Not everyone a fan of the ‘Paulson plan’ to mop up toxic debt

September 19, 2008

Wall Street’s cheering the Paulson Plan – a multi-billion-dollar taxpayer-funded effort to contain the credit market crisis. But a backdraft is underway in the blogosphere. Strategist-blogger Barry Ritholtz lays it out here in The Big Picture:

We now see that the grand experiment of deregulation has ended, and ended badly. The deregulation movement is now an historical footnote, just another interest group, and once in power they turned into socialists.

paulson2.JPGComments rolling into Calculated Risk are uniformly negative, with the two presidential candidates coming in for some scorn for supporting the asset relief plan.

A temporary ban on short-selling from the SEC is drawing some arrows as well from Zac Bissonnette in BloggingStocks:

It’s clear why the SEC is now banning it: this isn’t about leveling the playing field or making the market more fair or efficient. This about the SEC using its power to manipulate the market upward.

Some close to the Street were critical of the ramifications too. “Wall Street has discovered a great business where the upside is potentially unlimited, but the downside is ultimately put on the taxpayers’ tab,” Cary Leahey, economist and managing director of Decision Economics told Reuters.


We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see

This is more garbage from an administration that has had its head in the sand far too long. These problems manifested years ago and became evident long ago, but they were in denial and told us the economy was strong and fundamentally sound. I believe if Paulson is lucky, he will end up teaching at a Community College somewhere, but is probably destined to serve lunch out of a drive-thru window. Hopefully the next administration applies some effective efforts towards healthier times.

Posted by Scott | Report as abusive

It’s said if one doesn’t learn from history then they are destined to repeat it, Republicans (everyone of them) live and breathe deregulation of business. If you vote a Republican then you have learned nothing from history.

Posted by Jim | Report as abusive

The conservative Republican model of governance is now as dead as Soviet communism. The complexities of a 21st century economy that spanned continents was simply too much for them to handle. In truth, they didn’t even try to handle it. Theirs was a hands-off mindset that had more in common with the Victorian era than it does with our inter-twined world. Smaller government they cried. Less regulation and self-policing of the markets was their mantra. And it all sounded so good until you looked under the hood. Now it has failed miserably. The irony is that the same people who mismanaged the country for over 16 years are now trying to reinvent themselves as reformers. That’s understandable. If blame is to be assigned where it is due, they would all be thrown out of office, and possibly far worse. But, they have little to fear. Never underestimate the stupidity of the American electorate. If the past is any guide, McCain and that devil in bifocals at his side will be running the country next year. And it will be business as usual.

Posted by Robert Foster | Report as abusive

Amazing how everyone knee-jerks to blame one side of the political divide, when BOTH sides are to blame. They’re all to blame. If anyone is convinced their party is blameless, they are either stupid or ignorant. Do your own research. You may change your mind. You may end up skipping the election entirely also.

Posted by Dave | Report as abusive

Again our leadership has shown it has 20-80 hindsight and no foresight. Too much pork in the diet and dangling from the lobbyist strings. Even when a crash was inevitable there was no action. How many other things will crash before we put an end to this nonsense and get some people in office who can run the place.

Posted by Fred Belz | Report as abusive

The stakes are high and the timing is favorable for Wall Street to push the government into action. In my perception its unusual for an outgoing administration to propose such sweeping legislation before and election. Ultimately its still a leverage game its just that the assets have changed. Political capital has replaced the dollar. Congress will be asked to act on legislation prior to the new administration being elected due to the timing of these dramatic events. If the Democratically controlled congress fails to act in a timely manner the Dems get whacked for letting the economy slide into the dumper. If there is action, the new administration is saddled with incredible, I mean unprecedented unimaginable debt. These Wall Street guys all contributed to electing Bush. This is the last chip they are going to drag out of him for the investment in his Presidency. Not a bad insurance play.

Posted by Chris | Report as abusive

” Republicans (everyone of them) live and breathe deregulation of business”

until their fat cat friends get into trouble

Posted by oberst | Report as abusive

Deregulation is one of the republican party’s primary selling points. It ties directly to the old “smaller government” argument. Deregulation simply doesn’t work. Look at both the airline industry and the railroads. They are both in horrid staights because of deregulation.

But the current condition of the economy is not entirely based on deregulation. Bush and his cronies use a form of economics called supply side economics. This was used by Ronald Reagan during his administration, and failed miserably then as well. Bush’s policies have mirrored those policies used during Reagan’s term, leaving us with a huge deficit and a badly damaged economy.

Some of you may remember when Bush Senior was running for office, he made the pledge “No New Taxes”. This is similar to what McCain is pledging. But Bush Senior came to realize that Reagan left him with no choice; either raise taxes or watch the economy crumble.

Bush senior’s raising of taxes set the stage for the prosperous years of the Clinton administration, but they were so unpopular that Bush lost his chance at a second term. The necessary steps that the next administration takes may well leave them without a second term as well.

We will have to see if responcibility and a sound economy are more important to our next leader then popularity and a second term.

Posted by Patrick | Report as abusive

Republicans should just rename their party(neocons?) and come up with a new agenda. Its so sad watching old school fiscally responsible republicans(ron paul etc) try to carry on the torch. Republicans try to say the left is socialist, yet they are the ones supporting socialist polices.

Posted by matt | Report as abusive

This is really the end of the Regan Revolution, which was a *neo-liberal* revolution support by each administration since. The blame shouldn’t be placed on one party, or on “conservatives.” Hopefully, those who espouse a “conservative” philosophy will no longer believe that this philosophy is embodied in the Republican party.

Posted by Bob Valiant | Report as abusive

To Dave’s point, I agree with you that the party divide is different sides of the same coin, however, the point of an election year is that you can only punch one ticket. The Republicans had the presidency and congress for 6 years and their policies are taking root. Voters need to take a long hard look at the long-term implications of their elected officials’ platforms.

This election is not about taxes.

Posted by CJ | Report as abusive

Republicans and Democrats have been running this country into the ground for decades. They are dinosaurs that should be extinct. Why do Americans keep voting for these entrenched political machines? If you really want a change, vote both parties out of Washington for good.

Posted by Alan | Report as abusive

It’s cumforting to know that the rich man will as God intended it to be, always a little more richer with each day.

Posted by Jim | Report as abusive

To the poster who says “both sides are to blame,” I call BS. One side has had control of the presidency for the last eight years and Congress for six of those years in addition to six years under president Clinton. One side could have done something to clean up this mess but chose to let the foxes guard the henhouse in exchange for lobbyist money and a complicit corporate media.

To be fair, the other side, unfortunately, relented far too many times in giving the people in power what they wanted, but make no mistake, this is a Republican disaster and Republicans need to own up to their own failures.

