Why aren't Americans buying the bailout?

Because we're smarter than GWB ever imagined

Why hasn't anything happened to the Iraq thing we all hate, because we have lost control of our government.

I will vote for the bailout when these white collar criminals refund their salaries and bonus checks for the last 10 years and agree to never be employed in any form of business related to banking, finance, stocks, or anything other than working in a factory or other non executive capacity.

The Bail Out is not citizen-centered economic policy.

"We are from the government, and are here to help you"

When has anyone on the receiving end of this statement truly been helped....

Can't trust it!

Ride on!

Eight Bailout Questions

How many times over the last few days have we heard politicians, talking heads and other self-proclaimed "experts" tell us the reason the $700 billion bailout is so wildly unpopular is that we just don't understand it. The economy is complicated. Just trust Congress, President Bush and his royal highness, Hank Paulson. They'll fix it. Don't worry about that $700 billion number. It only sounds high.

Well. If that's the case - if we're really too dumb to understand what's happening - perhaps Congress can show us how much they know. To start, here are some questions I'd like answered.

1) Since the White House introduced the bailout last week, a number of alternative ideas have been proposed. For one, Michigan Republican Thaddeus McCotter wrote a 10-point plan that carries no cost to taxpayers. Others, like George Soros', are significantly less expensive and, in his estimation, likelier to be effective. Can you explain why this bill is the best option, despite being the most expensive?

2) We're told the bailout could actually turn a profit for taxpayers. Assuming that's true, how can we be sure the money actually ends up back in taxpayers' hands? For years the Social Security system took in more money than it paid out, yet instead of putting the surplus revenue toward future benefits, Congress snatched that extra cash for general expenditures. Likewise, Fannie and Freddie's "profits," were used for congressional pet projects. With this track record, how can we trust that this program will be any different?

3) The McCain campaign yesterday pointed out that the most recent housing bill gave the government nearly $1 trillion to purchase mortgages. If this is true, why exactly does Congress need to pass this monstrous legislation?

4) Does the latest version of this bill still "allow the government to purchase troubled assets from pension plans, local governments, and small banks that serve low- and middle-income families"? Americans are having a hard enough time swallowing the idea of a bailout for irresponsible home, car, and student lending. The notion that we'll be on the hook for insolvent pension plans administered by awful, union-controlled lawmakers in cities like Detroit and New York is simply insane.

5) Does the bill's preamble still proclaim that the law "provides authority to the treasury secretary to ... ensure the economic well-being of Americans?" Does anyone know if there are limitations to this seemingly unbridled authority? Otherwise, what prevents the Treasury secretary from becoming a de-facto dictator? This strikes me as especially worth discussion.

6) Are there still no meaningful curtailments of Fannie Mae and Freddie Mac? Does the bill contain anything even hinting at accountability?

7) What concrete assurances do taxpayers have that the turmoil's provenance - Carter and Clinton-era social-engineering dictums that upended safe-lending practices in favor of higher minority home ownership - will forever be outlawed? How do we know taxpayers won't be asked to finance another $700 billion bailout in 10 years? What has Congress learned from its past mistakes?

8) After Enron's collapse, former CEO Jeffrey Skilling, then-CEO Ken Lay, and then-CFO Andrew Fastow, were called to testify before Congress. According to the Business and Media Institute, Fannie's and Freddie's overstated earnings were 19 times larger than Enron's fake numbers. So when can we expect Congress to call Jim Johnson, Franklin Raines, Barney Frank, Chris Dodd, and the rest of Fannie's and Freddie's enablers to testify before Congress?

At the end of the day, we're not being asked to bailout Wall St. so much as we are the Democratic Party. For $700 billion, answers to the questions above are the least Congress can do in return.

The Bail Out is be re-branded as a rescue plan. It is what it is: borrowing money to pay debt.

Jesus, it's really not that hard to understand. Wall Street is run by a bunch of short-sighted greedy, me only, bastards who ran the economy into the ground. Now they expect everyone to jump on the panic wagon and hand them 700 billion. I fully understand that a failure to bail them out will affect my retirement and ability to get a loan. But you know what, I don't give a rats ass because it these criminals aren't taught a very hard lesson, they'll simply do it all again when the situation presents itself.

