.
People bought houses that they could not afford or more house than they needed. The banks loaned them the money and now we all pay. the whole thing is wrong from the start to the finish.
Now we will have to pay more for everything we need because of the inflation this will cause.
Send a message to your representatives no bail out!

157 Posted by Amy at 09/24/08 02:20 PM

I don't think we should bail out corporations -- nor do I think we should forgive mortgages people could not afford in the first place. If we're going to forgive mortgages of irresponsible people, I want mine forgiven as well!

I'm sick of my hard-earned money being used to help other people living in great houses, driving great cars, taking vacations, etc. while I live within my means in a cramped 2-bedroom condo with three people. AAARRGH!!

158 Posted by t. roy at 09/24/08 02:23 PM

I think that these financial giants should work their way through the bankruptcy courts as any failing company does. And that the people responible for this catastrophe should be prosecuted for the fraudulent miss use of investors money. I also believe that our politicians should all be replaced for failing to carry out their elected duties of protecting the American people from things like this happenig. Our government is so full of self-serving politicians and exbanker types used to dipping into the till that its's know wonder the country is in such a financial mess. Throw 'em all out!

159 Posted by james owens at 09/24/08 02:30 PM

i think this is just the presidents last big party for his friends,forget the slaves"i'm one of the everyday working slaves that does everything for the rich & takes what they think i need.

160 Posted by Randy at 09/24/08 02:35 PM

Is this country NUTS, this is more Communist than China is. I lost a bunch on the stock market out of my retirement fund, who will bail me out? This is ludacris giving someone (one Person) the ability to spend almost a TRILLION Dollars. This is the usual for the fat cats, they will all get rich and saved why the middle and lower class slowly starve and lose everything. Bush has already Bankrupted Two Companies, now he is working on the whole country to keep the rich out of trouble. There are too many crooks involved here and they should fall, salaries of CEO'S of companies is way out of hand no one is worth that kind of money. It is pretty bad when someone can make millions being a CEO, while the company goes out of business and people are starving and getting thrown out of there homes. Anyone who vots for this is totally insane.

161 Posted by ARLEEN at 09/24/08 02:38 PM

By bringing home the troops from all froeign countries (they don't need to be there in the first place), stop foreign aid to all the foreign countries for a few years, after doing this the government would not have to extort money from the American citizens. Convict and put behind bars all involved with this scam including but not limited to the 56 Senators that had high stakes in stock in these companies. Fannie Mae and Freddy Mac's corporate bunch should be behind bars and all of their assets taken.

162 Posted by George Mace at 09/24/08 02:41 PM

According to WIKIPEDIA as of September 08 the world population is estimated at 6.725 billion living humans!!
If every one of them donated $100.00, we still would not have the $700 billion this administration needs to save wall street!!

163 Posted by nuno yrfknbzns at 09/24/08 02:43 PM

When does it become alright to take the law into our own hands?
Our spineless congress has abdicated their duties.
How I would love to watch the ceo's dangle from trees.

164 Posted by Ronnie at 09/24/08 02:48 PM

Seems awful scarry to think our government will be incharge when this is over. Our government (both demacratic and republican) allowed this to happen. It was no surprize to us ordinary citizens. We could see the fallacy in the loans to start with. Just another scheme to look good on paper. I also feel thse chief execs should be going to prison not getting bonuses.

165 Posted by Brenda Birdsell at 09/24/08 02:51 PM

You MUST as part of the answer to this fiscal debacle MAKE IT PAINFUL for the GREEDY BASTARDS WHO created this mess! Starting with George W. Bush, Dick Cheney and any CEO making more than 2 million dollars a year. Hold accountable all those CEOs who, like George W. Bush and Dick Cheney, have driven their company (the country) into the ditch and bailed out “scoot free with a golden parachute”. Those tanked CEOS should pay back the difference between the cost of their “golden parachute” and 2 million dollars. You may need to lower the bar and include lobbyists and Congressmen involved with any of these failed companies. America is watching and will vote without fail this November.

166 Posted by Lois at 09/24/08 02:59 PM

REMEMBER, NOTHING IN POLITICS HAPPENS BY ACCIDENT!

The same vermin that caused the last depression in the 30's, are cooking one up for the Americans again...we're headed for one.

NO bailout for the vermin. Wall Street is nothing other than a casino. Everyone expects the hard working Americans to pick up the tab...NO WAY.

No more "Big Deals" like Roosevelt set up...which will sink us even more into a rat hole of socialism.

167 Posted by Jim at 09/24/08 03:05 PM

I don't believe another Great Depression would be in our best intrest. It may be worse. If the bailout has non political oversight do it now.

168 Posted by Renee at 09/24/08 03:07 PM

I agree. They got themselves into this mess, they can get themselves out or be done. I do not want to bail them out. And government is "us". Variable rates should be eliminated or loans established on highest possible interest. Personally, justice would be to take the money from those who swindled it by making inappropriate loans like that to start with that then sold them off and took the money and run.

169 Posted by roger at 09/24/08 03:08 PM

This is putting expensive lipstick on a (dead) pig. The whole banking system is dead; just waiting for the next piece of dead flesh to drop off - for example the house of credit cards. Go to Larouchepac. He predicted all this a year ago. We need the equivalent amputation of the speculators from the banks and fixation of the currency that occurred with FDR.

170 Posted by Ray at 09/24/08 03:09 PM

there is no shame or accountability anymore. i am not worried about islamic terrorists, we have terrorists doing their thing here. all i hear is people losing homes, jobs. the essence of this country is going down the tubes. america is asleep. allowing this to happen. clinton was almost impeached for having an affair. that is nothing. bush is robbing the country blind and nobody cares. like the president of iran said the other day, i believe our days are numbered. we have not learned from history. greed is going to bring this country to its knees.

171 Posted by ted dunleavy at 09/24/08 03:12 PM

We believe that if indeed, a Bialout is truly necessary, it be in the form of a LOAN to the affected financial institutions. And until it is repaid in full, there would be NO PAY RAISES, BONUSES, STOCK INCENTIVES OR ANY INCREASED COMPENSATION OF ANY KIND TO ALL EMPLOYEES OF THOSE FRIMS.
ADITIONALLY....THE REPAYMENTS SHOULD BE TAKEN OFF THE TOP LINE BY THE TREASURY DEPT ON A MONTHLY BASIS. YES....THE STOCKHOLDERS MUST BEAR A DISPROPORTIONATE SHARE OF THE PAIN.

172 Posted by Gene Wedge at 09/24/08 03:14 PM

OK, I think we've got the idea that there is a crisis, and yeah, we probably should do something about it. But do we trust the Executive Branch all by itself to do the right thing, with ANY oversight? I think not. Somehow I recall when we've done that in the past they've betrayed our trust.

173 Posted by Shira Nahari at 09/24/08 03:15 PM

The best solution I have heard (believe it or not) came from former Pres. Clinton when he was interviewed on 23 Sept. on the Emmy-winning Daily Show! (You can access this program at:
http://www.thedailyshow.com/video/index.jhtml?videoId=185197&title=Bill-Clinton-Pt.-1

Here's essentially what he said, and it makes sense to me:
Clinton recommends that there be conditions on the $700 billion:

1. There must be a moratorium on home mortgage foreclosures. Review each one, and if you can write them down a little and the homeowner can make a payment it will cost the taxpayers and the govt. less than a foreclosure. That's what we did in the depression.

~2. Loan the money at interest, or get a percentage of the profit that goes back to the taxpayers. Mexico repaid our loan early with a $600 million profit. The govt. loaned money at high interest to AIG and took an ownership share."

174 Posted by L Higgins at 09/24/08 03:18 PM

I believe this is just another last ditch effort on the part of the administration to get as much of the wealth into the hands of the rich as possible before the bottom falls out of everything. We are going to have a depression-there is no way to stop it now. There should be no bailout for these companys, just like there isn't one for the homeowners who succumbed to the promise of low interest on loans that went skyhigh. Lets let them fall and get it over with and use that $700 billion to save the people in the middle and on the bottom. A lot of small new companys with local jobs could be started with that kind of capital and a lot of homeowners could be saved.

175 Posted by J Gambino at 09/24/08 03:22 PM

People who live in this country created this country by Spending every business that exists, exists because of the moneies we spent. corporation aways pass the problems of their debt onto us. We feel we have now power to do anything at all. BUT we have all the power.
WE CREATED ALL OF THEM BY SPENDING NOW IT'S TIME TO STOP! ENOUGH IS ENOUGH! DO YOU HAVE ENOUGH! OR DO YOU NEED ANOTHER NEW CAR? OR A NEW CELLPHONE? WHEN THE ON YOU HAVE IS !!ENOUGH!! STOP THE SPENDING SPREE NOW. REGAIN YOUR POWER.
YOU CAN HELP SEND THIS MESSAGE TO ALL.
SEND COMMENTS TO ( timesaflyin-123@yahoo.com )

176 Posted by joseph Olivas at 09/24/08 03:25 PM

The congress is being pressured by Bush to immediately give 700 billion to the mortgage companies and banks under threat of financial disaster. This is exactly what happened when Bush pressured the congress to declare war in Iraq in order to get elected. We were threatened with nuclear disaster if we did not invade Iraq. The rest is now history.
If public money is used to bail out the companies that got us into this mess, safeguards should be included to see that the moneys used are paid back, with interest, in a timely manner.

177 Posted by Phil at 09/24/08 03:30 PM

Since they aren't raising taxes to get this $700b, they must be printing the $. Ever hear of just printing money to pay a debt? It's the recipe for inflation. Guess who pays the price for inflation: those retired on fixed incomes and others that cannot raise their income and everyone else that has to buy at inflated prices. Write your Senator and tell them to vote NO.

178 Posted by CHRIS at 09/24/08 03:31 PM

THIS IS RIDICULOUS....GIVING MONEY TO THOSE THAT CAUSED THE PROBLEM. BY THE WAY WHERE DID THIS MONEY COME FROM? WHY ISN'T THERE FOR HEALTH AND EDUCATION, WHICH THEY SO OFTEN SAID THERE'S NO MONEY! SUDDENLY THEY HAVE THE MONEY TO BAIL OUT THE RICH INSTEAD OF HELPING THE MORTGAGE CRISIS OF ORDINARY AMERICANS. WHAT IS GOING ON HERE? THE FLEECING OF AMERICA RIGHT UNDER OUR NOSE. WHY ISN'T EVERYONE REBELLING!

179 Posted by Bob at 09/24/08 03:35 PM

The bailout, while necessary, is bothersome for many reasons: There needs to be a clear method of determining the value of the assets that we the taxpayers are going to be backing. How can we be sure that we're not paying too much for troubled assets to get the bankers out of trouble? The banks want to get the maximum value for their assets while the taxpayer wants to get the best bargain. To ask the question that many are asking: Who decides who is the favored party in this transaction? (Although the borrowers may have overborrowed, the bankers overvalued and it was incumbent upon them to have accurate and sustainable appraisals in place for the underlying assets.) And what's the upside to the consumer to purchase these $700 billion in loans? Is there a stock warrant attached to them to benefit the taxpayer if there is any?
Of course the banks continue to lobby for lax regulatory oversight (the credit default swaps were not regulated AT ALL, though they are similar to insurance; Warren Buffett described derivatives bought speculatively as "financial weapons of mass destruction."). And you can bet in this election year that more money will be thrown at the legislators in Washington by the banking industry. Who is lobbying in D.C. for the taxpayer?
Anyone? Anyone?
The Secretary of the Treasury told us the crisis was being withheld and then without warning it became like Chicken Little - "You've got to act RIGHT NOW. Don't ask questions; just DO IT." How did that happen?! (May I offer a suggestion: We were not told the truth in the beginning. The problem, contrary to Bernanke and Bunch, was not "contained to the subprime" mess. This makes me question their judgment even more now.)
Can anyone continue to argue that free markets without regulation correct themselves? Let me be clear: This is not a correction; this is a BAILOUT, which drives a nail in the coffin of that theory. (The sad part is that regulations WERE in place that could have fended off this crisis, but were not enforced (for example, for closing a loan, the aggressive banks charged all kinds of fees that went unchallenged.)
And to those who decry any form of socialization (I suppose in that democracy-only worldview, the highway system and infrastructure, the educational system, the FAA, and air traffic controllers, to name a few, are all evils of socialistic policy.), I would say:
We are, with this $700 billion, paying for all the gains that wealthy institutions, CEOs, and mortgage companies have made in recent years. As NY Times columnist Gretchen Morgenson has said, this bailing out amounts to privatizing gains, but socializing losses.
I for one think that's just plain wrong.

180 Posted by Maija at 09/24/08 03:38 PM

The stock markets show in how false prospective for success causes an investor to lose ALL money in a stock,that another person keeps? Turn to natural method and sources of energy causing a change in future and changing present markets, the people holding soon worthless stock showing hemp to become the nucleus ingrediant for countless products,solar,wind,water energy, refunds back to the people for fines and fees as pseudo punishment to the courts for marijuana and the like, refunds from acr insurance over 5 to 10 grand option for repair and or replacement accounts. What money flows back and forth, stolen checks invested with fake ID issues around globally ,how to return funding to allocated intended sources, when the stock investment shows shallow false, at least half should be returned ,frankly all. Who/m how and where the money is spent should show in proper management making sure it does just that,gets to intended source of investment ,not fraud entity trying to pull strings waiting to proudly watch the market crash as if with enough supplies for just they. Some are trying to make new banks to pool other peoples accounts to draw from themselves. False credit card companies are showing to be an issue too, a warning about gift cards somewhere online, as if doubt to an established store to succeed . Audits of background money flow will show wrong directions, laws broken.

181 Posted by Alex at 09/24/08 03:41 PM

No Bailouts!!! Regardless of whose fault it is. Effectively nationalizing financial institutions is not only unconstitutional, It's morally reprehensible. I called my mortgage company to see what my options are as my company tanked right along with the economy. Guess what...they told me I'm screwed. They need to be screwed right along with us!

182 Posted by Cris at 09/24/08 03:43 PM

More and more we are leaning towards communism.
You don't beleive me? Even Hugo Chavez the communist president from Venezuela the one who called Bush Devil at the UN said the other day to pres. Bush "Commarad Bush you're going towards socialism, I like that, well done"
We have to own up to our mistakes, but not the big companies? When are we going to stand up and protest? I can only say God help us!

183 Posted by John Braund at 09/24/08 03:43 PM

Keep in mind also that the Secretary of the Treasury has two masters, the President and his cronies at Goldman Sachs (from where he came to serve in Washington). It so happens that this never rose to the level of seriousness that is being daily portrayed on TV until Morgan Stanley and Goldman Sachs (investment banks until just two days ago) were threatened with bankruptcy. Now we must bail out everyone who ever sneezed on a "credit default swap." But I suggest that the crooks that Mr. Paulson answers to have a higher agenda here: Morgan Stanley and Goldman Sachs are the two largest holders of derivatives on oil futures in the WORLD. Ah-choo!

184 Posted by Don Saulnier at 09/24/08 03:44 PM

I think we should require the CEO;s of these companies with six figure salaries to give back two thirds of their salaries back to the companies they are leading. After all they are not doing a very good job in helping those companies. Certainly not worth what thay are being paid.

185 Posted by Bill at 09/24/08 03:46 PM

I'm sure that there is some urgency to this situation and that "Wall Street" wants and immediate answer. What I'm hearing though is the same rhetoric as the run up to the Iraq war. As unfortunate as it is the Bush Administration has exhausted the trust of the American people and I believe it would be a great idea to proceed cautiously but quickly to implement this bailout.

186 Posted by Bill at 09/24/08 03:47 PM

The roots of the current financial problem go back to Congress and the politicos that have set the rules for the system. It's time for hearings to question those who have refused to correct the known problems of the mortgage system. Freddie and Fannie have been highly political and it's time to go to the root of the problem. I have read about the problems of those agencies for many years, but Congress refused to correct the problem.

187 Posted by Glenn at 09/24/08 04:02 PM

Rather than a bailout they should be LOANED the money; to be repaid at interest back to the taxpayers.

188 Posted by jody at 09/24/08 04:04 PM

I think we should distribute the millions to each and every american citizen that paid taxes last year. Keep 30% for taxes so 70% would be tax free. And let the american people decide where to spend it. Pay off their homes, housing crsis averted. By a new car, jobs are created. Pay off student loans and credit card debt, money is freed up for credit. Put into savings, money the banks for lending or investing.
Let the geedy people drown with all the money they have accumulated and the sharks clean their bones.

189 Posted by Josephine at 09/24/08 04:11 PM

Let those "Fat cats" dig themselves out of the mess they are in. I am a retired banking employee and I remember all those big salaries, stock options, retirement guarantees for them when they froze salaries of the working people who dealed with the public and kept the customers coming. I say "NO". I'm having a hard time paying my bills on the measley Social Security income because the stock market ate up most of my retirement and illness the rest. Are they going to bail me out???
H--- NO!!! I've paid my share of taxes like everybody else. I don't want what I've worked for going to bail them out while they have millions stashed away. All those "Rich" so-called representatives of the people on Capitol Hill and their rich friends are all scratching each others
backs like they have a money tree with a never ending supply, but guess what the leaves have fallen and there are no more. The country will go broke between their pork barrel extravaganza and the banking fiasco!!!

190 Posted by John Bielicki at 09/24/08 04:13 PM

All Americans are being impacted by Wall Street Greed and mismanagment. Freddie and Fannie had no oversite and loans were doled out to people who couldn't afford a gallon of milk to purchase homes that they couldn't possibly afford. Bush wants to Ram-Rod this thing through again, with minimal oversite. This cannot happen. Why do we need to get it done in five days? So what if a bank goes under in the mean time. I'm for the bail out, but with strict oversite and no golden parachute to the CEO's who make millions on the taxpayers sweat!

191 Posted by PT at 09/24/08 04:13 PM

The general consensus is that the darlings of the industry--hedge funds and derivatives--led to, or will lead to the downfall of Wall St. It all had its beginnings with junk bonds and the excesses of the 1980's, much akin to Tom Wolfe's novel, The Bonfire of the Vanities.

Also, so called "funding" companies known as usurers, are pulling the carpet out from under small businesses by charging interest rates ranging from 33%, to 43%, to 55% (referred to as an upsell). Meanwhile, their sales staff are slathered with incentives, like $200 to $400 bonuses if you close a sale by 2 pm today... Someone's got to pay the piper. I smell a rat...lots of em.

