September 29, 2008

The Bailout -

Here’s the ‘bailout’ from The Swamp – Chicago Tribune. Something has to be done – but are we unwilling participants in saving lenders who gave large sums of money to home buyers with terrible credit? None of us reaped any commissions or perks from those deals.

It’s one matter if someone with decent credit ran into bad luck such as losing a job, a critical illness – I’m referring to the millions with histories of apartment evictions, vehicle reposessions, bad credit, etc. who slid under the radar and were granted a loan and then manipulated multiple refinancing. Who allowed those risks? It wasn’t the taxpayers.

Why don’t the politicians across America donate 70% of their campaign war chests to the bailout effort? Don’t scream ouch either.


Catherine on Eastlake said...

I agree... plus i would like to see all politicians give back the money that Freddie and Fannie GAVE to them through the years, to 'Look the other way' while Freddie and Fannie ' Cook the Books'.

Two Videos that were posted in the Comment section of the Tribune. Very Interesting. (alas, the last part on one ends with a political plug... but it doesn't mean the information was incorrect.) I find it VERY interesting to see who the man behind the curtain really is.

The North Coast said...

There is massive public and professional resistance to this ill-conceived bailout, for people sense that this cash call won't be the last.

Some realize fully that $700 billion is a drop in the bucket relative to what will be required to really bail the system out of the layers and layers of debt, mostly in the form of tens of trillions of dollars worth of derivative instruments that are really just layered debt instruments in themselves, based on mortgage pools at a ratio of about 10:1. There is about $60T to $100T pure risk left, and there is NO WAY we can bail this. It's like trying to drain Lake Michigan with a fire hose.

And our policy makers and financial leaders KNEW that this was setting up as early as 2002. They really knew we were in trouble by 2004, and that the debacle to come was set in stone by 2005, but they kept goosing the system with more EZ money and more interest rate cuts and more govn't guarantees, either explicit or implicit.

If we'd deliberately set out to design a system diabolically tricked to collapse, we couldn't have done a better job that what the Fed, the GSEs and govn't agencies like FNMA, Freddie, and Ginnie, in concert with the greedy and unprincipled financial concerns who contributed so much money to our pols , did in setting up this nightmare.

I hope we somehow make it through, I hope we haven't also set ourselves up for a treasury default. I hope that the monster economic shakeout to come will help level income disparities and scare us back into financial honesty and prudence, and kill the gambler mentality that has dominated this country for the past 25 years.

I hope I don't end up jobless and starving in the interim, and that you guys don't either.

Catherine on Eastlake said...

Well, it seems that Warner has pulled one of the videos i've linked. VERY Interesting. Must have hit a nerve.

anyway... here is the NEW link to that video. You'll see why they pulled it.

Catherine on Eastlake said...

Toni, You're pretty cool.

Bravo! You are a true thinking person's friend. I appreciate that you embrace all ideas... even those that you might disagree with.

Big hug,

PS: Perhaps someday you'll buy lipstick for your daughter... i like Aveda lipstick. :)

Toni said...

Cat - Soooo, what do you say about hunting witches in America?

Both sides are fanny deep in the Wall Street mess. But come on - do we need a Joe McCarthy with lipstick sitting in the 2nd highest seat?