Posted by Brian | Report as abusive

One can only imagine what would have happened to Social Security if these clowns had their way a few years ago.

Posted by Rich Hoffman | Report as abusive

If Enron was the poster child of what was to come, derivatives should have been checked at the door back then while the foundation was still somewhat intact. Some one needs to police those whom can not police them selves before the lynch-mob shows up. You need only ask the average American what he thinks and it’s the same answer; Lynch em!
I think it will be interesting to see what the realities of this bring in the coming administration. This might divert pandemonium today but what about next month? I’m not holding my breath.

Posted by J. David Falk | Report as abusive

The government and financial leaders are claiming the market meltdown is like a weapon of mass destruction. It is so bad cannot take a chance to let it happen even though the market is up significantly over the last 10 years. They want us to act very fast so there can be no reflection as to how bad the idea actually is and who is to blame. The bail out would actually gives massive power and funds to unelected officials who were primarily at fault for the problem to begin with. No massive government program has ever worked as planned, ended as soon as announced, cost as little as estimated nor saved tax payer money. It will only save the super wealthy that have benefited from the problem all along and crush regular Americans with a collapsing currency, hyper-inflation and oppressive taxes. Why have elected officials if they abdicate to bureaucrats at the moment of great crisis and cower like little children?

Conclusion: The bail out plan is nothing more than a plan to pay thieves to stop stealing. As Americans, we should take our pitchforks down to D.C. and demand they all resign.

Posted by Ron Morse | Report as abusive

When is anybody going to stand back from all this nonsense about which party is to blame and ask the question, “What is the hidden agenda?”

The guys at the top never seem to end up unable to pay their mortgages, privately educate their kids, miss out on health care, drive round in a broken drown truck.

Why not?

Posted by Alison | Report as abusive

This fiasco was brought on by the Republicans under Reagan admin when they decided to DE-regulate the financial industry. The fact is, it is the U.S. government that is asleep at the wheel on so many issues, this only being one. It is far time that the AMERICAN PEOPLE reclaim what is rightfully theirs. The U.S. is no longer governed by and for the people, but rather by and for a bunch of corrupted individuals who are only out for themselves and their friends. I am an American and I love my country, but I am ashamed at the greed and tactics that so many in the U.S. stand by. Like the empires of Greece,Rome, and Britian, we soon will be a “has been” nation as a result of such destrutive decisions and policies both domestically and internationally. I travel extensively and things look MUCH different when you are looking from the outside in. I suggest Americans take more time to travel and to see the REAL world. It is time for REAL CHANGE!!

Posted by John | Report as abusive

We had a Coup D’état and now we have a “revolutionary Junta” (The Federal Reserve) ruling the country. We have two moronic candidates that have no clue of what is happening and a president that was probably drunk during all these few days. The end result is that we rescued all the financial geniuses of Wall Street and now my grandson’s grandsons will have to pay for it. Fantastic I am so Happy.

Posted by Rick | Report as abusive

This is the day of the national sub-prime loan reckoning. Americans have been living too high on the hog for years, borrowing money from China and the Middle East to play their lethal games around the world that only makes international relations worse. Just cut your military spending in half, raise taxes on the super wealthy, balance you annual budgets (Why is there no talk of a balanced budget amendment? Can you still trust politicians with your money?) and reduce you lust for having “everything now”. This greedy generation has impoverished its children and grand-children significantly. And the sad thing is that Mr. Average America just doesn’t get it. They think that they can afford to traipse militarily throughout the world at little cost. Now you will have to pay the piper.

Posted by JDonald | Report as abusive

Many are at fault: the borrowers who thought their houses could never decline in value, greenspan who kept interest rates too low for too long, the banks who stupidly lent and over leveraged themselves, and of course the regulators who let all that go on as it was clear that a real estate/banking crisis was a disaster waiting to happen. Lessons learnt by our grand parents during the 1930’s were forgotten.

Posted by Jacques | Report as abusive

Regardless of the solution chosen to get us out of this situation, the pack that has been leading the US into this mess should be replaced. Decently salaried men with more than their bonuses and the interests of shareholders in mind, is what the country needs now. Boring and conservative grey mouses, that take their lunchpack every morning when they ride the tube to their decenlty furnished offices they should be. Like Warren Buffet who doesn’t spend millions and earns billions.

Posted by Jeroen Berg | Report as abusive

The American will bear the debt of its speculators and banks for generations, and the whole country is bearing the debt of the world. Today, Bush and Paulson may seemed to have officially committed America to its death spiral in a universe that is adjusting itself to a “post-America” world. Sadly, the American people do not realize that their passivity and acquiesce, their indifference and disinterest, and their blind obedience to regulated and controlled media news finally destroyed what is left of what the government hasn’t already destroyed. They have forfeited Democracy in favor of a variant of National Socialism. They are witnessing one of the most significant events in American history and barely realize or understand it.

Posted by M Bucci | Report as abusive

This is the beginning of Socialism in the United States. Not only has the government seized control of the financial markets, they are proposing to RAISE THE NATIONAL DEBT LIMIT TO 11 TRILLION DOLLARS. They also are proposing to give a massive amount of unchecked power to the Secretary of the Treasury. Every American should be contacting their representatives and DEMANDING THEY VOTE AGAINST THIS BAILOUT!

Posted by ET | Report as abusive

Just as republicans live and breathe deregulation, so do democrats live and breathe big government, big spending and big taxes and I just can’t see giving anymore money for any reason to anything that is not related to me or my family.

Unfortunately as much as people would like to see some regulation, the democrats are going to use this opportunity to swing things too far to their side instead of balancing it out. Neither one of them knows how to have a happy medium

Posted by Hank | Report as abusive

There are three failures that made up this horror that is far from finished as now being “deb5ted up and bowed waved to next administration to do the real work.
1. Gov Agencies/WH/Congress on BOTH sides over last 20-25 years has been bought by WS/Banks and the monies, D by Hedge funds/lawyers, R by Wall St and both by banks. They no longer care, nor ‘represent the people
2. Corp usa has come under the “anonymous money forecasters, annalists and experts, investors” that are never ID’d, bu given total nay/yea over how things operate under the guise of “free markets” which we rarely practice if at all. REAL FM means invest back into firms, not gut and strip them.
3. A population that has for last 30 years is a product of a education systems the dumbed down usa to point where “anything goes” as long as it plays well on 30 sec “nitwit networks news”. Simply put that “boring stuff on money, government and such is a waste of time, as I will never use it”. and now it shows. as none it seems have.
RIP usa, the great experiment failed.. and like Rome has done so as citizens know more about what is going on in the big screen and arena, then Wall St’s and Congress..RIP usa, it was fun ride, but now, you finally have to get it off the tiger,.. and most simply do no know how.. as it will not “Be fun”!

