Congressional leaders pledge to try again on ‘bailout’
By Gail Russell Chaddock | 09.30.08
It’s not over.
That’s the message lawmakers are sending to Wall Street and Main Street after the stunning defeat of a $700 billion financial rescue plan this week.
But to get there, they’ll need a plan that both meets the need on Wall Street and can also win a majority of House members, who face voters in little more than a month from now.
Leaders in Congress on both sides of the aisle say this can be done.
For Democrats, it will take tweaks to the core plan that address more of the needs on Main Street, including more stimulus for the economy. For Republicans, it will take more protection for taxpayers and, if possible, more free-market elements in the plan.
“That’s not just Wall Street. It’s the pensions of people who are retired and worked for city and county government,” said Senate majority leader Harry Reid, as he opened the Senate on Tuesday. “We’re all committed to keep this rescue package moving forward.”
Meanwhile, outside finance experts are lining up to urge lawmakers to also revise the Wall Street face of the plan.
Rejecting appeals from their party leaders, 228 House members – 133 Republicans and 95 Democrats – voted to derail the plan, which failed by 12 votes, 204-228.
Republican leaders, who had predicted a tough vote, lost most conservatives, wary of a big-government takeover, along with many moderates facing close races in November.
On the eve of the vote, House Speaker Nancy Pelosi insisted that Republicans deliver a majority of their caucus, or 100 votes, to show the American people that the historic vote was bipartisan. In the end, they could produce only about a third of the caucus.
Democrats, who have produced lock-step majority votes on important issues for most of the 110th Congress, lost most of their black and Hispanic members, riled that the plan didn’t help enough homeowners facing foreclosure; and also lost many of the 29 votes in the Progressive Caucus and 22 in the fiscally conservative Blue Dog caucus.
News of the House vote sent stock values plunging some $1.3 trillion in paper value after the vote. The record 778 point drop of the Dow Jones industrial average got Congress’s attention. After the vote, negotiators on both sides of the aisle repeated the need to convince voters that the rescue plan isn’t just a “bailout” for Wall Street, but also essential for Main Street. But they add that it will take more than better public relations to move the bill to the Senate and the president’s desk.
Democrats say that the burden of finding those additional votes must fall on Republicans: It’s a Republican administration, more Republicans must back it. But leaders are also preparing language that will deliver more relief to homeowners. Many on the left wing of the party are mining outside experts for alternatives to the plan negotiated with Treasury Secretary Henry Paulson – and are urging party leaders to hold out for more.
“This Congress must step up to its constitutional responsibilities to craft that right deal, not an insider trade,” says Rep. Marcy Kaptur (D) of Ohio, who opposes $700 billion in government purchases of “troubled assets” on the books of US and foreign financial institutions.
The financial crisis in the 1980s was resolved “in a much more disciplined and rigorous way than taxpayers printing money for Wall Street,” she adds, referring to actions by the FDIC to resolve thousands of problem situations with no cash changing hands.
Meanwhile, Republicans face a tougher task of bringing on board conservatives convinced that the Paulson plan is a step toward socialism. “I’m resolute in my opposition,” said Rep. Darrell Issa (R) of California. “Today we are ending the Reagan era if we vote for this, and we can’t come back and fix it next year.”
“Unless the market drops substantially, the Republicans aren’t going to get scared enough to do the right thing. At this point, they’re listening to talk radio and not listening to the president,” said Rep. James Moran (D) of Virginia, after the vote.
He and other Democrats cite contacts with outside experts, such as financier George Soros, as advisers for the next steps forward. “I just talked to George Soros on the phone. He’s coming up with a bill,” Mr. Moran said.
A report released Monday by the nonpartisan Center for Responsive Politics signals another dimension to the calculus of support on a Wall Street rescue plan: Members who voted for the $700 billion plan received 51 percent more in campaign contributions from the finance, insurance and real estate sector over their congressional careers than those who opposed it.
Since 1989, the finance, insurance, and real estate sector has given more than $2 billion to federal candidates and parties, more than $68 million to House members in this campaign cycle.
<< Impatient with U.S., Europe crafts own rescue plans | MainComments
2. Matt | 09.30.08
Are you kidding me??
“For Democrats, it will take tweaks to the core plan that address more of the needs on Main Street, including more stimulus for the economy. For Republicans, it will take more protection for taxpayers and, if possible, more free-market elements in the plan.”