192 Posted by Eugene Schulte at 09/24/08 04:22 PM

An Option on a Asset = Derivative

The Deregulators, Bush, McCain and market CEOs are saying the old regulations in place are fragmented and not working and caused the market vaporization.

Now if they knew that these stogy old regulations were leading them to a toxic end “derivatively speaking”: why didn’t the market leaders in their vast wisdom just create other checks and balances to stop their suicide leap in midair?

Even when packing advanced degrees from prestigious business schools they didn’t learn that you don’t loan money to those who have a net worth of zero: Another case for regulation.

These market masters, now in the rubble of their making are thrashing around pointing fingers not at their $180 trillion dollar derivative treasure trove but to the real cause of the problem; the 2% of the home owners who had the nerve to take free money from
Mr. Big.

Now, who’s left standing after taking these “bad folks with no money” out of the picture? You have--- Bush, McCain and Market CEOs and $180 trillion dollars of derivatives that disappear in time as their value is determined by the life of the option contract and the perceived value of the asset. Sorry, no hard assets here.

Eugene Schulte
261 PR 3333
Bridgeport, TX 76426
940-683-2855

193 Posted by J. Ng at 09/24/08 04:24 PM

We should not reward CEOs for their bad financial judgment with golden parachutes. And we, the people, should not have to pay for it.

194 Posted by Sandy N. Georgia at 09/24/08 04:24 PM

All monies should be as a loan, requiring repayment before any dividends are paid or executive bonuses are paid. Market interest rates must apply to the loan amount outstanding. Criminal investigations must take place to determine if any of the billions in compensation to managers should be recouped.

195 Posted by Chuck at 09/24/08 04:36 PM

I’m against the $85 billion bailout of AIG. Instead, I’m in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.

To make the math simple, let’s assume there are 200,000,000 bona fide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up. So divide 200 million adults 18+ into $85 billon that equals $425,000.00. The plan is to give $425,000 to every person 18+ as a We Deserve It Dividend. Of course, it would NOT be tax free,
so let’s assume a tax rate of 30%. Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam. But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family? Pay off your mortgage – housing crisis solved. Repay college loans – what a great boost to new grads. Put away money for college – it’ll be there; Save in a bank – create money to loan to entrepreneurs; Buy a new car – create jobs; Invest in the market – capital drives growth; Pay for your parent’s medical insurance – health care improves; Enable Deadbeat Dads to come clean – or else.

Remember this is for every adult U.S. Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back, and of course, for those serving in our Armed Forces. If we’re going to re-distribute wealth let’s really do it...instead of trickling out a puny $1000.00 (“vote buy”) economic incentive that is being proposed by one of our candidates for President. If we’re going to do an $85 billion bailout, let’s bail out every adult U.S. Citizen 18+!

As for AIG – liquidate it. Sell off its parts. Let American General go back to being American General. Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up.

Here’s my rationale. We deserve it and AIG doesn’t. Sure it’s an out of the box idea that can “never work”, but that's the claptrap you get from Washington. Of course it will work, and it will work better than anything else for American citizens. For example, think of how this could help all the ex-Enron employees who lost their pensions through no fault of their own. Washington would rather redistribute our tax dollars to an elite few in the "hopes" of stabilizing our rapidly crumbling economy rather than, if you're going to give away $85 billion, redistribute it to the people you got it from and vastly improve the economy and the lives of every U.S. citizen.

As for our economy, how do you spell Economic Boom? This will generate one most certainly, not like that piddling "economic stimulus package" we saw earlier this year. I trust my fellow adult Americans to know how to use the $85 Billion "We Deserve It Dividend" more than I do the geniuses at AIG or in Washington DC. And remember, The plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.

We need this to be the head topic of discussion in Washington regarding the current bailout proposals.

196 Posted by Charles Welch at 09/24/08 04:43 PM

No comments have touched on one of the bigger causes of this meltdown. When people, for what ever reason, just can't afford to own a property, no loan company should be encouraged (read: forced) to grant a loan. This political correctness has come home roost but it's "do gooder" perpetrators (Barney Frank, included) now act as though this is all news to them and it must have been someone else's fault. They do not equate political power to be the same as financial power (Greed is Greed!).

197 Posted by Joanne at 09/24/08 04:47 PM

I'm fed up with government bailing out large corporations. The taxpayers should not have to shoulder the burden of bad decisions made by overpaid executives. Let the whole situation work itself out in the capitalist way. It may be tough at first but it would be better in the long run. And as far as golden parachutes are concerned, these executives should be getting prison sentences, not bonuses!

198 Posted by George Hamilton at 09/24/08 04:52 PM

AFTER PARTYING IRRESPONSIBLY FOR THE PAST EIGHT YEARS WITH GREEDY CORPORATE GOONS AND ALL THOSE PINSTRIPE BUZZARDS IN WALL ST. DEEP INTO THE "PROVERBIAL NIGHT"; FINANCING THEIR UGLY ROMP WITH EVERY DIME OF OUR HARD-EARNED TAX DOLLARS, SUDDENLY, OUR LESS-THAN-VIGILANT LEADERS IN WASHINGTON HAVE AWAKENED FROM THEIR FINANCIAL DEBAUCHERY TO A $700 BILLION HICCUP. AND, TO ADD INSULT TO INQURY, THE UNMITIGATED NERVE OF OUR "NATIONAL FINANCIAL STEWARDS" IN THEIR ATTEMPT TO BLAME POOR, INNOCENT PEOPLE, THROUGH "FEAR TACTICS", FOR THEIR OWN WRONGDOING! THIS IS SO UNFAIR!

199 Posted by Cruz Gomez at 09/24/08 04:54 PM

Country First! Congress should listen and implement Lyndon H. LaRouche's economic recovery plan. Only public programs as were instituded by FDR should be supported with public financing so that people can be put to work. All private cartels should be allowed to succumb because of their foolish/greedy/deceitful actions. All other programs being instituted by legislators are just methods that sack, pillage and destroy the U.S. economy and that quicken our enslavement. Government oversight being proposed for the $700 Billion sacking is just another way for legislators to mock our misery. It is government oversight which has victimized us through the actions of the health care system which gets paid for killing approximately 100,000 and for injuring/harming approximately 2.5 Million patients yearly. Thousands of lives would be saved by the simple requirement to have doctors write legibly. Unfortunately simplicity is too confusing for legislators to understand especially when their actions are being manipulated by payola. The mockery of government oversight also allows the health care providers to continuously defraud Medicare without fear of accountability. It is this same government oversight which allows the health care industry to include the costs associated with their killing, injury and harm to develop their medical insurance rates. There is also the government oversight of credit card companies which are allowed to charge usurious rates. Need more examples of government oversight "protection"? There is the FDA which allows contaminated food and unsafe drugs to be sold. Government oversight is another way to say "out-of-sight-out-of-mind".

Posted by Cruz at 9/24/2008 2:54 p.m.

200 Posted by E. de Wet at 09/24/08 04:58 PM

If this passes, I would like to have a deduction on the income tax form where I could claim a loss on the amount of this write off to corporate losses that are being paid by tax payers like myself who do not have bad mortgages or bad credit card debts. I did not have anything to do with the losses that are being bailed out so I do not see why I have to incur this debt. I should be entitled to a write off on my taxes.

201 Posted by Paul Nowak at 09/24/08 05:09 PM

First of all, keep in mind that this crisis is not a surprise. Lenders have been reporting increasing numbers of late mortgage payments for the last 2 years, and yet the financial giants have taken no steps to address the problems. Do these people know what they are doing?

A blank check to the Fed is ridiculous. The Fed already has too much power. Congress needs to take responsibility again and start to regulate credit institutions. Financial companies are "building castles in the air" and they're using home buyers to do it. Lenders are responsible for the money they lend. They need to do their "due diligence" to ensure that mortgagess are repayable. They shouldn't be giving mortgages with terms that have a high probability of default.

Realtors have an ethical responsibility to ensure that a buyer is qualified. Realtors involved in too many foreclosures should be investigated and penalized, if possible.

Home buyers need to realistically assess their capability to meet their obligation. Speculative buyers should not be bailed out.

I would suggest that the Federal government do the following - using binding arbitration if necessary:
1) Require each mortgagee review it's "bad loans" and work with the mortgagor to come up with a new loan agreement.
2) Require financial entities that traded in loan derivatives to negotiate settlements with each other.
3)

202 Posted by Jerry at 09/24/08 05:11 PM

Congress is responsible for this mess through their mon-management of corporation raders, catering to lobbist, failing to punish and control the evils in human nature (such as the pork-barrel spending) and turning their backs on the needs of WE THE PEOPLE. So we the people should change the structure of congress with our votes.

(I heard Bob Novack say congress is totally corrupt.)

But I think there are a few men worth saving.

Americans need to get serious about our leaders and take control of our choices.

203 Posted by CoyoteMan at 09/24/08 05:11 PM

This canid trickster of Native American lore smells another Bush WMD Speech on Sept. 24th. The speech an effort to stampede (by fear) the US Congress to giving Wall Street $700 dollars in profit for their criminal activities.

This canid critter categorically opposes any bailouts of rich Wall Street types while Americans are losing their homes & jobs!

This canid critter smells a bait & switch as outlined in Naomi Klein's "Shock Doctrine".

Congress must table this mess until cooler heads prevail. This must be tabled for 30 days.

204 Posted by Mehlli Bhagalia at 09/24/08 05:12 PM

These two clowns Burneke and the other one, are giving the congressional committee 7 days to solve the problem they helped create ?.

How do we know their plan will work ? just because they say so ?

What were they doing for all these years while this was building up on their watch. Fire thse clowns. I am a former Bank Examiner. Ishould know.

Why is the Senate and the House allowing them to Frame this matter, Ask them WHY and HOW TO EACH OF THEIR STATEMENTS. AND ASK THEM THE BASIS FOR THEIR ANSWERS.
This is how Bank Examiners ask questions.

Ask them what is the worst that can happen if we let these institutions failed. And ask them to prove their answers. Other corporations will want to buy the pieces. Let them.

why should we bail them out, after being screwed by them for all these years.

I am angry. Maybe you can tell.

Mehlli

205 Posted by Suzanne Lueder at 09/24/08 05:13 PM

Actions usually have consequences. If I screw up my finances the government doesn't bail me out.Why should these massive companies with CEO's earning in the millions get a pass???

206 Posted by Margaret at 09/24/08 05:16 PM

Imagine my surprise when I learned we had $700 billion lying aroung. I can't help but think about what else we might buy with that. Here's my shopping list:

1. End homelessness in the U.S.
2. End hunger in the U.S.
3. Provide healthcare for the uninsured.
4. Quality child care and education for all.
5. Divide it evenly between 50 states, D.C., and
Puerto Rico.
6. Vegas baby!
7. Green mass transit in cities w/populations
over 100,000.
8. Fully funded green energy development.
9. A really long trip to COSTCO.
10.A really short trip to Whole Foods.

207 Posted by Mary at 09/24/08 05:18 PM

Our government needs to give us a break from the shenanigans they have been pulling on us for the past 8 years. forgive mortgages, student loans,
credit card debt for those in trouble thru no fault of thier own.. Let the fat cats who got themselves in this mess, get themselves out or lose everything like so many hard working Americans have had to do.
Enough already.

208 Posted by Dan at 09/24/08 05:25 PM

Why should our taxes go to support greedy wall street bankers and lobbest.

209 Posted by Jim Poquette at 09/24/08 05:26 PM

The proposed bailout is nothing less than financial fascism. It amounts to the take over of our government by the financial sector, the corporate elite. As if the large corporations don't already have enough power over our government, they now want complete control.

This is CLASS WARFARE, DON'T CONCEDE DEFEAT. I DON'T WANT MY TAXES PAYING FOR THE CONSEQUENCES OF THE DEREGULATION OF THE FINANCIAL MARKET. Please see:http://www.thenation.com/doc/20081006/scheer

210 Posted by JoAnn Wilkerson at 09/24/08 05:34 PM

Vote no on bailout plan.If bailout is needed, throw Paulson"s plan in the trash and structure a ligitimate plan. The nation has already had enough failures and robbery. We need the real world.

211 Posted by Jack McElwee at 09/24/08 05:48 PM

Why should I have to support the greedy CEOs on Wall Street. I worked hard all my life and I depend on my investments in funds, etc., to carry me through until I meet the Maker.

The candidates for President are so full of waste material usually left in the Sweage Treatment plant, I can't being myself to vote for either.

212 Posted by S. BROWNLEE at 09/24/08 05:48 PM

I own a small business, I have picked up the whole cost of insurance for my 13 employees, all of it. The govt. isnt doing a thing for me. Now because of this something I worked so hard for (Employee ins.) may have to be dropped just to stay in business. where's the justice!!!!!!!!!!!!!! Let them bail themselves out!

213 Posted by Gabriele at 09/24/08 05:48 PM

This bailout is socialism for the rich. The poor have capitalism. Another name for that situation is Fascism. I'm not saying the government shouldn't intervene, but only with the most stringent oversight and accountability, help for consumers, and only in the form of loans that need to be paid back

214 Posted by FRANK at 09/24/08 05:50 PM

Bill Clinton took 650 Billion from the Social Security Fund to balance the budget befofe leaving office & nobody say's a thing H'mmmmm
Look it up on GOOGLE

215 Posted by Will at 09/24/08 05:58 PM

There should be no bailout of a company whos corporate greed put them in the in the position they are in today and the persons responsible for making the decisions allowing this to happen should not walk away with millions but should have to use ther golden parachute to cover the unemployment compensation for all those persons who lost their job due to the coporate arrogance.

216 Posted by Ray Legault at 09/24/08 06:08 PM

No. No. 3% of the loans may be at risk? $700 B for what? Where is the implementation plan? Where is the payback rules? No to this? Set up a plan to let the bankruptcy courts handle each case and have the ability to re-negotiate the loans for home owners on their primary residence only for the new home owners only. Not for the people collecting houses and trying to pull a fast one on the people. No more bailouts. No more. Regulate all finance transactions! Audit them at a maximum of 2 months intervals. Put limits on CEO's. Put the CEO's in charge of these companies in jail for crimes against the American people.
Any politician that took money from lobbyists for financial leeway in jail. Outlaw lobbyists except those directly working for a group of tax payers greater than 100,000 and proof is required. Make it a crime to tell a lie over any public media that people rely on for the truth? TV, Radio, Web sites, etc. An independent group to rates all channels on their fairness to all parties and how accurate. What kind of 3rd world country have we turned into?

217 Posted by SW Wagner at 09/24/08 06:14 PM

I am opposed to the bailout, but we are going to get the short end either way. If the financial system collapses, property values, investments, etc. decline even furhter. If we bailout these companies, then we get to pay for this forever through our (and our children's) tax bill. I do not believe mortgages should be modified or forgiven unless the borrower was lied to. If people bought a house they cannot afford, the government should not rescue the borrower. And then the responsible people who bought only the house they could afford get to keep plugging away at paying the mortgage with no help or relief. So, if you are irresponsible the government bails you out, but if you are financially conservative and responsible, you are on your own? I also do not believe CCD companies should have to lower fees, etc. If you don't like the fees, don't use a CCD.

218 Posted by don p. williams at 09/24/08 06:21 PM

I am against anybody being bailed out just because they screwed up. A better plan would be to give this 700 billion to the taxpayers of america over 18 years of age. if my math is right (hard for me to comprehend such high figures) this would be close to $ 290.000 for each taxpayer, double that for a couple. what could a household do with $580.000? pay of mortgages, and help solve housing problems. of course you would have to pay taxes on this. probably about 30% or 174.000 back to uncle sam.
This leaves approx. $406.000. per household. I believe i could help the economy by putting some of this back in circulation. Do you think this would work, or is this too simple for the guinesses at AIG or in washington. (probably would not work)

219 Posted by Mark Bales at 09/24/08 06:22 PM

The taxpayers of this country (USA), should not have to bail out the bankers! PERIOD! FYI, the Federal Reserve Bank is not part of the 'Federal' government, it is a PRIVATE bank! There is NO 'RESERVE' of gold or other precious metals backing up the Federal Reserve Notes, Nixon ended the gold boondogle of the gold reserve of the USA. When asked what would then back up the FED's notes, he said that the productivity of the US citizens would back up the notes. That makes me and you SLAVES to the FED. The FED 'Loans' money into existence. Take out a dollar out of your wallet or purse. Hold it up and realize that someone, somewhere is paying interest for the existence of that dollar bill, and somebody, somewhere, ALWAYS WILL. That is what debt-bearing means.
If you want to end your slavery to the FED, 'NATIONALIZE' the Federal Reserve Bank, and make the private bankers who have profited from the existence of the fiat, (Latin for "I declare"), debt-bearing money supply eat dust.

220 Posted by Joe Guglielmo at 09/24/08 06:24 PM

It saddens me deeply. I fought in Vietnam. I was a police officer in NYC during the 70's. I always wanted to defend and help. I now want to leave this country. I cannot believ that we have come this far and still refuse to see truth. The truth is that we the People, the small, humble, everyday People have allowed this situation to come about. We who have ancestors that built this nation. And I mean ALL races, creeds, and denominations. We who have literaly given our blood,sweat and tears so that we can make this Great Land of ours a Haven for all those who dream. Now we have laid waste our God given heritage which was this place on this planet. We are now going to bail out hose who corrupted our nation and have driven us into the ground. Shame on Us. I who have always believed in our system wants to leave. I cannot believe the words I utter. I am 2nd generation Italian American. My grandparents, and my parents lived and worked thier way up the ladder. They did not ask for anything more than the freedom to pursue a life that was only possible here on this soil. I pray that someone, somewhere has the sense to stop the madness. To vote NO to giving 700 Billion Dollars away. Yes, away. Do you honestly believe that that much will be utilized without corruption? You are delusional if you believ such a thing. We need to let the bottom drop out. We need to pick ourselves up from the ashes and do what American People do best. And that is to survive against all odds. The people that have gone before us taught us that you can truly rise from nothing. We need to get back to giving a good days hard earned labor for a good hard earned pay. Look what was built and accomplished during the Great Depression. I am not afraid if the bottom drps out for I have faith in the resolve of the American People. But if you pass this insane bill, I will leave. And I am grateful that I can leave. I pity those who cannot.

221 Posted by Jerry at 09/24/08 06:29 PM

My understanding is the administration was aware of this situation for over one month and now it becomes emergent, no time for discussion/evaluation, and if not accepted as is, we(the taxpayers)will suffer catastrophic consequences. I perceive manipulation, with intent, to panic the public. I do not buy this. there is time for due diligence, and time to establish appropriate safeguards for the ultimate victims of this outrage: those same taxpayers.