Posted by chuck | Report as abusive

This insane “mother of all bailouts” proposed for the benefit of those who brought us “creative accounting”, derivatives, usury in credit card rates, foreclosures, etc., is probably going to pass Congress. At the very least, the taxpayers should be “thrown a bone’. As part of the deal, all banks should be required to forgive 100% of student loan debt (public and private) to American citizens. That is a drop in the bucket of something like $1.5 trillion that has being proposed and already handed out. Further, all mortgage payments made should go the US Treasury, with a small “servicing fee” going to the banks.

Posted by Mike | Report as abusive

Neither Wall Street nor the United States, will survive the consequences of what promises to be…a multi-trillion dollar BLOW-OUT.

Posted by Dr. Gary L. Glum | Report as abusive

To give Paulson authority to decide which assets to purchase, at what price, without any oversight authority from Congress or the courts is INSANE. This is an “emergency” used to put the fox in charge of the henhouse. Look for Goldman assetsand assets of other favored firms to be purchased at 100%.

Posted by Linda | Report as abusive

This isn’t over. This window of opportunity is closing and the money is being created out of thin air. Good for the top few but horrible for the rest of us who will actually have to pay for all of this and fight the wars to defend it. The government has sold america and it’s posterity off to a few world elite. A massive re-structuring of financial business the whole world over. A centralization of power. Let this stand as an example again that our government is not here to act in the interests of americans, instead they will act in the interest of whoever they’re in business with or whomever helps them accomplish they’re task. It is beyond comprehension that we have obama/mccain running for our president and that members congress and the federal preserve are still able to walk in the sun. How much is enough? How long will it take people to realize that the current “choice” is standard washington fascism at it ‘s best and is the enemy of all free thinking and sovereign people. America sure has alot to learn and so desperately needs to gain the intestinal fortitude to do what’s right.

Posted by jason | Report as abusive

JP Morgan…Citi….BAnk of America…Each with 2 trillion on the table. I hope these guys don’t come calling on Uncle to bail them out. Our economic goose is cooked if so.

Posted by Dave34 | Report as abusive

This is a direct result of Republican policy and dogma. It all started with Reagan and his cronies and their deregulate, “private sector knows best”, dismantle FDR’s programs way of governing. The same idea didn’t work in the 1920’s and it can’t work now. Greed will always find a way. These are the same folks that love to buy stuff from China/asia (read WALMART) because the prices are low and profit in US high. Yet they never have a problem that China is one of the most bureacratic economies in the world, they don’t question that as long as they can buy low and sell high.

Posted by Ralph | Report as abusive

The ‘Mother of all Bailouts’ should be answered with the ‘Mother of all Class Action Suits’. The class here being all most of the people in this country. If you can sue a physician for medical malpractice, an attorney for legal malpractice, why not the C-level managers, and members of the board of directors for financial malpractice? Or anyone who issued a mortgage without checking the applicant credit rating or proof of income? These people are specialists and should have exercised due diligence an practices acceptable and appropriate to their industry. That they didn’t act accordingly is negligent and shows malfeasance on their part, despite whether or not government regulations were in place.

For that matter include lawmakers, people at the Dept. of Treasury, Federal Reserve right up to the executive branch for not working in the nation’s best interest?

Posted by Simon | Report as abusive

No Oversight, let out kids suffer – while we will enjoy the moment. The same people who took home millions of dollars of bonuses- get to keep running us into more misery in future. Thanks to our leaders. I agree, the sadest part of the story, letting ex-banker Paulson have all authority to help his buddies out. Shame on congress for not having a spine to stand up to this.

Posted by Paul11 | Report as abusive

Well kiddies.. I doubt if anyone is asking..but I will. I seem to have read that in 2009-10 there will 2/3 MORE SUB PRIME loans going into “ADJUSTMENT”.. now if none can meet the “adjustments in 2007-08″ and we will have 2/3 MORE. And we “Need $700 BILLION” plus what is not being discussed like interest on that loan from China or.. HOW MUCH will 2009-10 COST when that bunch of sub primes blows up… DOES ANYONE remember that one that is waiting to be introduced to the congress and Treas.. NOT sure if the paper they are selling to Treasury NOW has that stuff in it..does anyone know.. as if NOT…well good bye usa.. ANYONE know about the 2009-10 sub primes or should we not ask as no one is talking about them? Those would be ARM and other funny money zero down etc loans in the 3-5 year ARM of 2006-07 that follow the ones of 2003-05 blowing out now?

Posted by chuck Nashville TN | Report as abusive

According to Bill Gross of Pimco he thinks the Government will buy securities for 65 cants on the dollar _bailout_gross.html
I have bonds offered to me at 3 cents and lower all day.
These are the most complicated securities ever created and few know how to value them (a bond worth 3 cents looks cheap at 65 cents if you don’t understand it).
Wall Street selling Hundreds of Billions worth of toxic junk to the US taxpayer is the most dangerous situation I can imagine for the financial health of this country. They have proven themselves to be reckless, why would we trust them now? Who will be looking out for the taxpayer(me) and the future of this country for my 3 children?
Do we trust Hank Paulson and Ben Bernanke, they have shown their incompetence and the fact they are liars, how can we trust them now?
Can you imagine the way Wall Street will game the system to sell Billions of worthless bonds to you and me at inflated prices, so they can make Billions in bonuses.
This must be stopped, call write, email your representatives and demand no bailout.
New responsible business will step up in short order to fill the gap, thats what free markets do.

Posted by david g | Report as abusive

“once in power they turned into socialists.”

Oh what utter nonsense! Can one of these pseudo-smithian-Chicagoans please consider the fact that their heroes were the ones running amuck making tonnes of money and not creating jobs, and that there might be another description of a situation that arises when government has to step in? Does every government intervention mean “socialism”?

Come on Reuters, are these the only bloggers you found?

No, the neo-con-freemarketeers simply put on their blinders and pretend that the world is as simple as 2 + 2 = 4.

Sorry boys, it isn’t “socialist” it’s reality.

Posted by Talleyrand | Report as abusive

There will always be criticisms from some quarters over any type of proposal. Unfortunately, most critics sit in their arm chair and do not have any feelings for other people’s pain nor grief.
What Paulson proposed is the right thing to do and it is definitely what the Americans paid their govt to do – look after the economy and the people who cannot help themselves. The critics who must be brilliant people who can do no wrong do not need any help. We mortals do and thats why we have representatives in Congress.

