Main Street's view of the Bailout

If all the CEOs are willing to pay 50% tax maybe we can come out of this mess with out much effect to the Main Street. You block legislation for higher tax for top 1% and say that this is not a bailout. Why should taxpayer pay more than market value? And also bear the brunt of the resulting inflation.If our jobs cannot pay for our basic needs why do we have to work?

Turned from distracting smoke and mirrors, the real problem belongs not to "Wall Street" and those whose game of choice is trading in what they like to call a "free market" but to the neighborhoods of "Main Street" losing credit and credibility to empty, unmaintained properties foreclosed upon in a frenzy of insanity.

These properties are "real" estate. They have value. Not so high as the bubble tried to make us believe, but real value, especially to those who thought of them as "home." A real cure for what ails US economy would encourage the profit motive and sanity, enlist investors (looking desperately for somewhere to put the money they have taken out of karmically challenged investment banks) to buy these properties and work out mortgage or rental arrangements with those who want to live in and maintain them, by-pass the whole evil episode and get back to market trade based on real values that can be easily understood by Main Street and learned through experience by Wall Street.

Congress ought to demand unbundled mortgages be sold at bargain basement prices to local financial institutions and groups then required to work out equitable arrangements with homeowners/residents to keep them in those homes. This is how it should have been, mortgages held by community lenders who have a stake in keeping the community healthy and the authority to work out compromise arrangements with their customers.

Laurie Corzett
libramoon42@mindspring.com

Well stated by Mr David. What we don't need is a bunch of ethically challenged politicians collectively shooting themselves in the foot. There is great danger to our economy posed by illiquidity. Whose fault is was is largely irrelevant for the moment.

Blah Blah Blah! Let the market collapse. Arrest the top execuitives of every bank that folds and ship them to Guantanamo Bay, lets face it they have caused more damage than any Islamist. In 10 or 15 years, give them a trial. I guarantee when the market sees their precious leaders carted off to Guitmo, the market will correct itself!

Liars!
Thieves!
Crooks!

How dare they ask for the American taxpayer to bail out their PRIVATE INDUSTRIES!! Is anybody out there willing to pay my bills for me?!!
And by the way..don't try to say that this bail out will help the economy and help ordiniary people who have or will loose their homes! This 700 billion dollars will go into the pockets of the elitest rich to help compensate for their OWN POORLY MADE DECISIONS!!!
They're just trying to recoup some of the money they've lost through their own fault and greed!!
As Senator Dorgan said "How can CEO's of these companies and banks who earn MILLIONS IN BONUS'S have the balls to turn around and demand that the suffering American taxpayer bail them out of their own problems?!!
We can't afford to put gas in our cars to go to work!
We can't afford to put our children through college!
We can't afford to retire!
We can't afford to buy food!
We can't afford to pay our bills!
We can't afford to sell our homes!
HOW DARE THEY ASK US TO PAY THEIR DEBT!!
HELP THE AMERICAN PEOPLE!!
FUCK THE RICH!!
I will not pay a red cent towards this tax no matter how they try to implement it!!
This money will never filter down to the American people!! Never!
This President is a liar and can not be trusted!
IMPEACH BUSH!!!
My God!!
Wake up America!!

George David states abouve "Assets are being conveyed and marked in balance sheets to levels that are, in my judgment, well below their ultimately realizable value." That's fine - so why don't people like Mr David and his wealthy friends buy them so they can "make out on this pretty good"?

Scare tactics by this guy - the bottom line is let the bad companies die a normal death, no need for a Frankenstein resurrection.

Yes we will have a very hard year, but its better than 10 years of depression.

NO BAILOUT

I think David has hit the nail on the head. It most surely will be main street that suffers w/o a bailout. Why doesn't high wealth citzens jump in on the money train and buy these assets? They don't have access to billions in liquid cash w/o banks either. They can't auction billions T-bills like the Treasury.

