Bend over here comes the “bailout” open thread

Since some people are threadjecking to talk about the bailout, I thought I’d give y’all an open thread to talk about it.

Personally, I don’t see what the issue is. Democrats are saying there are no issues with Freddie Mac and Fannie Mae.

35 comments

  1. John Konop says:

    All should check this out to understand the issue.

    http://www.youtube.com/profile_videos?user=khanacademy

    FYI

    Salman Khan (Sal) founded the Khan Academy with the hope of using technology to foster new learning models. He is currently working at a hedge fund based in Menlo Park, CA. Prior to this, Sal was one of the initial employees at MVC Venture Capital. He has also worked as a Technical Architect at Scient Corporation and as a Senior Product Manager at Oracle Corporation.
    Sal received his MBA from Harvard Business School where he was president of the student body. He also holds a Masters in electrical engineering and computer science, a BS in electrical engineering and computer science, and a BS in mathematics from MIT where he was president of the the Class of 1998. While at MIT, Sal was the recipient of the Eloranta Fellowship which he used to develop web-based math software for children with ADHD. He was also an MCAT instructor for the Princeton Review and volunteered teaching gifted 4th and 7th graders at the Devotion School in Brookline, MA.

    Jonathan Goldman is an Analytics Scientist at Linkedin.com where he uses mathematical models to help improve user experience. He has always loved learning math and applying these skills to interesting problems. He has taught courses at Stanford in the physics department and has been tutoring students at different levels (middle school through university) since high school. He sees great opportunity in improving the learning tools available to students of all ages.
    Jonathan received a PhD in physics from Stanford University in 2005 and a BS in physics from MIT in 1998.

  2. Chris says:

    Harry,

    Don’t worry, the wonderful job Congress and the President are doing will solve that problem too.

    But at least the Gays aren’t married, so everything is A-Okay!

  3. Three Jack says:

    as pelosi announces the bailout, she really said, “the party is over…no longer will taxpayers bailout wall street”.

    only in dc could such a statement be made with a straight face.

    makes me feel really good that the most incompetent congress in history led by total morons like pelosi, reid, frank and rangel is going to solve this mess. what a disaster.

  4. bowersville says:

    Here’s the New New Deal.

    The party is over.

    Everyone in a new home and a green car in every garage.

    More Government Sponsored Enterprise. More Fannie/Freddie and a beefed up Community Reinvestment Act.

    Let’s just get it over with….free credit…no pay back. No equity in property unless you are the evil rich and your equity is worthless.

  5. Bill Simon says:

    Three Jack,

    I watched your video link. But, explain to me WHO caused the sub-prime mortgages to be securitized?

    There was no requirement anywhere of a bank to take the chance on making more money on their loans than they would have in an ordinary loan of lending at a higher rate than the money cost them.

    SO, this bullsh*t about the failure of the securitized market being due to the sub-prime loans is a crock of crap. Those derivatives were dreamed-up by risk-takers far up the food chain of the sub-prime borrowers. The failure of those deriviatives was due to the financial engineers who created them, and no one else.

    I’m sorry…what “required” the creation of Sub-Prime Mortgage Securititzation?

  6. Three Jack says:

    konop, i didn’t say your videos were wrong, just long (and boring).

    and just for the record, we are likely in agreement against the bailout idea. as a friend once said to me after another friend had been arrested for public drunkenness, ‘he got his own self into it, he can get his own self out of it’.

  7. tb says:

    This bailout is all wrong. The only they got right was removing the Earmark to ACORN. That’s it, that was the only conservative concession.

    The rest is utter nonsens. What are we accomplishing with an oversight board made of croneys and politicans? More conflict of interest, that’s all.

    What are we accomplishing by continueing with funding high pay to the ceos’…nothing.

    Please call your representatives TODAY. Call them by phone, fax them, do what it takes to put the breaks on this bill.
    http://www.house.gov/house/MemberWWW_by_State.shtml#ga

  8. Chris says:

    Bill,

    I think the securitization of the subprimes was the only way they could get the toxic assets off their books to be able to make more bad loans.