Posted by Michael56 | Report as abusive

In response, do feelings “for other people’s pain nor grief” apply only to the monied who stand to lose or do the interests of the working class who will be paying this bill, with interest, for generations to come matter at all?

Posted by Buck in NC | Report as abusive

Folks, be on the look out for the business pundits and republican aplogists to start saying that the federal government will actual make money off this buy out. The lies will be coming anytime now. Of course they never say why the “private sector” did not keep all the debt if it was ulimately going to be so profitable.

Posted by Ralph | Report as abusive

no politician or political party is to blame for this mess.
the basis of the problem is no-questions-asked loans made to people with no questions asked ability to repay.

the Harvard MBA’s found sufficient loop holes to lend somebody else’s money to people they in all certainty knew could not maintain the level of income required to repay the loan and eat, too. how many “zero interest” credit card offers did you get? did you think then or now that “zero interest” could last 30 years?

the schemers found the loopholes, got their “cut” and cleared out of town. no difference to the snake oil salesman huckstering his elixir out of a covered wagon and getting out of Dodge before the customer found out it really did not cure gout.

do take note – _some_ banks and financial institutions had the brains to _not_ buy into this latest episode of the Emperor’s New Clothes. ask why.

one cannot legislate intelligence.

the scammers found a willing batch of greedy customers. frankly, they should all be allowed to collapse in the most spectacular fashion possible. that would instill some intelligence in the banking community – which fails to learn – can you spell: “savings and loan

Posted by TJ | Report as abusive

Don’t forget it was the Maverick Mcacain who had a big part in the mortage deregulation! Republican are just IDIOTS who never learn from history!

Posted by Maldo | Report as abusive

Mccain’s economic adviser Phil Gramm wrote the big deregulation bill of all times and Clinton the fake Democrat signied it.

Posted by Barry | Report as abusive

Let us not forget the great deregulator Ronnie Reagan the bad movie star and the trickle down of Reaganomics.

Posted by Barry | Report as abusive

Women and Children First, Hank and by that we did not mean fleecing Widows and Orphans by leaving out the FDIC.

Posted by bonae | Report as abusive

Paulson and Bernanke are Dumb & Dumber in the new film

* Billionaire’s Bailout Plan *

Posted by bonae | Report as abusive

I agree with TJ. Greedy customers are the real culprits. I wonder how many of them already wrote angry posts on this blog?

Posted by Phil | Report as abusive

The Reuters lead-in to this web log goes something like this, “It’s the end of deregulation as we know it…”

Wow, Mr. & Mrs. Reader! That’s pretty darn interesting, as they say out here where republicans are loved even more than beeves on the hoof or the oil flowing somewhere beneath them. Naturally, there is no rational reason for that abiding love, except that the term republican is synonymous with the avoidance of diversity (and that isn’t rational…or maybe it is…to a republican).

Nancy Pelosi (not a republican by the way, although she fits the one dimensional image of one) says that the $700 Billion revolving line of credit that the Bush administration wants so badly for its secretary of the treasury needs just a bit of congressional oversight.

Here’s why: Sec. 8. Review. Decisions by the Secretary pursuant to the authority of this Act are NON-reviewable and committed to agency discretion, and may NOT be reviewed by any court of law or any administrative agency.

That sounds almost like the Military Commissions Act handed to the Bush administration by a republican-controlled congress on a silver platter in October 2006 just before the republicans lost control of congress as a result of the elections of 2006. How timely! Almost 4 years a U.S. senator, Lindsey Graham, loves that unconstitutional law (even though he’s a lawyer)!

Sec. 8 also sounds to me like elimination of legislative branch & judicial branch checks and balances on the executive branch dictated by the U.S. Constitution.

Maybe that’s what Reuters means by “deregulation as we know it.” The latter has traditionally meant the deregulation of Wall Street and the banking industry, e.g., the rollback of the Franklin D. Roosevelt administration’s taxpayer related banking and Wall Street safeguards that came out of the stock market crash of 1929 and the run on the nation’s banks associated with the Great Depression of the 1930’s, e.g., the Glass-Steagall Act of 1933. The latter was severely weakened by Bill Clinton when he signed the 1999 Gramm-Leach-Bliley Act that is associated with the other republican senator named Gramm (Phil).

Mr. Graham and Mr. Gramm are almost two peas in a pod. Both are strong supporters of John McCain. Mr. Gramm is the former chief economic advisor to Mr. McCain who said that the American middle class and working class are a bunch of whiners. Then Mr. McCain fired him and hired Ms. Carly Fiorina. She said in so many words that nobody was qualified to CEO a corporation but her. Then Mr. McCain fired her and hired Mrs. Palin to sub for her.

Who knows, maybe the Bush administration will attempt to use the $700 Billion authority to fund a new front on the so called global war on terror (gwot a.k.a. gee-what?).

After spending nearly as much as $700 Billion in Iraq and Afghanistan without finding Osama bin Laden or Ayman al-Zawahiri, why would a (now) democrat congress think that it can trust the Bush administration with the global war on bad mortgages?

I’m with Mrs. Pelosi on this one.

OK Jack

Posted by OK Jack | Report as abusive

Reganomic,s Trickle down economic model meant money for the rich and benifits would trickle down to the rest of us. They were right Bush just gave everyone a Golden Shower we wont forget.

Posted by beege | Report as abusive

In an associated Reuters story, CHRISTOPHER LOW, CHIEF ECONOMIST AT FTN FINANCIAL IN NEW YORK said, “What this program does indirectly is that it will support home prices.” And, “Taxpayers can make money off this program, albeit it would be a long time.”

First, over-priced, non-appreciating homes are what created to the financial crisis, and the financial crisis led to Bushes bailout of the insurance and financial industries. So propping up home values completely out of line with homebuyer incomes is the right thing to do…why? I would argue that this is EXACTLY the wrong thing to do.

Also, if it is A-OKAY for taxpayers to buy up all these bad loans because they should have value sometime in the future…then why don’t the banks just hang onto them? With interest and savings rates at around 2%-4% and wholesale inflation running at closer to 10% the last thing taxpayers need is to have more of our incomes and savings being decimated by inflation. Dumping bad debt that theoretically may prove beneficial to taxpayers isn’t much of a guarantee. Seems to me that that will just guarantee that eroding middle class wealth will stagnate for even longer….

