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Yup. 700B is gonna be peanuts compared to what's really gonna be lost.....and directly lost also. Not some 700B investment in iffy mortgage loans that might even be a profitable investment, but serious sh.. hitting the fan within weeks.......z
Sorry Republican
I am for the bailout. I just want pees to know when Newt say let Wallstreet pay for it what that means.
WE PAY FOR IT with our invested dollars.
An I'm a reg. Republicans but I like the truth and thanks zardiw
we did today 1.4 trillion -e-
Want a real hoot?: http://zfacts.com/p/447.html
Just puts things in perspective doesn't it. We spend just a little less to bomb and invade a 3rd world country, but when it comes to the home front...oh no...that's so expensive..the taxpayers shouldn't pay for it...lmao..
z
Final Tally by Member. When November rolls around, you will know who to vote for: http://clerk.house.gov/evs/2008/roll674.xml
z
And 133 Republicans voted NAE...bipartisan my ass........lol..et z
Yeah, but 94 Democrats voted against it......et z
And you can blame that bitch Pelosi for the failure, with her little partisan speech right before the vote.......z
Yup. Those Aholes are fiddling while we burn......et z
And besides. It's not like it's a GIFT. The godernment will buy the bad mortgages. Backed by collateral probably. They could conceivably even MAKE money.........z
There will be no effect on us taxpayers if they do the bailout. It will be printed by the FED, and added to the 9 trillion national debt. So what. Every penny of the income tax revenues goes to paying the interest on that anyway.......z
Isn't this pay now or pay me later?
'clobal'
My initial reaction was to blame the Federal Reserve. Specifically because they are supposed to be charged with sound banking and preventing asset bubbles. If they find that banks are making unsound loans, they are supposed to close the discount window to those banks.
However we cannot ignore a few facts that have legislated the creation of money away from the Federal Reserve. Enter Humphrey Hawkins legislation which makes Federal Reserve policy subject to the President. Enter Fannie, Freddie and Wall Street Investment banks not subject to the Federal Reserve and in addition, the Community Reinvestment Act.
When you legislate all these things around the Federal Reserve then the Federal Reserve has been legislated out of authority to do anything because they can be trumped by another entity.
I am not saying the Fed was blameless by any means, just that they have been watered down and legislated out of a full position of power over monetary policy.
I am not saying the Fed was blameless and should have done more to stand in the way, but they are subject to the president and full employment over monetary policy.
Unfortunately this left nobody responsible to point the finger at when crap hit the fan. Had the Fed not been legislated out of its role, things might have been different because it would be Feds arse on the line. The result of legislating the Fed out is now we have fingers pointing in five different directions with no sole entity to blame.
Derb
And that stupid email that's going around about giving the bailout money to us taxpayers has BAD MATH. 700B divided by 200M is only 3,500, NOT $425,000.........lmao.......z
The root cause was the Community Reinvestment Act...Google it.
It was a Mandate by our illustrious godernment to FORCE banks to make bad loans.........z
Is anyone listening to Newt Gingrich on Fox news? What exactly is he suggesting in terms of suspension tomorrow?
I would like a little.
How and where is Wallstreet supposed to bail us out.
Isn't your's and my 401k or retirement where the money will come from.
This happened on somebodys watch...
One of the few positive developments from the housing bubble is that many mainstream economists have recognized the pernicious role played by the Federal Reserve. Indeed, some analysts on CNBC have discussed the outright abolition of the Fed.
The case against the Fed is straightforward: In an attempt to jumpstart the economy out of recession, Greenspan slashed the federal funds target from 6.5% in January 2001 down to a ridiculous 1% by June 2003. After holding rates at 1% for a year, the Fed then steadily ratcheted them back up to 5.25% by June 2006. The connection between these moves by the central bank, versus the pumping up and popping of the housing bubble, seemed to be more than just a coincidence. On the contrary, it looked like a classic example of the Misesian theory of the business cycle, in which artificially low interest rates lead to malinvestments, which then require a recession to correct.
Did the Fed Cause the Housing Bubble?
Really....for instance ?
'hitdabong'
Well when we finally do bring our troops home, what do they come home to? It is not going to be the same America they left when they went out to fight for their country.
