The Public: Backing the Bailout Bill After All?

Posted by: Jane Sasseen on October 02

There’s interesting new polling data out today from the Pew Research Center, which does some of the most varied and comprehensive polling around. They say that the public opposition to the bill aimed at stabilizing the financial sector, is nowhere near as strong as it has been made out to be. The bill, which failed in a House vote Monday in part because of the perception that the public was adamantly opposed to it, passed the Senate last night and is now scheduled for a new vote in the house tomorrow. Both John McCain and Barack Obama came back from the campaign trail to vote for the bill, while Joe Biden interrupted preparation for his debate tonight with Sarah Palin to cast his vote as well.

In a survey conducted Sept. 27-29, Pew found that a narrow 45%-38% plurality of the public said that a government plan to invest or commit billions of dollars to secure financial institutions is the right thing to do.

So why the sense that the public is so against the deal? Chalk it up to the squeaky wheel, Pew says. Here’s an excerpt of their report; click here for more details.

While there is little doubt that Congressional representatives are hearing a lot of harsh words from voters back home, that clamor does not reflect broad American public opinion. It is a classic case of the squeaky wheels getting first attention at a time when Washington is in a quandary about what to do.

The most recent polls — those conducted through Monday night — show the public is at best divided over the plan. There is little indication of overwhelming public rejection of the bailout proposal.

Reader Comments

Mike

October 2, 2008 05:50 PM

Cmon guys lets not be complete idiots!!!
The main stream news and media is saying this BS to get people to agree to the "bailout" bill. This is going to do nothing but throw 25% of Americas total money away never to be seen or heard from again!!!!!!! We are going to have 700 BILLION DOLLARS DISAPPEAR to bail out FOREIGN INVESTORS!!!!!!! 25% OF THE TOTAL FEDERAL BUDGET GONE!! I don't know about the rest of you, but i don't like the notion of having taxes forever.

Economist

October 2, 2008 06:00 PM

This bill was written to bail the bad debt on Wall Street. We are forgoing the natural economic process, bank fails, some losses are absorbed by stocks, assets sold, and Federal Government takes portfolio and sells it, depositors insured. Now the US government is going to prepay bad debt at full absorbing all of the loss that has been generated by fiscally irresponsible banks.

Hard working Americans have been punished enough by this administration. We are faced with a higher cost of living, high energy prices, our jobs have been exported and now we are going to face a $110 billion deficit.

The rich will be fine, what about the working class? Will this be our future; Take a look at this http://www.BuyMyHouseBeforeTheBankTakesIt.com

Our economy is just as important as our national security. Its time that we address our economic policy, encourage domestic production, discourage outsourcing, and work together to fix America?

Jack Axtman

October 2, 2008 06:51 PM

Thursday, October 2, 2008

Subject: Unconstitutional BAIL-OUT

This BAIL-OUT fiasco is unbelievable. Vote NO on any proposal

No man in his right mind can approve of this dishonest act.

I talked to a fried of mine who is the PAST PRESIDENT OF A 160 BRANCH S&L and he can clear up this monetary problem in a few weeks.

Henry Paulson is not telling the truth. And the rest of them are lying.

There must be a full investigation with an independent council investigating each of the following: Henry Paulson, Ben Bernanke, Chris Cox. Also, investigations and prosecution of the Chairman and CEO of Freddie Mack and also Fannie Mae.

This is a very serious matter and I expect you to do your duty as you were elected to do.

Also, release RAMOS AND COMPEAN. THEY HAVE DONE NOTHING COMAPARED TO THIS BAIL-OUT FIASCO.

Jack Axtman
255 EL DORADO CT
ANGELS CAMP, CA 95222
(209) 736-4687
(925) 818-9501 cell
jackaxt@sbcglobal.net

Tell the Truth

October 2, 2008 07:00 PM

Just more B.S. Bail out will not stop the ship from sinking. One must plug the holes or as soon as the money is bailed out the hole will sink the ship.
Freeze bail out CEO Assets
evidence show a scheme by a variety of devices
File Charges of
unjust enrichment demand restitution. The Number show over $150,000,000,000.00 can be recovered if unjust enrichment laws are enforced now.
charges on Accountablity for conduct breach of fiduciary duties
liability stems from his position
without making adequate disclosures
.engaged in discussions undisclosed
"for acts or omissions not in good faith
involve intentional misconduct
a knowing violation of law."
unjust enrichment here are just a few of many

Joseph Gulotta

October 2, 2008 07:15 PM

Trick of the word
B.S. [Secure] Then the governments plan is to invest in financial institutions other than the ones needing Bailing Out.Americans are tired of this trick of word B.S. Tell the truth. Your just a liar. "commit billions of dollars to secure financial institutions is the right thing to do".