222 Posted by Hank at 09/24/08 06:31 PM

The roots of the mortgage meltdown—which have produced the massive financial and credit crisis that rocked world markets over the last few weeks—can be traced directly to two critical pieces of banking deregulation legislation passed about a decade ago. Both were pushed through Congress by Texas Senator Phil Gramm—yes, the same Phil Gramm who described Americans struggling with economic setbacks as a "nation of whiners" who were in a "mental recession". Until that little verbal lapse, Gramm was the co-chair of John McCain's campaign.

In the mid-1990s, Gramm served as Chairman of the Senate Banking Committee.

In 1999, he pushed through a historic banking deregulation bill that eliminated firewalls established during the Great Depression between commercial banks, investment banks, insurance companies and securities firms. This led to a wave of mergers such as the JP Morgan investment house with Chase Manhattan Bank, and Citicorp with Travelers Insurance. Banking and insurance became much more speculative, risky businesses.

Then, in December 2000, Gramm pushed through a 262-page bill called the Commodity Futures Modernization Act. This bill, Gramm said at the time, would "protect financial institutions from overregulation" and "position our financial services industries to be world leaders."

For starters, this bill exempted energy trading from regulatory oversight, which according to one writer "allowed Enron to run rampant, wreck the California electricity market, and cost consumers billions before it collapsed." (Gramm's wife Wendy later earned over $1 million as a member of Enron's Board of directors).

But even more important, the 2000 deregulation bill allowed the sale of something called "credit default swaps"—essentially insurance policies on risky investments. This move would open the door to the massive speculation in mortgage investments that ultimately produced the current crisis.

223 Posted by GWClark at 09/24/08 06:32 PM

Since Bush went to HUD in 2002, I have seen house after house built in Brazoria County Texas. Everyone question was, "Who is supposed to buy these Houses?". The building boom was on with no buyers in site. Sure, a lot of people moved on to higher priced houses and left middle priced houses behind. All housing became over appraised for property tax collections and everyone knew this was wrong. I spoke up. Many, many people spoke up. But the builders were getting their money, the realestate people were getting there money the Banks were getting their money and the investment Bankers were getting their money. Now the taxpayer, you and me are stuck with bailing out all of the people that have already gotten their money. What about US the taxpayers you have been raping US for years and now you want ME to Bail you out? I would rather NOT and let ALL YOUR INVESTORS that have already stole my money go bankrupt. It will all work itself out doing it the right way. NO BAIL OUT!

224 Posted by John at 09/24/08 06:35 PM

First let's put the main blame where it belongs,Congress. They are the ones who kept relaxing the rules on mortgages. Even requiring Freddy and Fannie to buy up 30% of subprimes. Greedy Wall Street then saw an opening to step in with all the shakey investment instruments which they then sold all over the world. Lastly, lets not forget us. Many of us bought houses we couldn't afford when the ARM kicked in. More greed. Now they are asking us, who are frugal and are responable for our own debts to let greedy bankers and debtors of the hook. NO WAY !!! Let them sink. I am not responable for other peoples debt. Thanks for letting me vent my spleen.

225 Posted by John O. at 09/24/08 06:37 PM

Bail out?? NO WAY! The last two administrations have pushed homeownership as a means of building assets. People bought homes they couldn't afford then the furnace breaks down, they don't make the payments-then walk away, they haven't lost anything. The lenders ripped them off with adjustable rate mortgages (people don't read what they sign.)The greedy (& I mean GREEDY) lenders rip them off with unearned fees. No wonder lenders and their lobbyists(henchmen)are fighting RESPA reform. Too many greedy lenders,sleazy lawyer/lobbyists &crooked politicos.Isee it every day in the business I'm in!

226 Posted by Bruce Rubin at 09/24/08 06:40 PM

Buying up bad mortgages from investment companies owned by billionares is the ultimate rape of the American people. This is 10,000 usd for every family in America. The Depression happened because the government didnt back the bank accounts of depositors so there money was gone not because the banks held bad loans. This is different, Henry Paulson and his billionare friend deserve an academy award but not 700 billion dollars. At this moment the politicians in Washington are being showered with Pac money to get their piece of the action.This is BS.This is enough money to pay for all the gasoline this country uses in a whole year or the entire healthcare bill for the entire country. Ya the stock market will take a beating but as long as the Government back the deposits we will be ok.They should copy the New Deal and provide public works programs across this country. Bailing out the wealth of a few hundred thousand billionares at the expense of the entire population just makes me sick

227 Posted by Bruce Rubin at 09/24/08 06:40 PM

Buying up bad mortgages from investment companies owned by billionares is the ultimate rape of the American people. This is 10,000 usd for every family in America. The Depression happened because the government didnt back the bank accounts of depositors so there money was gone not because the banks held bad loans. This is different, Henry Paulson and his billionare friend deserve an academy award but not 700 billion dollars. At this moment the politicians in Washington are being showered with Pac money to get their piece of the action.This is BS.This is enough money to pay for all the gasoline this country uses in a whole year or the entire healthcare bill for the entire country. Ya the stock market will take a beating but as long as the Government back the deposits we will be ok.They should copy the New Deal and provide public works programs across this country. Bailing out the wealth of a few hundred thousand billionares at the expense of the entire population just makes me sick

228 Posted by C.P. Cowart at 09/24/08 06:41 PM

All of this money is not lost; It is in some people's bank account somewhere. GET IT BACK:

229 Posted by mary at 09/24/08 06:48 PM

Americans are just now realizing how the Republicians have undermined all of us. There continues to be a HUGE transfer of funds from its intended purpase to something else. All our taxing agencies are so proud of themselves for switching to fees instead of tax raises. This places many services out of reach of the poor and elderly on fixed income....which I think is the Republician goal.

I've watched the corporate world switch the burden of my health care and other promised( over 32+ very high health risk exposure) benefits to me without compensation with the blessings of Republicans. Ditto for our highways, bridges, even the money we paid in to utilities companies to aid the poor.

Shutting down the home builders who have made their profits on selling homes to folks who cannot afford to buy them, let alone pay for the on going cost of operation and maintenance. If the financial instutions had operated in less greedy ways, these loans may not have happened, but neither would this crisis. DO NOT REWARD THEM ADDDITIONALLY!!!!

This bailout is another tactic to put funds out of reach of helping of the common man.

230 Posted by Maria Olga Urrea at 09/24/08 06:48 PM

How about takind those 700 billion dollars to start a healthcare program where we all have access?. It is not fair that a group of people get richer through greedy practices committing a crime that is affecting everybody in US.

231 Posted by mary at 09/24/08 06:52 PM

Americans are just now realizing how the Republicians have undermined all of us. There continues to be a HUGE transfer of funds from its intended purpase to something else. All our taxing agencies are so proud of themselves for switching to fees instead of tax raises. This places many services out of reach of the poor and elderly on fixed income....which I think is the Republician goal.

I've watched the corporate world switch the burden of my health care and other promised(contractually, over 32+ years of very high health risk exposure) benefits to me without compensation with the blessings of Republicans. Ditto for our highways, bridges, even the money we paid in to utilities companies to aid the poor.

Shutting down the home builders who have made their profits on selling homes to folks who cannot afford to buy them, let alone pay for the on going cost of operation and maintenance. If the financial instutions had operated in less greedy ways, these loans may not have happened, but neither would this crisis. DO NOT REWARD THEM ADDDITIONALLY!!!!

This bailout is another tactic to put funds out of reach of helping of the common man.

232 Posted by W.G.Bainbridge, Jr at 09/24/08 06:52 PM

Taxpayers should not have to pay for high paid executives mistakes and manipulations; congressional neglect and corruption and imprudent borrowers greed. I know what loan documents look like and these people had every opportunity to know exactly what they were doing when they signed them. They did it anyway.

Let those who actually participated in this suffer the consequences of their behavior and do not drag me, my children and my grand children into having to pay for it.

233 Posted by Keith Willis at 09/24/08 06:56 PM

The lobbyists have flooded Washington to make sure they get what they want out of this. The only ones left out are the average American voter/worker. We should: Be THE REAL lobby and march on Washington 10 million strong and occupy the city to make sure this is done in the interest of the American people and NOT the special interests. It is time to take back control of our government ! OR - We should have a national strike ! Everybody stay home until this is passed and done right ! Corporations should pay the taxes and not individuals, as it is now. Corporations are our servants - not our masters, as it is now. Seperation of corporation and state. Not corporations dictating to our government and thereby controlling us all ! WAKE UP PEOPLE !!!!!!!!!!!!!!Before it is too late.

234 Posted by Nathan D, Hays at 09/24/08 06:57 PM

One of the aspects of the Bail Out proposal, as it stands now, is that it is not a one shot deal.

As it presently stands the President and two high ranking members of his cabnet have the authority to re-use this option at the levels of this option at any time in the future that they choose - with NO Congressional oversite.

Another 'King Bush' ploy...

If, for no other reason than that listed above - I am against the bail-out.

235 Posted by not in my name at 09/24/08 07:01 PM

This behavior is despicable and preventable.

236 Posted by doofie at 09/24/08 07:01 PM

Yellowcake CDO's? Weapons of mass consumption? 700 additional billion for the "splurge"? Mushroom cloud over Main Street? Is it 2002?

237 Posted by Concerned Citizen at 09/24/08 07:06 PM

Contact your representatives and senators over and over and over to protest against this bailout plan. We were taught to go by the rules when we were children. None of these high finance idiots remember what they learned in kindergarten. We don't owe them anything. Our president is about to go on television to put pressure on Congress. He just woke up and "suddenly" realized their is a problem with our economy?

238 Posted by Phil Willen at 09/24/08 07:10 PM

Most people seem to have overlooked the fact that with all the foreign investment, our tax dollars will be bailing out oil rich sheiks, Chinese, and other large overseas investors.

This is a delaying tactic to keep things running until the elections, then it will be business as usual for the fat cats.

239 Posted by Sue in MN at 09/24/08 07:12 PM

IF!!! Congress passes this bailout, the mortgagees deserve a break too. My neighbor's house is empty, unlikely to sell, because their mortgage payment "adjusted" from $2000. And they owe more after 4 years than the house is worth. This is not the only vacant home in our middle-class neighborhood, and it isn't only the over-extended who are suffering from this fiasco. The retirees who would like to sell their homes & relocate, those who want to move up from "starter" homes, as well as my daughters who would like to refinance to make some improvements are all stuck, too.
The geniuses who got their companies into this state definitely do not deserve bonuses, golden parachutes, stock options or any other rewards until the companies are back on solid footing. And they should be required to pay back all the excessive compensation they have received since the day profits fell below zero.
Finally, whoever is appointed to oversee this bailout MUST be an outsider - to both Washington DC and the finance industry.

240 Posted by jld at 09/24/08 07:38 PM

I say no Bail Out! Let it go, it will be painful but we will get thru this.This is going to cost us and it is still going to fall. Where is the money coming from? CHINA? We cannot continue to live on a house of credit. We need to start making energy in this country and fixing our interstruture. This will give people jobs. Stop inporting steel, make our own.So much we could do.

241 Posted by Bruce at 09/24/08 07:42 PM

How can a broke country loan money to a broke company? By printing worthless money?

If this is the equivalent amount of money for each person to receive $5000, why not give it to the people to pay their bills and mortgages.

Even some of it could go to a Public Works Program to build things and put people to work who have or will lose their jobs and homes regardless of the bailout.

242 Posted by Paul at 09/24/08 07:44 PM

Not since the run up to the invasion of Iraq has this administration made such a full court press to convince the american people of the dire consequences of inaction. This time I aint buying it. Fool me once, shame on me.

243 Posted by Harold Gollman at 09/24/08 07:51 PM

why not just let the people who can be helped with
a marginal interest rate cut to keep there home refinance there homes until the market recovers, those who cannot pay without a negative interest rate, would never really be able to afford their homes and must be foreclosed. It shouldn't be up to the government to let people profit from their unwise financial decisions.

244 Posted by Bill Atkinson at 09/24/08 08:09 PM

A fool and their money are soon separated so the axiom goes. The homeowner who cannot make their payments because of speculation gone awry or not reading the fine print is unfortunatley a fool.
The crime in this is the less than full disclosure of the terms of the loans but again, buyer beware is the wisdom of the ages.
The NY Times article on Monday points to the fat cats trying to pile on so they can further feather their nest.
I think the institutions should be allowed to fail and then the govt take over the assets at fire sale prices and renegotiate the loans for the fools above.
I further think the public is getting their deserves for backing Reagan and little george, the campions of de-regulation

245 Posted by Peter Ploom at 09/24/08 08:09 PM

The failing/faltering institutions should not be bailed out. Corporate greed should be left to digest its just desserts. This is the result of the Reagan - Bush - Bush philosophy/mentality of deregulation because "government is the problem". So what is needed is to "let the dust settle" and start anew, with strong regulation and strict oversight without any of the industry cross-over; banks don't sell insurance and insurance companies don't offer financing, etc.

246 Posted by Grace at 09/24/08 08:20 PM

How much more will be taken from the American People.
Not fair .We need a better plan.
Stop the scare tactics.
Stop giving 10 billion to Iraq .Lets start with that.
No details ,open check, have they lost there minds?.
No way is this OK.A better plan is needed.

247 Posted by schindler at 09/24/08 08:20 PM

Why trowning good money in a black hole? To prolong the misery. Lets hit the bottom first for a clean slate. Put all the failing institutions in the hands of the taxpayers and return them after management has paid off all their debts. Put a lien on all property and freeze all bank accounts owned by the failing management, recollect or rescind their golden parachutes and place all oversight and all power to disburse taxpayers money(bailout monies in the hands of an independent trust commission headed by Warren Buffet(Democrat), Romney(Republican)and Bloomberg(Independent).
In no way should 700 bill to be handed over to Paulson, Congress or White House. They were all asleep at the wheel and would only cover up their cozy relations with WS.
All ARMs or no-interest loans should be converted by an act of congress to a 30-year fixed-rate. Any default of any property owner on a fixed mortgage should result in immediate foreclosure.
One can only hope , that this time the sub-prime-defaulters read the small print, before they sign. This is not sugarland, where all is forgiven and the taxpayer footes the bill.
Enough is enough.
Lets put congress on permanent recess and dismiss the executive branch once and for all. The country would do terrific without them.
rhs

248 Posted by MKanning at 09/24/08 08:23 PM

As a 'child of the depression', I saw this whole scenario coming at least 9 months ago and told several people that what I saw was paralleling what happened just before the Great Depression. That said, I must say that the proposed BailOut is a BIG mistake. Those greedy CEO's with their obscenely astronomical salaries and 'golden parachutes' are the ones who got us into this mess.... the gov't should NOT BAIL THEM OUT. NO! NO! NO! This whole thing is going to take some time to work itself out. (Try to keep some cash at home.)

249 Posted by m.artiles at 09/24/08 08:23 PM

We shall not bailout any of those high paying
corporate CEO. They must be may responsible for the bad decision made by the company they run. We must stop the high corporate bonuses, the high interested rate on credit cards.
Any money given for bailout, shall be on a loan, to be paid back with interest, and backup by the corporate and CEO asset; in specific amount of time.
We shall worry more of small and medium type businesses, which are the one that made our country great, and forget the high paying corporate people, that have lost all of the principals.
Help! all of those people, that were sold house above value, and make builders, and corporations responsible for the different in their debt.

250 Posted by DP at 09/24/08 08:27 PM

Golden parachutes. Ethical questions, year after year. CEOs whose only guiding light on decision making was to maximize share value. Lies at quarterly reporting times. Lies until backroom meetings caused the Treasury Secretary and Fed Chairman to finally have to reveal the gravity of the situation. Lost homes. Starving families. Weary workers who can't even afford to buy the gas to go make a suppressed minimum wage. Businesses burdened by Sarbanes Oxley as the supposed remedythreatening to throw that out, too. You think these people have answers? You think we should forfeit our income, for corporate pilfering, and now the bums are home value, taxes and promise our children's future income to the greed meisters who created this whole fiasco? I say no.

251 Posted by Greggie at 09/24/08 08:54 PM

I am absolutely opposed to ANY government bailout of Wall Street. This amounts to corporate socialist welfare and if they want to bail out anybody, pay off my student loans! We need to get these republican treasonous crooks out of Washington and prosecute them as the criminals they are. Where is the investigation on HOW this happened?

252 Posted by Fr. John Elledge at 09/24/08 08:59 PM

This is not a plan to aid millionaires. Think of all the retirees who have invested in "safe stocks" and the mutual funds with the same "safe stocks" whose shares are owned by people as their nest egg. Those and the homeowners are the ones whose lives are most profoundly effected by this terrible crisis. Put a cap on CEO salaries. Fine those who find some way to make win-fall profits from others misery, but save the economic system. If the whole house of cards comes crashing down, it effects the little guys all around the globe -- the workers, the homeowners, the pensioners, and the thrifty middle class.

God bless!
Fr. John

253 Posted by A. Kelter at 09/24/08 09:02 PM

If they can swing this deal, why can't they bail me out? My $30,000 of debt (aside from my mortgage) pales in comparison! But seriously folks, there better be some kind of payback to us lowly taxpayers, and no golden parachutes!

254 Posted by Dan at 09/24/08 09:04 PM

After the 1929 crash safeguards were put into place to prevent such a disaster from happening again.Such as breaking up large businesses from monopolizing any area of business. Since that time , corporations have systematicly hired lobbysts to change those laws, and they have succeded to the point that we are at today, CAN NOT LET THIS COMPANY FAIL BECAUSE IT IS TOO BIG.
The current thinking to bail these companies out is
curious at best. Any bailout must contain LAWS
that these companies repay the country plus interest, and submit to stringent regulation.

255 Posted by Al Clever at 09/24/08 09:06 PM

I think we should hold those in congress liable for their part in this disaster as well as everyone on Wall St who had a part in it. You can't put people in homes they can't pay for no matter how fashionable or politically correct it might be to do so. Whatever happened to common sense???????

256 Posted by Real Estate Appraiser at 09/24/08 09:13 PM

President Bush wants to determine the root cause of the real estate loan fiasco. Any ethical real estate appraiser can tell you the cause. Lenders select appraisers who appraise high. Appraisers have complained for years about Lender Pressure. The bottom line is many appraisers who do not meet the sales price find they never receive another appraisal request from that Lender, while the unethical appraisers (who appraise very high) get all the business. Appraisal and lending are the only businesses where the crooked get rich while the ethical starve or are driven out of the appraisal business through lack of business. Until the true cause is admitted, no effective reform can occur.