Am I missing something here. We are about to dump 700 billion into people and institutions that didn’t manage money the first time around. How about a plan that includes the government setting up accounts that would generate 8% interest for investors. That would generate needed cash as well as reward those that have managed their money. Details would have to be worked out, term etc. but i think it is doable. Perhaps the entire 700 billion wouldn’t be raised but let’s just pretend we did. Instead of the government shelling out 700 billion, they shell out just a fraction of that amount, all the while rewarding doers as opposed the those that put us in this situation to start with. But as I write and think through this, the issues of neglect, lack of accountability, and sheer stupidity will not be resolved no matter where the bailout money comes from.

I actually hope that all these people like Jim above get a chance to see how a deep recession and perhaps a depression feels. It would serve them right given their irrational resistance to rescuing the economic future of this country.

So how is the CEO of United Technologies to be considered "main street's view". Isn't he just another fat cat that probably golfs with the one's being bailed out?

I'm with Jim, what's bad for Wall Street is usually good for Main St. Put your money where your mouth is and quit trying to trick the public into thinking that we need swift action by twisting our arms with fear tactics!What does congress know about economics? What makes you think they know better than you? Why are we not turning to the economic intellectuals in this country for guidance? I'm sorry, but, yeah, Americans (me included) are mad as hell that these greedy bastards that have caused all this mess are living in multimillion dollar condos/mansions and pulling in multimillion dollar salaries+bonuses, its a form of legallized rackateering. If my congressman votes for the bailout, he will loose my vote, and he has been notified as such, and all you out there need to notify your congressman too, thats all these people seem to care about anyway, don't let your tax dollars be stolen by a few rich and greedy politicians because thier buddy's own stock in these institutions!!!! DO NOT LET IT HAPPEN!

George David sees the "mark to market" problem, which using the lowest common denominator values good securities down with worthless ones, but like nearly everyone else, doesn't understand the fundamental problem. That is the Federal Reserve, which is neither federal nor a reserve & operates the biggest "Ponzi scheme" of all time. You can't continue to create money out of thin air & expect your system to last, let alone be stable - it's a mathematical impossibility.

Just in the last 4 years the Fed has created another $4 trillion which is (like all $$$) backed up by nothing - other than credit. The Fed freely admits that the system works only on credit & a close examination reveals that money backed up by something of real value isn't even part of the equation. Until we rid ourselves of the fiat money, fractional reserve system we've got, we'll continue to have one economic crisis after another & they'll only get worse.

The only solution is for Congress to un-create the Fed & take back it's Constitutional authority to "coin money and regulate the value thereof", which it delegated to the Fed in 1913. But that's not going to happen, so a total system collapse is inevitable. It's not a matter of if, it's just a matter of when. No doubt within the next 10 years, but it wouldn't surprise me to see it next week.

How is George David in anyway representative of Main Street? Did you bother to research the fact that this guy serves/served as a board member of Citigroup, hmm. Also did you know that according to the Hartford Courant (2008-02-23) in 2007, his last full year as chief executive of United Technologies Corp., David, reaped $65 million in total compensation. How is that main street?

Main steet my rear end! This guy is another CEO hack who wants security bought and paid for on the back of the US taxpayer.

Right now we're in a market correction which is temporary and will pass. Feedback is being provided to those who took out mortgages they couldn't afford, the banks who made bad loan risks, the securities firms that bundled the bad mortgages into "investments," the insurance companies who insured the investments, and the investors who bought securities they didn't know about. This is the way its supposed to work. The chicken little "sky is falling" story is garbage too. Witness WaMu being bought up by Morgan Stanley once the price was right and writing off he lousy investments. Solid financial institution with deep pockets are buying up the investments that are worthwhile once the prices are right. THIS IS HOW THE MARKET WORKS.

Taxpayers protecting people from the consequences of their poor decisions is ABSOLUTELY WRONG and SHOULD NOT OCCUR. No bailout NOW OR EVER!