Zephram Stark

October 2, 2008 07:40 PM

Squeaky wheels tend to influence other voters more than apathetic constituents.

What culminated last night in the Senate chambers is that investors bought discounted debt for pennies on the dollar and then paid Congress (through campaigns and back room deals) to exchange that "junk" debt for full value government debt secured by federal wage tax. Nowhere in the Constitution do we give our federal employees the power to buy any type of commercial debt on our behalf, let alone junk debt that has always included an extreme risk factor and therefore, has never been worth more than pennies on the dollar.

It's like purchasing a pile of used car parts for the price of a new car. Sure, the potential is there to create a car that might actually run, but the cost of putting the parts together would be more than just buying a new car. This is the scenario the Senate wants the House to adopt. The junk debt it wants to purchase will cost taxpayers more to collect than it is worth. More importantly, it was never worth the full value of the dollar. It was always heavily discounted.

The risk associated with subprime loans in general makes the debt worth a few dimes on the dollar in a best case scenario, but international banks have already cashed in on the best of these subprime loans. What's left over might be worth pennies in a good market. When the market went sour, however, these loans became harder to collect than they were worth. If the Senate had offered to buy this debt at one hundredth of a penny on the dollar, most of the investors who purchased it would make money. If the Senate offered to buy it at a penny on the dollar, practically everyone who purchased this discount debt would make a killing on it because it was traded for less than that. But your Senators want to steal your hard earned money at gunpoint if necessary to buy this discount debt at full value. What would happen if all of the derivatives and discount debt on Wall Street were purchased at full value?

The following URL is a YouTube video which takes the assumption that the Senate made last night in considering discount debt to be worth the full value of the dollar and applies it to the entire debt market. Watch what would happen, and will happen if we let Congress buy heavily discounted debt for full value.

http://www.youtube.com/watch?v=zM79QpaxvOs

There are two ways to explain why 74 Senators voted to buy junk debt for full dollars. Either they don't understand that they are paying full price for something that has always been traded at a heavy discount or they know exactly what they are doing and getting paid to steal money from hard working Americans and transfer it to international banks. When the Senate doesn't understand something completely and wants to know more, it has experts come in and testify. It didn't do that.

Joseph Gulotta

October 2, 2008 07:43 PM

Trick of the word
B.S. [Secure] Then the governments plan is to invest in financial institutions other than the ones needing Bailing Out.Americans are tired of this trick of word B.S. Tell the truth. Your just a liar. "commit billions of dollars to secure financial institutions is the right thing to do".

Richard

October 2, 2008 08:10 PM

As an American living and working in Japan, it is so embarassing. I really wish all my fellow Americans could consider how we are now perceived
in other countries
The USA is supposed to be the ultimate symbol of freedom and democracy..but look where we are now !? Bush and his Republican idiots are always preaching countries like China to respect human rights Well..were were our human rights and freedom for us when these greedy, incompetent Wall Street CEOs plunged us into this mess. So damm outrageous and unacceptable that the Republicans insisted on incl. major corp. tax breaks before the bailout vote. We were all deceived and betrayed by the Republicans who forced us taxpayers to pay taxpayer dollars to fund a war in Iraq that was not only unjust unnecessary..there was no reason for it. THERE WERE SIMPLY NO WEAPONS OF MASS DESTRUCTION !!
McCain would continue the arrogant cowboy policies of Bush. We really seriously need to fix this awful image of the USA as a country with an pathetically archaic "cowboy,war hungry attitude. We don't need to worry about terrorists destroying this country. The greedy Wall Street bastards and Republicans have done that for them.

Terry

October 2, 2008 08:38 PM

Is this bill legal? should congress even vote on this one? Congress is the only body of goverment to create bills concerning money and taxes. If a situation comes up such as this they don't have the authority anyways, as you see in amendment ten that is left to the poeple to delegate.

