The Observation Deck

"And, you know, I tell our -- I will tell our citizens and continue to remind them that the risk of doing nothing far outweighs the risk of the package, and that, over time, we're going to get a lot of the money back. But right now, the government needed to send a clear signal that we understood the instability could ripple throughout and affect the working people and the average family, and we weren't going to let that happen."

President George W. Bush in the Rose Garden 9/22/08

Why these are the same words used to get America into the financial nightmare known as Iraq.

The news just showed the "package" three pages double spaced, no plan, except to "borrow $700 Billion dollars, and leave it to the discretion of one person how to spend all of it."

Another great non-part of the plan is how pay-outs are made.

Infact, the money could be used to ONLY bail out foreign banks, leaving American institutions, and loan holders still fail.

We cannot leave the biggest bailout in the history of America to the worst president in the history of America, three months before leaving office! The guy that helped drive the bus to this disaster.

Another troubling fact to be put into the news today. The George Bush Economic team has not met since March. Again like Iraq, Afghanistan and 9-11. Disband, ignore signals, and when it happens, hey not my fault, who could have ever known.

This is nuts.


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Huh?

http://www.chicagofed.org/publications/ ... 07_241.pdf

Jim, please click on the above link and give me your opinion on the article.. thanks!


PS from August 2007

Stephen Eisel wrote:http://www.chicagofed.org/publications/fedletter/cflaugust2007_241.pdf

Jim, please click on the above link and give me your opinion on the article.. thanks!


PS from August 2007

Nice article.


Seriously, this would point out that the ARM(sub prime loans) would be the problem and that in the 7th District, this is only about 20% as of 2007, all the trend had grown to 50% in some of the states in the seventh district.

I take this to mean you think we should only worry about the ARM/SubPrime loans, an amount of about $1.7 trillion, as opposed to the $30 trillion out in loans. As this people really cannot afford homes anyway, and owning a home is an American dream not a right. Bailout the businesses, and continue on burning through two more generations future, as we have already squandered the next six generations already.

What I am proposing would seem more fair, honest and complete in the problems at hand, now and in the next ten years. See the fallout from this will be far more reaching than the subprime loans. Many people and companies depend on those loans being paid, not just the banks. More companies depend on keeping Americans in homes, if we can. We are hearing of economic meltdown worse than The Great Depression, there were not very many bankers from China in those soup lines.

One time, one time, guarantee the loans with complete intrusion by the government into your financial affairs if needed. We will underwrite your loan, and we will tell you how to spend your money. The reason I say IRS, is that they are already very good at getting paid, when they have a judgment in hand. Much better than banks.

FWIW


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the interviewees on the NBC morning news are saying the Feds won't actually have their hands on the foreclosed properties. the last time this happened...the savings and loan crisis 20 years ago, the feds at least had some right of unloading the properties for money.

My understanding of mortgage-backed securities is that the ultimate source of their revenue is people living in houses and paying mortgage payments on them.

Since most of these foreclosed properties are empty and no longer generating revenue, the solution must add some coherent strategy of filling these houses with people who pay rent or mortgage payments. the previous tenants could afford payments when initial interest was low. they foreclosed when interest went up. the homes are only worth less than they were previously purchased for.

The interviewees make clear they aren't sure who now owns the foreclosed properties or the rights to sell them. the mortgage backed securities are divorced from any actual property or total property rights and responsibilities.

Here the link I found on a brilliant womans blog this afternoon.

Enjoy -

http://politits.blogspot.com/2008/09/wh ... t-one.html