A friend of mine says take the 800 billion and split with 200 million tax
payer. we get $400,000. each, pay taxes
on that and net $275,000. That to me
will give liquidity and solve the
housing crises and stimulate the
economy.

Back in the 30's FDR had a similar problem to the one today. He did buy up homes that had gone awry. I'd like to think I can trust the congress and president to make the correct decisions to economic problems. But right now............I can't.

View from the street - We have comingled three entities:

1) Las Vegas (Wall Street) - hires a select group of top college graduates, generally speaking, who gamble with other people’s money, and distort our laws for a killing, and have thousands and thousands of lobbyists in Washington to allow this.
THEIR WAITING FOR US TO BAIL THEM OUT, AND ARE ASKED TO CONTRIBUTE NOTHING IN RETURN

2) Major Corporations, who are forever laying off workers and outsourcing American jobs (read American Wealth) to other countries, and have thousands of lobbyists.
THEIR WAITING FOR US TO BAIL THEM OUT, AND ARE ASKED TO CONTRIBUTE NOTHING IN RETURN.

3) Small businesses, WHO CREATE 80% OF ALL NEW JOBS, and HAVE VIRTUALLY NO REPRESENTATION BY THE GOVERNMENT WHATSOEVER AND PAY VIRTUALLY ALL THE TAXES.
WE ARE BEING ASKED TO BAILOUT A) and B) ABOVE.

This is beyond unfair – it’s SICK and it’s CRIMINAL.

Could someone please lay some of the blame for this immense shaking in the financial world at the feet of the American public who took the “drugs” of free money in the first place. You are so government conscious and it is unbalanced. The American public loves to go in debt beyond its means and no one is talking about this. That is why there is little public outrage right now – there is a guilty conscience on the minds of those in America who knew what they were doing. There is not as much anger at the government as at the bankers and the people who “knew” they couldn’t afford that next $550,000 house and they still bought it. This was a symbiotic relationship between the greedy homeowners who weren’t satisfied and the bankers who moved the bottom redline. So it wasn’t just the poor getting their free housing but it was everyone up the food chain of financial insanity that made this thing collapse.

When are we going to realize that it is our own selfish wants that have put us in this position. The housing market is the way it is due to our "your" cries previously. Everyone wants the American Dream to own a home, white fence...etc. Lending was adapted to provide a home (2nd chance) to those who were not credit worthy. Who knew once again people would not hold up to their end of the bargain (again). Its not the CEO/CFO that put us in this position. It is simply us. We are accountable and responsible for the bailout. If you do not help yourself, then who?

I would like to see these posts on the front page of every newspaper, and headline every televised news broadcast. It compiles the disgust, frustration, and disbelief of what is happening. The corruption of ecomomic-financial system that has been allowed for the last six years alone has been a rampant. Our government and politicians have aided in and turned their heads. Now they are the ones pushing for this immeadiate bail out now called rescue! Socialism for the super wealthy! All involved in the creation of, aided and allowed the trillions in derivatives to be created should be the ones to pay. They have profited billions and still stand to do so again after the bail outs. All at the tax payers expense. Make us buy the toxic junk no one else wants.
We are suffering huge losses in our equities, real estate and fixed income vehicles. As a retiree, I can not make up my losses. There will not be capitol gains to write off those losses against. How about letting Americans write off all capitol losses dollar for dollar against the pitiful income we have left. I will not have to worry about paying taxes, for many years.

The proposed $700 bailout proposed by U.S. Treasury Secretary Henry Paulson, in its current form, will do absolutely NOTHING to help you, your family or your neighbors on Main Street. This bill’s costs will be gargantuan, yet it is suffering from famine in the substance department.

Meaning there is no meat and potatoes for Main Street. Only more gravy for Wall Street.