Another point is the Congress is to vote on the bill and IF passed send it to the Senate to vote on or admend.

Congress killed the bill and never realy sent it to the Senate. senate viloated the seperations of power and crafted their own bill voted on it then sent it to Congress? how could it possibly become law of the land?

Bush is to Make sure the constitution is protected..but he is not he is encouraging the violations if not down right involved in these unconstitutioal acts.

Section 8

The Congress shall have Power To lay and collect Taxes, Duties, Imposts and

Excises, to pay the Debts and provide for the common Defence and general

Welfare of the United States; but all Duties, Imposts and Excises shall be

uniform throughout the United States;

To borrow money on the credit of the United States;

To regulate Commerce with foreign Nations, and among the several States, and

with the Indian Tribes;

To establish an uniform Rule of Naturalization, and uniform Laws on the subject

of Bankruptcies throughout the United States;

To coin Money, regulate the Value thereof, and of foreign Coin, and fix the

Standard of Weights and Measures;

To provide for the Punishment of counterfeiting the Securities and current Coin

of the United States;

Amendment 10

The powers not delegated to the United States by the Constitution, nor
prohibited by it to the States, are reserved to the States respectively, or to the people.

I wonder what the reaction would be if there was impeachment hearings for the Prez, 74 senators and however many congressmen vote for it.

Section 7

All bills for raising Revenue shall originate in the House of Representatives;

but the Senate may propose or concur with Amendments as on other Bills.

"I do solemnly swear (or affirm) that I will faithfully execute the Office of

President of the United States, and will to the best of my Ability, preserve,

protect and defend the Constitution of the United States."

If i could figure out how to write it I would start a petition to impeach them all at once. lol

Carol

October 2, 2008 08:51 PM

Even those elected officials who are privately opposed to the plan will, in the final vote, KNOW that this Bill will pass the House.

The Representatives are between a rock and a hard place but the majority position is not as hard a place to be in a time of crisis. Those who have the luxury of the minority position have the luxury of standing on principle.

The American People don't know and don't understand what has happened. They probably just hope that somehow someone will go to jail and be held accountable for all the pain that is ahead of them.

Of course, if the people could vote tonight, the majority would vote to TRY to save the ship! When you are told that it is "sink or swim" you certainly have to at least try to tread water!

user39

October 2, 2008 10:13 PM

Your title : "The Public backingout bailout bill after all?" is very provacative. Did you here yesterday Sen. Diane Feinstein, CA say that she received 91,000 phone and email messages and of thouse 85,000 are aginst bailout? Public is worried about the stock market, and threats of economic disaster. But the last thing they want to do is give $700 billion away for domestic and foreign banks in return for garbage. Congress should think about a way to provide economic relief to people not to the banks. Even the suporters don't strongly say that this bill will address the problems on hand. This bailout bill should be voted down tomorrow.

Dennis

October 2, 2008 10:29 PM

Americans we are being robbed right in front of our eyes. Has anyone looked at what the Senate just passed? Its riddled with pork that have nothing to do with the bailout. What happened to the concept of a loan? Pay the American taxpaper back before shareholders get a cut. It is a LOAN, not a bailout and the terms of the agreement need to be structured that way. I am completely speechless. I am not anti-bailout, I am anti-being-ripped off. Protect wall street? What about protecting the money we give the folks that got us into this mess. Where is my family's protection for giving these people $10K (family of 4)?

Chris

October 2, 2008 10:39 PM

While I think the bailout bill isn't an ideal solution, I think the 'squeaky wheels' Ms. Sasseen speaks of are all you posting right now! This whole comment section is filled with opposition to this bill. Why? Because it's human nature to voice complaint rather than accord. I'm not saying the bill is perfect, but it is neccessary. Unfortunately, there just isn't time to toss this bill back and forth between Senate and House for a month or two until it's perfect. It's bad to pass this bill, but it's better than what will happen if we do not.

webwzrd

October 2, 2008 11:14 PM

Rep. Culberson is right in that something must be done. I'm in favor of changing the rule on Mark to Market but will that have an effect soon enough? Don't think so. The FDIC will increase insurance limits but will that keep people from withdrawing their funds? Not if all they have to live on is cash.

We have to have a cash infusion into the economy to free up credit. That means Congress has to authorize some cash to pump into the economy.

