Thread: How does the current bail out compare to past spending?

Originally Posted by vortex

(b) Necessary Actions.—The Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this Act, including, without limitation:

(1) appointing such employees as may be required to carry out the authorities in this Act and defining their duties;

(2) entering into contracts, including contracts for services authorized by section 3109 of title 5, United States Code, without regard to any other provision of law regarding public contracts;

(3) designating financial institutions as financial agents of the Government, and they shall perform all such reasonable duties related to this Act as financial agents of the Government as may be required of them;

(4) establishing vehicles that are authorized, subject to supervision by the Secretary, to purchase mortgage-related assets and issue obligations; and

(5) issuing such regulations and other guidance as may be necessary or appropriate to define terms or carry out the authorities of this Act.

Someone already said on TV that don't worry about who the next president will be, but worry about who will be the next Secretary of Treasury, as this is nothing more than another power grab for this administration.
Paulson is no dummy, and from what I have read, he really had to be talked into taking the secy. position, because it paid a lot less than his Goldman Sachs position as CEO and chairman.
Watching Paulson these days on TV, this man is STRESSED! And probably when he took the position he had no real idea of what the administration and those prior had already done to exacerbate the problem.

Newt Gingrich really hit hard on Paulson tonight on Greta.

Originally Posted by Gogo

Glenn Becks show goes into the real problem. It's scary because we are between a rock and a hard place. We were 5 trades from total melt down. A must see show.

A total melt down is what we need. Just suck it up, feel the pain for a year or so, then let life get back to normal.

This bailout isn't going to fix a damned thing. The whole problem is that we're freaking broke. Spending more money when you're broke is always a bad idea.

The bailout is akin to kiting checks.

If they let the companies fail, and auctioned off their assets, new, small , strong, and savvy companies would rise from the dust.

If they auctioned off a mortgage for .05 on the dollar, some uf us would probably be buying them. We could become landlords, or homeowners.

But instead, the CEOs are trying to snatch their executive bonuses out of this fresh batch of cash.

[quote]What happened to all the money these lenders lost? Where did it go?
In many ways, it never existed. As lenders kept pushing mortgages to people further down the income ladder, they added buying power — based on credit, not real income — pushed up home prices much faster than incomes. Mortgage brokers pressured appraisers to inflate home values. Those higher values forced new home buyers to stretch further to buy a home; lenders were happy to sell credit to shaky borrowers.

The scheme was based on the belief that rising home prices would let stretched home buyers cash out their new equity and refinance into a new loan before low "teaser rates" reset, trapping them into loans they couldn't afford. When home prices started falling two years ago, adjustable mortgages reset to their true cost, and homeowners began defaulting and losing their homes to foreclosure. Those homes are being dumped on the market at fire-sale prices, pushing home prices even lower.

Why isn’t more being done to help homeowners?

That’s a key question being asked this week by congressional Democrats, and it’s a major sticking point in the current debate over the details of the bailout. The debate has gone on for the last year, and both sides are pretty well dug in.

[color=red]Opponents of aggressive measures to “bail outâ€

Gogo wrote:

Glenn Becks show goes into the real problem. It's scary because we are between a rock and a hard place. We were 5 trades from total melt down. A must see show.

Yep, we're damned if we do and damned if we don't. Personally, I'd just as soon be damned for not bailing out these mega financial institutions and mortgage lenders.

Why invest in the righting of a sinking ship that is eventually going to sink anyway? Let the darn thing sink and be done with it! I believe AngelaTC makes a good point with this:

If they let the companies fail, and auctioned off their assets, new, small , strong, and savvy companies would rise from the dust.

Where there is demand for a service, there will always be someone with the start-up capital (or access to it) that will step in and provide said service. Forgive my simplistic view, but I think the corporations in question have just gotten to big and bulky for their britches. It's time for some new 'slim' and 'trim' entrepreneurs to step up to the plate.

There is going to be a lot of pain regardless of which way this goes (bailout or no bailout).

Originally Posted by AngelaTC

Originally Posted by Gogo

Glenn Becks show goes into the real problem. It's scary because we are between a rock and a hard place. We were 5 trades from total melt down. A must see show.

A total melt down is what we need. Just suck it up, feel the pain for a year or so, then let life get back to normal.

This bailout isn't going to fix a damned thing. The whole problem is that we're freaking broke. Spending more money when you're broke is always a bad idea.

The bailout is akin to kiting checks.

If they let the companies fail, and auctioned off their assets, new, small , strong, and savvy companies would rise from the dust.

If they auctioned off a mortgage for .05 on the dollar, some uf us would probably be buying them. We could become landlords, or homeowners.

But instead, the CEOs are trying to snatch their executive bonuses out of this fresh batch of cash.

Actually Angela, this is far more than just a year or two. The experts on his show last night said we are headed for a Japanese type depression that held that country by the throat for over ten years. Japan didn't want to admit it was that bad but it was. So this bailout is just to make the "crash" easier. Last night they said, that its like a plane that WILL crash no doubt but this bailout MAY keep it from a total disaster and let us land hard. So its not one of the old type recessions or depressions. In the depression our prices went down as wages went down. They predict that our wages will plummet and the prices for everything will rise. This is because we no longer back everything with gold. We just keep printing money and devalue the dollar.

This like something this country has not seen before. Hard assets. Keep your hard assets. Your money will mean next to nothing.

Hoover kept telling America to spend, spend, spend... and that everything would be OK and that didn't stop Black Tuesday.

Sorry, just having a historic flashback.

Dixie

Originally Posted by Dixie

Hoover kept telling America to spend, spend, spend... and that everything would be OK and that didn't stop Black Tuesday.

Sorry, just having a historic flashback.

Dixie

TIME TO STOP THE INSANITY!!!!!