Mark Winston Griffith
Bailout Makes Suckers Out of All of Us
The latest news that the Treasury, Fed and Congress are discussing the mother of all bailouts - a government purchase of distressed mortgages at deep discounts - was inevitable. Not just because there was going to have to be a day of reckoning for all the stinky mortgage paper strewn across the front lawns of American homes and throughout the capital markets, but because, at some point in time, the American public was going to have to pick up the tab.
The problem has always been so much bigger than a rogue group of speculators and careless families looking to nest. So, for everyone who insisted that this was someone else's problem, for everyone who was determined to let millions of "irresponsible" homeowners go under, this is the consequence of our failure to address loan default and foreclosures on a broad scale. So, congratulations. You and I are soon to be the proud owners of countless predatory, should-have-never-been-made-under-the-light-of-day, loans.
The real kicker is that while the struggling homeowners and taxpayers will continue to be on the hook, the assembly line of predatory loan enablers - the brokers, originators, servicers, secondary market, etc. - have ultimately done what they wanted to do all along: Make the loan, strip off the profit, and let someone else deal with the consequences. Although with so many banks and investment firms going under, that wasn't such a clever strategy after all.
But this is not even about reckless Wall Streeters. Blaming Wall Street for being greedy is like...blaming Wall Street for being greedy; making as much profit as possible is what Wall Streeters do. No, the real fault lies with us, the "people" and our government, who, despite warnings to the contrary, failed to establish the regulatory controls and oversite that appropriately limit capitalism's excesses.
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Posted at 8:31 AM, Sep 19, 2008 in Economic Opportunity
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Comments
This is a better bailout plan, please suggest it:
Instead, I'm in favor of giving $85,000,000,000 to America in a ''We Deserve It Dividend''.
To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+.
Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up..
So divide 200 million adults 18+ into $85 billon that equals $425,000.
My plan is to give $425,000 to every person 18+ as a "We Deserve It Dividend".
Of course, it would NOT be tax free.
So let's assume a tax rate of 30%.
Every individual 18+ has to pay $127,500.00 in taxes.
That sends $25,500,000,000 right back to Uncle Sam.
But it means that every adult 18+ has $297,500 in their pocket.
A husband and wife has $595,000.
What would you do with $297,500 to $595,000 in your family?
Pay off your mortgage - housing crisis solved.
Repay college loans - what a great boost to new grads
Put away money for college - it'll be there
Save in a bank - create money to loan to entrepreneurs.
Buy a new car - create jobs
Invest in the market - capital drives growth
Pay for your parent's medical insurance - health care improves.
Enable Deadbeat Dads to come clean - or else
Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back.
And of course, for those serving in our Armed Forces.
If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ('vote buy') economic incentive that is being proposed by one of our candidates for President.
If we're going to do an $85 billion bailout, let's bail out every adult
U.S. Citizen 18+!
As for AIG - liquidate it.
Sell off its parts.
Let American General go back to being American General.
Sell off the real estate.
Let the private sector bargain hunters cut it up and clean it up.
How do you spell Economic Boom?
I trust my fellow adult Americans to know how to use the $85 Billion "We Deserve It Dividend" more than the geniuses at AIG or in Washington DC.
And remember, The Family plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.
Posted by: juliegrealtor | September 27, 2008 06:25 PM
I agree with juligrealtor.
Give the money to the people, its their money and it would do more to jump start the economy anyway. This bailout is just another scam to make the rich richer!
I think our government is trying to bankrupt our country! I can't see how we could be $700 billion in debt if $85 billion could buy nearly every home in america!!!
Posted by: Samuel G Hammel | October 4, 2008 09:50 AM
So divide 200 million adults 18+ into $85 billon that equals $425,000.
No, that equals $425. Math fail!
Posted by: Alon Levy | October 4, 2008 04:40 PM