Video: Uncle Sam's Massive Bailout

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I lived in the US in the late 70s and was shocked when I had to have a credit record i.e. debt, to obtain credit at Sears, despite a substantial salary. I met people using one credit card to pay others. From an international perspective interest rates did not reflect the true cost of capital - even then. Since then each administration has fuelled "growth" with credit and deficit budgeting. US citizens voted for these administrations and took advantage of their lax financial discipline.There have been several bubbles and high profile cases of fraud and financial engineering, yet, despite severe sentences prominent executives by the authorities, citizens continued to run with the bulls. What does a house produce or manufacture? How can debt have value and be used as credit? Speculating with debt is irresponsible of you have dependants.
All must accept collective blame and responsibility. Sure, Wall Street went too far, but they were driven by shareholders and investors.
Bite the bullet and get back to real, fundamental value. Postponing the bitter medicine for future generations is contrary to all values that Americans represent, and hold dear. Do the right thing,now and pull together now - we are all depending on you!

Andre Pelser 10:12AM September 30, 2008

This will not be the first time the current administration was so sure about an imminent danger threatening the American way of life. Back Off. Do not give Misters Paulson and Bernanke so much authority and power over the US checkbook. Let things settle until after the current administration is out of office. Then, act accordingly. Whether the BIG BAILOUT happens or not the USA isn't going to vaporize.
Enough of giving this administration uber powers. Enough with the dire uber urgent call to action. Enough of trusting this administration with the wealth of this great nation. Enough is enough.

Carl Culbreth of FL 6:05PM September 21, 2008

I find the recent criticisms of President Bush over the current financial crisis particularly unfair. After all, has he not made it crystal clear, from the outset of his presidency, that his purpose in office was to protect the interests of the wealthy. From his massive tax handout to the rich, to his blatant admission that the haves and the have mores were his natural constituency, he cannot now be accused of deceiving the American public. If the American people chose to delude themselves that compassionate conservatism somehow applied to them, then they only have themselves to blame. Had it not been clearly demonstrated to them in the 1980s that the economic basements of the wealthy were watertight, so that very little wealth could ever trickle down to anyone else. Had not the concept of laissez faire governance caught this president napping at the wheel at successive crises, both man made and natural? Has the diminishing standard of living of middle America not been evidence enough? Did the rest of the world not plead with you in 2004 not to saddle yourself and them with more of the same? How therefore can this most transparent of presidents be now reproached when he has been so open about his ability and intentions. It has been made perfectly clear to you that, at the end of the day, terms like the invisible hand of the market, compassionate conservatism, de-regulation, tricke down economics, laissez faire governance and personal ownership, really means, you're on your own. If someone needs to be blamed, then you can only blame yourselves. You had been amply warned.

Dr M Santiago 5:54PM September 21, 2008

Stop working, or work less, thus you pay less taxes.
If you weren't in any debt yourself (like mortgages, loans, student loans, car loans, credit cards) think of how much LESS you'd have to work.
That's the secret.
No consumer debt.
Once you are in debt, you are slave to the master.
Now, Congress has sucked in everyone to their own debt.
But if you don't work, or work just to survive, and don't consume, Congress gets less and less tax revenue.
It is better to be poor in America right now, than anything else.
Good luck, Obama, taxing the rich. If you still can find anybody.
What a joke.
America is a joke!

doesnt matter of AK 4:28PM September 21, 2008

I finished viewing the Sunday morning news shows. I have been tuned to my radio and tv all week folllowing the unfolding meltdown of our economy.
It strikes me why now a quick bailout? Any law abiding citizen knows when it comes to money it is prudent NOT to make hasty decisions. Also "they" knew there were problems but never attempted to make any corrections. I'll tell you why. They were making too much money! What we have now is the government "holding a gun to our head" saying "Give us our trillion or we will send you into depression". Give me depression. At least the economy will finally fix itself and this time with some forethought. Our newly ELECTED leaders will decide where and how to dig ourselves out of this mess Bush and his cronies got us into. If Congress grants what Bush is asking then UNELECTED Secretary of Treasury, Paulson, will be granted sole custody of a trillion dollars with no restrictions. How will we have any guarantee the money will go where best suited and not simply to his favorites, simply on his say so? Unbelievable!
Also government owning all these companies is called, "Socialism".
They say if Congress accepts Bush's demands it will takes DECADES to dig our way out of this mess. It would be faster and more legitimate to let the economy go ahead and stablize itself, even if it does bust. At least it would flush all those crooks out of the woodwork.
When are we going to say "Enough is Enough"? This situation is outrageous! What have our politicians been doing?

c parker of TX 12:55PM September 21, 2008

I am buying these failed outfits with money that I do not have, my son John does not have, his wife does not have and their dog does not have--and neither does the U.S. government!
My government is taking good care of me by mortgaging my children, grandchildren, great grandchildren and many generations yet to come to China, Saudi Arabia and some other countries that would love to bring my country to it's knees.
But they can't until it gets up off it's back and rises to it's knees from where this leadership has put it.