The core plan IS THE PROBLEM. No matter what tweaks they agree to, this bailout bill is fundamentally wrong and will not do anything but prolong the inevitable.
LISTEN TO THE AMERICAN PEOPLE - we don’t want this at all. You also need to let readers know that the real reason this didn’t pass was because representatives ACTUALLY LISTENED to their constituents.
4. Josh F. | 09.30.08
As most of congress seems determined to shove this bail out down the throats of America. Make it crystal clear to us just exactly what your doing. Accept the fact that if my government has to do this there IS blame AND punishment to be meted out. Not one cent should be going to CEO’s and board members. Their assets should be seized, not doled out.
Specific bills in 2000 are directly related to this what of them? Is the Glass/Steagall Act to be put back in place? As well, what safeguards will be put in place to prevent this or things like it from happening again?
5. Jay Cline | 09.30.08
George Soros is an “outside” expert? uh, do you know who Soros is, and his affiliation with the Democratic Party? Yeah, he is a “financier”; of the Democratic Party.
The only question is, When did CSMonitor become an arm of that independent media outlet, Air America?
6. Eric | 09.30.08
No Bailout! So we might not have as much credit (not that I believe that). Maybe I won’t get 5 credit card offers a day in the mail! Yay!
7. Shawn | 09.30.08
I don’t care what provisions the lawmakers put into the bill, I am not paying 10,000 dollars in extra taxes so that other people can have nice things while I remain poor.
8. rick | 09.30.08
Main Street letter to Congress
We DO NOT want this bailout bill passed. If Wall St wants to bailout Wall St, let them take care of themselves, but DON’T spend a dime of our tax dollars to do so.
Middle class has been in a crisis a lot longer than the current crisis so using scare tactics about not getting a car loan, not getting a student loan, not getting a house loan, etc, is laughable. This time we are not buying scare tactics that addresses the needs of the rich while Main St is struggling to put gas in their car, put food on the table, buying medicine for our children and yet you and your buddies on Capital Hill are talking to us about car and student loans. You guys are so out of touch of our needs and values it isn’t funny. I spent 23 years in the military and I never remember being told to take a day off for a holiday when facing a crisis. Where do you guys get your values?
I, and many others, have been surviving from pay check to pay check for years, that I have no doubt we will survive this crisis no matter how low we go. Those who won’t survive, those who are scared, are the same big wigs who want to be bailed out. We are tired of being ignored and being told that something is being done for the good of Main St when time after time it would turn out it was NOT for us, but for those who had the resources and power to manipulate the system for their own greed. You are not just up against two or three weeks of doubt, but years of destroying the trust of middle class and ignoring our needs while wasting our tax dollars on your own self-absorbed careers.
Representatives continue to bicker, waste our tax dollars, use our taxes for their own pet peeve projects, continue to let CEOs and Wall St walk away with millions when they should be in jail, and you ask us to trust you to oversight the 700B and want us to believe that it will be used for the good of Main St. We are more than skeptical, but down right mad that representatives continue trying to sale their intentions that in the past proved that they are only looking out for themselves and their rich cronies on Wall St.
Anyone who votes for this bill will not get my support. The only bailout that is acceptable to American people right now is the clean out of crooked representatives and CEOs who took advantage of our tax dollars and the American people’s good will. We have nothing left to give, especially our trust.
We know that Wall St feeds the cash to those living on the Hill and we would rather see this engine dry up than to continue to fuel it. Basically what we are saying is learn what it takes to survive on Main St….learn to start listening to us…get out of your limos and walk the streets of Main St, not just during election time, but all the time…..and maybe, just maybe, you can slowly begin to build the trust that you and your buddies on the Hill have used for your own self-serving careers while ignoring Main St needs.
If you are saying that Main St does not know what we are asking for if we want this bill to fail, all I can say is we already know how that feels every time we vote for or elect one of you guys.
Main St Survivor - Rick Miller
9. Pugazendhi Asaimuthu | 09.30.08
It is a difficult thing. If one of the core causes of the securities having lost value is the fall of home values, wouldn’t something like the following steps help all and the market:
*Address Mark to Market regulation issues
*Pay-out and buying future equity on homes from the home owners to match the difference between the current market value and the home loan on the homes
*paying this ammount directly to the lenders with an agreement with the homeowner
Won’t this protect the common man, financial instituions & the government money.
