Glad Bailout Failed. A Bad Plan by any name is still a Bad Plan.
Posted 7 weeks 3 days ago byI for one and glad that the bailout failed. It was a horrible plan. It gave money to the people who caused the problem in the first place to do it again and again and again. Thus it was a bad plan to make the thieves on Wall Street and the Banks even more rich while sticking it to the Taxpayer and contained no relief to the problem which was screwing a good section of America.
Now if Congress is dead set in giving Wall Street a free ride worth Billions. I offer a solution!
This will be massively radical and will raise a few eyebrows. It was first suggested to me over lunch in Lubbock by Paul Madison in a sarcastic remark that afterwords made more sense. In fact, the people at Land and Cattle Co where we were eating in the tables around us heard the comment by Mr. Madison and all cheered it as an incredible idea.
Mr. Madison said that if Congress is dead set in bailing out Wall Street and the Banks for reaping what they sowed in the first place. The fine.
1. However, have the government buy all the property on the books for the Banks and other lenders at current market value. If the banks lose money oh well. It would punish the banks for bad decisions and it would also hit the stockholders which 20 to 30 percent are not even Americans but foreign investors. Thus the banks and other lenders can not profit one dime. They get their books cleared off with a set number which they have as a loss or profit.
2. Prevent submorgage loans along with variable rate morgages from ever happening in the future as this is the 4th time in history of the US that these issues have harmed the economy. No more should we allow this stupidity to continue.
3. The one which got the cheers. If your going to give 300 plus Billion dollars to Wall Street to help them get off the ground and get them back healthly, change it to 299 Billion. That 1 billion dollars is to be given to the US taxpayer as a one time bailout to them. That is to the ones who filed a tax return this year or have their tax return in by Nov 1, 2008 be given 1 to 3 million dollars to bailout the American Citizen. Businesses do not qualify but US citizens do qualify. Those would be who can show a US birth certificate or have naturalized and have paid taxes this year. That is roughly 125 million people. Not only would it help main street USA, it would also eliminate bankruptcies foreclosures from happening. Thus Illegal Aliens and other non US citizens cannot benefit. They are citizens of other countries and should ask their country to help them in a like manner if they want money in a like manner.
It would stimulate the US economy in a way nothing else could.
4. Place a regulation on the banks and other lenders from ever being able to give a loan and having any where any controller of that note from owning the property that they wrote the note for. If a person in the future can not make the payment on the loan, the property is to be sold at auction to the highest bidder for cash money. If the banks or other lenders cannot get back the maturity value of the loan, then tough, they write that off as a loss. It would forever prevent the real estate from being abused. It would prevent in the future these bad loans which were foreclosed on being used like junk bonds or penny stocks which will come back to cause yet another housing bubble or another crisis. We have had this problem happen in 1929, 1987(black Friday stock crash caused by S&Ls) 1996 and now 2008. Enough is enough!
5. Put some real restrictions and some oversight with teeth. That if this should happen again in a simular manner, jail time for Board of Directors, CEOs or other officers of these lending agencies. Its time to put those who cause fraud to actually be punished like they should! Actually have government oversight people be accountable some with Jail sentences if they acted in a manner which was promoting fraud and definately have those people lose their job if they are incompetent at it.
6. Have the government buy out the bad banks. Sell them off. Thus Fanny and Freddy are either made totally private or sold off piece mill. Thus the government is out of the market place thus preventing the appearance that the government has back or over securing some part of these loans or the markets. Thus no more quazi government agentcies which has shown time and again that fraud comes out of it and it causes bad things in the market place.
I have to say, after the shock, I like it! Just imagine having 1 to3 million dollars to cure your financies just like Wall Street! So I say email this on to congress. If they can afford to spend 300 plus billion to help Wall Street. Then they can do a one time bailout of the US citizen for 1 billion dollars.
Thoughts
I agree with both Rom and Anon
Submitted on September 30th, 2008 by PabloBush is out of touch and is not working right now for the best interest of the people.
Bush is working for the special interest of the millionares on Wall Street to get more millions.
Who cares about the golden parachutes! Most of the CEOs have multimillion dollar salary packages and other stock options which are not addressed in the plan that Bush and Paulson promoted.