The House turndown of the plan has just made a bad situation worse. The market is down net over 600 points since the vote failed. People's 401k and other retirement plans have lost a significant part of their value.

The economy is deflating. But the market is not the problem, only the symptom. Letting those bad banks fail will have enormous repercussions for you the consumer. If this next vote fails, the economy will go into a tailspin. There will be people who saved for their retirement in retirement plans, whose value could be cut in half or worse.

The let it crash proponents don't get how badly this will impact them. We will move from a credit based economy to a cash based economy. This crisis is more about credit not just about banks and mortgages. Banks can't lend to each other with no credit. Think lower food production. No credit to buy seed and fertilizer. Think no consumer credit. Pay cash for everything. Way lower demand for products and therefore way less jobs. High unemployment. We can't afford the large military, so all the troops come home. Not just the guys in Iraq but all the troops. Those who are released from the military also become unemployed. Think the end of the U.S. as a world power. No credit to drill for oil, so depression in the oil patch. Think about all those jobs and businesses in Houston that rely on the oil patch.

This needs to be understood as a serious consumer problem not a bank problem. If we don't pay for it now our children won't have the opportunities thay have now for college and a future. No student loans, maybe fewer colleges in a cash based economy. Think about what the U.S. . If you want to talk about their future. The economic abyss we are looking at is what we could be sentencing them to.

There will be plenty of time to punish the fat cats and criminals. There will be time for improving the plan as we move along. But there will be no time if we do not free up the credit markets fast.

AspenFreePress

October 2, 2008 11:31 PM

If you think the general public supports the bailout, you're dreaming. The bailout is being pushed along by President Bush who not too long ago advocated privatization of Social Security. And before that Bush talked of mushroom clouds and WMD in a way that scared the American people into endorsing his attack on Iraq. The Bush Administration shouldn't expect action on its bailout proposal to occur any faster than its own response in the wake of Katrina. Sterling Greenwood

Mike

October 3, 2008 12:06 AM

Funny, no one ever polled me. I wonder who these people are.

Jeff Baker

October 3, 2008 12:46 AM

There are two kinds of loans. Hard money loans and soft money loans. Hard money loans are made by private investors who actually put up their own money to fund a loan. Soft money loans are bank loans. You give the bank a signed promissory note backed by your collateral. The bank deposits your promissory note into a hidden transaction account, as an asset on their books. Then the bank draws funds against your deposited note to fund your loan. They monetize your note. Banks never put up their own money to make the loan to you. This is why soft loans are fraudulent, because no true consideration is ever paid to you by the bank. This is a violation of contract law. It is also concealment, whereas in a valid contract, as in a loan agreement, everything must be out in the open and understood by both parties. Nothing concealed or omitted. You are not supposed to know that your soft loan was not funded from the bank’s money, but from money created out of nothing but your signature and your collateral.

This is also illegal, because it creates a privileged class and violates equal rights which is described in the U.S. Constitution. One class has the privilege to create money out of nothing and charge interest, while everyone else can not do this.

Regarding all the money proposed for a Wall Street bail out: Not one dollar is going toward a real hard money loan. It’s all going to prop-up fraudulent soft loans that were sold and didn’t pay off. Unlawful loans that were made by Lenders who didn’t put up a dime of their own money. Loans that were made to unqualified borrowers and then sold for a fee in the secondary market, where they later became non-productive. Many of these fraudulent loans where illegally divided up into pieces called derivatives, while Banking Regulators looked the other way. Wall Street is loaded with middlemen, and these are the parasites they want you to bail-out. You see in reality, the banking industry is greedy, arrogant and corrupt.

Your central bank, The Federal Reserve, is privately owned and operating in their own interests. If the private members of the Federal Reserve have a financial interest in a company, they will bail it out using Tax Payers money. Otherwise they let companies go under. They pick and choose, and this is also how they eliminate competitors. For example, instead of letting Bear Sterns fail, the Federal Reserve loaned Billions to JP Morgan Co. to buy it, because one of the directors of the Federal Reserve is also a director and co-owner of JP Morgan. This is a conflict of interest. The Federal Reserve acts like it is above the law and has never been audited. That explains all the secrecy behind closed doors, instead of full disclosure as to exactly why and how the bail-out money will be spent. There is a whole lot that is not being revealed to you about this bail-out scam, which perpetuates a fraudulent secretive monetary system with no corrective reforms. A $700 Billion Rip-Off on top of the $11 Trillion plus National Debt, that will fall on the shoulders of future generations, owed to a private corporation called the Federal Reserve masquerading as a government agency.

