imnotadoofus

Obama to the Rescue?

I keep getting irritated when journalist keep insisting that the $700 billion "bail-out" was to rescue Wall Street. Does the writer mean Bear Stearns, Lehman, Wachovia, etc. They are gone and the survivors have been decimated and thier principals' economic benefits destroyed in the process. The process is to buy mortgages from community banks and other regional banking entities--as well as insurance companies and foreign banks--that hold these mortgages at the insistence of the Democratic supporters in Congress who insisted that Fannie and Freddie support the origination of these "toxic loans." Wall Street was also urged to securitize them by these GSE institutions. So how the $700 billion is really a bail-out of those who bought these loans, not the originators of the SIVs, CDOs, etc. Wall Street was an only the producer of these vehicles. And now they have suffered as a result and are blamed for the crisis, which is nonsense.