Some of those stock optons were traded out into the S&P by several of the CEOs over the last 4 years. They simply sold off their stocks in the real estate market and bought S&P or other Blue Chip stocks.
Thus these CEO and the people who caused the problems stand to make litterally billions of dollars with the plan that Bush and Paulson promoted.
Even the golden parachutes clause will not hold up. Because the Constitution says that the government cannot mess with contracts between private parties which does not deal with foreign Affairs or concerning with a direct tie to the US government within the original contract.
Thus a CEO after the bailout could sue the government to get his millions or billions and it would be upheld under the constitution.
Thus another reason why this plan should never pass no matter how much they try to fix it. I say, sell the darn business off in pieces to pay off debt. Then the CEO gets nothing because there is nothing which they can be paid with.
The golden parachutes law can effect future contracts but not the ones already in place.
Its really that simple. Bad plan and it can not be made better.
If they really want to fix the economy then they need to make laws which address the core problem.
Speculation within the Foreclosure market. That is the root cause of all this mess.
The plan does not address this nor fixes this problem. Thus the plan will not solve this problem.
When you have the lender looking at notes that they wrote with the specific purpose of looking at the property as a tool of speculation where the value of the property would exceed the maturity value, then that lender will engage in methods to cause the borrower to fail on the loan so that the lender can aquire that property to sell on the at the real estate market at its highest possible price.
For a good 12 plus years, the lenders have made this common practice. They needed more borrowers to make the speculation rise to extreme values within the real estate market by driving up demand.
Thus they did not care who qualified because the end goal was to get the property which they can commonly get at a discount. Couple that to fact that the lenders controlled more than 80% of the real estate market they set the price of the homes sold.
Thus they drove up demand by giving out more loans all the while raising the price on the homes that they sold which they aquired through foreclosure.
Until this is fix, no plan will work!
Wall Street should not be bailed out because these lenders engaged in a practice designed to harm the citizens of the US and ultimately cause an economic hardship on the nation.
These lenders engaged in many cases fraud and other dishonest means to drive up the price on the homes and they often lied to the borrower about how the variable rate morgages actually work.
I read one of the applications from Country Wide. It says that the variable rates are set by the FED. That is an out right lie.
Paulson, Berenacke, Lockheart and Cox all stated that variable interest rates issued by the lenders are not regulated by the FED but are set by the banks themselves. Generally the rates should reflect the FED rate but banks are allowed to flux that rate based on demand rather than what the actual rate the banks or lenders borrow from the FED and that rate.
So no the plan is bad, Bush and Paulson are not looking after the US citizen. If anything, the plan only makes the people who caused this to happen to get rich. It will cause the government to get rich too.
All it does is give the lenders more capital to give out loans with a bit more restrictions but those loans in the end will be foreclosed on because the plan does not address the fact that banks are looking at borrowers and the property as to its value on the real market verses the maturity value.
Thus the lenders can work to take a property from a borrow when the propety is worth more than the maturity value because that is the type of speculation that the lenders engaged in. They simpy used the built in provisions within the note to force either a foreclosure or bankruptcy where the Banks buy the property back.
Some of these properties have to be held for 3 years before they sell. Thus the lenders package these properties like junk bonds or penny stocks and sell them off to some company who will hold it for the 3 years until the house sells. That is the truth.
Bush
Submitted on September 30th, 2008 by AnonymousBush is out of touch with reality and letting his lame duck status to cloud his responsibility.
He is acting less and less like a President should over the last week.
Just shameful! Either he should be president or just step down and let another lead the country.
His actions are what is causing the panic in Wall Street. The truth is that yea, credit is tight.
But the crash predicted did not happen and capital did not come to an end. In fact, I see the markets improving today and most likely will improve over time. Just as it took 2 years to cure the S&L issue, I am more than sure it will fix the problem today.
If President Bush
Submitted on September 30th, 2008 by rom12921is advocating the same plan even though it has been defeated, is he advocating Representatives not listen to their constituents?
Since constituents called in opposing the bill 6-1, it would seem Bush thinks the severity of the situation would trump a representative Republic.
Is my thinking wrong on this?