Why should you pay for the mistakes of wealthy middlemen? Wall Street bankers want to unload on Taxpayers a bunch of worthless junk loans and pieces of loans that nobody wants. Let Wall Street auction them off. That will tell you what they’re really worth in the free market, not the inflated price the bail-out wants you to pay for them. Wall Street: “You Break It, You Buy It!”

Lyle Vikre

October 3, 2008 01:32 AM

ARE ALL 535 CONGRESS PEOPLE CRAZY OR DRUNK?
If this bill is defeated by the House on Friday, will the Senate come back with a $Trillion bill containing $300B in earmarks to buy votes in the House?
Congressional salaries should be rolled back to 2000 levels and bailout CEO's asssets should be frozen until this mess gets cleaned up without piling more debt on the American taxpayer.

Kate Lesley

October 3, 2008 02:43 AM

Hey yeah! Sure, we want this Bill that is the same as the last one only worse!

Someone is telling some huge fibs. Nobody I talk to wants this Bill passed.

I have heard that people have been hired to call the Reps. and say they are for it. Now that makes sense.

Come election day when these bozos get booted out of office for not doing the bidding of the public, maybe then they will get it. And that will be one proud day for this country. They think they can get away with double crossing us. This time I think we are all just angry enough to tell them they are wrong. My Senator, Russ Feingold voted No and he is not up for re-election. My Congressman, Dave Obey, voted yes lat time in the house. He is up for re-election but evidently feels like superman. He admitted his constituents are against the BAIL OUT, but went against us anyway. If he votes yes today, I am voting against him, PERIOD. Do the right thing and make them work for us.

If they cross you vote the dirty apes out! I am so angry I will not take this anymore!

Mark Stouffer

October 3, 2008 02:48 AM

I am sure pollsters could find a large percentage of the public that is very un-knowlegable about this bill and who's opinions are determined by the nightly news or the Daily Show. But it would be easier for me to believe that the opposition is just acting out of fear and ignorance if there weren't 200 prominant economists from around the nation, including three Nobel-laureates, who also oppose the bill. Here is a map of there schools: http://maps.live.com/?v=2&encType=1&cid=1393C25CE151D229!775 . Also, if you read blogs and anything online the oppostion is overwhelming. How can the Democrats be jumping behind this rush plan after falling for the WMD rush plan where the threat was that we would be detonated? Isn't this ringing any bells? This is our last chance at recognizing this pattern.

Ariel

October 3, 2008 04:07 AM

It's sad that the media is pushing for this bailout so hard. You'd almost think they knew what they were talking about.

Chris

October 3, 2008 08:33 AM

This is an irrelevant article as only 95% of the voting public are knowledgeable about the issues enough to actually decide who should represent us. Those that voted for the bill and those who will vote to keep these bozos in office shows that public schools are failures. Whose with me in going to Washington and showing teabags on April 15th to show our disapproval?

Michael Nikolaou

October 3, 2008 03:03 PM

Next thing we'll have to do - now that the pork-fraught bailout bill is passed and our recklessly lending financial institutions will "continue to lend" - is resurrect and bail out Enron "to save the economy"...

Rodney King was right after all: "Can't we all get a-loan?"

Karl

October 3, 2008 03:12 PM

The Bailout Bill makes sense because it allows the corrupt ones in the corporate sector to continue DEFRAUDING the public, and the corrupt Politicians can now feel confident that they'll be invited down to West Palm Beach, Florida, to go golfing with the CORRUPT corporate 'leaders' this winter, who so badly needed this Bailout Bill to pass. I'm Karl, and I approve this comment. Thank you.