10. On Holiday | 09.30.08
Everyone seems to want to solution the current economic challenges…But why are they on holiday after the failed vote? … It’s disgusting that any holiday gets in the way of larger county/world wide issues. I’ve voted for the same congressional representatives for more than a decade (10 years) and come November I’m voting for new people. The people currently are so far out of touch with Me and You that they are basically worthless; especially if they take holiday when crunch time comes…
11. Sirrah | 09.30.08
Bail who out? That’s the real question. PLEASE do not give Paulson dictatorial powers whatever you do. Hey do not give him any power at all!
12. Andrew76 | 09.30.08
Ridiculous! The message is clear, NO BAILOUT!! This isn’t a matter of Americans wanting “tweaks” to the bill, it’s about wanting NO BILL and no bailout! Members of the House were recieving calls and emails at a ratio of 300 to 1 against a bailout of *any* kind. Rest assured my representatives will hear from me. This bailout is a scam, and a further “stimulus package”??? Where will the money come from? Wake up, there is no money. Let the bankruptcies roll, and allow these financial instutions and the government agents/agencies who’re responsible to reap the consequences. To foist this failure on the backs of tax payers is indefensible, immoral, and wildly unconstitutional. ENOUGH!
13. Sharon D. | 09.30.08
The vote failed by 24 votes according to my math, if your election results are correct. If that simple math is incorrect, how am I to trust the math behind a $700 billion bailout? Also, it’s time this country stood up and said NO to a lot more than drugs! This bill must NOT pass. Wall Street and our economists should put their heads together in their ivory towers and figure it out. They have managed to line their pockets quite heavily with our money; they can creatively deduct how to best tackle this issue. Thank you for this forum.
14. Coventina | 09.30.08
How about spliting up that 700 billion between us hard working tax payers?? 8 year ago, my husband and I were pulling in 80G a year, now we are living in poverty!!!
15. Coventina | 09.30.08
So much for McCain’s recent “the economy is fine” statement huh?? I wish I could be rich and put my head in the sand as well! As if we all didn’t see this coming!
16. Ron M. | 09.30.08
Actually Sharon,
It was 228 Nays to 205 Yays against the bill. The difference there is 23…not 24.
If just 12 of the Nays changed their vote to Yays….the final tally would be 217-216 in favor of the bill, thus when somebody says it didn’t pass by 12 votes, they are correct with their mathematics.
Just making sure we’re all on the same page.
17. joni davis | 09.30.08
I agree with all of the above comments. NO BAILOUT!!! Our reps had better listen to the people, if they chose to ignore us, they will be voted OUT. You have a lot of gall asking the American people to pay for the fat cats mistakes. How about Paulson and bernanke. They should be up on charges,. They caused this so called crisis. I think it was all planned anyways by BUSH, Cheny, Rove. Probably MCAnil got some as did Palin for running around acting stupid like his VP should. NO TO THE BAILOUT. Oregon had 4 reps vote no. Darlene Hooley voted yes. Vote her out!!!
18. Barry | 09.30.08
Well, judging from these comments, I think that legislators need to do a better job of educating the public about the economic situation, and about the proposal.
People who think that they are in no danger, and that the bailout is just some scheme to help executives at a few firms, really have no clue what is happening and what could happen.
19. Hydin | 09.30.08
This isnt mine but why not. same idea just 700 billion.
I’m against the $85,000,000,000.00 bailout of AIG.
Instead, I’m in favor of giving $85,000,000,000 to America in
a We Deserve It Dividend.
To make the math simple, let’s assume there are 200,000,000
bonafide U.S. Citizens 18+.
Our population is about 301,000,000 +/- counting every man, woman
and child. So 200,000,000 might be a fair stab at adults 18 and up..
So divide 200 million adults 18+ into $85 billon that equals $425,000.00.
My plan is to give $425,0 00 to every person 18+ as a
We Deserve It Dividend.
Of course, it would NOT be tax free.
So let’s assume a tax rate of 30%.
Every individual 18+ has to pay $127,500.00 in taxes.
That sends $25,500,000,000 right back to Uncle Sam.
But it means that every adult 18+ has $297,500.00 in their pocket.
A husband and wife has $595,000.00.
What would you do with $297,500.00 to $595,000.00 in your family?
Pay off your mortgage - housing crisis solved.
Repay college loans - what a great boost to new grads
Put away money for college - it’ll be there
Save in a bank - create money to loan to entrepreneurs.
