Wall Street bailout, bailout, economic rescue plan... what ever spin you want to put on it. Do you support it and why.

As for me, I have been rolling over in my grave as government tries to find a solution to the problem. As of now, I am not for the current package but I believe it is going to change a little. Here are the reasons why I cannot support any bailout as of now.

1. There is no effort besides the FBI on who is responsible for this mess. Every CEO of the Freddie and Fanny need to be marched into congress and grilled as the FBI looks into this matter. Any CEO who ran those companies should lose those wonderful golden parachutes they have.

2. I believe government created the problem. I will agree with most conservative talk show hosts who cry this. In the 1990's, government made a push to make homes available to low income families. ARMS and interest only loans should have been banned. The FED kept interest rates low so there was cheap money to go around. I remember GW saying that homeowner rates were at their highest ever. So why should government be the solution?

3. People acted irresponsible. Why should the government bailout businesses who did not do the right thing. Let them burn for all I care. Oh yeah, I am not too keen on helping out individuals who acted poorly with their money. The government says as a guideline that your monthly housing expense should not exceed 30% of your income. I believe well over 40% of Americans exceed this according to the USA Today (I will have to hunt this down).

4. Call me insane, but I feel a period of economic downturn will do the USA good in the long run. Credit cards and borrowing have been out of control since the beginning of the 1990s. People cry that they cannot afford some items while plasma TVs are the normal thing for everyone to have. Don't believe me go to walmart and see if you can buy a regular TV. I think there may be 3 models to choose from.

I do think that something needs to happen. People with irregular mortgages need to be given the opportunity to renegotiate into a fixed rate mortgage. Sorry Dems, I do not support judges writing down the amount of a mortgage just because someone cannot afford it. They should have never owned a house in the first place if that was the case. If government bought up those sour mortages so people could do what I said above, I would support such a thing.

Those are my ramblings. FYI I have been quite about this whole mess from the get go

Yeah this one's tough DHC. Something needs to be done to help, ok fine, no problem but much improvement needs to be made tot he bill and I want more punishment for the shady dealers, execution is a good idea too if someone juicing others and it can be proven. I don't like bailout, should be kind of a workout or even insurance, nothing free.
However, the 700 billion, pay off the citizens debt, would probably cost less than 700 billion and than folks would have more to spend to boost the economy.
Part of the problem is the credit business, for a long time it was not based qualified persons getting the credit, it was more like affirmative action credit.

I'm against it: the banks should have been responsible in their lending and are now taking the punishment for not being. Cause and effect.

but wouldnt it effect other people, that not realy responssible?

Originally Posted by b_n_angel

but wouldnt it effect other people, that not realy responssible?

Yes failing to react to this problem will affect essentially those who can not afford it in many ways, the common misconception here is that all this affects is people with a bigger mortgage than they can afford when in reality it will make the day to day running of business almost impossible even if they have the money.

The sad thing is that people seem so determined to punish a handful of wealthy, dodgy bankers that they are prepared to take entire communities down with them.

My vote would be yes they need to do something now "and" fix/punish those responsible next.

Have some people been living beyond what they rationally should have, yes. Are they at fault? Yes. Should the people like me who have tried to avoid most debt be punished? No......but ethier way it goes I'm going to feel the pinch of the economy problems.

So yes something has to be done. Not to "reward" the people who caused this, but to protect the whole of the people.

What kills me is the people who say."It's not my fault. I lived within my means." Yeah me too, but if something doesn't happen it's not gonna play favorites. It's gonna bite us all in the azz.

so what you saing is that some times it is necessary to use metodes like this to avoid damage to innocent people?

I am in favor of a package where bonds are used to buy up 'bad debt' from the banks and mortgage companies who are on the edge of failing. They should be treated the same way that they viewed you and I when we signed our mortgages ... the industry needs to pay taxpayers back ... they should NOT be allowed a free ride. It should be an asset for an asset transaction ... home/business mortgage for treasury bond. As the mortgage is paid off, the money should go back into the tax coffers. Any money that is not recouped from the mortgages, should be billed to the industry ... and ... the companies the debt was bought from, should be responsible the money that was lost.

As far as the golden parachutes, I agree ... CEOs that received these obscenely high bonuses and who's company's are part of the problem facing us, should have to pay back the bonuses and face investigation for wrongdoing.

Bottom line, if we don't bail out Wall Street, then Main Street failure isn't far behind. When Wall Street fails, the money that is available for you and I for a variety of loans ... along with the money that is necessary for the day-to-day operations of many local businesses, will slowly dry up and disappear ... and Main Street will die.

i agree...

Agreed... that's a great idea. Lend the money to them.
But a bailout has to happen one way or another.