Posted by Ron | Report as abusive

BAD ASS-sets! Sure have taught me a lesson. I read my Barron’s and held on to my AIG thinking it would make it w/ financing. Lost 14k but the gov got 80% and 11.75% on their loan. We have witnessed the growth of the financial sector to a unprecedented % of GDP. That certainly magnifies the pain as everyone is chasing innovative ways to earn. Innovation has been followed by imitators & now idiots. Both parties share in this.Greenspans overly cheap money fueled the irrational exuberance in housing that was expanded via larger GSE’s under Clinton. UNWINDING is gonna be tough.There is no market. Everyone wants to get it off their books so they can start the whole bubble over again.All the banks should be docked the fees,bonuses and comissions they collected along the way.Also,we do not need any more homes built. Lets try repairing and building our infrastructure.National Parks, energy, Modern rail,education. AND GOVERNMENT DOES ACCOMPLISH THINGS- SEE ALL THOSE CONSERVATIVES WITH THEIR HANDS OUT FOR CORPORATE WELFARE!
This republican idea that extols the image of Reaganism and triumphant America is utter BS. Russia is not a shining Democratic success story no more than the US. See torture,mistaken detainment,wiretaps, 100,000 + innocents dead in collateral damage. Love my country but wish we bore our patiotism thoughtfully in our hearts with concern for the world community and a larger updated WORLD view.We are not top dog anymore; the center of power has shifted.Our current courting of money from abroad for our distressed corporations is proof.

Posted by chip | Report as abusive

Greed and Fear

“Whenever everyone becomes greedy, become fearful.
Whenever everyone becomes fearful, become greedy.”
– Warren Buffet

Posted by Duur | Report as abusive

I can’t help but wonder if this wall street bail out will also bankrupt the government so the next Bush administration can either start eliminating social security and medicare or at least make it difficult for another administration to continue those programs.

Posted by Anon | Report as abusive

Paulson and Bernanke are the shills of Wall Street. Letting those two run our economy is like letting the fox guard the henhouse.

Enough! These two “financial experts” are scaring the politicians into hasty decisions.

The goal here should not be to save the bad investments of the rich, or to keep us out of a recession. The goal should be to restore fiscal discipline and punish the jerks who caused these problems.

They are pitching this bail-out plan as a plan to take over the toxic mortgage debt, but it is really also going to be a plan to take over the toxic derivatives that these institutions have created. Derivatives are the problem because their value is so intangible, and in a market crisis, they become worth nothing. Which is exactly what many of them should be worth.

Just say NO to this horrible plan. Let the economy slide into a recession, and let’s instead invest that $700 billion in clean energy, infrastructure, etc.

THAT will help turn around our economy, not bailing out these thieves.

Posted by Lawrence | Report as abusive

I don’t understand most of the detail behind the “rescue” plan, but it smacks of “lets do it and we will figure out the details as we go”. Just like lets invade Iraq first and than we will figure the detail out later…
There are plenty of people overseas who will buy homes here and lift the real estate market in a matter of month!

Posted by hill-billy | Report as abusive

Give me a blank check and i’ll sign it….

Posted by Money world | Report as abusive

We in Zimbabwe already have some currency designs for sale when the fed starts the presses. I would suggest the billion note for a slim wallet when you head for the grocery store to purchase a loaf of bread.

Posted by Zimbabweman | Report as abusive

This mess is not the fault of Republicans or Democrats. It’s Wall Street’s mess. We don’t need a bailout or any new regulations. We need to let the market take its course. Imprudent people will lose money. Wise people will make money. Pain is part of the system.

Posted by Daniel Grubb | Report as abusive

Bernanke and Paulson have executed a coup d’etat, and a compliant Congress has cravenly accepted it. Which country is more pathetic, Zimbabwe or the United States?

Posted by William Brazill | Report as abusive

Next will be your wallet what is in there your credit card(s) .

Posted by visvis | Report as abusive

IF SEC stop investor from selling stock then your currency US$ will not be that value as u have depress your own currency n value will be lesser then other country.

Posted by visvis | Report as abusive

As what other citizen seen what the Fed n SEC in panic mode n still digging bigger hole to bury is the citizen going to pay for all debts n wars that going on in Iraq.

Posted by visvis | Report as abusive

Hey! Quit picking on Henry Paulson. He is set to become “the King of America” (unlimited power; unreviewable by the courts). I like how George Bush opined on the bailout. He is all for capitalism and a free market…except when he’s not for them.

Posted by Murf | Report as abusive

indubitably, it is not SIMPly a partisan production; and if you truly believe your vote counts any longer, may want to think again. the electoral college is at the heart of the demise of a once Democratic Republic. We the People were disenfranchised the moment those guys stepped foot on Plymouth Rock, since the hemp hit the Bay, and since our founding fathers’ slaves turned another cheek. ‘Make no mistake’, the New World Order will ever be remembered to have been established in our era – September 11, 1991 – Bush I address to the nation. Mount Olympus is sliding into the Sea, and ever-vigilant Nameless One will gobble it up, just as sure as we’ll rise again to repeat the mistakes of eons…and yes, SOME derivatives have been let wild. But more likely its the 40 to 1 debt ratios allowed to be carried around by the Big 5 – an albatross none could withstand forever!

Posted by ballywho! | Report as abusive

How are they going to track the 700 billion dollars? Who is going to walk away from this crisis with an obscene amount of money in their bank account? Why aren’t we prosecuting those responsible for the whole thing in the first place? Are they going to track the seven billion dollars the same way they tracked the money sent to Afganistan? The same people are handling this new fiasco. Give me a reason to trust and I’ll give you a hundred why I shouldn’t.

Posted by Michael McKee | Report as abusive

Crooked as a dogs hind leg.

Posted by Michael McKee | Report as abusive

Rather odd.. not one person is saying how this was allowed to happen, seems the press and the/their “experts” missed what was going on,the “Harvard MBA’s et al on Wall St “missed” what was going on, the “bankers and investors” missed what was going on. and of course CONGRESS/WH/Agencies “missed” what was going on. and it seems even after the funny accounting methods of Enron era, the Accounting firms “missed what was going on… And most got holiday bonus’s for “missing” what was going on.
So it seems via the ruling class… we have a new King with no controls of any kind.. so “long live Kind Hank” as the upper 4% need more and concern for citizens is “missing”. Amazing how little the public has said.. so bye usa.. as NO ONE is telling us what it will really cost or HOW IT HAPPENED.. perhaps some should be in jail for it.. “Long live King Hanky Panky”, Lords and Ladies of Congress.. and their Robber Barons of Wall-St and “investors”…
The nation is dead.. “long live the king(S)”

Posted by chuck | Report as abusive

W’s crowd–the gang that hasn’t shot straight yet–simply is not competent to be entrusted with the kind of authority they’re requesting. If given their head, they’ll make a bad situation incomparably worse. Give them a sow’s ear and they’ll turn it into pig****.