    Congressional Democrats made them take a bunch of turds. I can’t fault them for trying to find a way to get rid of said turds.

    The fools are the people who bought the turds. I don’t care how booming the housing market is. If you came to me and offered me a share of a note sold to some deadbeat who has spent more on his rims than on his downpayment, I’d laugh in your face and tell you to blank off.

  9. I’m still thumbing through my well-worn copy of the U.S. Constitution, looking for any authorization for Congress to pull the crap they’re trying to pull today. Nope, ain’t there.

    And just got off of a White House conference call, where I listened to our “conservative” (Heritage Foundation) and “pro-family” (Family Research Council) leaders who were busy selling us out and kissing Joel Kaplan’s butt, while Congressional phone lines are melting with constituent calls at 10-1 against this God-forsaken bill.

    Idiots.

  10. tb says:

    Market rebounding a little.

    Does everyone remember what was going on with the markets just prior to the last prez election– it was doing the same thing!!

    This bill is NOT going to change anything.
    The news says there will be a lot of arm-twisting. There should not be any arm-twisting to convert someone to a YES vote. If the republicans stick to principal we will see a defeat of this bill. And if a REPUB votes for this thing, it is a sell out and they need to be thrown out of office.

  11. I wish this had happened before primary season.

    We would likely have seen some great challengers to many of our incumbent “conservative” leaders, who would have a chance of beating them.

    And we wouldn’t have McCain as the Republican*cough*Democrat*cough* nominee.

  12. Tea Party says:

    “This is essentially Mr Paulson’s bill to help his friends and I can’t buy it,” said Paul Broun, a Republican of Georgia. “This is a huge cow patty with a piece of marshmallow stuck in the middle of it.”

    Well, that sort of somes it up. Take hearts, lads and ladies, this ill-concieved bill did not pass the intial ‘sniff test’.

    Push your plan back up the ladder, Icarus, it sounded a lot better than the @#$!%!#$%[email protected]$ we almost got.

  13. TP, here’s the only plan that will work in the long term.

    The mortgage crisis and the current economic turmoil is a direct result of the Federal Reserve’s artificial lowering of interest rates – which spurred major banks and other corporations to back bad mortgages.

    And the bills are now coming due. With each new bailout, WE are forced to take on the liabilities of Wall Street, all while the value of our paycheck decreases due to the inflationary policies of the Federal Reserve.

    Now, Henry Paulson (former CEO of Goldman Sachs) and Ben Bernanke tried to get American taxpayers to take on $700 billion in bad mortgage-related assets.

    RIDICULOUS. Thank GOD it was rejected.

    There IS a solution.

    America became the greatest, most prosperous nation in history through low taxes, constitutionally-limited government, personal freedom, and a belief in sound money. The way out of this current financial crisis is to return to those timeless principles:

    1.) End the Bailouts – The Federal Reserve’s authority to use taxpayer money to bail out Wall Street must be revoked and the Fed must be held accountable.

    2.) Stop Congress’ Reckless Spending – We must freeze all non-entitlement spending by the federal government at current levels and eliminate wasteful spending both domestically and in our trillion-dollar overseas budget.

    3.) Cut Taxes – If Wall Street can be given your tax dollars, shouldn’t you get some back? It’s time to cut taxes and return your money to you. Combined with spending reform, this will increase the purchasing power of our dollars and help lessen the economic storm.

    4.) Reform the Monetary System – If we are to have long-term economic progress, we must end the system of printing money out of thin air. The current laws limiting the circulation of gold and silver-backed currency must be overturned.

    Push THAT plan up the ladder.

  14. Icarus says:

    TR,

    #2 is a must. The budget must be balanced, even if that means changing entitlements tomorrow. That’s the only way the dollar will survive this.

    Cutting taxes is an impossibility. For everyone that says that it will increase revenue, they don’t want to talk about the 2-5 year lag time, and we don’t have the luxury of the interim deficits until the pump is primed.

