Wednesday, June 25, 2008

Senate to pass $300 Billion Foreclosure Bailout?

The senate is pretty close to passing a $300 billion bailout for homeowners in foreclosure. In essence, this bill would use FHA, HUD money to back up "bad" loans that will result in foreclosure. This bill would cost every US resident (man, women, child, retired, etc.) approximately $1,000 per person to help pay for the losses incurred by banks who loaned money to people who couldn't afford the mortgage.... To me something doesn't exactly sound smart...

Harry Reid insists that the senate will skip their 4th of July break if the Bill if they don't vote on this bill this week. In a preliminary test vote this bill passed the senate 83-9. It also looks like it will pass in the House.

Should government bail out people who made bad decisions and can't be fiscally responsible? Should every US citizen be required to pay for Countrywide's decision to lend to millions of high risk borrowers? Or should the banks be required to take responsibility and find a solution the the problems they created?

3 comments:

Anonymous said...

The American juggernaut may continue for a few more years... Now doubt the Pentagon has played out several scenarios where the Fed totally collapses and anarchy ensues.

The financial system, once the provider of the American Dream and white picket fences will start to look more and more like the Terminator, with its steel and glowing eyes revealed after its flesh has been ripped off.

Alan Barker said...

What about the housing stimulous bill where they're trying to give $7,000 tax credit to encourage people to buy foreclosure homes?

Anonymous said...

*


Recently an insurance company nearly wind up....


A bank is nearly bankrupt......filing chapter 11 protection.


How it affect you? Did you buy insurance? Did you buy mini note or bonds?



Who fault?


They bailout trouble finance company, but they will not bail out your credit card bills……And the bill out of company is still not enough yet…….Should they have use the bail out $$ to pump into all different industries……You got no choice, and no point pointing finger but you can prevent similar things from happen again……


The top management of the Public listed company ( belong to "public" ) salary should be tied a portion of it to the shares price ( IPO or ave 5 years ).... so when the shares price drop, it don't just penalise the investors, but those who don't take care of the company.....If this rule is pass on, without any need of further regulation, all industries ( as long as it is public listed ) will be self regulated......because the top management will be concern about their own pay check…… And they are still spend big money on hotel stay and luxury function……..

Meanwhile if company was being acquired, there will be a great movement in terms of staff……eventually staff suffer also.

Are you a partisan?

Sign a petition to your favourite president candidate, congress member, House of representative again and ask for their views to not just comment on this, and what regulations they are going to commit and implementation the regulation, I believe should vote for the one who come suggest good implementation and let’s see who back up, which don’t implement after just mentioning in the election campaign.....If you agree on my point, please share with many people as possible.... Finance and Media are the two only industries can shaken politics ( Maybe Hackers can ), please help to highlight also...

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