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Just a question for you financial and economic gurus. Instead of the government giving the money (loan) or whatever directly to the corps, why don't they just pay everyones mortgage off. I mean its our tax money and at the same time it still goes to the corps and allows them to get all these loans off the books. I think 85 billion ought to do it. Because, one way or another we will still pay with our taxes when 5 months etc. down the line when a bank or company like AIG for example declares bankruptcy anyway to get out from the debt. That gives the fat cats enough time to pull their money out and leaves us holding the bag as taxpayers while everyone is still in debt. In my small mind I see all these bailouts as a double whammy on the working class taxpayer. We get none of the benifit and pay twice to keep the hedge fund managers, ceo's, etc. fat while we get poorer and poorer. I understand not everyone deserves to get their mort. paid but it seems better to benifit the many over a few. I also realize renter get screwed but they don't get any help either from the current mess other than the same higher taxes. I may be crazy but it just seems like a another huge transfer of wealth to me.
Just a question for you financial and economic gurus. Instead of the government giving the money (loan) or whatever directly to the corps, why don't they just pay everyones mortgage off. I mean its our tax money and at the same time it still goes to the corps and allows them to get all these loans off the books. I think 85 billion ought to do it. Because, one way or another we will still pay with our taxes when 5 months etc. down the line when a bank or company like AIG for example declares bankruptcy anyway to get out from the debt. That gives the fat cats enough time to pull their money out and leaves us holding the bag as taxpayers while everyone is still in debt. In my small mind I see all these bailouts as a double whammy on the working class taxpayer. We get none of the benifit and pay twice to keep the hedge fund managers, ceo's, etc. fat while we get poorer and poorer. I understand not everyone deserves to get their mort. paid but it seems better to benifit the many over a few. I also realize renter get screwed but they don't get any help either from the current mess other than the same higher taxes. I may be crazy but it just seems like a another huge transfer of wealth to me.
I'm not sure you are following the gist of where the money would actually go etc. It's not being loaded into a truck and driven over to the CEO's house.
So, before you start exclaiming about fat-cats, explain to me in financial and economic terms what the bailout means, who benefits etc.
What are you talking about?? 85 billion doesn't cover even a little bit of mortgages out there... its well into the trillions of dollars... i don't understand liberals sometimes... its as if they forget its TRILLIONS and not BILLIONS...
What would the government get back from home owners if they pay the mortgages off? Should the government get the property?
The government is loaning money (or seizing assets) of the companies for a higher return than their debt service (treasuries). They are in no way doing all of this for nothing.
The government has already thrown a bone toward home owners. By seizing Fannie and Freddie, the government has essentially lowered rates (since the government debt service is measured by treasuries) and created some more liquidity in the markets. Essentially the government is giving loans out to home buyers/home owners through Fannie and Freddie. I'm sure those who are part of the 88% increase in refinancing last week are thankful.
"The Refinance Index increased 88.1 percent to 2300.0 from the previous week and the seasonally adjusted Purchase Index increased 2.4 percent to 380.4 from one week earlier. The Conventional Purchase Index increased 5.3 percent while the Government Purchase Index (largely FHA) decreased 4.5 percent."
Applications Increase as Refinance Activity Surges In Latest MBA Weekly Survey - Originator Times (http://originatortimes.com/content/templates/standard.aspx?articleid=3532&zoneid=3 - broken link)
So, yes, the government has already performed a similar bail out measure by seizing Fannie and Freddie.
In the future, in October, when they actually provide money for cities... they'll actually do even more by buying up assets.
Not trying to raise any stink or claim some liberal throne. Just wondering, never said I was a financial guru or anything. So, I am wrong about the debt, that is exactly what I wanted to know. I was just thinking as I watched the news today why don't they do it some other way, thats all, seeing as how we are gonna be paying anyway. For what its worth , I'm not a liberal or a republican. I really liked some of what Ron Paul had to say, but as far as the rest I think all of them on both sides are opportunistic crooks. Thanks.
Just a question for you financial and economic gurus. Instead of the government giving the money (loan) or whatever directly to the corps, why don't they just pay everyones mortgage off. I mean its our tax money and at the same time it still goes to the corps and allows them to get all these loans off the books. I think 85 billion ought to do it. Because, one way or another we will still pay with our taxes when 5 months etc. down the line when a bank or company like AIG for example declares bankruptcy anyway to get out from the debt. That gives the fat cats enough time to pull their money out and leaves us holding the bag as taxpayers while everyone is still in debt. In my small mind I see all these bailouts as a double whammy on the working class taxpayer. We get none of the benifit and pay twice to keep the hedge fund managers, ceo's, etc. fat while we get poorer and poorer. I understand not everyone deserves to get their mort. paid but it seems better to benifit the many over a few. I also realize renter get screwed but they don't get any help either from the current mess other than the same higher taxes. I may be crazy but it just seems like a another huge transfer of wealth to me.
Very interesting. Sometimes I wish I had such a simple view of how the financial world works. In a way I envy you. You make it seem so uncomplicated.
er... Fannie and Freddie has about 80% of the market (I think that's what it is) and they have outstanding mortgages of $5 trillion. So, no I don't think $85 billion makes any difference at all.
the bailouts so far have been $900 billion worth... they could use that for a lot of other things, education, health care, infrastructure etc. etc.
The government helps their friends on Wall St. they could care less about the interests of the average American on Main St.
They know a lot of the general populace is ignorant and can easily be hoodwinked, have you seen McCain and Obama. They make all these promises and everyone claps and cheers when in reality they have absolutely no clue how they are going to achieve any of those things. Chances are they will get elected and continue the tradition of contributing to corporate socialism.
I know it is much more complicated and I realize that pensions, etc. are at play. Just like dreaming about hitting the lotto, I was just thinking what the heck it is all just a big casino and electronic digits today anyway. Just threw out a stupid thought to see what someone else was thinking. We give billions to other countries in cash, our labor, etc., why not change the paradigm and just start the heck over. Anyway, just wasting some time reading all the government and economist pov on the net and their solutions don't seem to be working either.
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