Buy a new car - create jobs
Invest in the market - capital drives growth
Pay for your parent’s medical insurance - health care improves
Enable Deadbeat Dads to come clean or else
Remember this is for every adult U S Citizen 18+ including the folks
who lost their jobs at Lehman Brothers and every other compan y
that is cutting back. And of course, for those serving in our Armed Forces.
If we’re going to re-distribute wealth let’s really do it….instead of trickling out
a puny $1000.00 economic incentive that is being proposed by one of our candidates for President.
If we’re going to do an $85 billion bailout, let’s bail out every adult U S Citizen 18+!
As for AIG - liquidate it.
Sell off its parts.
Let American General go back to being American General.
Sell off the real estate.
Let the private sector bargain hunters cut it up and clean it up.
Here’s my rationale. We deserve it and AIG doesn’t.
Sure it’s a crazy idea that can work.
But can you imagine the Coast-To-Coast Block Party!
How do you spell Economic Boom?
I trust my fellow adult Americans to know how to use the $85 Billion
We Deserve It Dividend more than the geniuses at AIG or in Washington DC .
And remember, The Family pla n only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.
Ahhh….I feel so much better getting that off my chest
20. Scott Miller | 09.30.08
Let Wall Street crump just like my retirement funds are crumping! The difference is, although I am sixty, I can still work and take care of myself. I mean productive work, not moving money around in stocks for a profit. The brokers can learn to do productive work as well. Maybe without the fancy house and car, but they can learn because without a bail-out they will have to learn. If I meet them in the real world I even promise to buy them a beer if they can’t afford one! Just call it a bail-out from Main Street.
21. Ira | 09.30.08
What they didn’t get it the first time? They pass this bill and I’ll NEVER pay another damn dime in taxes and they can just throw me in jail. now I’m PISSED!
22. Jack D. | 09.30.08
Wall Street wants my hard earned cash? Here’s the cost for my cooperation:
1. Permanent “downsizing” of all multi-national finance corporations into small, unconnected firms. Enforce anti-trust laws again. We’re urged to “diversify” our stock portfolios to protect them–I should think the same principle applies to protecting financial markets.
2. LEND money to firms that are in trouble with interest and only enough to prevent insolvency. Principal to be paid off the top of profits without any “tax write-off” benefit (I’ll let them write off the interest only).
3. No golden parachutes or bonuses to any exec earning over $1 million (poor things).
4. An “overseas banking tariff” charged to ANY U.S. corporation or individual who uses out-of-country banking privileges to avoid paying a fair share of income taxes — tariff to equal the amount of taxes avoided, plus publication on a national “These guys are American?” IRS list.
5. TOTAL PROHIBITION of ANY CORPORATE CONTRIBUTIONS TO POLITICAL PARTIES, CANDIDATES and, especially, INCUMBENTS at ANY level of government (from Constable to President). NO PACS, NO JUNKETS, NO LOBBYIST-SPONSORED FUND-RAISING FETES! NONE NADA NUNCA NOTHING! Infractions earn mandatory jail time and huge fines. Our democracy deserves this level of protection.
Congress gets this done and I’ll fork over my share. Not until.
23. PacificGatePost | 09.30.08
The perception has been set. The world awaits a promised bailout. Are American taxpayers more knowledgeable than the White House, McCain and Obama?
Or are they suddenly just less susceptible to bad PR?
http://pacificgatepost.blogspot.com/2008/09/bailout-of-perception.html
It sure looks like it.
24. Darrell Burgan | 09.30.08
The “bailout”, like so many of our government programs, ignores the root cause of the problem in favor of a convenient band-aid. The root cause is a real estate market that is still overvalued, and Wall Street’s insane addiction to derivate products that add NO value to the economy and create hideous risks. As Warren Buffet said it right: they are weapons of financial mass destruction.
Congress is darn right to be afraid of what will happen if they don’t pass this law. But they better be even more afraid of what will happen if they DO. Remember Congress: the election is only ONE MONTH away. Americans will NOT forget this.
Americans are well aware that we face tough times if the bailout fails. But, as previous posters have said, we are already facing them. There is no news there. It is time that Wall Street feels the same pain that we are feeling.
Let the market correct itself. Let the survivors survive. Let those who don’t survive FAIL. For once let the gamblers on Wall Street face and pay for their own moral hazard. The whole country will hurt for awhile but we will emerge the stronger for it.