Loan Originators should be licensed. The company originating the loan should bear the first 20% of any losses that occur any time within the first 15 years of the life of the loan, not the PMI (primary mortgage Insurance) companies. This would correct the situation overnight for all new loans. Loans would still be made, but the loan
originators would have a vested interest in having a solid reliable appraisal done, rather than a high appraisal that makes their loan package "Look" more salable.

257 Posted by Louis Slee at 09/24/08 09:40 PM

Under no circumstance should the government bail out the financial community without freezing foreclosures first. Banks are holding on to foreclosed homes waiting for the inflation of prices that will follow a bail out. The administration and the Congress have set themselves up as the arbiter in this dispute proving that the market cannot correct itself. They speak with a forked tongue.

258 Posted by RAJacoby at 09/24/08 09:49 PM

No one has yet mentioned what I consider the first priority item that should be addressed by any action taken by Congress and that is recovery of the excessive executive compensation granted to the executives who have profited during the build up to this crisis. If a CEO has been paid (Some received as much as $466 million) for his performance in advancing sub-prime lending and the various mortgage packaging schemes, it would seem only fair and just to require him/her to return this performance compensation since he/she certainly did not perform.

The funds recovered by this requirement could compensate the taxpayer for any losses due to this bailout.

259 Posted by Melissa J. Martin at 09/24/08 09:50 PM

This is just proof that we are so unstable in our economy and in our own government. I am scared to death of our financial security. We should help the people that are losing there homes and jobs and are unable to make ends meat. This could mean the end and eventual demise of our economy. Predictions of record high heating costs and oil skyrocketing to over $4.00 a gallon, it's no wonder why people are hopeless and fighting with the realization that everything they have ever worked for can be gone in the matter of time. We as a nation, need to band together and fight to keep Bush from making matters worse by bailing out these soulless Capitalists who are only looking out for there own special interests. Were is the democracy that America is based on? Hopefully we can regain that before it's too late.

260 Posted by Diana at 09/24/08 09:59 PM

The regulators were asleep and looked the other way because it's all about greed and politics; anyone with any sense saw this coming and while everyone was printing money and fairy dust was flying around, all was right with the world. Now that the bottom has fallen out, once again the people who pay their bills and don't get in over their heads, will suffer. If they don't do this bail out, we are going to be in depression - not a recession, a depression which will shadow anything the US has ever seen to this point.

261 Posted by Daniel B. at 09/24/08 10:07 PM

Is this the real problem? I believe the cost of houses have been inflated by the easy credits that these banks gave to people, but once this credits are gone there is not way you may afford a medium size house if they require 10% down payment of a 600,000 Dlls loan, at least here at California. This is the real problem we all going to have to accept.

262 Posted by Ronnie Brackett at 09/24/08 10:15 PM

If my company has lost about $200,000.00 in the past year,....I guess all I have to do is ask my congressman to give me my losses back. BULL**** if they will. Our tax dollars are ours, not CEOs who have benifited millions,... hundreds of millions into their own personal accounts; and they need our help to get them out of trouble? Trouble they are responsible for! Obama has been given millions from Fanny May, why doesn't he give that money back to help them out. I don't want to. If my next door neighbor can't make his house payments, I am not going to do it for him.
Ronnie Brackett at ronniebrackett.com

263 Posted by AL SURWIN at 09/24/08 10:19 PM

1. REDUCE MILITARY SPENDING FOR WEAPONS, SUCH AS F35 ( 300 BILLION )
2. RENEGOTIATE FOREIGN TRADE WITH SWEAT LABOR COUNTRIES BY ADDING SOCIAL SECURITY AND MEDICARE TAX TO THE VALUE OF IMPORTS.
3. MEDICARE AND S.S. MUST BE PERSERVED AS NOTED ABOVE PLUS MAKING ALL UNEARNIED INCOME SUBJECT TO MEDICARE AND FICA.
4. BEGIN A REDUCING FORCES IN IRAQ AND ALL THEIR EQUIPMENT.
5. NO FURTHER TAX REDUCTIONS CAN BE AFFORDED

264 Posted by CarlWatts at 09/24/08 10:21 PM

Giving my money to a business that can't manage itself if bad. To leave me paying for this for years is bad. To devaluate the dollar by printing money to give these crooks is bad.

To know my children and grand children will still be paying for this political crime is worse.

265 Posted by Anthony at 09/24/08 10:31 PM

The “Wall Street” debacle that has us all in a frenzy was caused by a juxtaposition of greed and stupidity by “Main Street”. We are “Main Street” and “Wall Street” is where We deposit the fruits of our greed (investments), to accumulate more greed.
When We (The Federal Government), bails out “Wall Street”, We will be bailing out ourselves in an attempt to protect all of the greed We have accumulated over the years.
The bottom line is that if We had used a little common sense and not taken on obligations We couldn't afford, none of this would have happened.
It looks like our greed has come full circle. Its time to pay the piper or watch our greed (investments,jobs and property values), go down the tubes.
As for CEO's and Golden Parachutes; We didn't have a problem as long as they were feeding our greed; did we?

266 Posted by GG at 09/24/08 10:31 PM

I like what JD Adams posted. I am a Fair Tax Supporter. I also want the crooks running Fannie and Freddie to be prosecuted. Franklin Raines cooked the books to get his 90 million dollar bonuses.

267 Posted by Mike at 09/24/08 10:43 PM

This so called President is a total Idiot, what more can be said.

268 Posted by HA Whitaker at 09/24/08 11:17 PM

The idea of putting 700 billion dollars in one person's hands, Paulson, on the argument "trust me, I know what needs to be done" is so staggeringly inane that only a Washington politico could dream it up.

269 Posted by Julie L. Texas at 09/24/08 11:18 PM

This all started because government relinquished it's responsibility to REGULATE banks, businesses and especially BIG business. We, the voters, closed our eyes and let them talk us into deregulation. Now we all suffer!.. Pay the money and put Good Watchdogs everywhere to impose regulations to get this country back on track. I am a 65 year old woman whose 401K has taken a beating and who, when she retires, wants health care available that is not going to send me to the poorhouse. I have never gotten paid for bad behavior. Some of these people need to be arrested.

270 Posted by David at 09/24/08 11:21 PM

No one is telling the truth about what has happened. This was planned and orcistrated and those involved have greatly profited. Check the financials of the CEO's of these Companies that have failed. That just the tip of the iceburg. Congress should not obligate tax payers to fund the super wealthy. This is ENRON to the nth degree. If the economy tanks so be it. Maybe it will even the playing field and we can finally invoke real change instead of election rhetoric!

271 Posted by HA Whitaker at 09/24/08 11:23 PM

Floyd Brown says: "the wholesale nationalization of much of the mortgage market and many banks sets a bad precedent. And the plan's insuring of money-market funds guarantees managers taking more risks will climb and the due diligence of the buyers will fly out the window. Before long, all of Wall Street will be selling bad assets here. America has over 200 years of bankruptcy law that should be governing these transactions. If managers who accumulated too much risk by not adequately qualifying lenders are allowed to continue in their jobs, we are doing a disfavor to the intelligent managers who accepted lower returns for more prudent lending practices. I believe the shareholders and executives at these mismanaged firms should be wiped out. These investments have clearly failed, and management is to blame. It's the risk we all take, and the risk of investing. It allows new managers and companies to fill the void. This type of creative destruction – however painful – always strengthens the economy in the long run."

And I agree with him!

272 Posted by Russet Coviello at 09/24/08 11:35 PM

I cannot believe Congress would bail out these institutions that are so corrupt and full of greed that have caused this mess, but they have OK'd money for the war, so I guess it does not surprise me all that much. What happened to the Republican platform of less government (socialism here we come). That money would be much better spent on health care, school lunch programs,reducing the national debt, supporting new energy sources to name a few.

273 Posted by William E. Moore at 09/24/08 11:45 PM

We may need the bailout at some level to preserve the markets and save honest people from loaing their life savings and their homes, BUT it should be against the law for any organization recieving these funds to pay officers salaries above a certain level and in NO case should a retiring officer recieve a buyout or a Golden Parachute regardless of current contractual agreements.

274 Posted by George at 09/25/08 12:04 AM

I am not an economist, a Republican, wealthy or in hock up to my eye balls. While I was growing up in parents' home I often remember a simple piece of advice instilled in me: "If you want it but cannot currently afford it, save your money and when you have enough, you may buy it. Should you want it so badly that you are willing to pay it off on time, first figure out the total interest you will be asked to pay on this 'loan,' add the interest to the price and ask yourself if you want it badly enough to pay the total price, i.e., selling price plus interest."
Throughout my adult years and on into retirement I have adhered to the above with few exceptions; homes, a ski cabin and a couple of Porsches. I've lived, and still do, a fullfilling and varied life, enjoying various careers, life experiences, relationships and now retirement.
Am I unusual? I certainly don't think so. Am I careful? You betcha!!!!
As for the $700 billion bail out for the multi-nationals who, because of their own stupidity
and greed and lack of any moral or ethical compass, now find themselves in dire financial straights, I say, "Let 'em eat cake and suck wind!" JD Adams (#8 @ 09/2408 09:44 AM) certainly echoes my sentiments wonderfully.
Furthermore, the current structure of this obscene give away is without any control on that
petulant and pouting ass, Paulson, who wants the money yesterday, no doubt for a mansion on the Seychelles AND without any judicial review. Get real, Jerk, and listen carefully:
NO, NO and NO!!!!!!!!!!! If that doesn't get through to you & the WMD crowd I can only ask, "Which part of the word 'NO' is beyond your warped and greedy comprehension?" Get a life, Bush, Cheney, Wolfowitz, Rumsfeld, Rice, Paulson, Bernanke and Rove. Find a street corner and try daily begging from the passersby. You might just learn something!

275 Posted by Dan at 09/25/08 12:13 AM

four hundred BILLION dollars!!!
Here is what we should do. DONT bail out the companies-bail out the people who have had their houses forclosed on. .Pay the difference in what % they borrowed at and the amount of increase. This money would be used to pay off the banks & lending institutions what is owed them. The people have a house, the banks have their payment. forclosure is reversed the banks use their gain to re-invest in their commercial endeavours that probably employ the people who are forclosed on. the cycle is complete. The forclosed on people who are bailed out will have their taxed increased slightly to pay back the government who bailed them out over the term of their loan . Take the CEO's & fat cats out of the equasion and give them nothing if they dont produce and not any more than the highest paid government paid employee of the state they live in!

276 Posted by John Lee at 09/25/08 12:27 AM

Talk about a Golden parachute! Congress should reclaim all the stock options/Bonuses/Golden handshakes/Retirementoptions/HealthandHospitalrepayments guarantees/ I have my doubts since most of these execs are "Golf buddies/yachties" and live in the same neighborhoods, even next door to Congress persons. Taking out 'In God we trust" from our money is now coming back to haunt us. Wake up America

277 Posted by Kenneth N. Knudsen at 09/25/08 01:19 AM

this plan is crap, $700 billion will not stop a recession except maybe to delay it for a short while.
if there is a recession we will need this $700 billion for unemployment checks - healthcare - food - heating - gas for the auto - rent or house payments etc.
they must think we are all on drugs to to think we would fall for something as obvious as this

278 Posted by lynda at 09/25/08 01:30 AM

I could not listen to the president tonight...I am so thoroughly disgusted at what is happening...It is pure extortion....

I heard some clips of what he said...He might as well have said, "Let us put you into even more economic slavery or else'....

People need to revolt, protest...I don't know what...But do you not see pure evil when it is staring you in the face?...

279 Posted by KP Gray at 09/25/08 01:54 AM

Once again, why is it on the backs of the middle class to bail out others??!! We've worked all our lives to earn what we have - a modest home in a good neighborhood, nice (not extravagant) vehicles, a comfortable, NOT luxurious, lifestyle. We don't take extravagant vacations or spend outrageously; and we pay our bills - on-time! Why should we pay for CEOs', etc. mistakes? Some of these people make more in 1 year than we will in our entire lives! They didn't do their jobs. So, like anyone else they should be FIRED. No severence, no golden parachute, etc. We also don't believe in bailing out the foreclosure market. Most of the problems were created because people bought homes that they couldn't afford but managed to buy it through 'creative' financing. We bought a moderate home that we could afford so why should we have to pay for someone else's home now?
This bailout plan is going to cause many of the hardworking, middle-class people (that support this country) to become low-income. If Congress allows this $700 billion bailout to happen they should be recalled!

280 Posted by MW Bart at 09/25/08 02:41 AM

As I understand it, this bailout does not guarantee the taxpayer anything and does not guarantee a positive end to the financial crisis at hand. But what really scares me is that alot of the people that want this bailout are the ones responsible for this crisis in the first place. And talking about responsibility, I don't see anybody taking any. Just a lot of finger pointing from politicians who changed laws to make it "easier for everyone to own a home" whether they could actually afford it or not, to the banks who made the sub-prime loans to people when they knew that if interest rates went up (and they knew they would), the home owners wouldn't be able to afford them, to the wall street flim-flam artists who cut up, disected, and repackaged mortgage backed securities in so many ways that no one can now unravel them to determine what they are really worth. All these people with their BA's, MA's, and PHD's etc, should have seen this coming and yet did nothing. As a tax payer, I submit that any tax payer bailout, should require the resignation, firing, or forced termination of any politician, bank or wall street executive, that perpetuated this mess, and that they should also have to forfeit any and all bonuses, stock options, and/or any other perks they recieved while perpetuating this fraud on the rest of us. Also the bailout should require the laws be changed so that the new and future people in the above positions can not be tempted to repeat this mess. There should be a mandatory termination date for government ownership of all properties affected by this buyout.

281 Posted by Patricia Overbey at 09/25/08 04:22 AM

I also feel the ceo's should have to sell off their assests to help pay back the people.

282 Posted by Sharon at 09/25/08 04:39 AM

It was brought to our attention over 20 years ago not to get ourselves into debt because people will looose their homes and we would be in a real mess. I think it's kinda funny that this was going around....was it a 'word' to the people or did the government already know this? Did everyone who knew turn their heads and think we would get out of the mess.....somehow....so let em have it? This seems to be a habit with our country....just turn your heads on all the wrong going on....no one will notice...and here..have some yourself and pass it on!...and so what goes around comes around. How do we keep an eye on the dishonest or watch every move of all to make sure that justice is done to all...we the people...or is wrong becomeing the norm for us because we can't see what is right..you look good so you must be telling the truth i think ...a lot of hot air or words i mean....and so it goes. What a 'state of shock' we are in and it's not funny!

283 Posted by Gwen at 09/25/08 04:48 AM

Are you kidding me?? They won't even change a due date to accommodate us. Banks now charge you if you want to buy a roll of coins......one didn't even want to sell me one. Soon they will be charging us to walk in their doors. Do they bail us out?? No way! Let them pay the consequences of their actions, like the rest of the world.

284 Posted by IAMIS at 09/25/08 06:43 AM

I am getting tired of working 50 hours a week for the last 35 years to live a meager frugal lifestyle and be milked like a cow for people who take more than they give. Is there no way we can do the Nancy Reagan thing and "Just say no"?

285 Posted by Terry at 09/25/08 06:48 AM

If I were to foul up this much, I would not have a job and most likely would be looking at jail time. However, the way things are, the CEOs take huge payouts for doing a bad job, have no regrets and to heck with the rest of us peons. The American people are resilient but patience wears very thin. I hope that those who worked hard for years to save for retirement etc., will not lose it all due to greed and mismanagement.

286 Posted by William B at 09/25/08 07:06 AM

This condition was caused by greed. A few thousand, or maybe a few tens of thousands, of greedy, unprincipled salesmen, brokers, and executives made millions and millions of dollars to use and pass on to their children and grandchildren.

The rest of us get $700 billion (some estimates say more than three times that amount) of debt to pay and pass on to our children and grandchildren.

The plan needs to included a punishment component. Every one of those bad loans has a paper trail naming the bad people to contributed to putting the loan in place, earning a commission or bonus along the way. Each of them should have to pay back (to us) their commissions or bonuses. And the worst of them with their multi million dollar bonuses, and who had the power to say no, should give up their bonuses and go to prison. This was a crime against the American people and should not go unpunished.

As to those who bought more home than they could afford...if they cannot make their payments, they just have to lose their homes and learn from their mistake. I shouldn't be bailing them out either!

287 Posted by MANNY at 09/25/08 07:14 AM

I believe that gov't should keep their hands off the market and let the market handle itself. It's because every time these liberal shenanigans put their hands on anything that is private, that particular sector that they touch goes by the wayside. Of course since the gov't has their hands in the cookie jar, they're going to make sure that they don't get caught and keep that particular sector afloat. Very few sectors in the private arena ever has a healthy upbring when the gov't is involved. Look at healthcare, housing projects, social security. Can you honestly say that the gov't is really helping us in these areas? Let these bankers go by the wayside and start anew. Don't make our kids/grandkids pay for their mistakes. mm

288 Posted by B Maddigan at 09/25/08 07:20 AM

WOE To them, Wall St. ---->>>

The sins (PRIDE & GREED) of the fathers,

Visited Upon the children (Us)

Coupled with a Lot

of 'SELF' Exalting & DECEPTIVE practices

= our Present financial, RED/Black HOLE...

289 Posted by D. Tarlo at 09/25/08 07:38 AM

This is a last ditch Republican effort to help all their ultra-rich contributors maintain wealth and power, our oligarchs, and further drag this country towards one party rule.
It is corrupt, dishonest, and flatly disgusting that the liars and thieves who contrived this country into bankruptcy and other disasters, are the ones who claim to have a solution. What happened to the "FREE MARKET"??

290 Posted by Linda A. at 09/25/08 08:35 AM

Bushy Boy just wants to reward his Big Business Buddies for their irresponsible behavior, that's what this bailout amounts to. With all the money we've been throwing away on Iraq, I'd like to know where this $700,000,000,000 is going to come from. Are we going to borrow MORE money from China? Raise taxes? Impose new taxes? Some combination of the three? What? It's just totally outrageous and it shouldn't be allowed to go through, at least not in its current form. We don't need another Great Depression! As JD Adams said in his/her post, "...people who have all gotten rich essentially through greed, are not deserving of bailouts from the taxpayer." How true! Unlike what Gordon Gecko (sp.?) said in the movie "Wall Street," greed is NOT good and should NOT be rewarded!

