both parties are crooked. They bail out their greeddy banker friends every decade or so.
Just as Bush was 'over the top' on torture, declaring elective wars, domestic restrictions, and war borrowing, he's over the top on bank bailouts.
The good news is that if 65% of Americans pay their mortgages as planned, this deal will make us $ in the long run. Currently, over 90% of Americans do pay their mortgages.
Besides, Donald Rumsfeld waited until late afternoon on Sept 10, 2001, to admit the pentagon had lost $2.3 Trillion. It would have been the story of the decade, except the next morning a plane (?) happened to land in the room at the pentagon at 9:32 AM. This just happened to kill everyone involved in that 2.3 trillion lost.
Money never recovered. Everyone involved dead. most likely a 9:30 AM meeting getting everyone there. Coincidence, huh?
My problem with this is that how many of these loans are fraudulent loans not really backed by real estate? Also, Who is going to buy all these foreclosures when people are strapped now?
Far from stabilizing the housing market, I think this is going to make prices fall even lower, which sucks for the homeowners in these areas trying to sell their homes now.
If liquidity is a problem, the govt can make new money available for new loans based on sound lending principles, but buying bad subprime loans seems stupid to me.
I myself blame the mortgage brokers for pushing many phony docs on the banks and the banks themselves for not duing due diligence on the borrowers as far as assets and income goes.
Giving out loans in the name of fairness to low income people is just irresponsible and should never have been done. All it did was drive the cost of housing up so high that the only way people could afford these stupid homes was through these stupid loans.
The congress is also to blame, mostly B. Frank and dodd for blocking all efforts to reign in Fanny and Freddy from pushing subprime loans.
Blaming Bush for this is stupid. He is to blame for a lot of things, but this aint one of them.
BTW, ZERO collected more money from Fanny and Freddy in the last 4 years than any other Senator and also had Ted Johnson on his campaign committee who looted the company of tens of millions of dollars. Ex clinton officials Franklin Reigns and Gorelick did not do so bad themselves either.