The way this bailout bill is written, our government and the Treasury would have very limited ability to gain “complete” control of troubled mortgages. What the Treasury has planned is to buy troubled assets from the various banks and investment banking institutions consisting of mostly residential and commercial mortgage-backed securities.

Paulson has claimed that after the Treasury buys these bad assets, the purchase will have benefits that will trickle down to Main Street in the form of restored liquidity and credit for making mortgages and other credit to consumers available.

Why the plan will not help homeowners.

Every single Hope Now, FHA Secure, plan, bill and initative has made it “only voluntary” for mortgage servicers to comply and participate in these proposed solutions to our mortgage and housing crisis. Meaning they do not have to do anything they do not want to do and all of this Hope Now talk and puffing of foreclosure prevention chests has been nothing more than botoxed lip service and media propaganda.

This is all about the Benjamin’s (money) people. Please, never think, for a mili-second that this is about what is morally and ethically right.

They are definitely NOT in the home saving business!

I addition to bank failures and the failure of Wall Street, the Mortgage Servicing Industry Has Failed!

It’s broke and in need of immediate repair, cash and help. They know it, the banks know it, our Secretary Treasury and our government knows it.

Yet, nothing is being done to fix it.

Americans on Main Street need to demand that this bill provides relief to struggling homeowners:

Ø Open home preservation centers that are operated by third parties such as non-profits and legal aid agencies to insure consumer protection and safety.

Ø The bill must mandate all servicers to perform some type of loan workouts (whether it be a loan modification, repayment plan, short sale or deed in lieu, judicial or non-judicial).

Ø Foreclosure moratoriums on primary residences

Ø New mortgage servicing regulation

Ø Loan workout accountability and tracking system

Ø Prosecute and fine lawless mortgage servicers

Ø Give us all a do over like Wall Street gets!

Please write your state Senator who is supposed to represent you, the people, and tell them what you think and want.

A silent voice will never be heard!\

www.LoanSafe.org

Do you think I should sell my house and buy it back next year for half as much?

Maybe invest the money in government notes while I wait and drive around in an RV.

The title is "Main Street's View of the Bailout" and you're asking the head of United Technologies, a huge multinational conglomerate, to speak for "Main Street"? LOL!

The government and the multi-national corporations have shown repeatedly that they do not have the best interests of the average U.S. citizen in mind.

Their annual report says that UTC keeps most of its cash in foreign currencies. It also lists a number of lawsuits they have lost or that are pending brought by the DOD and foreign governments for overpricing and so on.

UTC doesn't hesitate to close factories and lay people off whenever it suits them. Does the government bail out UTC workers when they can't pay their mortgages when they lose their jobs?

A free market will never heal its self as long as the government continues to intervene.

However, Congress and the Senate mandated that loans be made by the banks in rural, ethnic, and under served areas. The Federal government, by being involved in something it is not supposed to be, has made its Citizens liable for part of the reparations. It doesn't matter that the banks got more than a little too carried away and acted irresponsibly. Taxpayers are on the hook.

We now have to be part of the solution, but the solution should be developed from the point of view of the taxpayers that the government is supposed to protect.

Make sure that you hold your Congress members, Senators, and President responsible this election.

http://ewebsmith.com/bus/taxpayers.html

Let Capitalism work. Let these huge institutions collapse. The whole thing is a terrible betrayal of the public trust. This never would have happened in the first place if the Government had been kept to it's Constitutional responsibilities. Socialism or Communism is on the way, get ready

In 1990 the Dow stood at 2000. Is there a bubble in the stock market?

Printing extra money under the pretence to help the economy has been tried before. Mainly by dissfunctional regimes as a last resort before they were thrown out by the people.

This is plain madness, without any logic or any thought to the political and social consequences.

Strange that a subset of the same people who worked secretly behind the scene for the illegal invasion of Iraq in the name of protection for Israel are now behind the bailout.

So how is the CEO of United Technologies to be considered "main street's view". Isn't he just another fat cat that probably golfs with the one's being bailed out?