Its hard to take our president seriously about needing this "bailout" when all we've been fed for the last 8 years was scare tactics that never followed through. Take a look at his speech in '03 about getting into the war, it was all scare tactics and 100% bullshit. Why should the American people pay to bailout an economy that Bush ran into the ground just because he says so?

The bail-out boondoggle is based on an upside down view of the problem that puts the cart before the horse. The key to understanding the economic problem and solution is that the real estate market tanked, and that is why the loans are upside down, or not worth face value, not the other way around. Say in 2005 a house price was $250,000, and lots of folks rushed to get a $200,000 or $250,000 loan, because the rates were low, the economy, jobs, income was booming, lots of upward mobility, and prices were rising, as they always had in real estate, so it seemed like a good bet... then the FED got scared about inflation, so raised the rates ... every month for about a year and a half, until the real estate market screached to a halt, then hack politicians like Schumer started scapegoating and threatening lenders using a few examples of ignorant borrowers swindled by mortgage hucksters., a story as old as used car salesmen and crooked lawyers. But this go around. the banks became the bad-guys for lending money, especiially when wallstreet speculators wanted the casino to make good on thier lost bets, turning home mortgages from the safest investment in the world to toxic waste.... so what did Banks do? the Banks stopped lending. this is what caused the real estate market to really melt down, so the $250,000 house is now worth $100,000 and the homeowner/borrower is begging the bank to take it back, so they can buy the same house next door and cut thier mortgage payments in half, which they must do because thier jobs and incomes have also fallen. On top of all this other housing expenses - taxes, utlities, and homeowner insurance spiked over the same time frame, exactly when household incomes and wealth/equity were dropping. Home equity is the main form of household wealth, so america is now poorer, thus spending less, while burnded by higher housing and gas costs, with little disposible income left over, this is spiraling down demand, employment and incomes - this is the key to our sluggish economy.

The FED tried too little too late to get the banks to lend by giving them a really low discount rate, below 2%, but the banks instead borrow billions and speculate on wallstreet, just as other wallstreet invstors migrated out of mortgage back securities to driving up the price of commodities, like Oil futures, causing gas prices and inflation to rise.

The answer to this problem is very simple. Instead of bailing out Goldman Sacs executives, and thier kind, fund FHA to lend directly to homeowners at very low rates, similar to the 2% the banks already borrow at. This costs little, because the fed is already lending banks bazillions at these low rates, but the discount window 'tool' is futile if banks do not in turn lend as intended. We can eliminate the middle men and go directly to FHA mortgage loans and fix the problem. Allow homeowners to refi at the short sale value of thier home so they can keep thier home instead of buying the house next door. The effect will be to reduce the mortgage and housing costs of the middle class under the FHA umbrella. This will immediately restore household incomes, the housing market, home equity, wealth, and employment to the middle class..

Gore Vidal was correct. Both parties represent 4% of the population. Guess what 4% they represent? The rich pigs that have thrived off of political handouts for many years, both GOP and DEMS, have supped at the same trough! I believe a BBQ is in order. I'll order roast "pork barrel politicians", served on a plate of lies with cracklins on the side!

I am just asking a question. No ignorance. Just wonder, how do we know who to believe. On anything. Everyone lies, most people that lie do it to benefit themselves. With all that is going on these days, and events in history I am at a state of confusion where I am kicking myself. WHO CAN WE BELIEVE THESE DAYS. the economy sucks, but nobody cares about the middle class or the poor, except the middle class and the poor. We can only help ourselves, the politicians won't. I am not voting this year. Why because it is a waste of time either candidate won't help me or my family or friend, I can only do that myself.

Businesses, no matter how big, should be held accountable for their poor lending habits and NOT expect a handout from the people they screw on a regular basis. Declare bankruptcy and let businesses that have good habits assume the roles.

The economy is going to get worse before it gets better. We just have to decide if we want to prolong the suck.

Because we were supposed to accept the package without comment or debate, in a hurry, under catastrophic threats. We all said, "Not THIS time." And hopefully never again. Want to come up with a plan? Let's have a discussion.

That bail out gives Paulson at the most 11 trillion dollars to oversee. I take it its no coincidence he works for one of the many banks that own the Federal Reserve. The other banks many senators are getting checks from to do their dirty work.
Americans need to get rid of the Federal Reserve by implementing the executive order JFK was killed for trying to pass.