Look, for the moment, just restore the uptick rule, which THEY suspended a year ago–and see what happens. And hand a broom to Wall Street and demand that it clean up its own mess. I think it would do a better job.

Posted by Achshav | Report as abusive

Give me my 6,000.00. Then I Can decide if I want to bail these billionaires out (this bailout also includes FOREIGN banks)!

Posted by Beverly from Colorado Springs | Report as abusive

The cost of this bailout to US Taxpayers will be more than a trillion dollars.

In the end, your money will be worth less.

This Administration has brought incompetence, corruption and greed to new levels, exceeded only by countries such as Zimbabwe, Russia, Thailand and others.

Consider this – the conservatives have given us an $11 trillion deficit. It is time for a thousand dollar bill to replace the hundred.


Posted by Leonard Magazine | Report as abusive

The supposed “rescue” of the banking system is not socialism. It is pure Republicanism (Republicanism = ripping off the federal coffers). It is bad enough the Republicans have been reaping huge profits through their war-profiteering… now they will make even more money for their fellow criminals by bailing them out yet again with taxpayers money.
In eight short years Bush has managed to destroy the Constitution and now effectively bankrupted America.
If Bush did not wear a US Flag Lapel Pin he would perhaps be recognized for the true enemy he is.
McCain, since he is a Republican, is obviously just as much of a criminal.

Posted by Chuck | Report as abusive

Gee, I do not know what everyone is complaining about.

1. CEO’s of failed companies have pocketed millions of dollars that will be invested in the economy.

2. Market forces are at work and have eliminated companies that could not compete.

Ronald Reagan would be proud of what GWB has wrought. It is, after all, the culmination of the former’s legacy.

Posted by Ron | Report as abusive

Well folks…the $700 Bil has come down to “them verse us”.. and it looks like “them” won.. so unless the “other 95%” elects new folks to office, regardless of party.. or pulls a French Revolution.. and marches on DC. . if we can afford it after the corn is used for eth… we will simply have to, as the lady said “Let them (us) eat cakes”.. as said.. if the corn has not been used for eth..
Amusing in a way.. no one knew it was happening, no one was fired for it happening (“to Fire” means toss out without the platinum chuts (as now days “golden” packages for Dir or VP levels) no in congress had a clue and none in DC had a clue.. Perhaps we should have a new holiday.. Sep 21… as it seems kind of a virgin birth of economic breakdown as “a gee just happened and none knew it was coming”..
A new holiday (Call it Hanky P Day) to celebrate the day the “Wall St/Banker account scrolls were found in a cave in NYC. They were brought to the holy city of DC and put on alter of the Hanky P. He had his lord, had his lord Bush tell nation, “All harken, soothsayer Hanky P spoke unto me as I find we are broke”.. and the 535 wise men and women came forth to him with offering from the peoples and said. “hey we lost millions to, so we bring the commoners gold to pay us back what the money changes lost” and the world was as it was before.. corrupted and led by the lord(s) of incompetence who told the commoners,”greed is good” (for the rulers and lords) and the people said “aw @)&*%#” and went about their tasks..

Posted by chuck | Report as abusive

To make the bailout justified, what will the government propose to do to collect on these debts that the almighty businesses cannot do? This question must be answered.

This is a typical Republican response to protect businesses from enduring consequences of their behavior.

The Breakdown of the financial Institutions is itself a problem, but it is also a SYMPTOM of a systemic problem that commands a solution. Artificial resuscitation alone is not enough.

The Homeowners don’t have the ability to pay their mortgage

Deregulation and lack of oversight allowed this to happen since Ronal Reagan’s deregulation.

Wages have been declining making mortgage payment more difficult.

Jobs went overseas and without government or union protection full-time jobs broken up to form part-time jobs so employers are not required to pay medical benefits, etc.

Loss of healthcare resulted in people having to pay for lifesaving medications (Diabetic, Cancer, heart failure), instead of mortgage.

All the above economical phenomena will have an impact on the outcome of the bailout; therefore they must be addressed as part of the plan.

The top 1 percent needs to pay their fair portion of tax,

A Stimulus plan needs to include a tax break for the middle-low income people to free up funds to repay their mortgage and a $1000 to help make purchases that they couldn’t.

More regulation and oversight of the Financial Institutions.

The government (much like any investor) needs to develop a portfolio of tax resources that includes the top 1 percent and businesses with off-shore accounts.

Posted by Nelson Raver | Report as abusive

First, the debt crisis is partly a consequence of relying on debt to finance the Iraq War, because the war. In addition, the debt crisis is partly a consequence of a post-9/11 economic policy that relied on stimulating the residential construction market even though the U.S. housing stock was already the best in the world and there had not been any significant change in demand for new housing. Furthermore, we are seeing the error of Vice President Cheney’s often-quoted remark that one lesson of the Reagan years is that deficit spending doesn’t matter; in fact, the current crisis is exactly what happens if a government acts like deficit spending doesn’t matter. This Administration may have to take second place to the Hoover Administration for most disastrous domestic policy in U.S. history. But, when you combine this with the shocking and devastating foreign policy crises we are burdened with, the currently Administration is without question the absolute worst in U.S. history overall. Perhaps the only surprise is that, despite the overwhelming incompetence at the top, both Secretary Paulson and Chairman Bernanke seem to be, not only extremely competent, but exactly the right people in the right place at the right time to address the economic crisis.

Posted by Bob | Report as abusive

The cost of buying the 2 million foreclosed homes, in lieu of foreclosure, would be $400 billion (if my math is ok) But once again, the sheep are meant to be shorn-

Posted by raybo | Report as abusive

Why isn’t anyone mentioning Greenspan? He’s much to blame. You can’t bring the cost of borrowing money to 1%. The interest you are paying on that money is less then the inflation on it. Greenspan set the banquet table and deregulation handed out free tickets to the party. Now that the parties over we get to sweep up the mess. But what choice do we have? Rather then being vindictive lets make the best of the opportunity. Now that I am a part owner in AIG and others its time make policy decisions that show that the economy was always been here to serve people not people for the economy.

Posted by Juls | Report as abusive

OK – There seems to be consensus that this stinks. I think everyone agrees that it feels like we are being asked to act in a far to hasty manner. But what does anyone who has posted plan to do? This one really calls for a MARCH. Don’t you think?

Posted by Chris | Report as abusive

I want a televised comprehensive explanation of the problem before I support this. I want all the cards on the table. I want to know that we aren’t being railroaded into something before Bush leaves office. I want to mobilize.

