Rescuing the Big Bailout

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As a young american, father, and hopeful prospective homeowner, the collapse of the faulty loan pyramid scheme that tripled the cost of real estate over the past 15 years is exactly what we were waiting for.
The US Government has been knowingly inactive during the entire hyperflative upsurge in real estate that has left my generation, quite simply put, INCAPABLE of ever owning a house due to stagnating wages and skyrocketing real estate values.
This returning of real estate to it's true value (affordable by the median family income of the area in which it is located) is not being hampered by government plans to "stabilize" the hyperinflated real estate market, by assuming and then sitting on all of the real estate assets refusing to let them drop back to affordable levels.
This entire fiasco is a result of lending companies doling out loans to people that only needed to qualify for "minimum" payments on negative ammortization loans, and "interest only" payments on deferred principal loans, so that these people could inflate real estate values and resell the property for profit. Quite simply put, they were running a Ponzi Scheme on the real estate market that caused the real estate sale price to go up up up.
If this act is enacted, my generation will grow up homeless in our father's land, and take a direction inflationary paycut of nearly 20%. This is absolutely insane. Not one person has said anything in regards to how this affects us. Instead, we everyone crying about thier house losing value, when it shouldve never gained value in the first place. We have lending companies begging for a bailout from the US Government, while the executive running the lending pyramid schemes get to walk away with 50 million dollar a year salaries, exempt from having thier assets seized, and exempt from incarceration.
The entire talk of a bailout plan is ludicrous. The members of congress that allowed this to happen, the executives of the lending companies that intentionally executed this scenario, and the people that profitted off "flip that house" scams over the past 15 years should be in jail, with all of thier assets seized and returned to us.
Lastly, the most ridiculous part about all of this, is the fact that Congress fat cats get to vote on this issue, when they have a vested interest in seeing that these companies don't collapse, while I end up getting nothing but the shaft, and am not even allowed to vote against it.
Wow! Just WOW!

Jason Stevenson of CA 7:49PM October 01, 2008

Congress should first fund the bailout with the congressional pensional fund. They created this mess and they should put their money on the line before any public money.
From reading the limited actual facts about this mess, it is obvious it is the spawn of congress, who set up loose regulatory controls then further loosened them to support their liberal agenda. Barney Frank personally blocked the Bush administration who asked congress to tighten up on Fannie Mae and Freddie Mac in 2003.

BL Kitzel of KY 9:40PM September 30, 2008

SO WHAT - loan money not available?
Reduce debt, limit credit card spending, live within our means.
Not a bad idea.
Maybe we have to be forced to do it.
Maybe this is the time.

Debt Free of TX 2:48PM September 30, 2008

Carpe Diem Blog (the UM economist) posts graphs that put the lie to the notion that banks are not lending. Lending in all categories are at all time highs through 9/15/2008. Professor Perry rightly asks: Where's the lending crisis? See http://mjperry.blogspot.com/
It is being whispered (actually stated in the press) that banks stopped lending because THEY ARE WAITING FOR THE BAIL OUT BILL to be passed by Congress, not because there's no "transparency" into the balance sheet of borrows, as we've been lead to believe. So, we're supposed to believe that the banks had trust until 9/15/2008 and made loans, but all of a sudden they lost trust due to lack of transparency and trust. I call that a crock.
Also, my friends, take a look at this choice chart from the St Louis Federal Reserve branch: http://research.stlouisfed.org/publications/usfd/page3.pdf
It shows a spike within the last week of money, $100 billion worth, into the economy by the Federal Reserve---so the Fed is already doing what the bail out was supposed to do. They are already 1/7 of the way there, even without a bail out bill. Why stop now? There's your liquidity. Why no loans?
A lot of questions have to be answered before any mere mortal, any mere citizen of the United States, can make a reasonable judgment on the need for any legislation. The evidence, so far, does not come close to backing the Henry Paulson and the other "smartest guys in the room." Count me out until they stop patronizing and sneering at the very people that will pay this bill.

Marc of MI 1:59PM September 30, 2008

This bailout is for corporates not citizens. What about the government setting aside the 700 billion as loan money, and then loan the money to the individuals duped into purchasing/buying more then they should. The government then garnishes their wages for repayment. Its not fair to folks that take care of business to pay for others mistakes and misguidings.

gene s of TX 12:00PM September 30, 2008

Why is it that only the administration and government lackeys seem to be worried about the bailout and of course the silent masses who have lost their retirement accounts due to mismanagement??? It appears that the majority of our nation can survive without the bailout so I'm wondering just who this bailout will help. The news outlines the entities affected yet they seem to be adjusting without government assistance. Perhaps this is much ado about nothing!!!

Ray Fisher of NM 11:19AM September 30, 2008