Look who is pushing the bailout.

These people no longer have the trust of the people.

They are known liars and criminals.

No matter what they say you should NOT listen. If recent history can teach you anything it is that they are NOT attempting to help you the people, they are serving corporate interests ONLY.

Thats what these people do. That's all they have done.

Really, do you think this time is different?

If I had a brain tumor and W. Bush and a bunch of politicians gave me lots of advice about what to do about it...basically to give them an ocean of money, I might get a second opinion. Namely, from someone who knows what the F***k they are doing like a couple of board certified neurosurgeons. Why do I feel deep down that any cure GWB and the politicos come up with will benefit them and hurt me??

oh yeah. thanks needu, i almost forgot about PMI. if i don't have 75% or less debt to assessed value ratio then i have to pay extra for a 'high risk' loan.

i love it..... "gee, why doesn't the american public believe us anymore?" douche bags..................

This is a chance that we revisit "Das Capital" and its author .. the great man Marx. The protagonists of Capitalism were speaking of 'free market', go-as-you-like economy and now asking for "bail out" with public money bestowed with the Govt.
When there was a 'windfall profit', the private individuals got away with it and now, when the milching cow has stopped giving milk, they are asking for public money ...to save them .. . what an utter paradox .. !!
And now .. the draconian Banks are ready to be an "Univarsal Bankers" meaning that their 'hybrid instruments' may not be effective any more.

Meanwhile, these events have made the world economy to a change.. days of these cunning Bankers have ended... !!
May the FBI probre the intention in detail .. was there any malafides ?

They are not buying it because they are the ones that have been getting ripped off for years and now you want our help, and it doesnt work that way. I will help bail them out as soon as they agree to pay me 30% interest and $300 a month for PMI since I find them to be "high risk"!!

And because nobody believes a word Bush says anymore.

part of the techniques used to branwash people into cults are to offer two "decisions" (both decisions are made by the brainwasher". It gives the illusion of a choice. Then "help" them make the decison so they are now a "free thinker"

second is repeat your message

third is repeat your message

fourth is repeat your message

maybe it's because the american public has been fed so much bullshit that they're up to there with it.
i, for one, am tired of spending billions on the likes of halliburton, enron, the war(s) we HAD to fight in the past 48 years (pick one, they're all the same) or any of the other 'make the top 1% even richer' schemes.
ya get to the tipping point, so maybe the analysis is all bullshit too. maybe we're just fucking fed up. can you tell?

The American public is tired of the Bush Administration's fear mongering tactics. That is why they rejected the bailout.

By their ongoing fear tactics, they have unilaterally forced the American Public to scrutinize every word and nuance they utter. They can change the name of the bailout, or re-address the severity of the situation into layman's terms, but it is what it is.

The facts still remain the same. The administration is advocating the predatory lending practices and fraudulent sale of worthless securities by the banking industry and rewarding them with 700 Billion Dollars of our money so they can do it over and over again.

No one single individual in America would escape the wrath of the the Department of Justice if they had perpetrated the same acts, let alone be rewarded with a financial bailout by the government.

Common sense is why American's aren't buying the Bailout

The reason I oppose it.....is because I dont trust the gov.

More from the article.

... "If you want people to support an action," says Dennis Mileti, an expert on risk communications who has studied hundreds of disasters of the more conventional kind at the University of Colorado, Boulder, "you need to link the action to cutting people's losses. And that link isn't in place."

Here is what administration and Congressional leaders must do if they want to convince the public to get behind the next iteration of a plan - assuming, of course, they come up with a plan worth backing:

Find a face: Human beings are not moved by numbers or by vague predictions of certain doom. They are moved by stories. "It's simple," says Mileti. "You get one family in America. You go to their house. And you paint a picture of what their life is like one year from now. You describe a kid who can't go to college, the house that can't be sold, the inability of anyone to use a credit card. They need to get a camera crew and go to Omaha and find a family."

Rebrand the Bill: The phrase "bailout" is a deal-killer. "People feel the breaks are being given to financial institutions and not to the consumer," says Slovic. He recommends "Consumer Protection Act." It may be too late for this change to have much impact, but any change in language that acknowledges real people would be an improvement.

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More at link...

The biggest problem is the fact that they are bailing out criminals........ Regardless if the laws were repealed, there are buisness ethics to be considered.