This is tongue-in-cheek, and I certainly don't mean this seriously, but I know one way to raise lots of cash fast, but that's only if it's for a good cause, hold a telethon! There was a movie in 1979 called "Americathon" in which a telethon was held for the bankrupt U.S. government, but bailing out greedy corporate financial institutions is NOT a good cause!

291 Posted by Bill Mac Kinnon at 09/25/08 08:42 AM

Some very serious thought must be given to such a commitment! How many people have even a clue as to the impact to the taxpayer down the road? The cost may be better served if the BIG COMPANIES being bailed out were let to serve themselves and take the financial heat! They will survive to some degree I'm sure. I think the reality is--how could all of this happen?? What were the banks and insurance companies doing over the past few years? Were they not in tune with what is REALLY REQUIRED to be successful. The Government bail-out will,in my estimation,only set the stage for future problems. Whom ever is to recieve the bail-out funds MUST BE MADE TO PAY BACK with interest etc. in order for this to work! As mentioned first hand,I'm like 99% of general America,not sure of all the details.I'm recently retired,fixed income(with savings)which may all but disappear at some time in the near future?

292 Posted by Jim Boyd at 09/25/08 08:47 AM

Re: JD Adams

AIG did not receive a "bailout." They received a bridge loan at 11% interest rate, precisely so that they would be able to sell off assets in an orderly manner to cover their losses in one subsidiary, thereby avoiding potential collapse of their other subsidiaries. Those other subsidiaries provide insurance of many types in 130 countries around the world, perhaps including the insurance on JD Adams's home or business.

293 Posted by Raymond F Bunting at 09/25/08 08:54 AM

We should loan the money,own the assets and cap the CEO wages. Most of all we need regulations to prevent this happening again.

294 Posted by Alice Alley at 09/25/08 09:09 AM

Those who screwed up need to suffer the consequences. And I include those members of Congress who forced the banks to make those loans to people unable to repay them. WHY do we continue to elect people like that??

They couldn't have done this without the voters who elected them!

295 Posted by Michael Morgan at 09/25/08 09:29 AM

Re allowing the courts to modify terms of mortgages for homes threatened to foreclosure. For owners of second homes and I assume multiple homes, this is already the law. Note that this law favors those able to afford more than one house and members of Congress who typically have more than one house -- one in their home district/state and one in Washington D.C. And now in this crisis, the President and the establishment are against helping those most in need. OUTRAGEOUS!

296 Posted by Victoria Seeley at 09/25/08 09:47 AM

Speculation = Gambling
Gambling = Addiction
Bailout = Enabling
NO ONE BAILS OUT THE WIFE OR FAMILY OF A GAMBLER!
It seems that fairness and democracy are
only for the corrupt greedy wealthy people.
(not all wealthy people are corrupt)
The rules laws and regulations have been
strengthened and stiffened for the average
poor or middle class, but have been removed or
'relaxed' for the greedy corrupt people.
This has been going on for a very long time
and the entire media have not given this topic
enough importance! I just hope that even the
owners of these media outlets can under stand
that this will hurt the people and cause them
to loose also.
A household understands basic economics, but our
Government makes up the rules to suit themselves as they go along.

297 Posted by S. Coveney at 09/25/08 09:48 AM

30 years in banking and I know how CMOs work. Fix the bad mortgages in them and the CMO is OK. That should fix the problem for everyone on Wall Street and the big investors. Whatever problem I may have with bailing out folks who got over their heads in mortgage debt is minor compared to my problem with $700 billion for the Wall Street firms.

298 Posted by Andi at 09/25/08 10:03 AM

Tom can you provide a link ? I couldn't find this this article online Thanks !

RE:
Posted by Tom St.Martin at 09/24/08 09:37 AM

There is a letter to the editor in the Minneapolis Star Tribune today, 9-24-2008, from an attorney who was involved in resolving a crisis in the 1980s when farm land values declined severly. He gives step by step procedures that use existing bankruptcy law to resolve this current crisis without giving away the store. I have passed this information on to my Senator, because what he wrote makes a lot of sense to me.

299 Posted by Jan Ligarde at 09/25/08 10:05 AM

What is wrong with the people in the USA? Surely our education is not THAT bad! We certainly can't ALL have low IQs - just because we allowed two elections to basically be stolen from the people who tried and were allowed to vote. Even with the saw horse barriers in the South, those elections were NOT won fair and square. I wonder what will happen with this one - more of the same? This bail out certainly is - more of the same. Wise up, fellow comrades in arms. Not even Putin really likes W. Check out the "new" Russian attitude towards "us folks." Ever heard of Communism? That's the agenda we've been fighting against and losing our soldiers for continuously - in my lifetime, at least. Guess what? This "bailout" stinks of communism, facism, or whatever you want to call it. But whatever you call it, it is NOT "of the people, for the people, (and much less) by the people." "What's in your wallet?"

300 Posted by Lawrence WIlson at 09/25/08 10:16 AM

The $700 Billion price tag is based upon 5% of all outstanding mortgages going bust according to a report from Fox News.

This is the best example of what the "Me Now" generation has done to this country. You don't have to look very far to see how "Greed" has crippled this nations economy.

The very people that has crippled America's economic stability, are the first people in line with their handout to the government.

It is time for "We The People" to tell the "Me" crowd in New York and especially in Washington, to get involved with this issue. We can send E-Mails to our friends and voice our opinions for hours on the various "Internet Blogs" but we cannot spend ten minutes writing to our Representatives in Washington.

Consumer Union has used the "Power of One" for years in helping the American Consumer. The House passed the credit card reform bill this morning (9/24/08) after CU's campaign on this bill, resulted in nearly 60,000 responses from ordinary Americans in just days after the call was put out to get involved. The "Power of One" is one. But if twenty people who read this blog tells twenty of their friends, co-workers, or business associates, the power of those twenty people has just reached four hundred people. If those four hundred people tells twenty of their friends, the number of people reached is now eight thousand. It does work!

Tourniquet's work great for arms and legs, but they don't work very well for a head injury that is bleeding profusely. The end result is death if it is applied to the neck.

This bail-out plan must be done right or it will kill America's economy. We cannot just stop the bleeding, we have to fix the underlying problems.

The best concrete proposals I have read concerning the $700 Billion bail-out, comes from Jim Guest, President of Consumers Union.

He proposed eight or nine points, but these three points are key to this bail-out.

Consumers Union recommended that the multi-billion bailout of the financial sector include the following key protections for consumers:

1. Help homeowners at risk of foreclosure:

Prevent people from losing their homes due to foreclosures. Any financial institution that benefits from the bailout, and any mortgage in which the federal government purchases an interest with taxpayer dollars, must be subject to a mandatory, fast, effective restructuring process. These loans should be designed to keep consumers in their homes and help strengthen neighborhoods.

2. Give bankruptcy courts power to prevent foreclosures:

Give bankruptcy courts the power to alter all mortgages to help people keep their homes.

3. Protect neighborhoods hit by foreclosures:

Help stabilize neighborhoods already hard hit by foreclosures by rehabilitating vacant homes and revitalizing communities.

Jim Guest had it right. If we don't stop the bleeding in America's neighborhoods, the $700 billion will end up being over $1 Trillion.

Now is the time to use your "Voice". Write, E-Mail, Fax, Phone, or Text Message your representatives in Washington. Also contact the national news media (Fox, CNN, NBC, CBS) and voice your opinion through their various news programs. You can no longer sit on the sidelines.

The downfall of a nation does not come from outside its borders, it comes from within. This economic meltdown not only undermines the financial security of every American, but it jeopardizes the overall financial strength, safety and security of the United States. How we address this current situation, could determine the future of this nation for our children and grandchildren. The time has come to use the technological resources this country has been blessed with.

Warm regards and God Bless America

Lawrence (Larry) E. Wilson
Founder & Director
Identity Theft Victims Support Group of North America
Identity Theft Victims Support Group of North Texas
Identity Theft Victims U.S.
www.identitytheftvictims.us

301 Posted by Ban at 09/25/08 10:17 AM

This is all just some sort of Bush/Wall Street super rip-off to sink Social Security and Medicare. Don't give theses crook any more the a couple of billion and only after the criminal ivestigation have been completed!

302 Posted by Plenum at 09/25/08 10:37 AM

Naomi Klein describes what this tactic is in her book, Shock Doctrine. Please read it. This is too familiar after having read her book. Their proposal, Paulson's, should be immediately rejected.

The description of "private gain at public expense" is absolutely accurate, but should be shouted and with a fist slammed on the table...

It's a logic equivalent to "taxation without representation" and we had a war over those words!!

303 Posted by Donald Baumgart at 09/25/08 10:38 AM

I'm against the bailout. Business is (has)risk. You make a profit if you suceed, and you lose if you fail.The bailout takes all the risk out.The people packaging these loan knew they were leveraging themselves.They should suffer the consequences.

And the Golden Parachute,That's a NO NO. The average Joe doesn't have one. He's lucky if he has his pension,or some executive hasn't lost it all for him.

304 Posted by Mike from Chicago at 09/25/08 10:46 AM

Isn't it interesting that the Republicans have a history of advocating that government should stay out of the lives of people and business while the Democrats have a history of using government to help the poor and middle class. Instead, we are being told that we need to bail out wealthy companies run by wealthy people that will always have more than the rest of us no matter what the outcome. We need to say NO to giving ANY money to these companies. Our so-called leadership needs to show some leadership and tell these companies that they need to solve their own problems and not look to taxpayers for a crutch. The road to recovery is not by throwing money at the problem. The companies that survive this crisis will be stronger because they will have learned the hard way from their mistakes. The bad ones will simply go away which is what poorly managed companies do in a bad economy. Finally, the American taxpayer will survive this just like they have been surviving the last few years as the economy has soured. The only ones that are panicking are those with the most to lose. The government believes in the "trickle down" theory of economics and is now going to learn the "trickle up" theory of feeling the economic pain.

305 Posted by pete at 09/25/08 11:04 AM

No bailout for corporate irresponsibility, ever. This why we allow bankruptcy. Only 7% of Americans think they should be bailed out. Where is our representative republic?

306 Posted by Robert Parkinson at 09/25/08 11:07 AM

Could this be one of many reason for the urgency?
I believe in propping up the system while not supporting the perpetrators.
This has received little press...wonder how many other Congress family members are involved?
Foresight or time to bail out?

Bank Failure Count: 2008's 11th bank fails, McCain's son was director

Posted Sep 6th 2008 10:05AM by Peter Cohan
Filed under: Deals, Bad news, Consumer experience, Personal finance, Politics, Headline news
In what I feared might become a regular feature here, the Federal Deposit Insurance Corporation (FDIC) arranged for the takeover of the 11th failed bank of 2008 on Friday. As I posted, the FDIC likes to close banks on Friday after hours so they can reopen as branches of the acquiring bank on the following Monday morning. According to the Associated Press, the bank in question is Nevada's Silver State Bank.

Nevada State Bank of Las Vegas will take over the insured deposits of Silver State -- which had $2 billion in assets and $1.7 billion in deposits at the end of June. AP reports that "[Silver State's] branches will reopen Monday as offices of Nevada State Bank in Nevada and National Bank of Arizona in Arizona."

John McCain's son, Andrew, who is also CFO of his mom's beer distributorship, "sat on the boards of Silver State Bank and of its parent, Silver State Bancorp, starting in February but resigned in July citing 'personal reasons.' Andrew McCain also was a member of the bank's audit committee, responsible for oversight of the company's accounting," according to AP.

The failure -- which was caused by "poor-quality loans primarily related to real estate development" -- will cost the FDIC deposit insurance fund between "$450 million [and] $550 million," according to AP. Silver State's motto was "When the casinos treat you poorly, let Silver State treat you like a valued customer," according to its website.

Although AP reports he was adopted by McCain and his first wife, Andrew is following in his father's footsteps. John McCain protected Charles Keating from government regulators because he had arranged a real estate deal for his second wife, Cindy. The failure of Keating's S&L cost taxpayers $3.4 billion. Taxpayers got off relatively cheaply bailing out Andrew's former colleagues.

So if you have money in a riskier bank -- one that is losing money and charging off large volumes of loans -- consider moving it into a bank whose profits have been growing this year. And congratulations to Andrew McCain for bailing out of Silver Lake before the FDIC took it over.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

307 Posted by Sandy A at 09/25/08 11:19 AM

I am totally against just giving Wall Street money to bail themselves out of this mess they created. Why doesn't someone in the capital suggest that they endure a market "correction" like many homeowners were told when problems of predatory lending came into fruition. Or, better yet why don't they just wait for someone like Warren Buffet who gets the benefit of the Bush tax cuts to bail them out wait for the money to trickle down. Because I've been waiting since the 80's for something to trickle down to me.

308 Posted by JAY at 09/25/08 11:34 AM

HOW QUICKLY WE FORGET, JOHN MC CAIN PROFITED ON THE COLLAPSE OF LINCOLN SAVINGS AND LOAN JUST A FEW YEARS BACK. NOW THE SAME PEOPLE THAT HATE WELFARE AND OTHER PEOPLE ORIENTED PROGRAMS WANT THE GOVERNMENT TO SUBSIDIZE THEIR GREEDY EXECUTIVE DECISIONS TO CREATE A INFLATIONARY REAL ESTATE MARKET THAT HAS ABOUT THE SAME STABILITY AS THE PYRAMID SCHEMES OF THE NINTIES WHEN THE COUNTRY WAS IN A DEEP DEPRESSION. WE MUST CHANGE THE WAY THINGS ARE DONE.

309 Posted by JCox at 09/25/08 11:35 AM

(Using an analogy) The 700 billion dollar bailout would be similar to paying off a large credit card bill a teenager ran up. No parent in their right mind would do this, because no lesson would have been learned about living within your means. I refuse to bailout people around me, who are uneducated and with combined incomes make 3/4 less than my household, however have lived at least 6 times better than my household for the past 5 years. These people are also trying to sell their "mansions" for what the market was demanding when the going was good because if they don't get a buyer for that amount, they too will go into foreclosure. Sounds fair to me that they go into foreclosure and that this "upside down" world we have been living in gets right-sided again.

310 Posted by C Gable at 09/25/08 11:42 AM

Who will decide which mortgages would be sold to the government and what their fair value will be. I have heard many stories of financing many homes for amounts that were 10 times their assessed values because mortgages were given sight unseen.

311 Posted by Barb at 09/25/08 11:52 AM

I want to know who is going to be fired and who is going to jail. I think the 700 billion should be doled out to the individual taxpayer - estimated to be around $3,000.00 each and we will decide who gets some or any of our hard earned money.

312 Posted by John at 09/25/08 12:05 PM

WHY should I pay for these guys trying to get rich. They gambled and lost. And if it involves Taxpayer money, they should be in JAIL !!!

The only thing worse than a whiner, is a Rich Whiner!

313 Posted by Joni at 09/25/08 12:05 PM

BAILOUT!!!!!!
We should let those FAT CATS figure it out on their own and get very little governmental assistance. I am middle class and slipping downward everyday. Let those FAT CATS who "raped" the American people see how the working poor feel. We the PEOPLE must try to live within our little budget, so let those learn how to plan, budget and do without. I heard one person say, those poor secretaries with Fannie Mae only made $65,000 a year. My lord I live in the south and we don't make money like that!!!! I would like to take a cruise, buy things I want and really I would love buy the things I NEED, but I live in the real world. Let those FAT CATS join the rest of us. Hopefully, not one of those FAT CATS will ever get a job managing anything ever again. I think everyone remotely involved should be fired!!!!!!!!!!!!!! I would be.

314 Posted by Johnnie at 09/25/08 12:05 PM

We should oppose the bailout. Rich folks are not deserving the of taxpayers bailing them out. The president should be putting something out there for he and the sector that made the money to pay back the tax payers. I think the whole economic system should fall is the answer and let there so call surpreme mind's have to figure that out. As long as we the people sit and be distracted by non issues this will keep on and on,on,on and on..... Can we just go home since we do not have any gas and see what happens to the world without us....Don't sit in the lines just stay home. That will get some attention. It has to be a more drastic measure taken on the part of the people. We have the authority....Let's use it.....

315 Posted by Clyo Beck at 09/25/08 12:16 PM

This is part and parcel of the plan to privatize gain and socialize loss.

In other words, everything that makes a profit will be held in private hands by an elite few.

All losses - or unprofitable sectors - are to be foisted onto the back of the lower and middle-class taxpayer.

This brand of toxic capitalism is no better than feudalism.

It is the end result of billions pumped into G.O.P. think-tanks, 40 years of creating "culture wars" to divide working people, and perfecting attack ads.

I hope the majority of Americans see the true aim of the unregulated "free market" policies that have been promoted by Republicans - and Democrats - so that they become more politically aware and see the reason to work for social justice and fair markets for everyone.

Also - my opinion - there should be more limits on corporation mergers. Hostile takeovers should not be allowed. So often they result in layoffs and a company being gutted.

In general, we are served by limiting the size of a corporation. When a behemoth the size of AIG goes down, if you don't bail it out, world markets shake.

That's why AIG was nationalized. The feds couldn't trust that its failure wouldn't bring down foreign financial institutions.

Two books recommended:

"Bad Money" - by the prescient Kevin Phillips

"Disaster Capitalism" - by Naomi Klein

Yet, while each of us would be wise to become well-informed about the ideologies that brought us to this place, it will not serve us to operate from a position of fear and anger.

We will each be better off by replacing our current fears and anger over these injustices with a commitment to the "Golden Rule" and a higher vision for what - together - we can be.

With compassion for each other, and a commitment to a set of better values, we can rise above this.

It takes time, commitment and grit. It takes getting politically involved, working for candidates - and voting.

Yet can we really afford to leave "the usual suspects" in charge and unattended?

316 Posted by Welch at 09/25/08 12:23 PM

Please make it hard on them for doing what they did to our country. They should pay back all of the money plus interest to the general fund. They screwed up!!!

317 Posted by Maria at 09/25/08 12:31 PM

NO bailout! All 8500 banks will not fail-- there are only 120 in trouble now. If the problem is mortgage/loan holders are not paying their mortgages/loans, the question should be why? If they were stupid/greedy with their purchases, well I am sorry for them. If it is because they lost their job, their income is reduced or major catastrophic medical bills, then we should be providing help to them NOT the financial institutions who have benefited greatly over the past 20 years and contributed little to the country other than themselves. NO bailout for financial institutions.. now or ever!
Use the $700,000,000,000 to create new good paying jobs by 1) rebuilding the public health system 2)creating jobs in green energy sources 3) rebuilding our water and sewer system 3)rebuilting rail systems and get some/many of the trucks off the highways 4)fix our roads 5) sending qualified students to college for free if they study in needed areas-- eg. engineering.. nursing.. teaching etc. NO bailout for banks or insurance companies-- we have too many now-- they are greedy and destructive to the society... AND, I would prosecute and recapture and illicit gains from the managers/officers of these financial institutions... NO BAILOUT

318 Posted by cayla at 09/25/08 01:11 PM

I bought my home in the early 80's. At that time, people were losing their homes due to "funny money" deals and 3 year rollovers, also called balloon payments. I was one of the few who went with a conventional loan. I saw half of the neighborhood lose their homes, with many people just walking away in the middle of the night.