25. Karen Essay | 09.30.08
I think every American should have the opportunity to read this bill they want to pass before it is voted on.
26. Eugene Frid | 09.30.08
The American Tax Payers will NOT and should NOT be paying for Wall Street follies. The bailout will go straight into the pockets of WEALTHY investors who held MBS securities and do little to help the underlying DEFAULTS of people who can not afford to pay their mortgage. Please read the following article which explains the situation perfectly. STOP THE BAILOUT NOW!
27. joebloww | 10.01.08
wow! i am so glad to read these comments, and see that the entire nation is not completely stupid. thanx, readers, for speaking up here. But here isn’t enough. PLEASE CONTACT THESE CONGRESSMEN AND LET THEM KNOW THEIR JOBS ARE ON THE LINE. NO BAILOUT OF GREEDY BANKERS! They knew what they were doing; they gave bad loans knowing they would package and sell them off. They passed the buck, and now their using their friends in gov’t. to pass that buck to US. IT’S WRONG. If the gov’t. wants to give $700 billion to crooks, let them collect it from every $1M+ salary collector in the country. (Certainly not salary “earners”)
KUDOS TO JACK D. AND HYDEN ABOVE for a better bailout plan. 
28. sb | 10.01.08
NO Bailout!!!! We are tired of coming to the aid of all the rich bankers who is coming to the working class aid???? No job security, no raises and everything is more expensive as the dollar decreases in value…It’s another Bush strategy to get rich and lead this country into a 3rd world country, this is a capitalist society let’s prosecute the CEO’s and freeze their assets overseas and bring that money back so it can be invested back into the banks they stole it from, we would not need to bail anyone out….
29. marvinlzinn | 10.01.08
Our federal government should leave us alone. Whatever it tries to fix will make it worse.
This is why I will write in my vote for Ron Paul. I will not vote for anyone I know I cannot trust. His solution will work, but those with most money do not want to reduce their profits to help those most in need.
30. Greg Lawson | 10.01.08
No bailout. Wall Street greed is matched only by the greed of these incompetent, corrupt Congressmen for more tax money. They’ll waste and squander the 700 billion like they’ve wasted and squandered everything else. Vote out all incumbents this November, and replace them with decent, intelligent people who understand and are loyal to the Constitution.
32. Jim | 10.01.08
To Laurel(#31) and Hydin(#19). Please do the math in the argument. 85B / 200M = $425 not $425,000. Lets all stop sharing false information. I think this is part of the problem. Too many people believe what they read and don’t bother to check the facts. Let’s slow down a little and get it right. Unfortunatly the media is more than willing to share opinions than it is to report the facts. We are all being asked to make decisions without the proper and required facts.
33. DEBBE | 10.02.08
Hydin your are a genius True Genius!
WE THE PEOPLE HAVE SPOKEN AND WE DO NOT WANT THIS BAILOUT BUT WE ARE NOT LISTENED TOO THIS IS VERY WRONG LET US LOOK TO WHO IS PUSHING THIS AND WHY
IT STARTS WITH JIMMINY “CRICKET-BRAINED” CARTER DOWN TO DODD SCHULER AND FRANKS AND OTHER DEMOCRATS WHO CREATED THIS FRANKENSTIEN MONSTER OF A FIRE AND HAVE BEEN POURING GASOLINE ON IT FOR YEARS ALL THE SAME TIME USING IT FOR A HONEY MONEY POT (AHH! BUT IS IT THAT BIG A MONSTER OF A FIRE)ME THINKS THEY SCRAM WOLF TOO MUCH THESE DEMOCRATS THEN FINANCIAL ADVISOR BUSH HAS IS ONE OF THEM FIRE HIS BEHIND PRONTO AND LET THE MARKET SELLTLE ITSELF IT WILL IN SHORT ORDER THIS BILL DOES NOT STOP THE FORECLOSURE ON THE HOMES IT JUST GIVES MONEY TO THE BANKS AND OTHER ENTITIES THAT NEED TO FAIL AND GO OUT OF BUSINESS FOR DOING ‘BAD BUSINESS’ WHAT ‘WE THE PEOPLE’ WANT IT B.FRANK AND DODD AND SCHULER AND THE REST IN JAIL I’D EVEN HELP PAY FOR A JAIL TO KEEP THEM IN. THEY ARE THE CROOKS AND WE OUT HERE KNOW THIS. POLITICAL CORRECTNESS BROUGHT THIS ON THE DEMS ARE THE PARTY OF POLITICAL CORRECTNESS. WHY DO WE NOT SEE ON THE MAIN STREAM MEDIA THE LINEAGE OF THIS MESS IN FANNIE AND FREDDIE COULD IT BE THEY DON’T WANT US TO KNOW AHH! BUT WE DO KNOW. MR. BUSH PRESIDENT OF THE UNITED STATES OR WHAT IS LEFT OF IT ANYWAY [foul language] AND DO WHAT YOU WERE ELECTED TO TO AND GET RID OF THE DEMOCRATIC FINANCIAL LACKEY ASAP! TAKE A STAND FOR THE PEOPLE WHO ELECTED YOU. [foul language] MAYBE SOMEONE WILL READ HIM THIS TRIED TO SEND EMAIL TO WHITE HOUSE COULDN’T GET ON BUSY. ANYWAY I’VE VENTED BUT I STILL DON’T FEEL BETTER BY THE WAY I’M A GRANDMOTHER OF FOUR THANKS FOR LISTENING
34. Peter Mackrael | 10.02.08
Dear Hydin,
I think your math is a little optimistic. When I divide $700 billion by 200 million people, I get $3,500 per person. When I divide $85 billion by 200 million people, I get $425 per person. Still, I like your idea.
