[Politics/Econ D+G] hey brother, can you spare $1T?

[Aske]

http://www.usnews.com/blo...-wall-street-bailout.html

I will never vote for anyone that votes for this.


*feces*, just let the house of cards fall down.

[Spanky]

So the government is going to own the banks now too?

[gleek]

This *goshdarn* bailout better be in the form of loans that these *goshdarn* banks have to *goshdarn* pay back with *goshdarn* interest. 

[Spanky]

This *goshdarn* bailout better be in the form of loans that these *goshdarn* banks have to *goshdarn* pay back with *goshdarn* interest. 

I'd bet against that.

[MFAWG]

This *goshdarn* bailout better be in the form of loans that these *goshdarn* banks have to *goshdarn* pay back with *goshdarn* interest. 

Oh, you are so CUTE, you silly lib, you...

'Pay Back With Interest'. THAT is funny...

[Aske]

in normal countries the government nationalizes profitable businesses
 

[twoiron]

in normal countries the government nationalizes profitable businesses
 

The alternative therefore is Communism.

Better get those little red books out and start waving them around

[MFAWG]

in normal countries the government nationalizes profitable businesses
 

The alternative therefore is Communism.

Better get those little red books out and start waving them around

After 30 years of Free Market Uber Alles, we have effectively socialized the home lending industry.

The only difference is that executives made hundreds of millions of dollars in salaries and bonuses before sticking the taxpayers with the bill.

[hobbit]

It appears that the government is picking up current mortgage portfolios that are damaging the books of financial institutions.  Its not nationalizing the issuance of new mortgages, or banks in general.  And in the process the government will get the mortgage payments or the real estate associated with the mortgages.  While the value may not turn out to be as great as the debt they are assuming, its far, far from just blowing $700M - there is a return there.

I'm all for preventing a fear based run on the market that damages structures much more sound than a house of cards, but I don't like bailing out houses of cards either.  And the sides being drawn on this are nothing more than election year theatrics as well.  The whole thing smells a bit to me.

[MFAWG]

So they're only nationalizing the BAD debt of financial institutions?

Sounds to me like just what it is.

[hobbit]

So they're only nationalizing the BAD debt of financial institutions?

That looks to be the case at this time.

Poor precedent to set, and like I said - it smells.

Not sure its worthy of a godwin ploy though 

[MFAWG]

Sure it is. Because it's ALL THERE:

Forcing the taxpayers to subsidize business, constant maintenance of a 'War Time Footing ' (RUSSIA RESURGENT, BE AFRAID!, The Surge Worked so we can Never, Ever Leave!) scapegoating of an ethnic minority (The Messicans are sucking up all the tax dollars!) and blind allegiance to an economic philosophy that's been proven NOT TO WORK (again) by proclaiming any other method as 'Socialism'.

[gleek]

If that's the case, this bailout, at first blush, looks to be far worse than simply loaning these banks money to boost their liquidity. The government is letting the banks completely off the hook by taking over the highest-risk loans and eating the losses when these mortgages go into default and the properties end up being sold as HUD homes. Meanwhile there's nothing in place to prevent the banks from going right back to business as usual.

[hobbit]

If that's the case, this bailout, at first blush, looks to be far worse than simply loaning these banks money to boost their liquidity. The government is letting the banks completely off the hook by taking over the highest-risk loans and eating the losses when these mortgages go into default and the properties end up being sold as HUD homes. Meanwhile there's nothing in place to prevent the banks from going right back to business as usual.

Correct.

And I really hate it when you pinko libs share my position on an issue