Richard

October 4, 2008 01:46 AM

Richard
Our politicians don't worry about what the public thinks, wants or votes anymore. Everyone wants illegal aliens OUT except the politicians. Everyone wants to end the politicians free lifetime salaries except the politicians. Everyone knows Lobbyists just make congressmen and women rich at the expense of one person - one vote Democracy and everyone wants them out except the politicians. Everyone SHOULD know that 535 Congressmen make the laws, get us in wars, inflate our money and can CURE all those things. And everyone knows that if you make bad loans you should pay the price except the politicians. No idiot is going to come along and buy up your bad paper. Only arrogant politicians who don't pay for gas or cars and retire with full pay on the day they're elected would see a profit in saddling their middle class with lifetime debts. And everyone knows that we wouldn't be getting the Chicken Little scare tactics unless the interests of our politicians were endangered or they could see a way to pull off an unconscionable, (and by their standards that's hard for normal people to imagine), profit.
This is Socialism. I thought one party controlling our higher education was going to eventually destroy free thought. I thought having only one newspaper in most major cities was going to eliminate free speech. I thought the use of propaganda words like "Swiftboating" to rewrite history was undermining Democracy.
I thought 9/11 was going to be the most momentous event in my lifetime....
but it looks like it 10/3 is a total eclipse of America.
A Congressional Fiat that shows us once and for all that our Constitution is out the window and representative government is gone.

However, there's always a silver lining. Now for the first time in decades Democrats and Republicans can both hate the same people.

GeraldD

October 4, 2008 11:26 AM

The Bail Out Crooks Are Counting On Obama Appointing One of them as Attorney General so they can avoid prison time.

http://www.wnd.com/index.php?pageId=67068


http://www.youtube.com/user/TheMouthPeace

David G.

October 4, 2008 05:01 PM

There will be big winners from this rape of our treasury and I suspect they'll more akin to the Oligarchs who looted Russia than middle class Americans.

This is only first inning of the looting of America by the greedy moneychangers.

A requirement of the bailout should be that the CEO of any firm that receives these benefits should be fired with loss of all compensation and pension benefits due to malfeasance.

tty

October 4, 2008 09:58 PM

Guess who runs the Senate and the House People.....KNOW who your people are...The Democrates passed the bailout, makes me sick, Bush and the presidents are just suppose to make sure the other parts of the government are protecting the people, which he has not, but don't point fingers til you understand how government works.


Section 8

The Congress shall have Power To lay and collect Taxes, Duties, Imposts and

Excises, to pay the Debts and provide for the common Defence and general

Welfare of the United States; but all Duties, Imposts and Excises shall be

uniform throughout the United States;


To borrow money on the credit of the United States;


To regulate Commerce with foreign Nations, and among the several States, and

with the Indian Tribes;


To establish an uniform Rule of Naturalization, and uniform Laws on the subject

of Bankruptcies throughout the United States;


To coin Money, regulate the Value thereof, and of foreign Coin, and fix the

Standard of Weights and Measures;


To provide for the Punishment of counterfeiting the Securities and current Coin

of the United States;


Amendment 10

The powers not delegated to the United States by the Constitution, nor
prohibited by it to the States, are reserved to the States respectively, or to the people.

I wonder what the reaction would be if there was impeachment hearings for the Prez, 74 senators and however many congressmen vote for it.

Section 7

All bills for raising Revenue shall originate in the House of Representatives;

but the Senate may propose or concur with Amendments as on other Bills.


"I do solemnly swear (or affirm) that I will faithfully execute the Office of

President of the United States, and will to the best of my Ability, preserve,

protect and defend the Constitution of the United States."

If i could figure out how to write it I would start a petition to impeach them all at once. lol

joe

October 6, 2008 12:55 AM

such as a commercial bank, organized for that purpose. In the United States, the Office of Thrift Supervision (OTS), an agency of the United States Department of the Treasury, is the primary regulator of the fiduciary activities of federal savings associations.
such as corporate directors, held to a fiduciary duty breach of fiduciary duty in order to prevent unjust enrichment.
The fiduciary functions of trusts and agencies AIG, Inc., Ameriprise Financial, American Express, Morgan Stanley, and Merrill Lynch.
each is liable, even though the injury would not have happened but for the negligence of the other

Carol

October 6, 2008 04:44 PM

Yes, but when the "law" and "regulation" permit large institutions to ignore their fiduciary duty to their clients, the game is almost impossible to stop. No practice or law or regulation is unconstitutional until it is tested in the courts.

What about the credit rating agencies who continued the game ---even after the lesson of Enron in 2002? How could the Investment Houses know that the rating agencies were not disclosing the true risk of the derivatives? The Investment Houses had the protection of the Ratings and law and regulation to continue the almost unregulated game of securitization of receivables, etc..and now the World is full of derivatives, and derivatives have made some people very rich indeed.

