Comments on: Taking On 700 Billion Debt

By: Chris Hutcherson

Chris Hutcherson — Thu, 02 Oct 2008 17:26:40 +0000

Now that the Senate has passed the 700 billon bailout has McCains destiny been sealed?

By: Michael

Michael — Wed, 24 Sep 2008 14:54:04 +0000

In my 2nd sentence should = shouldn’t

By: Michael

Michael — Wed, 24 Sep 2008 14:53:25 +0000

It is not my responsibility to bail out home owners and investment banks who made poor decisions. We should “all just take the hit,” because we didn’t all screw up. Those who did should take the hit so THEY learn the lesson that some of us already knew.

The housing market and all the markets dependent on it are experiencing a major correction and no amount of government overspending is going to stop that.

Not to mention the fact that we don’t know if this $700 billion plan will actually work to save the largest economy in the world.

So instead of spending money we don’t have saving people who don’t deserve it in a plan that has no guarantee of working, why don’t we spend it on repairing our aging infrastructure and get tangible results while stimulating the economy and creating jobs?

By: darwin

darwin — Mon, 22 Sep 2008 15:39:05 +0000

AS for the making a profit thing, I don’t know enough of the details to understand it, but let me tell you what’s happening with me. Because of the variable-rate interest loans that were being offered years ago, housing prices in poorer parts of Orange County exploded, because people with almost no income could buy a $400,000 house and pay under $1000 of mortgage (for the first 5 years until the rates changed). Now, literally every house we’ve seen on the market (and there are LOTS of them) is beause the owners can’t pay their mortgage and are being evicted, and the houses are seeling for 1/2 to 1/3 of their previous price. We’re looking at buying houses that sold for $400K-$500K 5 years ago for $100K-$150K . And while we don’t expect the value to go back to what it was 5 years ago, it is likely that the price will increase at least 25%-50% from what it is now, if we sell in 5 years, so we will be making a profit. Now, if the government buying out bad mortgages essentially amounts to the government investing heavily in the real estate market, then yes, the market is doing so poorly right now that they’re likely to make a profit when it recovers. But, I don’t know if this is actually what they’re doing, and even if they are it’s liekly they’ll screw it up.

As for where support is coming from: I hate this too, but I think support comes 1. from the millions of people who are getting evicted from their homes because their bank assured them they could afford a variable-rate mortgage and 2. From the millions more people who keep their money in these banks and could lose it all if they went bankrupt (though there are certainly easier ways to deal with that). I think we should all just take the hit so we learn our lesson, but I can understand that the administration wouild want to save itself the embarassment of a total economic crash.

By: Dan

Dan — Mon, 22 Sep 2008 02:30:09 +0000

I am left leaning and I agree with you on this. I’m also curious where the political impetus for this sort of action comes from.

If the loans are so worthless that no one else will buy them, why should we believe that the federal government will make a profit? If that guy you quoted thinks they are going to be profitable, why isn’t he buying them?

By: Jamie

Jamie — Mon, 22 Sep 2008 01:17:06 +0000

From everything I have been reading today, it seems most Americans are against the buy-out of bad home deals. Again, when will we criticize your hero? He asked for a stupid plan and he should receive some bad press because of it.

By: Jamie

Jamie — Sun, 21 Sep 2008 01:19:38 +0000

I have voted Dem for the last several major elections, so I’m left leaning. I can say truthfully that I don’t like it one bit.

I do wonder however, why you picked one quote out of the article to criticize. Where is your criticism of GW Bush on this? It strikes me as hypocritical that you often point out when lawmakers and politicians make moves against your ideals, but you never criticize Bush…. Isn’t he the one asking for this?

By: Mitch

Mitch — Sat, 20 Sep 2008 23:51:18 +0000

The left is angry because this is money that’s not going to be used to nationalize health care, and there’s the standing leftist assumption that this is being done at “the rich’s” behest.