Posted by Chris | Report as abusive

The short sellers squawk because gambling in the market is their life. The essence of shorting is the borrowing of shares. This alone increases the supply of shares available to be bought. And increased supply always drives down prices. Right? So shorter #1 shorts and drives down the price. Shorter #2, seeing the price dip, shorts some too. Shorter #3 does too. And the shares tumble. I think shorting should be banned. And the loaner who is loaning out the shares should be taxed to the hilt just in case the clever gamblers find a loophole.

Posted by Realinvestor | Report as abusive

Is this another WMD type scare? How much can we believe. They lied and overplayed the situation the last time. Now the want another $ 700 billion after the $ 700 billion for Iraq. And they don’t want oversight. Plus they want to use private contractors to help carry it out. The only way you can profit from this is too start your own “BlackWater” type of firm and get in on the scam.

Posted by Don | Report as abusive

Basically this financial crisis was produced by those
CEOs from investment banks such as Goldman Sack,Morgan Stanley etc. They created some sort of financial tools or packages to expand their profit base so that in the end they get their bonuses before they retire.

Unfortunately, the consequences of irresponsible lending had led to this credit crunch. Traditionally this would be resolved through the free market system. But now the U.S.government wants the tax payers to take the responsibility, in the name of ‘maintaining the financial stability or preventing job loss’.

First of all, it is not fair. Secondly it is going to change the nature of the U.S. market from a free market to a socialist market with heavy government intervention.

In fact by proposing the 700 billion dollar programme is purely a political action because they are going use tax payers’ money to bail out the mistakes made by the Republican government in the last 8 years. Deep in nature, they are only throwing 700 billion of tax payers’ money to buy time until the November general election.

However,there are many smart Democrats in the Congress. They would be able to judge how the republican government is politicizing the financial management of country which is not really good for the national interest. Instead of solving the problem, this proposal could only delay the crisi for only a couple of months.

To conclude, the near 1 trillion Dollar tax payers’ money should not be spent indirectly on helping the Repuclicans to win the next election.

Posted by W. Ho | Report as abusive

The taxpayer again. And again and again. The best we’ve done so far was with Bill Clinton, a Democratic president with a Republican congress, and even though we had budget surpluses during his tenure he still left office with a higher national debt than when he stepped in. So that’s the final word. What’s the deficit now? 9 or 10 trillion? Don’t worry. We can handle it. More debt is better, right Mr. Paulson? So it just keeps getting better and better!

Posted by R. Bowers | Report as abusive

The real problem here wasn’t deregulation or free market capitalism. What everyone is missing is that we haven’t had a deregulated, free market for decades. Between Greenspan’s aggressive asymetrical approach to injecting liquidity when the market was under stress and the unatural buying of US Dollar assets by the Chinese government to keep their import machine going, we had two huge non-free mkt forces impacting asset values. These two forces created excess liquidity that prevented capitalism from self correcting. Its that simple.

Posted by m | Report as abusive

We are being rushed into this bailout without knowing
anything about the ramifications. Will this solve the problem or just create more? The individuals at the top
should be prosecuted, both business and government. The
buck does not seem to stop anywhere.

Posted by Mary Jo McGinley | Report as abusive

Who is the government going to tax to get this $700,000,000,000? Putting this in perspective, the US Census Bureau American Factfinder, 2007, lists 94,817,488 full-time American workers. At $700,000,000,000 bailout divided by those earning money, the debt per worker is $9,382.60. Now I think that the government ought to return this tax money to those who paid the taxes in the first place and in the form of a 5 year, 6.25% annuity at the very least. That would return the money back to the taxpayers at a rate of $2,110.65 per year over a 5 year period. Of course, if the tax is progressive, as it should be, then the annuity principle should be adjusted progressively too.

Posted by Realinvestor | Report as abusive

Check out michael hudson of islet. He has details of this crisis that noone else owns up to

Posted by mark | Report as abusive

From a European/Greek point of view, I think we all have something to gain from this billionaire’s bailout. Americans are finally starting to understand that the New York and Washington political and financial elites of the US are just THIEVES! No one in the US seemed to care when they stole Iraq’s oil, or when they made billions from child labor in China. Now that they’re stealing 700 billion dollars from their pockets, Americans are finally realizing how dangerous this whole gang is. Is it really an awakening of the stupid? Who knows? We should never underestimate their stupidity!

Posted by Nontas | Report as abusive

They have raped the markets with unsound (some say criminal) business practices and now they are going to be bailed out at taxpayer expense? This is bunk! We should allow these businesses to fail. Only then will Wall Street think twice about such foolishness in the future.

If the powers-that-be insist on a “bailout”, we should start funding this corporate welfare by seizing the personal assets of this administration. When those resources are exhausted, only then should the taxpayer be involved.

Sheesh, why should we be looking for foreign enemies when we have “friends” like Wall Street and Washington around??

Posted by Emil | Report as abusive

We need to try these lunatics for treason—both the deceitful and incompetent aristocrats and their thieving feudal lords, and stow them in cages deep within the earth to live with their like-kind. We have become, in short order, the center ring of the circus for all the countries of the world to mock and deride. Democracy? Capitalism? These are fairy tales the rich tell the weary. Was it not a few years ago that Wall Street pilfered the retirement accounts of the American people in the Dot.Com festival? Their hearts now desire money not yet made. The American Dream has thus become indentured servitude.

However, there is one thing that cannot be stolen and that is a desire among her people for truth and for justice!

Posted by Daniel | Report as abusive

Pontius Pilate, a Roman Governor who ordered the cruxifiction of Jesus Christ, famously asked Him: “What is truth?” Just as during the era of imminent destruction to the Roman Empire, TRUTH is very arbitrary and “relative” in our society today. Everyone’s utterances are taken as “factual” truths, even when they are just clueless opinions!

You can’t have a “democracy” when notions of absolute truth or a common deference to agreed upon standards of excellence have been trashed. On what basis do I take your word or your numbers to be factual and best approximating the “whole truth, and nothing but the truth”?! There is none, so I just go with whatever seems to align best with my perceptions at the moment …

So all folk venting and blowing off about what GW or Paulson or Bernanke or Wall St wiz’s are doing are simply contributing to entropy.

Not only do we reflect cluelessness, but really, can you do anything about what they are hatching and executing?

Your individual best hope is to seek and find salvation in the one who was cruxified for yours and my sins: Jesus Christ (Yeshua). He is Truth. Yield to Him while it is still Today! Tomorrow may be too late for you.


Posted by Paul | Report as abusive

We have to demand different candidates in this election. We cannot elect EITHER candidate. What to do? This whole system has become a joke.
I think we need to redo the conventions and nominate at least ONE major party candidate who is not an idiot and self-interested traitor. Funny, Ron Paul is the ONLY candidate who had the balls to talk about this stuff and he was right on the money. I think we need him as the candidate.