35. Peter Mackrael | 10.02.08
VOTE NO TO THE REVISED PAULSON BAIL-OUT BILL!
Dear Representative,
I agree that government action is needed but I urge you to reject the Revised Paulson Bail-Out Bill tomorrow and demand a better solution. There are other methods for banks to raise capital and increase liquidity that do not require taxpayers to buy worthless debt paper from irresponsible investment bankers. Why are other proposals not being debated?
The Paulson proposal will not solve the liquidity problem. Recent bail-outs have already cost the US taxpayers about $700bn. In addition, the government recently provided $700bn to European banks with no effect on liquidity. If this bill is approved today by the House, these interventions will increase US debt to about $12 trillion. Foreign lenders now hold about 40% of US debt. This bill may reassure them for a short while until they see that US debt continues to increase while GDP declines. This bill may delay but will certainly not prevent a recession in the US. However, this bail-out program will severely limit spending on social programs for many years to come!
It is just plain wrong to privatize profits while socializing losses. Instead of solving the liquidity crisis, this bill will transfer $700bn from the poorest 90% (working taxpayers) to enrich the wealthiest 10% who hold debt derivatives and shares in these investment banks. Which debt paper will we buy and at what price? This effort will provide a grand opportunity for graft and fraud. It will be impossible to establish a fair value for this worthless debt paper but consulting fees to the government will be huge. While this bill will transfer public wealth to political friends of both parties in the Wall Street community, it will do nothing to prevent further consolidation and restructuring by US banks. This $700bn will not be enough. These banks will soon demand more!
Here is one possible alternative. The five big investment banks: Bear Stearns, Merrill Lynch, Lehman Brothers, Goldman Sachs and Morgan Stanley have recently morphed into regular banks. In effect, these investment banks have increased their asset base while transferring their bad debt assets to commercial banks. If these new banks require additional liquidity, existing regulations allow them sell assets to private investors to raise additional capital. In addition, they can borrow from the Fed, their lender of last resort. This liquidity emergency is exactly what the Fed was created for. If these banks are still unable to obtain enough liquidity to provide consumer loans and adequate operating capital to US businesses, the federal government should buy or establish a national bank for this purpose.
Meanwhile we need to re-establish and enforce investment banking regulations. Also we need an independent investigation to understand how and why the investment banks and government got us into this liquidity crisis so it can be prevented in future. I believe it is likely that stock manipulation and outright fraud has been committed in recent months.
36. William | 10.03.08
Parts of the revised “Bail Out Plan” can actually help people who have not taken on too much credit card debt. Restructuring loans and subsidizing interest can prevent real-estate values from dropping. Subsidizing rates on subprime loans is a key preventative measure because a subprime loan is actually a discounted loan when it starts, it will be a reset back to the original discounted payment which the consumer could originally afford. This problem is widespread and Americas is looking for help and are taking extreme measures to get through bad times.
Take a look at http://www.buymyhousebeforethebanktakesit.com ; homeowners are walking away from the equity of their homes because their payments have increased too much from these subprime loans.
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1. Whys | 09.30.08
There are _450_ billionaires in the United States.