$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 (382)

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</