Posted by Brandon | Report as abusive

With Govt liabilities now topping $15Trillion + at last count with assumption of all this debt, the average service on interest ALONE is $750 Billion per year (5% avg assumption).

Chew on that when Obama, Bush, McCain, Paulson, et. all come up with their next stupid and meaningless soundbites. The debt is yours, they have theirs (wealth that is)and we are all the suckers with this anchor tied around our necks.

Posted by Brandon | Report as abusive

Americans are too complacent, indifferent, disconnected and, frankly, stupid, to realize they should be out in the streets protesting this governmental folly. So they’ll pay come tax time (an average of $3000 per taxpayer) and the economy will right itself much more slowly than it would have otherwise.

Posted by John Tom | Report as abusive

I quibble with the phrase, “not everyone is a fan.”

It’s actually hard to find many fans of Paulson’s debacle, except Paulson himself.

Dems and Repubs. in Congress are showing no love; many are outright calling it unacceptable. Neither presidential candidate has embraced it. Both, at minimum, say they have major problems with it.

So, given the facts, the headline really should read something other than it does.

Like: “Not many like Paulson Plan.”

That would hew more closely to reality.


Posted by Douglas Watts | Report as abusive

One of the main principles on which global capitalism is built is that if you cock it up, you’re on your own, and if you go under, you go under. This rescue is spectacularly contrary to that principle, and as such can only have been justified on one ground, and one ground alone: without it, the entire US and therefore global banking system was going down the toilet. Whether that was the case, I don’t know, and I suspect that whether one takes comfort from the rescue, or is horrified at the implications of it being necessary in the first place, depends on one’s philosophy of life.

Posted by Matthew | Report as abusive

What I find utterly stunning is that such a big deal is made of a $700bn nominal figure – when, after careful consideration, it is obvious that this is not the quantification that matters.

To evaluate the scheme, it is critical that we understand how the assets to be purchased (or lent against, or swapped) will be valued… or, “what haircuts will be applied” and how losses will be accounted – and the chain of responsibility when this arises. This must also be considered in the context of credit derivative markets (CDS – especially) where intervention could have some extraordinarily perverse consequences.

Posted by Steve | Report as abusive AIGbailout.html

Posted by chris | Report as abusive

A free bottle of wine anyone? A free dinner anyone? A free holiday anyone? Well it seemed as if was free at the time, didn’t it. Who’s to blame? Greedy politicians hungry for acclaim and votes, tacitly allowing cheap money to fuel any purchase that allowed the feel good factor to continue. Greedy consumers who just wanted to “feel good”, never mind the consequence. Well, the consequence has just arrived. The party is over and the tax payers will pick up the tab. The probability is there was no alternative to what I perceive was the approach to finacial meltdown that perhaps is currently lying wounded – but not dead. What now? Inflation and a weak US$ – and that’s the positive prognosis. p.s. If all the now unemployed “bankers” stayed home, what would the difference be?????

Posted by Stephen Deen | Report as abusive

Im from the UK, its the same over here. No matter how much the Directors and VP’s screw up they always walk away scot-free and with their bonuses and pensions intact, everytime. They should have all assets stripped and be prosecuted. It is said that Government leaders do not like to prosecute corporate heads for financial mismanagement because should the Government in turn mismanage the economy then they should be liable for prosecution, rather like one state arresting world leaders for genocide/war crimes, as soon as one country starts it it becomes a free for all, which is why none of them dare prosecute each other.

Posted by chris | Report as abusive

This plan can work. I believe that over the next 3 to 5 years, taxpayers will be handsomely rewarded for saving the financial system. My guess is – all in – the taxpayers will have gained $100 to $200 billion from this bailout; which is clearly against the conventional wisdom prevailing in the media. But a bet against the short to medium-term viability of the US economy is a sucker’s bet. At least until China takes over the world in 30 to 50 years. See more analsyis at ml

Posted by Andy | Report as abusive

ANYONE..what is this thing pricing out at TODAY… as it seems to be growing each hour…$700 BIL to $1 Tril.. or what. and what is included.. $85 Bil, Fred-fan $200 or $??? bailout, banks bailouts, FDIC bailouts. WHAT IS THE COST OF THIS THING NOW..and what is the COST TO INCLUDE INTEREST on Debt etc.. DOES ANYONE KNOW?????? And our congress is “handling and considering it”.. God help the late great usa! HOW MUCH IS IT today?

Posted by chuck Nashville TN | Report as abusive

The US taxpayer has for years benefited from the great bubble.Now let them pick up the bill.

Posted by roger | Report as abusive

I agree that CONSUMERS, not TAXPAYERS are also responsible here. The bottom line from this standpoint is that it does not pay to be prudent or financially responsible. Period. The corporations that are getting bailed out are having consequences removed from them of their reckless business practices.
From a taxpayer perspective, the irresponsible and financially illiterate and greedy CONSUMERS of this and other nations have now run up the bill for EVERYONE, all TAXPAYERS (they are not necessarily the same).

Bottom line, it apparently is the best thing to follow the crowd and throw intelligent and conservative management of finances and integrity to the wind, you will end up paying for it either way.

Welcome to the new Moral Hazard, socialist society.

Posted by Brandon | Report as abusive

Now when did we hear this one before…
Urging speed, President Bush said the world was watching to see if “we can act quickly to shore up our markets”.

I think it had something to do with “mushroom cloud, WMD’s and “we must act now” etc.. and of course the caveat of “trust me”.. note.. not oddly.. Iraq will,perhaps (if we ever got accurate accounting nrs) cost perhaps a bit less in dollars.. but since neither seems to be able to be cost’d out. lets just say “what the hey, another $700 BIl here and there and there the man said..then and says now..

Urging speed, President Bush said the world was watching to see if “we can act quickly to shore up our markets” Or “authorized use of force”.

And who says history does not repeat.. so why learn it?

Posted by chuck | Report as abusive

WOW again and again when will this all end, not in our life time folks.
it’s suppose to be a free market,and the rich have finally
screwed everyone where can they go from here
oh yea, get 700 billion from the goverment…..! and the bad part is they are thinking of buying it….

Posted by Brian Cornwall | Report as abusive

I just wonder? who are the people telling us this needs to be done? 700 billion bailout
I really don’t know anyone that will lose big money.!
the stocks will fall and you will be able to buy them cheaper, then a few years down the road they will be worth alot more..

Posted by Brian Cornwall | Report as abusive

main points of the zone diet…

Nevertheless there will always be a minority who will not get the point you are trying to make….

Posted by Jack | Report as abusive