All away along the line with the NEW financial products, the derivatives, the securitisations, the offshore Special Purpose Vehicles that permit special tax treatment for corporations, etc.. everyone got their share, and all along the line, there were those who KNEW it couldn't last and those who HOPED it could last.

Just a few years before this great crash, the regulators, the Federal Reserve and the SEC were out there praising the derivatives and the securitisation Industry for the "boon" in the financial world that was so beneficial to our economy and that had attracted foreign investors to our markets. This was all about "product" to sell in the financial markets of the world and the "Investment Industry" took off throughout the World because of the new investment products that became available to sell to investors.

There are many to blame and I would imagine the Congress will hold hearings and there will be investigations and some people who made fortunes and bailed out early and walked away free when they knew the "end" was near. We hope they will be put in jail for using their insider knowledge to enrich themselves instead of warning the people, or the regulators. (See the SEC Chaiman's speech to the Securitisation Industry in 2006 where he asked for warnings of fraud, etc. from those present).

The bailout was necessary because many organizations invested unknowingly in bad paper to support their retirement funds and the government has to step in to protect the retirement of teachers and workers, etc.. in our economy.

I'm voting for Ralph Nader who warned the people about this "looting of America" for many years -- and the fact that the Corporations use the Bill of Rights and the state of the law and regulation to avoid criminal prosecutions for what amounts to criminal practice and negligence in corporate practices to maximize profits for themselves and their shareholders.

The elections will get really dirty now that we are down to the wire and hopefully both candidates will promise public hearings and investigations. They won't let Ralph Nader debate. If the candidates won't promise in the debates to have public hearings and investigations that can be seen on CSpan and Prime TV, we will know that the "fix" is in, and that the government does not want the American people to know the truth behind this great crisis.

Joseph

October 10, 2008 11:46 AM

Bush, Bush, Bush, Look at Facts; The War and Bail out both Scams by one that disrespected their Authority,position and America. The United Nations used the same scams lower the restrictions people are starving. America send billions in food. U.N. Oil for food. U.N. sides against America on war. WHY; America only find the truth by going to war U.N.stealing the food and Unjustly Enriching them self and powering the enemy. Men, women, and Children starved by corruption of ones position. U.N. corruption walk away with billions. Not even a hand slap. Blame Bush Now the same scam lower the restrictions people need homes. America now spend Billions and people loss their homes. Blame Bush, Unjust corrupt law makers and CEOs walk away with billions. You are all so stupid. You can Blame Bush. Bush never let our troops down. Bush has shown Honor and Respect for are military and country. Many sided with the enemy,have lied about our troops why are they not accountable for treason?

joe

October 17, 2008 06:59 PM

Americans can fix the problem at 1/10 the cost. What is worth even more is it will stop the corruption in its track, no more leaks One will now have Honor and Respect for the position they hold. American must [I dought if they will ]demand the laws to be enforced and not give in to B.S. Just below the B.S. you will find many laws have been violated. Bankruptcy nore home owners but just greed by top CEOs and lawmakers. Do not believe me. Will you believe Columbia Encyclopedia: Federal National Mortgage Association The price usually soars when interest rates fall and plummets when interest rates rise, since the mortgage business is so dependent on the direction of interest rates. Fannie Mae’s corporate credibility was damaged by revelations (2004) that it manipulated its earnings from 1998 to 2004, in part to maximize bonus payments to its corporate executives. Americans As a US bond and note futures trader at the CBOT for 20 years. Also CME seat holder trader I can surely say that ever since Greenspan left the fed has become corrupt or stupid. To move interest rate the way they have was to keep the corruption from being easly discovered. Why has it now hit the fan? Easy the interest rate is at 1% and they want to lower it to 0%. That is what America is worth 0. We must demand enforcement of law and make them repay ever last cent. They have been unjustly enrichend. Look for your self. The fed has moved rates ever time Freddy and Fannie needed the books to look good. More in one year than Greenspan in ten.

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Election 2008

Washington Bureau Chief Jane Sasseen and other BusinessWeek writers cover the run-up to the Nov. 4 presidential election, paying close attention to how the candidates will handle issues such as housing, the economy, unemployment, and immigration.

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