Bailout Bill: Speak Up. Contact Congress.
This is NOT a political website, however this isn’t about politics. I believe we have some tough times ahead for us economically. However, the bailout bill is going to perpetuate the problem more than you can imagine.
I’m not going to get into a long diatribe on economics because it’ll only bore the shit out of you. I do ask, though, that you look hard into this bailout and voice your opinion to your Congressman. Links are:
We don’t need a bunch of scare tactics from Congress to push an insanely bad bill onto our backs. This bill embarks us on a course which could lead us to a collapse. And I don’t use that word lightly.
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
Hi David. This bill is not exactly what it seems. I'm a B.S. in Business Admin - Accounting, a controller of a small business and a former NASD Examiner (read regulator). So I'm unhappy about this, like you, but then I had predicted this a few years ago when I saw how loan underwriting had deteriorated.
The 700bill figure is simply an attempt at an absurdly large figure. It is likely way more than what will be needed to resusitate the credit markets. As the underlying real estate loans are renegotiated and any true forclosures done, the markets will reset themselves quite readily and therefore the outlays on the mortgage assets will be preserved (i.e. no significant losses, therefore only the cost of the program and small losses likely will hit the taxpayer).
The problem right now is not investor confidence it is BANKER confidence. Bankers (not investment bankers, but regular FDIC insured banks) are notoriously stupid (I used to work at banks) and therefore they need to be calmed down right now. The whole other issue of how this might provide the wrong incentives to businesspersons. . .really is better handled at a different time, therefore dealing with a problem when the ability to handle it is set up.
The real unfortunate thing about this whole issue is that those who defeated attempts to regulate FNMA and FHLMC by the Bush admin, several years ago are now stridently preaching as though this debacle ORIGINATED from something the administration did or did not do. That is simply not true.
Good luck to you as you blog.