Derb
venting and keeping up on the situation. May not make jacks but you could save some.
A complex dilema . I have listened intently to the pro-bailout and con-bailout arguments and regardless to the merits of those opposing arguments the indecision has inflicted global market losses that will likely be many times worse than the U.S. Gov't's poison pill remedy .
Effective immediately the SEC should ban all short selling in all stocks and the U.S. Congress should immediately authorize
Banks to raise their Outstanding Shares for immediate sale to generate cash money , thereby providing cash liquidity until the Gov't can implement a viable Act . The Gov't could buy as many newly created O/S shares as necessary to support the equity , to equalize the demand factors to the increased supply factors .
WaMu , Wachovia , and a host of other publicly traded Banks could have averted being under-capitalized as the infusion of cash for NEW O/S would have countered the run on cash , and thusly circumvented FDIC interventions ....er ...I mean INTERFERENCE . This pandemic is as much about cash (il)liquidity as it is about bad loans , as I see it .
Renee
tough questions dude
Right now they are worried about fixing banks but what they really need to do is start worrying about fixing jobs and fast from the people I am talking to.
Derb
I watched a show that said for every one killed 100+ people become one because of the death of the 1 makes the people mad
so if the 700 bill gets in later won't it make the inflation sky rocket and degrade the dollar even more
when people make boards and they become a success, any money in this? or people just do it to waste time?
you kill one terrorist and another is born.
trust me i know this stuff
It wasn't happenstance that the terrorists...
hit the World Trade Center. Their target was more symbolic of their objectives than strategic.
I wonder if somewhere in the world, Osama is posing for a photo op with a large Mission banner behind him...
good question. I am guessing no. The good part of the great depression in the '30's was the reform in government. We could only be so lucky.....without the great depression part
I'd be interested in seeing a breakdown...
by income level as to who's in trouble. Or maybe more telling would be the the breakdown in terms of home value at the time the loans were originated.
I think that's to be expected and it pretty much what the politicians want.
The real question is do the politicians comprehend it?
The majority of people i work with do not comprehend it.
We spent the last five years chasing terrorist in the deserts while all along the financial terrorist were here at home working full time for our own demise. I think America has finally woken up from it's slumber and complacency and realize that a financial dirty bomb has been lit off and suddenly all financial assets are radioactive.
Asian markets are not going to like this at all.
Interestingly, I had people call or stop by today that I had not talked to in months or years even. Sad state of affairs we have ourselves in.
Derb
August foreclosures hit another high. There were 304,000 homes in some stage of default last month, and 91,000 families lost their homes.
By Les Christie, CNNMoney.com staff writer
Last Updated: September 18, 2008: 3:22 PM EDT
NEW YORK (CNNMoney.com) -- Foreclosures hit another record high in August: 304,000 homes were in default and 91,000 families lost their houses.
More than 770,000 homes have been repossessed by lenders since August 2007, when the credit crunch took hold.
The report from RealtyTrac, an online marketer of foreclosures properties, is the latest in string of bad news for housing.
Foreclosure filings of all kinds, including notices of defaults, notices of auctions and bank repossessions, grew 12% in August over July, and 27% compared with August 2007.
The 27% jump over last August represents a more modest year-over-year increase than in previous months, but that's only because the housing crisis was already underway in August 2007, which saw a big spike in foreclosures.
"In August 2008 the total number of U.S. properties that received foreclosure filings, as well as the national foreclosure rate, were both the highest we've seen in any month since we began issuing our report in January 2005," RealtyTrac CEO James Saccacio said in a statement.
Fannie Mae (FNM, Fortune 500) chief economist Doug Duncan isn't surprised by the swelling numbers. "It's been my view for a long time that foreclosures won't peak until the last three months of 2008," he said.
And now that the nation in a recessionary economy, with job losses exceeding 400,000 a month, Duncan speculates that the foreclosure crisis may be drawn out even longer.
"We've been saying that the foreclosure trend has not yet peaked," said Doug Robinson, a spokesman for the foreclosure prevention organization NeighborWorks America. "Before it was a subprime problem," he said. "Now, it's everybody's problem."
