Where the 700 BILLION Will Really Go...

As far as I can tell, most of the money will go to the securities exchange to buy mortgage backed securities, like FDR had the govenment buy up the gold.  Then we will keep paying higher and higher prices for the securities, as FDR did with the gold, deflating the dollar.  Then when the dollar is significantly depreciated and there is no more "panic" about the value of these securities (since none would be available on the market), the government repackages these securities and sells them back to the securities exchange at the inflated prices, just like FDR did with the gold.

It is not "new", it is only the congress and the FED and the finance secretary have NO idea what they are doing; they don't even know how to copy the historic example properly.  Thus most will be wasted with redundant bureauacracy and overpayment for the securities, redoing work that was done wrong, and a bunch of expensive color high-gloss reports that won't be read but will just be sent to the landfill.

Most of the money will go to purchase toxic paper from these banks. These banks are going to unload the worst of the worst mortagages on the Tax Payers, while they keep this good paper to make profits. Simple.

As I told me Rep and both my Senators... Why should I keep paying? Wouldn't I do better if I took the bailout, too?

The taxpayers won't see any of this money - the ones that bought a home and quit paying are the ones that will see the benefit at the very tail end. The ones that will be helped are the banks, investment houses and the like - This will merely free up money that is illiquid because of the market and will allow banks to have money to lend again - and then because the banks have the money, more people will begin to have access to the credit that is needed to keep the economy going. The problem right this second is that the banks wont lend... But, the real problem is that it all needs to be paid back in some way... So, in the end, taxes will have to go up, underwriting will get much tighter, and this will end up on the faces of everyone, instead of on who it really should lie - the people who are getting foreclosed on, the brokerage houses, and the banks... And yet, the bankers will still be getting paid millions and the investors will make it rich, while the middle and the lower class pay for this problem...

wanna make a bet that banks wont lend? i happen to be 20, meaning i have less than 3 years of credit total, i have 2 years of pay history which is VERY inconsistant and i will bet you 100 bucks that i can get a letter of preapproval... banks are still lending to people they should not be lending to... dont tell me that this will free up lending. banks are more concerned with wheather the house will decline rather than if i will pay them back

"At least in part, the Great Depression was caused by underlying weaknesses and imbalances within the U.S. economy that had been obscured by the boom psychology and speculative euphoria of the 1920s. The Depression exposed those weaknesses, as it did the inability of the nation's political and financial institutions to cope with the vicious downward economic cycle that had set in by 1930. Prior to the Great Depression, governments traditionally took little or no action in times of business downturn, relying instead on impersonal market forces to achieve the necessary economic correction. But market forces alone proved unable to achieve the desired recovery in the early years of the Great Depression, and this painful discovery eventually inspired some fundamental changes in the United States' economic structure. After the Great Depression, government action, whether in the form of taxation, industrial regulation, public works, social insurance, social-welfare services, or deficit spending, came to assume a principal role in ensuring economic stability in most industrial nations with market economies. "

I may not approve of what they are doing but I understand what they are desperately trying to avoid.

Source:  http://www.english.uiuc.edu/maps/depression/about.htm

there is plenty of lending going on- FHA is back in full force, VA, and now our new friend 'USDA' loans- 100% financing, and you don't even need to own chickens!

Notice that the people left out of there are Fannie/Freddie types- only government loans are gaining market share. Oh boy does that make the big boys MAD. So, now they'll get their money, the homeowner that got taken down with the mess will get absolutely nothing, and we'll be right back where we started, if not worse, within months. NO bailout is worth a dime if it doesn't help those who are losing their homes, and create jobs for those that are being lost each and every day. Does this bill create jobs? No. What good is it, long term?????????

tld- investors bough that paper and assumed there was risk involved. They knew what they were getting into, and took a chance. Now that that has bit them in the behind, they want help??? And yet consumers who did exactly the same thing (bet on the boom market), are now losing- and getting NOTHING. Not one dime to help them. That's helping the wrong people, in my opinion.

Mind you, I will probably lose my job if this doesn't happen- country first! ;)

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