Up Next: Son of the Mother of All Bailouts

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It's very caring and generous of us to cover the greed of such nice CEO's as Richard Fuld of Lehman Brothers that ruined that firm and robbed it's investors and left with 500 million dollars of their money (now our money).

HillbillyBill of TN 8:36AM October 06, 2008

I don't like the plan, but if the economists think it necessary, let me suggest an off-the-wall modification. First make sure the homeowners have the means to pay for the new fixed mortgage. If not, offer them an option to move to a less expensive home they can afford, losing perhaps whatever equity they may have in the one they cannot afford.

Kenneth Jones of PA 11:43PM October 03, 2008

My family is made of two different types of people. One side spends their way to hell on credit, the other saves and uses only cash to buy homes, cars, etc. That's right cash. My mother owns everything she has free and clear. My cousin owes 350k with NO EQUITY. Don't bail her dumb a@@ out. She needs to learn the hard way.

Pointer, R of MO 4:34PM October 03, 2008

My family is made of two different types of people. One side spends their way to hell on credit, the other saves and uses only cash to buy homes, cars, etc. That's right cash. My mother owns everything she has free and clear. My cousin owes 350k with NO EQUITY. Don't bail her dumb a@@ out. She needs to learn the hard way.

Pointer, R of 4:34PM October 03, 2008

If we had stuck to capitalism -- a system in which corporate welfare has NO place whatsoever -- we wouldn't be in this mess in thef irst place. We need to get back to that and not fall deeper and deeper into socialism. Before much longer, the United States of America will be more communist than China or Cuba.
How have we let this happen?

Chris of WA 4:24PM October 03, 2008

Why is it that all these politicians-- and apparently economists as well-- ignore a fundamental financial truth: you cannot make money loaning at 5% when inflation runs 7%. The "official" inflation rate, which hit 6.8% at times this past year, understates the real situation, which could be 6-8 points higher. And as long as inflation threatens earnings, it doesn't matter how much money lenders have. They won't lend it because they can't make money. If you want to free up credit markets, get inflation under control!
As for the bailout, it's nearly as inflationary as it's possible to get. It will triple this year's federal budget deficit, and the money will come from printing more money (the definition of inflation) and/or borrowing (putting the Feds in competition with Main Steet America for the limited supply of lending). How stupid is that?

DJ of UT 4:21PM October 03, 2008

You can't set market price levels by government fiat. Not indefinitely. If there are more houses than buyers -- and there are, and have been -- then prices will go down. Period. Artificial price supports can postpone the drop, but not eliminate the problem -- that homebuilding outran the rate at which renters were able and willing to become homebuyers.

JohnFromConcord of MA 4:04PM October 03, 2008

building any new houses for a couple years. Assuming about
a 500K unit per year build rate at $50K in profit apiece,
that could be accomplished for $50 bil.
Do that and eventually, housing prices would stabelize.

KJ of IN 4:01PM October 03, 2008

all well and good - until 3 months down the road when they can't pay their mortgage because they don't have a job. What then?

Del of IL of IL 3:29PM October 03, 2008

I am absolutly in favor of helping Mr. and Mrs. Middle America hold on to their houses vs Wall Street Bail out. There would be no credit crunch if these banks were forced to do just what was described in this "Son of mother of all bailouts" in the current bail out package. Please remember these financial institutions are making billions off the backs of those of us who have not defaulted on our high interest loans. Those of us who cannot drive where we want, donot eat what we want, who go without new anything just to try to save our homes.
From my perspective this bail out now onbooks does nothing to address the root cause of the problem. Stabalizing the housing market by rewriting these loans does.

Kyhoya of OR 1:24PM October 03, 2008