dcxavier

When It Rains, It Pours

JohnJohn, now you're reverting to the class warfare line, some groups are more priveleged than others. I stopped reading the New York Times article after they starting crying about the woman who is living on $50K in dividends per year. By my reckoning, she must have a least a one million dollar stock portfolio.

Someone has to take a hit for these failures. The best and fairest way to ensure this doesn't happen in the future is to make those pay who enabled it to happen.

When It Rains, It Pours

Hi jcrash, you have swallowed the bait hook, line and sinker.

I'm not signing on to the House Republican plan in full either. And how is opposing a plan proposed by a Republican treasury secretary and supported by a Republican president being obstructionist? If you want to talk politics, the Democrats have the votes to pass this if they want. But they have no clue either, the reason they want the "fourth leg" is so they can blame others when it fails.

What I am proposing is basically the way the RTC worked, and worked well in the 1990's. Remember that?

When It Rains, It Pours

Say NO to Paulson's "welfare for billionaires" plan. The WaMu model from last night is the way to go.

Under Paulson's plan, the taxpayer would have purchased mortgages from WaMu and close to full value to reliquify the bank and take them off the books. That would free WaMu to make more loans and ease the credit crunch. Uh huh. That also would have bailed out Bonderman and others who made foolish investments in these zombies. I think Paulson can't bear to see his beloved Goldman Sachs, leveraged 25:1, go BK. It's this taxpayer bailout of fat cats that has everyone but the rent seeking politicians against it.

Here's what to do. Make failure a prerequisite for taxpayer money. the government acquires the assets, then auctions them off to the highest bidders. Stock and bond holders should get wiped out. Will this cost money? Sure, but I don't think it will be as much as Paulson's plan, but the benefits go to the innocent creditors, and people who are willing to risk their own money have an opportunity to pick up assets on the cheap. This will work especially well for mortgage backed securities, which no one says they can accurately price. Let's auction them off after failure to people spending their own money, that establishes no fooin' prices for these securities.

If your insolvent, too bad, lights out, no more gravy train. It doesn't matter who you are. We're going to take you over and sell your assets to people putting their own capital into the market.