These Bailouts Make Me Sick

%expand% These Bailouts Make Me Sick %set(body,%html-clean({

The aren't helping at all, the market has tanked despite hundreds of billions spent, and, honestly, we need these companies to *go out of business* and new companies, that don't mismanage, to take their place.

If the government had *bought houses* from people with bad mortgages, and then *rented* them back to them at rates they could afford, we would see a) an immediate improvement in mortgage-backed securities markets and b) people getting to stay in their houses and c) the government would own real estate assets - which would appreciate eventually and could then be sold at break even say over the next 20 years.

Some quick math. Average home price of depreciated and foreclosed assets: $110000. TARP: 700 billion. Total number of homes that could be purchased: 6 million. Total number of bad-asset homes 4 million.

In other words, the government could buy *all* the mortgages ... for less than the TARP total, and still have money left over.

Instead, Paulson (who should be fired), bought *stock* in banks. Who used the money to pay for CEO's yachts (7.4 billion approx in additional distressed firm bonuses paid due to government intervention).

These are the *same* banks who couldn't be trusted.... and he trusted them. He's an idiot and should be sacked.

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Thursday, November 13, 2008

These Bailouts Make Me Sick
Posted 8:03 AM

The aren't helping at all, the market has tanked despite hundreds of billions spent, and, honestly, we need these companies to *go out of business* and new companies, that don't mismanage, to take their place.

If the government had *bought houses* from people with bad mortgages, and then *rented* them back to them at rates they could afford, we would see a) an immediate improvement in mortgage-backed securities markets and b) people getting to stay in their houses and c) the government would own real estate assets - which would appreciate eventually and could then be sold at break even say over the next 20 years.

Some quick math. Average home price of depreciated and foreclosed assets: $110000. TARP: 700 billion. Total number of homes that could be purchased: 6 million. Total number of bad-asset homes 4 million.

In other words, the government could buy *all* the mortgages ... for less than the TARP total, and still have money left over.

Instead, Paulson (who should be fired), bought *stock* in banks. Who used the money to pay for CEO's yachts (7.4 billion approx in additional distressed firm bonuses paid due to government intervention).

These are the *same* banks who couldn't be trusted.... and he trusted them. He's an idiot and should be sacked.

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