HillbillyBill of TN 12:05PM September 21, 2008

There are only three actions to be taken for a failed mortgage. Refinance with a new loan placing the amount in arrears at the end of the note, a partial foreclosure forfeiting all equity but placing the property under a management contract for lease to the current resident or a complete foreclosure to lease or resell the property to a new owner. All three actions can be managed by local realtors and/or property management agencies. The administration is looking for a fast repair to a vastly complicated situation on a macro-level when it is best handled locally by persons familiar with local markets. This administration simply wants a band-aid to get to January when they will pawn the problem to the next administration. It is vital that Congress be prohibited from loading pork on the bailout wagon as they always must use every opportunity to push their agendas. This situation does not allow for agenda advancement only a no-frills, stick to the facts plan. Since this issue deals with investments made upon these mortgages, the administration wants a quick bailout to protect investors without regard to the mortgagees or the instruments in question. By handling the mortgage notes first the investors will be satisfied in time but no quick fix can be accomplished without first repairing the mortgage notes else rampant inflation and irreparable economic damage will occur. This is one instance where simply writing a check will not suffice!!! Regardless of everything else, no bailout must occur until the rules of granting mortgages are modified to prevent recurrence of this situation. Efforts to loosen credit markets must not include granting poor credit risks simply to promote economic activity. This is what caused this mess in the first place!!!

Ray Fisher of NM 10:35AM September 21, 2008

I agree with you 100% SimonSez.The only thing we americans get is just more crime,poverty,dispair,rape,proliferation of drugs,gangs, and lost of even more jobs.I`ve been to lots of other countries and listen as people(particularlly youger people)talk about how they would love to live in the U.S..Some of these people have it way worst than those that live in the ghettos here, so i can`t blame them, i`d want to get to theU.S.of A. too.However i tell them as an individual born and bread here, you have to play the game in order to survive.It matters not what profession, or vocation you choose because when you come here, though you may start off playing by the rules, being all nice and sweet, thinking people really care about you and stuff like that.One will quickly discover that it`s not at all like it is on T.V.,so inevitalbly one ends up doing like the rest of us-surviving.How do you do this?The same way our leaders in goverment,buisness,church, and whatever or wherever do-LIE STEAL CHEAT(not exactly in this order).Now be carefull here, because if you get caught, the punishment is not the same for everybody.Allow me to explain-you see, if you`re in the o`l boys club,i.e. big buisness,gov.officials,lobbyist, and other kinds of pollictical proponets of something or another-then you only get a slap on the hand(if that), and sent to your room in your stupidly huge mansion, and figure out how to do it all over agin.BUUUUT if you`re not in the club... oh you go straight to hell, i mean jail(same diffrence).Republicans idea of-if wealthy buisnesses/owners are doing well, this will trickle down to the rest of us.The problem is that what really happens is that it(wealth)windfalls the rich, and would trickle on the rest of us if you guys were`nt so darn GREEDY.So now the few people whom have been making millons off the millons of us who only have thousands(if that much)need us to bail them out.Gee, now that i have a huge stake in some of the world`s monster financial houses, i wonder can i get some of that wealth to trickle down on me.Or i`m i too far down?.

BIG WILL of IL 10:23AM September 21, 2008

The average American could not believe that the largest, most prestigious Wall Street banks and investment houses
were engaged with Washington in managing the largest capital market in the world – the US mortgage markets – on
a criminal basis.
Completely safe from lawsuits, no responsibility to pay back money from tax payers, all under the guise of responding to the needs of Americans; to safeguard us from untold financial ramifications Congress, Democrats and Republicans add to the $54 trillion deficits!
Congress is saving us from immediate financial disaster by creating a monster black economic hole that will bury our children and allow other nations to dictate American policy in the fine print of future loans.
So what has evolved is a corporate and banking model to run in America that has no connection whatsoever to fundamental economics or business. It is not efficient, it is invisible to the public, it does not compete and it is not productive. It has absolutely nothing to do with capitalism or free markets or free enterprise.
America does not have an economic problem it has a political problem, "CONGRESS!" They are stealing us blind all in the name of our benefit, because they know what is best for us, better than we do! When America cannot afford to cover its debt Congress will put their hands back in our pockets for our benefit. How Patriotic!
Americans have had it, because there are no candidates with courage, conviction and the public's best interests at heart to call them on the money they are stealing from us.
Taxpayers get no compensation or payback for saving all of Fannie and Freddie’s equity and — in essence — guaranteeing their income. The management of Fannie and Freddie get to keep all their compensation and bonuses. They get to spend as
much as they want on more lobbyists and law firms. They and their foundations can continue to hand out money to universities and not-for-profits.
And candidates running for President.
When has anyone heard when American's will be paid back!? Only government bureaucrats and congressmen make out.

SimonSez of CA 10:40PM September 20, 2008