So, here we are again. We didn't learn anything from the past. Of course, the money lenders, just learned more ways to deceive people into buying homes they could never afford. I also blame, to some extent, the consumer, who bought without really knowing what they were getting into.

How do we jump start the economy: We get out of the war, NOW NOT LATER, and use those billions of $$ to give to U.S. citizens to pay bills, put toward their mortgages, buy health insurance, buy better mileage cars, etc.

319 Posted by Rodney W. at 09/25/08 01:17 PM

If this Bailout (WELFARE FOR BIG BUSINESS) is passed, then the Republicans will have succeeded in wiping out the US Treasury.

If the Republicans get their way, then it will be the Final Nail in the Coffin for Social Security, which the Republicans see as welfare and they are against any form of Governmental support for the Citizenry. Businesses are another story so the Republicans would have US believe.

The Republicans have been pushing and pushing for De-Regulation because they said that Regulations were harmful to Businesses. The REPUBLICANS have created an Un-Regulated mess that gave businesses Free Reign to exploit US the CITIZENS that they are supposed to be representing. The TRUTH is that the REPUBLICANS have been representing Business and "Let the Consumer Beware".

So now we have a situation where recently De-Regulated Industries have gone out of control with UNBRIDLED GREED and now that they have shot themselves in the Foot, they want US to pay for it.

Listen carefully to George W Bush's speech that he gave yesterday and YOU will hear that he had the AUDACITY to spread the blame for this Economic Disaster (that the REPUBLICANS MADE POSSIBLE, and that they were DIRECTLY RESPONSIBLE for Occurring) upon the CITIZENRY.

YES, BUSH BLAMED US, THE VICTIMS, FOR THIS ECONOMIC CRISIS!!

HE ALSO SAID THAT IT IS NECESSARY FOR US TO BAILOUT THESE INDUSTRIES, WHICH WOULD RESULT IN US BEING VICTIMIZED A SECOND TIME DUE TO A BASIC TENET OF REPUBLICAN POLICY: REGULATIONS ARE BAD FOR BUSINESS.

IF THEY DO CONCEDE AND COOPERATE IN A TRUE BI-PARTISAN EFFORT TO INSTITUTE REGULATIONS ON THE INVOLVED INDUSTRIES, THEN THEY WILL IMMEDIATELY BEGIN EFFORTS TO CUT THE FUNDING NECESSARY TO STAFF ANY REGULATORS SO THAT IT WILL BE IMPOTENT AND USELESS. AND THEN WE WILL SEE IT BEGIN AGAIN.

WHAT WE NEED AND MUST DEMAND IS ACCOUNTABILITY!

ACCOUNTABILITY FOR THE REPUBLICANS HAVING CREATED THE CONDITIONS NECESSARY FOR THIS ECONOMIC CRISIS.

ACCOUNTABILITY, RETRIBUTION, AND INCARCERATION OF ANY AND ALL PERSONS INVOLVED IN THE UNETHICAL AND CRIMINAL BEHAVIORS THAT BROUGHT THIS ECONOMIC CRISIS UPON "US".

IT'S TIME THAT ALL AMERICANS STAND UP AND YELL, "I'M MAD AS HELL AND I'M NOT GOING TO TAKE IT ANYMORE!!!"

320 Posted by Jack at 09/25/08 01:20 PM

I support the bill as presented by Paulson and modified by the Democrat and Republican parties. It is great to see them working together for the good of the nation. This is rare.

321 Posted by Sanders at 09/25/08 01:25 PM

When Henry Paulson left his CEO position to join Bush's administration HIS last paycheck was for $61,000,000! I am appalled!!

322 Posted by Elaine at 09/25/08 01:46 PM

As an American Citizen, I feel that it is important that all of us take responsibility and become informed about the current economic crisis and the proposed Wall Street Bailout.

Historically President Hoover enacted the same solution as is proposed today to solve the economic crisis (using the same language as Paulson is currently mimicking.) We know what happened shortly thereafter...the Depression. Japan in the 1980's tried this..we know what happened shortly thereafter...the banks and economy went under.

We all must read, listen, and learn from history and take action for our individual economic welfare, no matter what political party we may prefer. Today, the price tag just got worse as Republicans and Democrats talk about increasing the bailout dollar amount to 1.8 TRILLION -- more then three times the cost of the Iraq War to date.

It took years of deregulation and little government oversight to get us here; we cannot fix everything with one blank check. We need a plan that protects the American people not a bailout for Wall Street CEO's.

Be informed: Like the "Patriot Act", language is in this legislation blocks any recourse in any way, by any Court or Governmental Body to challenge the use of these funds.

323 Posted by RAJAB A. RAHIM at 09/25/08 01:46 PM

It is abuntantly clear that, the congress doesn't represent us. If they did mortgages would be paid out by the government, and the war in Iraq would be winding down. They have always represented Money and Power. The founding fathers were rich white men, and did not represent the people. It appears that nothing has really changed in 222 years. We must wake up and hold all elected and appointed officials accountable to us.

324 Posted by Stephen J. Miller at 09/25/08 01:50 PM

If the Wall Street bailout is as critical for the US economy as Busch/Cheny claim, why don't they contribute some of thier vast personal wealth to help defer the cost? When Busch/Cheny say "It's not the money it's the principle, it's the "principle" OK but that means thier invested or already banked money! They speak out of both sides of thier mouth but thay may be because they are two-faced!

325 Posted by Patty Duce at 09/25/08 02:08 PM

From: Dick Lepre
Sent: Thursday, September 25, 2008 9:15 AM
To: Executives; Loan Agents
Subject: The $700 Billion Answer

Rate Watch #637 The $700 Billion Answer

September 25, 2008
by Dick Lepre

As some of you know, I send out an email newsletter each Friday which goes to over 10,000 people. I sent the following out this morning because it is too important to wait. Feel free to distribute this to anyone who might help.

Congress is being asked to provide $700 billion by allowing Treasury to sell debt and using the proceeds to purchase illiquid mortgage debt. This is similar to what the Federal Reserve does every day with two exceptions: 1) normally the Fed makes, in essence, short term loans to members to give them liquidity and reserves. The present situation is not a loan but an outright purchase of assets 2) the extraordinary events of the past few months have depleted the reserves which the Fed can use to perform market operations.

What I find most disconcerting about the present discussion is that this $700 billion is viewed as if it is gong to be spent and gone.

This $700 billion should in no way be looked upon as gone. Treasury should do this in a manner so that the net cost to the taxpayers is either zero or this is in fact profitable to Treasury. How?

We are addressing illiquid mortgage debt and illiquid residential mortgage debt can be viewed as falling into three categories: Jumbo A paper, Alt-A, and subprime.

Take a plan like this:

- use $300 billion to buy A paper jumbo MBS at a discount of 20%.

- use $200 billion to buy Alt-A debt at a discount of 35%.

- use $200 billion to buy subprime debt at a discount of 65%.

(I am in no way suggesting that these are the correct or best numbers. Regard this only as a framework. There are vital details about the pools of mortgages such as different discounts applying to different note rates for A-paper and rules about how many mortgage lates the Alt-A and subprime can have which must be worked out.)

Treasury would then have $1,253 billion worth of mortgages and be collecting the interest at the weighted average note rate and paying something like 2.5% (0.25% above the current 2 year Treasury) for this.

In short, Treasury should make the sellers take the losses. The losses should not be carried by the taxpayers.

As an extreme, let us assume that not a single dollar is paid on any of this $1,253 billion in mortgages and every one of them is foreclosed, held for a couple of years and sold. If the land were sold for 28% of the value of the mortgages the loss would be half of the $700 billion. An additional $62 billion would have been spent on interest.

A more realistic worst case might be something like this: assume that 60% of the $1,253 billion is foreclosed on and that those foreclosures produce sales worth 27% of the loan amount. Treasury still breaks even.

The salient facts are these: Treasury is purchasing illiquid assets at a low price. These assets are secured by real estate. This Treasury debt is unlike any other Treasury debt because it will purchase assets which produce a monthly cash flow profit.

There are some important accounting details which will impact the effect of these purchases on liquidity. The greatest effect is on paper which has already been written down on the books of the sellers.

If the weighted average note rate on the $1,253 billion portfolio is 6.5% Treasury would be receiving $81.1 billion a year in interest if the entire portfolio performed. It would be spending $21 billion on interest (3% of $700 billion). Clearly this is a money maker for Treasury. The positive carry on this is so large that Treasury can sell this debt back to the market at a time and in a manner to benefit both its own coffers and the economy.

The liquidity provided by this process will have a positive effect on real estate values further enhancing the value of these mortgages and further strengthening the baking system as well as the entire economy. The most likely outcome is that Treasury will sell all of these MBS back into the market at a profit in a period of between 2 and 5 years.

The debate is framed incorrectly. Treasury (the taxpayers) is going to make a handsome profit and the folks who hold this mortgage debt are going to take a loss. This is not to imply that this is disbeneficial to financial institutions. This will take off their books illiquid debt and allow them to regain the function which they have in our economy: making loans to drive the economy forward.

One more important point: this $700 billion in liquidity will not solve the problem by itself. It is necessary that other players in the secondary market start buying again. That is not going to happen any time soon if Congress fails to produce. It is the illiquidity of mortgage debt which is the root of the present credit crisis. To the extent that Congress mitigates the Treasury proposal by having other debt covered by this bill then it will be choosing to water down the solution and the probability of success and increase the risk to the taxpayers.

The flak about CEO salaries is something which I could not care less about. That does however bring up another issue which is for discussion at another time. Namely, business has chosen short sighted methods of compensating executives for producing seeming profits in a given year despite the fact that those executives did not have the long-term viability of their corporation as a priority.

In summary: done correctly Treasury will net a profit and the benefit to the banking system and the economy in general will be massive.

Dick Lepre

RPM - SF

1388 Sutter Street #412

San Francisco, CA 94109

dicklepre@rpm-mortgage.com

www.loanmine.com

(415)343.6789 voice (800)693.9623 x6789 toll free

(866)488-2051 fax

326 Posted by ira at 09/25/08 02:15 PM

More than stopping 'golden parachutes' or capping compensation. First-Accountability, then freeze their assets, quickly! Who approved their balance sheets? We are the government, the working and middle classes must protect themselves and future generations. Seize the assets of those that committed fraud, they have stolen something priceless to us, America!

327 Posted by Judith Sommer at 09/25/08 02:26 PM

A bailout of the banks in any form should not even be considered. What the banks need to do is honor the interest rates they originally gave to the home-owners. The home-owner would keep his home, the bank would still be making money (albeit not as much as they greedily and knowingly lured people in for), foreclosures would slow down drastically, and everyone who is adversely affected by this mortgage crisis (just about everyone in one way or another) would be helped substantially, whether it be lived-in homes in the neighborhood, a reasonable price for the sale of their home, or relief from the resultant sky-rocketing costs.

328 Posted by john at 09/25/08 03:59 PM

The government should stay out of the private sector-These CEO's that have run their companies into the ground and then declair huge bonesus for themselves should all be tried, found guilty of stealing and put in prison- also made to pay back what they have stolen from the stockholders- We live in a country of spoiled brats and it's about time they learned that if you can't pay for it, then do without.
Our state and county governments should be responsible to the people they serve and spend within their budgets- not spend first then try to figure out how to pay the bills! Property taxes are out of control along with everything else

329 Posted by Michael Nikolaou at 09/25/08 04:05 PM

The absurdity of the $700,000,000,000 bailout proposal is beyond belief. Since I am an average joe when it comes to Wall Street (I learned what CDOs and CDSs are last summer, only too painfully) I will grant you that my thoughts may be naïve. But, at least, I didn’t cause an imminent meltdown in my family’s finances, so I am by default more prudent that those now asking for my support. So here are my naïve thoughts:
- Our President calls for swift and decisive action to avoid an economic meltdown etc. etc. This is the same President who proclaimed “mission accomplished” just a few years ago. Should I trust his judgment and respond to his call?
- OK, assume I have faith (no pun intended) in our President’s assessment that an economic meltdown is imminent, unless action is taken. Should I entrust the aversion of the meltdown on the very people who created it in the first place?
- I thought capitalism is survival of the fittest. Firms going under are by definition unfit. Why should I (like all of my fellow Americans) bail out anyone? Aren’t some financial institutions still surviving? Shouldn’t they be rewarded by the market while the unfit ones (like Lehman) go under?
- I’ ve heard it ad nauseam: “We need to stabilize housing prices” Why? Since when is it desirable to make a product more expensive for consumers? To wit: Oil prices skyrocket, then the whole world cries foul; yet housing prices skyrocket, then Wall Street and consumers cheer! Where is the logic? Let housing prices tumble! That will
o make housing affordable for more Americans (it is now beyond reach for many – if you live in CA you know what I mean),
o reduce the probability of loan defaults (because loans will be smaller),
o may curb the moronic proliferation of McMansions, with concomitant savings in materials and energy,
o discourage “brilliant” guys in Wall Street from coming up with “innovative” (read borderline fraudulent) financial schemes,
o help stem the tide of inviting and exploiting illegal immigrants (construction has been a significant employer of illegal immigrants – a quick look around Houston will convince you).
- House construction is NOT a high-tech business. I contend that despite proclamations about the importance of the housing market, no nation ever prospered because of it. So, let the market take its course. Government should promote economic growth in high-tech areas, the only areas where America stands a (good) chance to compete worldwide.
Finally, as a matter of character, I haven’t heard anyone responsible for the crisis even hint at an apology or assumption of responsibility – not even the very people who assured us two months ago that “the fundamentals of our economy are strong” and today are asking for our shirt.

330 Posted by Mike at 09/25/08 04:32 PM

No bail out....... jail in

331 Posted by Catz at 09/25/08 05:46 PM

George Bush wants taxpayers to give Treasury Secretary Henry Paulson a $700 billion blank check - $2,333 for every man, woman, and child - to bail out Wall Street for its reckless speculation and greed. That's on top of $1.1 trillion for Bush's other recent bailouts, including A.I.G., Fannie Mae, Freddie Mac, and Bear Stearns.

The Paulson Plan is a total outrage with no restrictions, no accountability, and no repair of the underlying problem of foreclosures on fraudulent mortgages. Each of Bush's previous bailouts was sold as a cure for the financial crisis, but each had little effect. The Paulson Plan achieves only one goal with certainty: stealing from the middle class to protect the rich.

The current financial crisis is the direct result of 28 years of rightwing Republican deregulation, corruption, and greed, which became fatally toxic under Bush-Cheney and the Republican Congress. When George Bush stole the White House in 2001, President Clinton handed him a projected 10-year surplus of $5 trillion. But Bush immediately gave $2 trillion in tax cuts to the wealthiest Americans, then wasted $1-3 trillion invading Iraq on the basis of lies. Now Bush demands Congress increase the national debt to $11 trillion.

Congress must reject Paulson's Plunder and enact a plan with these progressive principles from the Backbone Campaign:

A. The people who caused the problem or profited most should pay for it

Highly compensated executives total compensation should be capped or taxed heavily as a condition for being bailed out.
Tobin tax on all transactions in Finance, Insurance and Real Estate including currency transactions.
Government takes an equity stake, proportionate to the size of the bailout
Tax hedge fund managers' income
Accountability - fire executives of failed companies as done in the UK, and abrogate their severance packages.
Impose a five-year, 10 percent surtax on income over $1 million a year for couples and over $500,000 for single taxpayers.
B. Re-regulate to prevent this from happening again

Direct the Federal Reserve to intervene to prevent asset bubbles.
Extend reserve requirements to new security categories
Regulate the packaging of loans so they can be evaluated, rated, and priced rationally.
Regulate hedge funds and private equity funds in a way comparable to banks
C. Include Main Street in the bailout and invest in a new productive economy

Establish a moratorium on foreclosures, renegotiating mortgages or institute a rent-to-own plan to keep people in homes.
Create a major economic recovery package which puts Americans to work at decent wages, in productive jobs that add value to homes and communities.
Invest the taxes on speculation, executive compensation, and the surtax on the wealthy in clean energy, infrastructure, education, and health care.

I am in disagreement with a blanket bail-out that would be overseen by this administration which would include the inability for the next President to change any of its criteria, and further I think it would only continue to allow the problem to repeat itself once the debt was paid. If that would actually happen. We have been subjected to a wide variety of scams by financial institutions - and they were all claimed to be legal since there wer no enforceable regulations. We were told that no mattter what we sign - the banks could at their own discretion and for ANY reason, change the rules! I have no wish to be a financial underwriter for these greedy institutions!

I agree with the above petition letter because it makes more sense. It provides regulation and oversight. I believe this could be a blessing in disguise IF it is handled in the appropriate way, as outlined by this petition.

VOTE!!!

332 Posted by kittydo at 09/25/08 06:01 PM

The main reason Sec. Paulson wants this pushed through as fast as possible-when he was CEO of Goldman Sachs he took his bonus in stocks so if the stock market goes down there they go. This is a bad deal and should start out smaller to see how it works first.

333 Posted by Sandra M at 09/25/08 06:05 PM

Here's more of the Shock Doctrine for us. Secret meetings among elite cronies + con artists, and then a demand to quickly hand power over to them, basically unchecked (ie: remember the Iraq War funding "process"?). How can they expect us to sign a blank check and to sign it IMMEDIATELY without sufficient dialogue?

If we don't reform the regulations and actually enforce them, we won't be addressing the cause of the problem. We'll just be throwing more money into a black hole for greedy corporate sharks to vacuum up. A band-aid approach without real oversight or reform does not work! Here we have the rich stealing from the poor and the middle class, once again.

In 2/08 Eliot Spitzer (spelling?) wrote a great op-ed piece in the Wall Street Journal and he forsaw much of what faces us today. Homeowners are facing foreclosure after being duped by predatory lenders. Credit card holders are facing huge, unfair fees. Nest eggs for baby boomers and other savers seem to be at risk. Let's not forget about Main St in this whole fiasco.