Putting filings on hold
The August figures would have been worse, had it not been for new legislation passed in several states, including Maryland and Massachusetts, designed to make lenders wait before filing notices of default.
In Massachusetts, for example, a 90-day waiting period went into effect on May 1. Every Massachusetts homeowner now has to be notified of their lenders's intention to file a notice of default against them, and they get a 90 day window during which they can attempt to bring their payments up to date. Lenders are prohibited from filing a first notice of default until after that period.
The impact has been immediate. RealtyTrac recorded no new notices of initial default for the state during August. That helped drive down total foreclosure filings in the state by more than 46% compared with last year.
Other states didn't fare as well. Nevada once again had the highest rate of filings in the nation. One of every 91 households, or 11,706 families, received a foreclosure notice of some kind during the month, and more than 4,000 others lost their homes.
More than 101,000 Californians received foreclosure notices, which comes to about one in every 130 households, while more than 33,000 people there lost their homes. Arizona had the third-highest rate with one out of every 182 households in default.
All of these states saw tremendous home price run-ups during the boom, which meant that many buyers had to use exotic, risky loans in order to be able to afford a home. These mortgages include subprime, hybrid adjustable rate mortgages (ARMs) that feature two or three years of low introductory rates before the loans reset to higher, often unaffordable levels and cause borrowers to default.
In some of the other hard hit states, such as Michigan (which had one filing for every 332 households) and Ohio (one filing per 444 households), which never saw a housing boom, delinquencies are being driven by fundamental economic woes like unemployment, rather than pricey real estate.
Eight of the top 10 worst performing metro areas were in California. Stockton, in the Central Valley, had the highest rate in the nation with one in every 50 households receiving a foreclosure filing during the month.
"You go up and down the central part of [California] and that's where you're seeing the carnage," said Rick Sharga, RealtyTrac's director of marketing. Home sales are actually up in many of these cities, the prices have dropped, often precipitously. "What's selling is the bank owned properties," he said. To top of page
First Published: September 12, 2008: 5:06 AM EDT
http://money.cnn.com/2008/09/12/real_estate/foreclosures/
IB, I didn't go back 3 years but found that article for you in a quick search.
JJ
IRISHBULL nice board good idea.
pretty much so lol
I think many people don't realize that if they don't do the bailout it could be worse for the little people.
No one wants to see the fat cats getting off easy with their golden parachutes, but from what I've heard if something isn't done, it will affect all of us adversely. Major corporations like GE routinely borrow money for operating costs such as payroll. If these companies can't pay their employees there will be layoffs.
This isn't something that happened overnight and if it were possible (which it isn't) I would like to see all Congressional incumbents voted out of office this year.
What exactly do any of these politicians do for us anyway?
Thanks IRISH, I had looked at the website earlier but I didn't notice the flash video.
Who wouldda thunk I would even be interested in this but I found out today that the firm where my work Simple IRA is never heard of SIPC.
It kinda scared me a little bit.
Many in congress that are up
for elections in nov. voted against the bailout....many of their constituents have been calling them telling them to vote no.They want to be re-elected.
Some bailouts work...some dont....
http://www.propublica.org/special/government-bailouts
Susie, this will answer all your questions, there's even a flash video on the home page, hope this helps
http://www.sipc.org/
Now thats progress...
THE BUSH ECONOMY
DOW CLOSES LOWER TODAY THAN FIRST DAY OF BUSH'S PRESIDENCY
Not necessarily about the bailout but I have a question and there seems to be some savvy people here.
What exactly is SIPC insurance?
I know that brokerage accounts aren't covered by FDIC because if the stocks go down (like mine do) it's a risk that you take.
What happens if the brokerage just shuts the doors and therefore a person can't sell anything they have or in the case of a 401K or Simple IRA type of thing.
Is that when SIPC insurance is important?
Nice to know "playing politics" is more important than people's retirements etc.
good to know!
seperate > fnm fre is fha and they were takin over by feds
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A board to discuss the Wall Street bailout and voice your opinion as to what should be done
Proposed bailout of United States financial system
http://en.wikipedia.org/wiki/Proposed_bailout_of_U.S._financial_system_(2008)
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