    Changing to a gold standard would cause the world’s largest occurance of deflation in the history of modern economics, and would dwarf the negative effects of the current situation, either with or without the bailout.

  15. Doug Deal says:

    Icarus,

    If Obama gets elected, with a Dem Congress, the wrong party would be in power for #2 to ever happen.

    Without a large Republican majority in Congress, large enough to cut loose the RINOs, or a President willing to veto every spending measure passed by Congress, there will never be a balanced budget. Obama, with a strongly Democratic Senate and any majority in the House, will drive the deficits up for the approximately 2 years that the Dems will be able to maintain absolute power.

    If McCain wins, at least there is a chance that the split in the government can lead to deadlocks that keep spending down, especially if he is true to his word about using vetos.

  16. Bill Simon says:

    “There IS a solution. America became the greatest, most prosperous nation in history through low taxes, constitutionally-limited government, personal freedom, and a belief in sound money.”

    Huh…and here I thought the “solution” was going to be that we teach all of the children that Creationism is the way the world works…

  17. Tea Party says:

    Let the short term chips fall where they may, Taft? We hear ‘end of the World as we know it’ from Newt to everyone else if credit markets collapse. My plan:

    1.) I like the idea of private money resolving this mess. Perhaps a gov’t guaranty, as last resort, after private insurance. Go back to mortgage premiums insurance.

    Take stock of the foreclosed property and get those homes sold or rented, kick the dough into a fund, and re-sell it. The idea of collateralized mortgage backed securities is sound, just not Grade C- mortgages.

    2.) Ditto that, verbatim. Add cut gov’t spending and waste. Real spending cuts, and not the ‘rate-of-growth’ limits that do nothing to decrease the size of gov’t.

    3.) Cut taxes as we cut spending. A Fair Tax, without reduced spending, is neither fair or workable. Fair tax, coupled with reduced spending makes some sense. The IRS is costly, and tax laws are Byzantine.

    4.) Legally peg rate of growth of money supply to inflation and interest rates.

    5.) Vet our SecTreas better. We need economists with practical world experience and not Wall Street shills up there.

    6.) Reward those who save.

  18. Tea Party says:

    For you pol historians:

    When is the last time a Georgia Congressional vote was cast with only two votes in dissent?

    9/11? Pearl Harbor?

  19. Icarus says:

    John Lewis’s bill to create a cold case squad within the Justice Department’s civil rights division (that already had one)?

    Westmoreland and Broun?

  20. Bill Simon says:

    “5.) Vet our SecTreas better. We need economists with practical world experience and not Wall Street shills up there.”

    How about vetting our presidential candidates better? How about this:

    STEP 1: We will not use their stance on abortion as any one of the top 5 criteria.

  21. Chris says:

    I’m sorry Bill, I can’t agree with your STEP 1.

    I think a primary qualification for future POTUS and VPOTUS should be whether or not they think Barbara Bush (the elder) should have aborted her first child.

  22. Icarus says:

    No Doug, I think that’s too over the top. I’m thinking of adding a jobs componant to the bill, whereby unemployed Wall Street executives can carry me to and from the house.

  23. Doug Deal says:

    Via rickshaw, on a rail, or via handsome cab drawn by buff and sweaty Wall Street executives wearing nothing but a bow-tie, copious amounts of oil and tuxedo pants?

  24. Bill Simon says:

    As long as that test remains on the original text and not the claptrap the Constitutional Party believes it to be.

    (Though, I know YOU, Taft, think the CP’s version is the real version…go ahead…make my day…call me “anti-Christian” again…)

  25. Today’s Republican and Democrat “leaders,” along with our “conservative” brethren within our GOP, wouldn’t recognize the “original text” if Madison rose from the dead and flogged them with it.

    We either get back to the enumerated powers, as the founders intended when they wrote this incredible document, or we die on the rotted vine of socialism. And it ought to start in our party, Bill.

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