334 Posted by Kenneth at 09/25/08 06:30 PM

As if the CEO's in corportate America don't know what's going on before hand. Send any CEO who knowingly knows that they're on a sinking ship and continue to mislead the public to hard time jail. They always seem to walk away with millions, while everyone they mistrust suffer.

335 Posted by A.Brandariz at 09/25/08 07:09 PM

Why are average citizens being asked to bailout wealthy corporate heads that have Cayman Island bank accounts that they haven't paid taxes on?

336 Posted by R Walter at 09/25/08 07:47 PM

I believe that all those that have contributed to this economic down fall, due to poor judgement, greed and abuse, should be required to spend 5 years in prison. In addition, all their assests should be seized and used to pay that $700 billion price tag the government wants to dump on us. After their release from prison they should have nothing to go back. They should have to start from 0.

337 Posted by Donna Lee at 09/25/08 08:13 PM

I understand we must do something to stop the hemorging, BUT, an expensive Bandaide paid for by the taxpayers if not correct, unless their is something in it for us....DO NOT pay the guys who got their companies in the mess 1 dime and the 21 million they are expected to get should go to the bailout...not to them/also they s/b barred from working in the Security and Financial markets ever again! When normal people screw up on a job, they-re fired...no one gives them 21 million dollars.What nonsense. Why don't all the rich people who are giving away their money-Bill Gates and Warren Buffett-help directly their own country that made them rich...they're into Philantrophy!P.S. Has anyone looked at "The Amero" Theory lately...looks to me this is coming full circle!

338 Posted by Jean Prater at 09/25/08 08:23 PM

It is beyond me how the powers that be think it's okay to mortgage the future of several generations of families that have had nothing to do with this debacle except to trust Wall Street and the federal government to look out for their best interests and keep our country strong. When these families fail--will anyone be there to bail them out? NO. How we can continue to vote these people into office and let them control our financial futures for the next hundred years? The boom bust cycle will begin again as soon as the dust storm that has been the last couple of years in our financial and political arenas settles just a little bit more. Then the financial greed cycle will begin again. Sooner or later it will catch up with us. I for one am ready to face the music and get it behind us for another 70 or 80years.

339 Posted by Harvey Dale at 09/25/08 08:34 PM

This is said to be a mortgage problem.
Then do this for every home owner with a problem mortgage:
1. Reset the mortgage back to its original interest rate,
2. And proceed to re-write a replacement mortgage with a fixed interest rate, not over 6%, for an agreed upon time, 15 year or 30 year.
It is far better to continue having one continuing paying a mortgage than for them to go bankrupt and be on the street.
Too bad that Congress took the better option off their list.

340 Posted by Tim V at 09/25/08 08:34 PM

today's politicians are using the same tactics that fdr used that caused the great depression to last 9 years longer then it did. if these politicians had any original ideas i'd be amazed. it's the same screw the public and damn the rest of the world.

341 Posted by JAY RICHARDS at 09/25/08 08:53 PM

Proposed $700 Billion Bailout
Is Too Little, Too Late to End Debt Crisis;
Too Much, Too Soon for U.S. Bond Markets
Weiss Research Submits Policy
Recommendations to Congress Today
See info at
http://www.moneyandmarkets.com/Issues.aspx?NewsletterEntryId=2328
See white paper pdf file at
http://www.moneyandmarkets.com/files/documents/Final-Bailout-White-Paper.pdf

342 Posted by cbeee at 09/25/08 08:54 PM

It just isn't right. If consumers want to file bankruptcy, the laws have gotten tighter and tighter to the point of nearly not allowing it. Yet these companies can run themselves into the ground and get bailed out in the end. It seems that there must be a better way that will save our economy and not trash it simultaneously.

343 Posted by Travis Gibson at 09/25/08 09:08 PM

700 Billion.....

Bailing out the big business but isn't it the people that are not making the payments. If you were to give the money to the people to make the payments instead of the big business wouldn't that be better. Then restrict all credit card to 1-2 thousand dollar limits. Remove peoples debts instead of the business' debts. Even this is crazy but if it is going to be done it would be better to help the people.

344 Posted by Diane Barham at 09/25/08 09:19 PM

Not my taxes to bail out the fat cats getting millions when they get FIRED. How about a pink slip like the rest of us?

345 Posted by B Wheeler at 09/26/08 02:07 AM

I support the bailout--reluctantly. If the economy tanks the working man looses bigtime. While some may say its just bailing out millionares and banks, actually it's our money they've invested unwisely. However I do want oversite and accountability for this move, and certainly don't think that Bush's request that this person overseeing this bailout should not be answerable to someone is a viable idea. Aside from thatwhile this bailout helps Wall Street, it seems to do nothing for the people hose financial world is crumbling with forclosures, loss of jobs, etc., nor do I think that the CEO's and high paid executives who got us into this mess should be kept on to oversee getting us out. If they were capable of getting us out, they wouldn't be looking for a handout fron Washington!

346 Posted by Joel McEachern at 09/26/08 04:45 AM

In surprising shades of statesmanship, the banking and securities problem has started former presidents and elected officials talking about the importance of confidence. And indeed it is. But it is the first part of the word that troubles us all: con.

Here in Florida, the housing game began on an age-old market tactic: the fear of shortages and the inevitable price panic. Development companies and subdividers, with no small amount of encouragement from the governor's officer, had the proverbial green light to not only build wherever they wanted but whatever they wanted--the environment be damned.

And following close behind was the real estate industry who bumped prices literally hourly until the market could bear no more, until even a high tech, A.R.M. mortgages couldn't close the deal. The game was over.

That said, is this a genuine crisis of confidence or is it a crisis of convenience, an elaborate con within a con to recover and profit--yet again
--from bad business practices, e.g. greed, and an economy that has depended far too long on rapid expansion and certain exploitation to survive and prosper?

Permission to be scared granted.

347 Posted by Dave Raynor at 09/26/08 07:50 AM

I truly believe this billion dollar bail out will NOT fix the core problems of our current economic situation. It's a finger in the dike. Now I'm not a highly educated person and I don't know economics that well but by the same token look what those who are educated and have degrees in this sort of thing have allowed to happen. The damn near collapse of our economy as we know it. In light of that I think it gives me the right to have a legitimate opinion of the situation and here it is. We've made our bed and now it's time to lay in it. Don't spend this money only to watch what it is supposedly going to prevent, happen anyway. Whatever it is....let it happen and get it over with. We may need to start from ground zero and if that's the price then so be it. Our current commander and chief does not have the intelligence to see the problem correctly let alone fix it. He is a reactionary personality and has no vision what so ever. Let's not do any more damage with this guy at the helm. I pray what true leaders we have left in Washington can make a proper intelligent decision that will be honored.

348 Posted by CJ Janicki at 09/26/08 08:19 AM

If we bail out these corporations we need to receive an ownership in these companies for any financial assistance we give them!! This way the American public can share in any profits these companies generate! The CEOs of these corporations must also be held accountable!!!! NO FREE RIDE!!!!

349 Posted by E Guy at 09/26/08 09:57 AM

Stop the bail out. We went through this is the 80's when the savings & loans were dereg'd along with other financial institutions and stupidity and greed were rampant. Support should be given to the taxpayer direct in forms of either freezing interest rate hikes for a period of 3 - 5 years to stabilize the real estate market. Which will help rid the market of "toxic paper".
Let the poor performing institutions fail, as we cannot afford to subsidize incompentence, stupidity and greed.
Invest $$ directly into our own business' that keep jobs in America.
Go in debt to build our infrastructure, as in rails, alternative energy and how we can phase out the combustion engine off of our highways.
Doing a bail out keeps the same stupid, greedy element in control of our democracy and futures in a constant downslide since the 80's. Don't reward them, try imprisonment.
Allowing us time to thor

350 Posted by Frank at 09/26/08 10:17 AM

No one has satisfactorily explained to me why saving fiscally weak corporations will prevent further economic disaster. I distrust the vagueness of Paulson proposal. I don't think the taxpayers should save or, in any way, reward the corporations and individuals who have been profiting from years of bad business.

351 Posted by dave lynch at 09/26/08 11:19 AM

Today the us Federal Government just seized WASH MUTUAL BANK WORTH 300 BILLION, and then sold it. Yet another Bush grab for power to his socialist - FACIST dictatorship.

After all his disastrous colossal blunders, INCLUDING stealing the 2000 and 2004 elections,
9/11, iraq, afghanistan, iran,
katrina, fema, ike, failure to care for the health of US taxpayers,VOTER FRAUD, caging, etc,
the" patriot" spy- on -our- own -voters law, causing and extending global climate changes,
gutting our constitution- which he had sworn to protect, etc,
and now this constellation of financial gifts to huge corporations.
it is just too much.
Enough is enough.
TAXATION WITHOUT REPRESENTATION.
THE LOBBYISTS HAVE TAKEN OVER.
This outrageus disaster and extreme radical right wing take over and bailout of an arbitrary $ amount of 700 BILLION is more than the defense budget.( when asked why the exact 700b figure the official who picked it said: " we just wanted a really big number")

We do not need to hang a 700 BILLION debt around the next Pres.-POSSIBLY OBAMA'S neck for a 2 year program when the new congress and pres will take over that responsibility.

AT best just give a temp quick fix of rationed measured bail -out of 10 bill per month for the next 7 months or 70 billion.
This 700$b. is just a cynical political GOP MOVE TO HELP BUSH/ CHENEY/ROVE/ MCCAIN AND RICH CORPORATIONS ON WALL STREET, NOT MAIN STREET.

The GOP just wants to get another taxpayer corporate -socialist -entitlement welfare subsidy to the Bush admin and rich corporations while the Gop still has some clout.
They know the next congress will not be so kind to the Bush crime family.
Why not privatize a rich corp. like exxon -mobil or shell, not a failed corporation. lets make some real money for the taxpayers .

Jay Leno said:" a failed president and a failed congress are going to bail out failed corporations,
What could go wrong?"
FOLLOW THE OBAMA PLAN, OR BETTER YET THE RALPH NADER PLAN.
These are just extra taxes imposed on poor and middle class citizens by the elite corporations.

This is just a scheme to get those poor citizens who took out these sub prime mortgages to pay their all their mortgage $ for the next 30-40 years to the federal administration.
It is a bail out of Bush and the GOP GREEDY OPPRESSIVE PARTY OR GRAND OIL PARTY..
After 8 years of lies, dirty tricks, crime treason, corruption, incompetence, greed , over 11 TRILLION DOLLARS IN DEBT. and lack of regulation, the harvest of shame is coming back to blame the culprits. I want to see criminals do the purp walk with handcuffs -to appear before Republican tv judge Judy. What would she say to these confessed felons?

With a new president, senators and congress folks major reforms, soon to be passed by the will end some of the most abusive tactics used by the corporatocracy.

As my home value dropped 100,000$ and my home equity disappears, i parked my truck because i cannot afford the bush- mcain exxon gas prices. I and my family are relying on my credit cards to make ends meet. Credit card issuers take advantage of us by engaging in reckless and unfair lending practices, hitting cardholders with costly and unjustified interest rates and fees.

Such fees and interest rate hikes on existing credit card balances can seriously destabilize a family's finances quickly, as they must make minimum payments that are substantially higher than before.
bush mcains slogan is power first, elites rich corporations lobbist second, middle and low class citizens and country dead last

help us, oh you undecided independents, YOU ARE OUR ONLY HOPE.
RALPLH NADER WAS RIGHT.
help us take back our country first

352 Posted by Anne Manchester at 09/26/08 12:16 PM

What about this for a thought.Why don't they hand out 1,000,000 to everyperson in the US.I don't know the exact #of people,but it has to be alot less than 700 billion.It5 would give the poor a chance.It wouldn't line a few pockets.Just a thought.

353 Posted by kay Rhodes at 09/26/08 12:23 PM

Let the market function and let solid companies buy failing institutions since the government is now telling us that the taxpayers will actually make money if there is a government bailout. If there is money to be made let wall street step in and invest! Credit needs to be tighter; loaning money to people who can't afford to pay their loans is what got us into this mess.

354 Posted by Marge at 09/26/08 01:25 PM

No bailout. Not a penny of my hard-earned money goes to those greedy pigs from Wall Street. Banks that fail, must be nationalized. CEO, chairman and the entire board of directors arrested for fraud. Stripped of their assets, whether kept in banks on the US soil or elsewhere (I suspect they keep their assets elsewhere). Above mentioned people indicted for grand larceny and tax evasion. Nationalized banks: clerks checked for integrity and honesty. Those who pass, keep their jobs. Others are replaced by honest workers. Operations run as usual. Board of directors, chairman and CEO replaced by next available highest ranking person on the roster. Those are rewarded with appropriate salary - not larger than $250,000/year. No bonuses for failure. Entire operation supervised by the Government of the United States. That can and MUST be done to restore our financial system. Absolutely no taxpayers' money for Bush/Bernanke/Paulson on their say-so.

355 Posted by D J Schweitzer at 09/26/08 01:34 PM

there is something I fail to understand. A little company makes a bad decision and fails. It is just too bad. Yet when the big corporations do likewise. They want their mistakes covered. Should not the same rule apply to all?

356 Posted by Bill at 09/26/08 04:41 PM

We could support the bailout, as long as many ceo's, cfo's, Corporation presidents and other corporate and political leaders who created this mess spend the rest of their lives in hard time prison, no parol, no easy prison sentence but hard time prisons. They need to spend the resto of their lives with the murders, rapists, bank robbers etc.

357 Posted by Jesus Garcia at 09/26/08 09:46 PM

This is a very outrageous and if you will attemp to legaly stole the money of the hands of the needy, to put it in the most richests of the country.
Its every body ok with this?

I wil not spend my time on going in to how's to, but if there is anybody that may see this and re send it to the right politician, this is an idea that it could help to resolve this financial problem.

Please bear with me to the end so you can see how this make sense
1.- Let the companies that make WRONG DESCICIONS to face their consequences,
2.- Form a commetee to manage the money just necesary to be available for fixing the financial trouble. (May very well not be 700 billions.
3.- Form a second commettee to evaluate the foreclosures, with the inted to return the properties to the people that qualify to keep going with payments after some bail out help.
4.- Let the companies the still stending to com pete to buy the bad deals and to this companies bail out them proportionally to what they buy.

The principle that lies beneath of this process is very simple, the tax money the goverment has should return to the tax payers not to those that already show do not know how to managed the money. It is balanced by itself at the point that more money will go to the companies that buy bad deals, as more mone did get from big corporations, and less mone but sufficient will go to indivuals as less money dit they proviade as tax.
Some rich people did make a bad bussines descicions and they should face their loose just like any other micro or macro bussines man or owner.

If any body has a way to forward this to the white house, or presidential candidates or someone with the power to evaluate this ideas, please feel free to do so.

358 Posted by Lakay Ingo at 09/27/08 02:33 AM

Government bailout is totally out of the question. We should reform the banking and finance industries to prevent anomalous practices and root out greedy management people.

359 Posted by Ellen Carter at 09/27/08 09:15 AM

It is irresponsible to bailout wall street when individuals cannot get the help they need. We as americans have to jump through hoops and pay out thousands now in order to file bankruptcy, yet we are being asked to bail out the big companies, how ironic is that. I believe you need to listen to Dennis Kucinich from Ohio, we really need someone with a plan, he has one!

360 Posted by Maggie Barnes at 09/27/08 10:41 AM

I believe, as most taxpayers do, that the banks and insurance companies need to do as Joe Public would have to do...pull themselves up by their own boot straps. Their Criminal Activities have finally caught them with their britches down and now the Government expects us to pay them for what they have done without a payback to us! I don't think so! Let them have to pay us back at the same rate of interest that they took from the people for the little oblong pieces of plastic and the boxes they sold at hideously high interest rates to people who wanted to buy their own homes, but, couldn't afford them without the manovering of the loan brokers. Now, as far as I am concerned the time has come for them to feel the pain of trying to pay the bills when you don't have enough money!

361 Posted by Nancy in Farmington, ME at 09/27/08 01:51 PM

$700 billion would fix alot of roads and bridges,
cover many uninsured people,and put alot of people to work. Huuummmm, bailout Wall Street or actually help the American people?
Sorry, I just got to go with the American people!!

I worry about what they aren't going to be telling us about the terms of this bailout. I've already heard that one idea is to give Paulson half the money now, half later, but he only get the 2nd half, if Congress approves it. So if the first half of the money is wasted or not used accordingly, Congress can put a stop to him getting the last half. Sounds great, good thinking, right? NO! This is the part they don't tell you. If Congress refuses to give Paulson the second half of the money, he can veto, Congress's decision and get the money anyway. Who's stupid idea was that!!!! I sincerely hope it wasn't any of our Congressmen, because if it was, then they should be kicked out of DC. this is a perfect example of what those dunderheads in Washington always seem to leave out when they're making decisions which affect Americans.

362 Posted by S. M. Forbes at 09/27/08 02:29 PM

How about we don't bail them out and instead give everyone who files taxes in 2007 and made under $250,000 the money or at least part of it. That would infuse money into every sector from the bottom up and we wouldn't have to wait for the trickle down. Then if people didn't pay their mortgage, it would be squarely on their shoulders.

363 Posted by raymond at 09/27/08 03:09 PM

There is ample morale outrage that is justified in this great debacle. It makes sense to me that laws should punish the guilty and those who profited should not take golden parachutes away from a company they just destroyed.

Financial institutions are tools. It makes no more sense to destroy these companies than it does to throw your electric saw off a cliff when it throws a blade. We need to fix the problem so the economy can function, then we can go to work on sorting out what we can do about fixing the system.

It's a bitter pill to swallow, and we may have to use every dime of the $700 billion to get the system working again.

Let's just throw out the bath water. Keep the baby.

364 Posted by T Schuller at 09/28/08 06:42 AM

Don't give the big companys anything. Lets see, $700 Bilion, how about every American CITIZEN gets an equal share. Talk about spending. People will buy Homes, Cars. One third gose back in taxes. That sounds like a good start to me. Congress has done a BAD BAD job. They all should be looking at windows with bars in them. They taken good care of themselves. Pension and Healthcare, they got the BEST

365 Posted by Ian C.Cree,MB(Hons.),MS,FRCS(Eng.& C.),FACS,LRCP. at 09/28/08 10:36 AM

Considerations, if the $700 bail out is to be passed are the following:

Those who profited from reckless finance speculation should pay for cleaning up the mess, and that is part of the development of a new foundation for the American economy.

ALL funds used for a bail out MUST be under ABSOLUTE control of a body appointed by Congress with oversight by Congress.