This is pure socialism for the rich. Please stop saying that the middle and lower class will be hurt the most. We are already hurting, but unlike you wall street folks, we can handle scaling down and living within our means. Any politician who votes for the bailout will see their career ended when it doesn't work, which it won't. Even my little brain knows that printing more money will just make the next bubble bigger and end worse. Good luck everyone. I'll just keep waiting and laughing when it all goes down....this week or next year..you can't stop the law of supply and demand. That's why they call it a law.

I agree with Suzy - socialism/communism awaits. I thought I lived in a country that is by the people and for the people. Where's our vote in this bailout? Is it a coincidence that this happened 5 weeks before election. I think the DEMS who hold majority in Congress have already made this decision but they want some Republicans approval to smear them. Those Republicans who agree with this plan SHAME ON YOU! I don't think this is just about Republicans or Democrats. There are plenty of millionnaire DEMS that hide behind "social programs" . They get credit for these programs we the taxpayer are the ones paying for it. Sadly, there's very few politicians that really care about the country or its people.

GOVERMENT SHOULD BUY THE MORTGAGES THAT ARE STILL GOOD, NOT BAD MORTGAGES, TO PROVIDE LIQUID ASSETS TO PROTECT SEIZURE FROM FDIC. LET THE INSTITUITIONS LOOSE $$$ FOR BAD MORTGAGES.
ALL OF THE CEO COMPENSATIONS SHOULD BE LIMITED.

Dear Mr. Mike Craig if you take

$800,000,000,000.00 split by 200,000,000 tax payers =$4000.00 not $400,000.00

Do the math

A friend of mine says take the 800 billion and split with 200 million tax
payer. we get $400,000. each, pay taxes
on that and net $275,000. That to me
will give liquidity and solve the
housing crises and stimulate the
economy.

The root cause of this crisis is Mortgage Backed Securities. In otherwods, Wall Street realized they could loan money to any homebuyer who was willing to sign. It did not even matter if you were in the US illegally! Fat Kats in the mortgage industry got rich, Fatter Kats in Wall Street got rich. Irresponsible home buyers who thought it was their turn to get rich now are defaulting on these garbage loans and now its time to pay the price.

By the way, my wife and I still can't afford to buy a home in Southern Californa. We did not drink the Cool Aid when everyone was inflating the bubble because we knew we could not afford a home at inflated market prices.

BUT: the primary reason my wife and I are still renters is that the ignorant were seduced into signing these flagrantly risky “exotic loans”. Or much more likely, that greedy individuals misplaced their bets that home ownership was an ATM; causing the market to bubble and home prices to rise out of our budget. We knew that these exotic loans were risky; and that the market was inflated, and elected not to expose ourselves to the chance of loss. They are called “Variable Loans” for a reason, rates can adjust. We knew this not because we are especially intelligent, educated, or in some other way associated with a “silver spoon” heritage. We are just an ordinary American family who can balance our checkbooks and understand the concept of too good to be true.

Allow the market to adjust, dont allow this crisis to result in a Bail-Out of greedy home buyers.

It is NOT fair that people who acted irresponsibly and purchased a home they could not afford should now be bailed out and allowed to stay in their home. NO, this home should revert back to the bank and should be re-listed as FOR SALE along with all the other unsold homes. In this manner the market will correct itself and home prices will adjust to actual demand driven prices. Perhaps one day my wife and I will be able to afford to buy our first home. We do dream of stepping into that promised land of “Home Ownership” one day. Only if the market is allowed to adjust will this happen. One thing is for sure; we won’t be able afford our home at the current grossly inflated prices.

By bailing these unfortunate (unlucky) individuals out what you are accomplishing is punishing people like my wife and I who acted prudently. The cost of bailing them out will be carried by your family, and by my family. Corporation like Countrywide do not lose money, they will pass the costs on to you and me. Price controls do not work, a free market must be allowed to adjust and correct.