Re: Hopes for ‘Clean’ Bailout Bill Gone

Renfro — Thu, 25 Sep 2008 14:12:08 -0000

You are exactly right about a sovereign wealth fund or similar agency or even one already existing like the already bailed out Fed and Fan being the proper way to reconstitute the bad mortage loans. I would even suggest that the money and oversight of this then be deployed to State Housing Agencies who would be easier to oversee and are more experienced in their own markets. "If ' it is going to be done at all , and frankly I am opposed to it.
There are other companies who will eventually step in and there is enough investor money looking for a place to go that will be injected to loosen up lending and credit.

I noticed in the Dodd plan that he wanted to foist off any 'leftover' property that Paulson's plan couldn't sell onto the states, where we the taxpayer would have to once agan pony up for the states to purchase these properties and then try to resell them.....getting it off the fed plan and throwing it onto the states..double dipping.

While I am not an economist my family has been in banking and commerical real estate and commerical construction for 140 years so I have a birds eye view of exactly what has gone on.

With this bailout we are also propping up the 'bubble' in financials and real estate that the Fed allowed to happen with easy and cheap money in order to stave off the deflation they were afraid of in the late 90's.

This is a WS and 'bubble bailout and will not work, it's is a scam, a stopgap....and when it doesn't work the second fall will the be last and that will be everyone's real nightmare.

I don't know what else to say to warn people of this move.....except to consider that as congress plans to hand over 700 billion of our money to Paulson who wants to keep on the CEO's who created this mess to "help us solve it", the FBI is investigating both AIG and Lehman and their CEOs for financial fraud and so informed congress over 2 weeks ago....and still congress is even considering buying the bad assets of these two institutions and Paulson wants the CEO's to be rewarded and brought on board the bailout??

How to put this in a common sense way? ... we taxpayers are giving a bankrupt insurer the money to pay off the value of a house the owner himself burned down and building him a new house and getting the ashes of the burned down house as payment.

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Re: Hopes for ‘Clean’ Bailout Bill Gone