Bail Out Time?___Until NEXT round?

[Julio E. Sune Jr. (FL)]

http://money.cnn.com/2008/07/23/news/economy/housing_bill/index.htm?postversion=2008072309

I still do NOT see anything regarding lender pressure!!!!!

 

[Mark to market]

It looks to me like congress will throw some money at the GSEs and it will be business as usual. Unfortunately with the GSE being allowed to grow even stronger, appraisers will be facing more and more challenges in the future.

As we watch the GSE debacle unfold, it is interesting to note that the political party whom normally boasts of being against corporate excesses is the same one solidly backing the status quo for the GSEs.

Continuing to privatize profits and socialize dept is hardly change we can believe in.

 

[c w d]

If the ship is sinking do you patch the hole or re-engineer the structure? You patch the hole. And that is exactly what the government is doing. It's easier this way.....

 

[Riick]

I feel like this election is same as 1980.
Whoever wins gets to be Captain of the ........Titanic
.

 

[Mark to market]

The mantra for Fannie and Freddie is that they make housing more affordable.

In actuality if the companies were nationalized borrowers could see savings of up to 1% on their interest rates. The new companies could borrow at lower rates, there would be no need for dividends, quarterly profits, political donations, more then 20 executives making more then a million a year and a few making over a hundred million in bonuses.

Keeping the status quo is a slow bleed.

 

[Michigan CG]

I feel like this election is same as 1980.
Whoever wins gets to be Captain of the ........Titanic
.

Ronald Reagan saved that Titanic.

 

[Riick]

Ronald Reagan saved that Titanic.

So I seem to remember.
But not by printing more $$ to help a situation caused by too much $$,
nor by making large new loans to help a situation caused by too many large loans.

Mr. Volker... where are you now when we need you?
((.. and of all things he was, and is, a Democrat -- so much for demonizing people for their politics ))
.

 

[Mark to market]

The bailout is a paper over, designed to put off needed changes to the future.

Per a WSJ piece today “ any money given to the GSEs should have been conditioned on receivership……the rescue will delay a housing market bottom while giving taxpayers new risk”.

My main issue with this bill is that the GSEs with their focus on short term profits is what caused this debacle and the housing bill will not only let them continue running business as usual but will let them emerge stronger. Trying to stabilize the markets while conferring omnipotent status to corruption will eventually come back to bite us.

 

[Mark to market]

Both sides of the isle are hoping that the Bill may help stabilize markets and keep bank stocks from dropping.

The difference in the two sides is that the Democrats want;

Fannie, Freddie to be given taxpayer money and allowed to continue running business as usual with no penalties or changes in the boards that created the mess.
No restrictions imposed on the GSEs for political donations.
Pork spending for housing counseling which will set up a slush fund for left wing activists such as ACORN. Pork spending for community development and a first time home buyer tax credit.
The new regulator not to have any more power and in any case not to take office until after a new (hopefully more lenient) administration is in place.

 

[moh malekpour]

The system is set to privatize the profit and socialize the loss.
The system is telling the corporates and big banks that if you make profit you can keep it all for yourself because we are capitalist and free marketeer . We even cut your tax because we want you to be wealthier. But if you are reckless and lost money, then we are socialist and are going to collect money from the rest of society to bail you out.
Isn't it a good deal? if you make money, you are on your own. If you lose money, the government is going to bail you out.