NO INVOLVEMENT BY THE ADMINISTRATION!!!

Alternatives (and there may be many}, both sequentially or concurrently, should be discussed and debated.

Some alternatives are the following:

1. Part of the $700 billion should be used to buy devalued foreclosed homes, and rent them out at very reasonable rentals with the option to buy, giving preference to their original owners.
This would give instant return cash on the transactions. Part of this cash could then be used to buy additional homes and do the same with these.

Congress should control the purchases and the body set up to manage these transactions with very strict oversight.

NO INVOLVEMENT OF THE ADMINISTRATION!!!

2. Tax all companies on their profits overseas after a deduction of the taxes paid in that nation. These taxes should be 70% on all profits over $3 million per annum.

This would provide instant cash and result in a return of jobs to the home site!

3. 30% windfall tax on all profits in the home market over $10 million per annum.

4. Substantial Tax relief for industrial and home restoration following natural disasters, or vandalism.

Name these alternatives : THE TRUE PATRIOT ACT !

We have seen CONTRIVED panic throughout the Bush administration and it has never led to a good end. Now, this bailout is being pushed in the midst of a Wall Street panic.

Is it really needed? Is this the right remedy? Will this prevent irresponsible investment in the future?

There is no question that the U.S. economy needs revitalization. But, a mass bailout of the financial community will not create the new economy we need. Indeed, if hundreds of billions are spent on bad investments it will result in there being no funding available for what is needed to create an economy for the 21st Century where we can all prosper.

All proposals will not provide an instant cure for a situation long fostered by calculated lack of oversight by the Bush administration, and a 7 year policy of rewarding the ultra wealthy at the expense of the poor.

Sincerely,

Ian Campbell Cree, MB(Hons.), MS, FRCS(Eng. & C.), FACS, LRCP.

366 Posted by aavs at 09/28/08 11:04 AM

Everybody (the great majority whom I read or hear) says "NO"!!! to this criminal bailout. These politcal and greedy "capitalists"(bloodsuckers) say yes. Replace them with the common citizen who would be concerned. Corruption is and continues to be rampant. The American spirit is not there, it has been perverted to the nth degree.

367 Posted by jan at 09/28/08 11:11 AM

Make wall street pay back the money they have made in the huge overages. make the wealthy people pay back alot of this money. they are the ones living high off the hog. this country and economy needs to be totally re worked. stop screwing the middle class and lower class people of this country

368 Posted by Jack M. Ginsburg at 09/28/08 03:14 PM

I THINK THAT SOME GOVERNMENT ACTION IS REQUIRED IN THE CURRENT FISCAL CRISIS. HOWEVER I ALSO BELIEVE STRONGLY THAT ANY ASSISTANCE PROVIDED BY THE GOVERNMENT SHOULD BE IN THE FORM OF A LOAN AT INTEREST (THE CURRENT fED RATE FOR BANKS IS PROBABLY APPROPRIATE). A CLEARLY DEFINED SCHEDULE OF REPAYMENT SHOULD INSTITUTED WITH REPAYMENT BEGINNING WITHIN THREE MONTHS OF THE ISSUANCE OF THE LOAN.

369 Posted by EdDR at 09/28/08 11:39 PM

I oppose the bail-out since the money is actually coming from the Chinese government. The same government that funded our excursion in the Iraq War. That is why our taxes were never raised to fund the war, since the money was "borrowed". I do not feel that the United States needs to have a Communist landlord, that has the potential to grab a lot of land in the United States and has the ability to dictate certain terms to our government.

370 Posted by EdDR at 09/28/08 11:51 PM

In addition to my comment about no on the bailout on 9/27/08, has anyone figured out who sent me my tax rebate check? It wasn't OUR Government, again it was the Chinese. Wake up people!

371 Posted by Lowell Skinner at 09/29/08 10:02 AM

I think all our so called leaders are so greedy that they don't care about the USA citizens at all. The way to start is 1. cut off all politicians, judges their retirement once they leave offic they are just John Q. Citizen. Let the the greedy ceo's, bankers, wall street bail them selves out, 1. they can keep one house,one car sell off all the all the rest forfeit all bonouses of any kind. 2. Fire all corrupt ones from offic & lobbyist too!

372 Posted by Catherine S at 09/29/08 07:29 PM

Congratulations to all memebers of Congress who voted against this "Bailout/ rescue plan"!
It is a victory for the American public and democracy! We cannot have meetings behind closed doors and backdoor deals. So a Big Thank you to both Party's who opposed this really bad deal that most News stations who like President Bush and Sec. Paulson tried to cram down our throats with nothing but scare tactics!

373 Posted by luis Medina at 09/29/08 09:49 PM

everyone should oppose the bail out. the gov. never has money for anything but now they can find allot to bail out the people who have been living off of us and the syytem.

what is wrong with our country?

374 Posted by Erik L. Jaakkola Sr at 09/30/08 07:01 AM

First fo all I am totally against the bail out of Wall Street. The scare tactics that are being used to promote this scam are shameful and right out of President Bush's play book. The fear of congress to make a secure stand and let the market correct itself is not surprising. No one wants to be the fall guy if things go sour for a while. I am willing to take a temperary lose in my 401k and IRA to adjust the market. Market history will repeat and in the end the stock market will rebound. The people of America have forgotten that nothing comes free. Building your financial securety requires time, persistance and patience. We will NEVER see a return on this money, because it will be spent on the interest owed and our bottomless black hole of a national debt.

375 Posted by mary logan at 10/01/08 03:39 AM

While I have funds in the stock market, I hate everything about what the government is trying to do. $700billion, expressed in any way, is still the same amount of money. As an individual on a very fixed income, I DO NOT want these financial institutions bailed out. When they were making tons of money off of these inflated amounts they were not passing any of the dollors on to the people who have had their own meltdowns....why should the tax payers have to prop them up. Let them take their earnings and prop up the market themselves. I am so sick of hearing the same thing over & over....like we are so stupid we don't understand.
No BAIL, No How!!!!!! m logan

376 Posted by Gerry at 10/01/08 12:42 PM

Any bailout must insure that CEO's can not walk away with ridiculous salaries, benefits and golden parachutes. There should be rules/laws to recoup large sums from greedy CEO's who have actually stolen hundreds of millions of dollars from their companies, stock holders and employees.

377 Posted by Savannah Davey at 10/01/08 07:29 PM

First: Do not blame Clinton solely for this mess. It isn't in the President's power to overrule Congress and the House, mostly Republican, I think at the time. We did this to ourselves. Nor can we blame Bush, he is just the one in power at the time this fiasco happened.

Second: Rules should be in place to ensure that a borrower be able to repay his/her loan.

Third: If the government forgoes sound reasoning and gives the public ability to make bad loans, the greedy in the industry will do so. The governing body is responsible to protect us, right? Did they protect us? No !

(The mirror test for a loan is long gone - If one casts a reflection in a mirror, give them a loan! I don't think so!)

Fourth: We should NOT give "golden parachute" retirement to those who got us in this mess to begin with, including those in government office at the time (Congress and the House) with decision making ability. Greed is what got us here, and the greedy should pay for their actions.

Finally, re-regulate the industry (any and all industries) to make practical decisions, and not to bail them out if their greed affects the Nation. BUT... if their "errors" affect the general health of the Nation, the government should step in and sell off their assets and protect the "little people", and set rules/laws to prevent the error occuring elsewhere later.

Let us elect representatives that will vow to protect us, and not allow greed to warp their decisions.

For those old enough, remember the Savings & Loan deregulation and ensuing turmoil? Or how about when a regular savings account guaranteed a 5 percent interest rate before "deregulation" that told us that the rates were sure to rise?

Or even good ol' Ma Bell before deregulation, a monopoly to be sure, but we were told a "free market" would reduce our phone bill. Now the telephone companies are merging back to a conglomerate without the PUC (Public Utilities Commission) oversight it once had. Has your telephone bill basic rate gone down? Mine sure hasn't.

With those two examples, do we really want a free market on our retirement accounts???

378 Posted by Ed999992 at 10/03/08 08:29 AM

This is a very interesting list of comments, but I have not seen the blame placed sqarely on the Federal Reserve. As one entry stated: Bill Clinton repealed the firewalls to keep banks and investing separated allowing this to happen. This is correct, but at the same time administration of this was by the Federal Reserve, and administered by the Governors (Fed) and voting charter members (bankers) of the fed.

Read the Fed Reserve meeting minutes for the last 15 years. This was orchestrated. They knew the increases in the prime rate would increase the failures. They also orchestrated a minimum inflation rate (2003) for the financial system and had control of this situation in regard to money flow in the economy. Good or bad, they knew failures were a direct result of the changes in the prime rate and were "banking" on the inflation rate saving them.

It appears that they are orchestrating an elimination of key competitors by bailing out certain specific companies and allowing others to be merged or go out of business. Paulson and Bernanke should be seriously questioned as to their loyalties to certain banking members or to the US citizens.

379 Posted by Glen at 10/04/08 10:03 PM

The Making of the U.S.S.A
(UNITED SOCIALIST STATES OF AMERICA)

During this election campaign as America walks around in a sleepless slumber they actually believe that they are being diligent towards preserving this nation. They argue, debate and condemn the opponent of selling the interest of freedom and the people out.

Yet neither side of the argument is awake enough to realize that both presidential candidates just demonstrated that they both are for complete federal control and protecting the rich while enslaving the poor, and that they have absolutely no qualms about dismantling the authority of the United States constitution to do so.

The following is a copy of an E-mail that I have sent to numerous people, news agencies, patriotic groups, and have listed as a response on AOL Hot Seat at least three times. Not one person has responded to any of the communications. Why?

Financial bailout or criminal theft of 700billion dollars?

Many times concerning a constitutional issue there can be varying opinions as to the meaning of the constitution and it can be subject to abuse by lawmakers, in which case the validity of the law is then determined by the supreme court.

Now, what if the “law makers” intentionally and blatantly violate the procedures of law? Could this happen in America? By all appearances it did happen on Wednesday October the 1st 2008 when the U.S. Senate revised and voted to approve the bill for the 700 billion dollar financial bailout of the financial institutes of this nation. It also appears that if the House of Representatives vote on this unlawful bill, they also will be in blatant violation of the United States Constitution.

Article I section 7 of the United States of America clearly forbids the U.S. Senate from creating a financial or tax bill.

Section 7

“All Bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills.”
(I suggest that everyone read Article I section 7 in it’s entirety).

In other words the only method set forth in the U.S. Constitution for the U.S. Senate to vote on or make amendments to any bill raising revenue is for that bill to have been voted on and approved by the House of Representatives and sent to the U.S. Senate for vote or amendment.

Once the House of Representatives discarded by majority vote the 700 billion dollar bailout bill and did not (could not ) send it forth to the U.S. Senate for vote or modification, the U.S. Senate had no legal authority in which to modify the bill or vote on it, and the U.S. Senate is strictly forbidden to create (originate) a financial bill to send to the House of Representatives for vote!

In the event that the House of Representatives should approve this illicit financial bill and the President of the United States should sign it into law, they would in fact be unlawfully authorizing illegal transferring of funds because the Supreme Court of the United States has already ruled that any written law that is deemed unconstitutional is null and void and never existed as law!

Will they actually do this? Will “we the people” actually allow them to get away with it?

I am confident that most people reading this e-mail is probably saying “what is the point? Both houses approved it by majority vote regardless of which house it originated in.”

Yet in reality, the point is of the greatest importance to the American people for several
reasons.

1. The writers of the United States Constitution placed Article 1 section 7 into the constitution for a very deliberate and specific reason. To protect the freedom and the control of authority over the nations finances and taxes to “we the people”.

Although the U.S. Senate is elected by the people they primarily represent State and Federal authority (as the President is elected by the people and represents federal authority).

The House of Representatives are elected to represent the will of the people within their districts. Any congressman that votes against the will of the majority of his constituents has violated the trust of the people!

The founders of our constitution knew that if a financial bill or tax bill could be presented by the U.S. Senate that it would be in favor of government and not in the best interests of “we the people”. They also knew that Government would “pressure and or intimidate the representatives of “we the people” into going against the will of the people to approve legislation for the government made by the government.

What just occurred in the passing of the 700 billion dollar bailout bill was just exactly what our forefathers were afraid of happening if they did not create section 7 of Article I within our constitution.

The financial bailout was opposed by the majority of the people and the House of Representatives voted it down. Even after the U.S. Senate illegally created a bill for the bailout and illegally passed the bill, approximately 52% of the general population was against the House of Representatives passing it with only 36% supporting and 12% undecided. Yet after the U.S. Senate created a bill by the government for the government, the House of Representatives was pressured (intimidated) into betraying the trust of their constituents and passing the bill. The pressuring (intimidating) of the House of Representatives into passing the bill is exactly what the U.S. Senate advocated they were doing!

2. At anytime that “we the people” remain silent and allow the government to blatantly violate the constitution whenever they deem it is necessary to fulfill the governments wishes to exhort control over the people, then we as the people are granting the government the authority to only use the U.S. Constitution when it benefits the governments will and disallowing it when it protects the peoples will. That my friends is full blown socialism at its best!

3. Both presidential candidates Barrack Obama and McCain are U.S. Senators and willfully with full knowledge knew they were violating the law of the U.S. Constitution and voting on a constitutionally invalid law to pressure the representatives of “we the people” into violating the trust of their constituents. As U.S. Senators these two men took an oath to uphold the U.S. Constitution, yet neither man fulfilled his obligation to do so when it became “convenient” to go along with violating its rule of law.

At this point, how can we in good conscience trust either candidate to uphold their oath to protect the U.S. Constitution and or act in accordance to the will of the people if they are elected to the highest office in this nation? Not one person with any intellectual ability can in good conscience deny that both of these candidates have fully demonstrated their desire for socialistic government control over and above the will of the people, and that they are both ready and willing to refuse to adhere to constitutional limits in exercising that control.

The only thing in the world that can prevent a complete alteration of our system and turning it to full socialism during this next administration, is if “we the people” start raising such a fit over this unlawful enactment of legislation that it gains enough political force such as to require the dissolution of the illegal law, and causes the representatives of “we the people” to go back to the drawing board and enact lawful legislation in accordance to the will of the people and the U.S. Constitution.

Truthfully we cannot trust our freedom and way of life to ANY individual. We must become “we the people” and act in force of numbers to defend our own freedoms and way of life and if we do not do this now, we will shortly be powerless as “we the people” to save us from our own government.

At this point in history it is not to late, but if we are unwilling to act in power of force of numbers now, it soon will be.

Everyone who reads this article has full permission (and encouraged) to copy it, e-mail it, post it, or use it in any method or manner in which will enlighten a sleep walking “WE THE PEOPLE”

380 Posted by Charles Tysiak at 10/08/08 03:52 PM

In my opinion the bailout ought to include a penalty to "ALL" executives involved causing this situation. Their penalty to be "their Pay" cut in half for a peiod of "NO LESS" than three to five years. It was up to them to see that "ALL" procedures be followed to insure that "ALL LOANS" be properly covered.

Also, instead of foreclosing, the people's interest on the loans be cut to an affordable payment and their payment be extende for a reasonable amount of time. This in effect would still bring in money to keep the loan instiutions with an income. It may be possible to even decreasing the "BAIL OUT" costs.

381 Posted by manny at 10/11/08 10:50 AM

I feel bleesed that this was posted to me. I'm sure glad someone has the Brains to see A real solution to this problem and the real "GOOD" this 700 Bil. can really do. I'm in favor of this. This sounds like there truly is a chance to 'Give' back to the People......as in "We the People.......in order to form a more "PERFECT" union..........." you get the idea.

Subject: FW: FWD: A US CITIZEN BAILOUT. I LIKE IT.

Whoever T. J. Birkenmeier is, I sincerely salute him.

I'm against the $85,000,000,000.00 bailout of AIG.

Instead, I'm in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.

To make the math simple, let's assume there are 200,000,000
bonafide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman
and child. So 200,000,000 might be a fair sta b at adults 18 and up.

So divide 200 million adults 18+ into $85 billon that equals $425,000.0 0.

My plan is to give $425,000 to every person 18+ as a
We Deserve It Dividend.

Of course, it would NOT be tax free.
So let's assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes.
That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500..00 in their pocket.
A husband and wife has $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family?
Pay off your mortgage - housing crisis solved.
Repay college loans - what a great boost to new grads
Put away money for college - it'll be there
Save in a bank - create money to loan to entrepreneurs.
Buy a new car - create jobs
Invest in the market - capital drives growth
Pay for your parent's medical insurance - health care improves
Enable Deadbeat Dads to come clean - or else

Remember this is for every adult U20S Citizen 18+ including the folks
who lost their jobs at Lehman Brothers and every other company
that20is cutting back. And of course, for those serving in our Armed Forces.

If we're going to=2 0re-distribute wealth let's really do it...instead of trickling out
a puny $1000.00 ( "vote buy" ) economic incentive that is being proposed by one of our candidates for President.

If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+! As for AIG - liquidate it. Sell off its parts. Let American General go back to being American General. Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't.

Sure it's a crazy idea that can "never work."

But can you imagine the Coast-To- Coast Block Party!

How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion
We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC.

And remember, The Birk plan only really costs $59.5 Billion because $25.5 Billion is returned
instantly in taxes to Uncle Sam.

Ahhh...I feel so much better getting that off my chest.

Birk
T. J. Birkenmeier, A Creative Guy & Citizen of the Republic

PS: Feel free to pass this along to your pals as it's either good for a laugh
or a tear or a very sobering thought on how to best use $85 Billion!!

382 Posted by Morris at 10/16/08 10:26 AM

I am one of the victim of this economic crisis. My inablity of understanding the current economic crisis make me to post this comment.I believe one of you who read my statement can help me to explain what is going on the current economic crisis. I lost my job recently. Last year I used my last savings,which was , $ 80,000 dollars to buy Newyork state Municipality bond. Now, the band falling rapidly and almost to make my money freeze. How can the current bail out assist me to restore my origional amount of money? If it does how long it takes? What action I might take right now to save my money? Is that a good idea to withdraw the remaining amount of money? or just leave it and wait? I am eagily waiting your response. I am indager of being a homeless, please help me.
Sincerely yours Morris Iris

383 Posted by scdowell at 02/06/09 12:59 PM

if the government gave everyone over the age of 18 in the us 230 thousand dollars each it still wouldent be close to 700 billion

384 Posted by Jim in DC at 02/14/09 10:22 PM

See my new website where I say let the banks fail and cancel everyone's mortgage debt!