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Politics : GOPwinger Lies/Distortions/Omissions/Perversions of Truth
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To: Lizzie Tudor who wrote (138898)9/27/2008 6:58:08 PM
From: geode00  Read Replies (1) of 173976
 
From what I understand, this isn't the S&L RTC situation. Those were hard (more or less) assets and I think we still lost some $100 billion.

The problem this time around, again as far as I can tell, is that this bailout doesn't go to the actual mortgages or loans or debt. This goes to the fluffy, light as air, imaginary value paper that is only marginally connected to the original debts.

In other words, it's like bailing out dot com investors instead of going to the failed companies and selling off their office furniture and warehouse space.

Besides, if the problem is as deep and widespread as these people keep saying that it is, this money isn't enough to make a dent. If this market has $60 TRILLION in these light as air debt insurance policies the damage has already been done and we are just pushing off the day of reckoning and making ourselves poorer and weaker in the process.

I don't know what the real situation is and that is the other thing that is annoying. No one is bothering to tell the American public anything that sounds like the truth. If this $700 billion floats out there and these same people come back a few months later for more, this entire financial system loses all credibility.

Now THAT's a real problem.

I still think that any deal needs to include usury laws to staunch the bleeding from households leading to even more foreclosures and delinquencies. IMO, they aren't actually looking to fix the problem with $700 billion, they are just trying to get through the election.
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