will it work????

[lasersailor184]

I was thinking that very thing when this first bill came up...how the frik can the very ones that cause it all of the sudden have the answers.

Which leads me to this question.....

Now I understand that there are more things at work than just this that I am going to ask....but...

Couldn't the government have simply adressed the housing problem with this...?

Make ALL the banks that were in trouble with bad loans , simply refinance EACH loan at a low 30 year fixed rate (instead of arm's) and not charged closing costs. Give the home owners that could afford it that chance and tell them this is all you get.

and MAKE the banks do it.....those that could afford those new deals could stay out of forclosure and those that couldnt were/nt ever going to be able to anyway.

Seems like that would have put ALOT of money BACK in play and even if ther WAS still a need for a bailout it would certainly have been alot less wouldn't it?

You're making the GIANT and WRONG assumption that the majority of these foreclosed homes were anything but a commodity.  The vast majority of people getting burned were trading homes like they were baseball cards.

Through the fallacious house value inflation, people were buying (for example) $200,000 real value homes, for upwards of $500,000.  A lot of them did it on a subprime mortgage with the MASSIVE assumption that the price of homes was only going to go up.  So these people would hold onto it for a little while, pay relatively low mortgage amounts and then sell it later for a tidy profit.

When the prices crashed, they could no longer sell it without suffering a major loss.  A refinance will not solve the problem.  The refinance will not erase the past and make it so that these people only owed $200,000 plus interest on the homes.  They still owed $300,000 plus interest MORE than what the houses are now selling for.  Couple this with the fact that the people couldn't afford to get past the interest only part of the mortgage, putting a real mortgage will especially not make it so that they are suddenly able to afford it.


The only solution that is even partway palatable is to let all those responsible parties crash and burn.  That includes the stupid borrowers, the bad lenders, and the crooked politicians.

[Chalenge]

Per year, I believe the total worldwide film industry gross is something like $50 Billion. The California gross state product is over $1.5 Trillion.

Try again.

Its not JUST Hollywood Sandman obviously I was thinking a litte broader then 'I can make a point here by stating the obvious' yet Hollywood is part of Arnies request.

[Nwbie]

Wow. Just....wow. What do our liberal/democrat brethern have to say about this?  I'd particularly like to hear from mg1942.

It's true that key Democrats opposed the Federal Housing Enterprise Regulatory Reform Act of 2005, which would have established a single, independent regulatory body with jurisdiction over Fannie and Freddie – a move that the Government Accountability Office had recommended in a 2004 report. Current House Banking Committee chairman Rep. Barney Frank of Massachusetts opposed legislation to reorganize oversight in 2000 (when Clinton was still president), 2003 and 2004, saying of the 2000 legislation that concern about Fannie and Freddie was "overblown." Just last summer, Senate Banking Committee chairman Chris Dodd called a Bush proposal for an independent agency to regulate the two entities "ill-advised."

But saying that Democrats killed the 2005 bill "while Mr. Obama was notably silent"  oversimplifies things considerably. The bill made it out of committee in the Senate but was never brought up for consideration. At that time, Republicans had a majority in the Senate and controlled the agenda. Democrats never got the chance to vote against it or to mount a filibuster to block it.
http://www.factcheck.org/elections-2008/who_caused_the_economic_crisis.html

[oakranger]

Yep, he meant economy-wise. WW2 actually generated an insane amount of jobs. Can't say that now.

Yeas, todays war just made a few poepel (chaney) to dam rich.

[oakranger]

Thanks Eagler I appreciate it and will certainly tell him. He and I about to leave for his younger brother's football game.
Hangtime, Oak, sorry for the rant I didn't mean to highjack.
Sometimes things trigger a reaction, I apologize.
Hangtime I recognize that ribbon, my service was after that, but I served under many who earned it like you.
Thank you for your service during war  sir. <S>

Shifty, u are ok.  I just can relate on what you and family went throu with Thomas critical injury from Iraq.  I am glad he is doing well and moving on.   

[Shifty]

Shifty, u are ok.  I just can relate on what you and family went throu with Thomas critical injury from Iraq.  I am glad he is doing well and moving on.   

Oh he's doing great. My wife is spoiling him rotten and I've become his butler.
Actually all is good.We're about to have the wheelchair crane and hand controls installed in his truck in the next two weeks and he'll be much more independant.

[dentin]

1st.. the war we have no is no 'war' by the definition used for WWII.. not even close.

2nd.. FDR's socialization program became the monkey we have on our backs now.. it didn't work then won't work now.

3rd.. The economy WILL tank. IS tanking. Will CONTINUE to tank.

..and we'll remain in the tank long past the upcoming collapse of the government and it's replacement by a system that will be abhorrent to anybody that's left alive (in this country) today. 

Surely you jest..

[Nwbie]

First...  Let me say that I DO NOT support the bailout plan. I believe in free market capitalism and that means NO Govt. direct intervention in free markets. If they wanted to work with accounting rules or help structure an exchange to facilitate the sale of supposedly toxic assets or eliminating the capital gains tax to promote the purchase of distressed real estate.....  any number of things the Govt. could have done WITHOUT writing giant checks would be ok with me.


There is no question that we are in a serious mess. We can debate the hows and whys of where we find ourselves but the fact remains that 2 weeks ago Paulson and Bernanke were facing the very real fact that the financial system was neck deep in doo-doo and it was rising. BAD BAD things were about to begin happening and once the system stopped teetering and actually began to collapse the fall would be VERY difficult to halt. Time was the critical factor. If action was to be taken and be effective it had to be IMMEDIATE and OVERWHELMING.
Snip>
Fang

I was for the bailout, at the time it was introduced to everyone, just because I knew that the emotional reaction form the average taxpayer would cause a clusterf***, it needed to be done fast, and concise. I blame the Republican and Democratic house members who had access to all the advisors, for it or against it, who instead listened to their lobbyists, and to the angry taxpayer who didn't know the severity and end results of what waiting would do. Bloat the bill, handshakes accross the aisle, agree to get enough votes form the Republicans who aren't in a tight race, the ones who are can wait to vote until it passes, then keep their constituents happy by pretending to stand against it. I said last week what would happen and sadly I was right, this bbs was a great barometer of the emotional reaction without thought of the consequences, chest thumping and stomping your feet never solves a problem, americans thumped their chest and shouted, and then  meekly asked for a yes vote.