Question by : So who came up with the plan to save AIG, Goldman Sachs and other Wall St criminals?
I think Obama actually signed it but time was of the essence and Bush put forth a proposition that was sellable. At least that is what I get from this;
Q. The bailout program being negotiated by the Bush administration and Congressional leaders calls for the government to spend up to $ 700 billion to buy distressed mortgages. How did the politicians come up with that number, and could it go higher?
A. The recovery package cannot go higher than $ 700 billion without additional legislation. As for that figure, it lies between the optimistic estimate of $ 500 billion and the pessimistic guess of $ 1 trillion about the cost of fixing the financial mess. But the $ 700 billion is in addition to an $ 85 billion agreement on a bailout of the insurance giant American International Group, plus $ 29 billion in support that the government pledged in the marriage of Bear Stearns and JPMorgan Chase. On top of all that, the Congressional Budget Office says the federal bailout of the mortgage finance companies Fannie Mae and Freddie Mac could cost $ 25 billion.
Q. Who, really, is going to come up with the $ 700 billion?
A. American taxpayers will come up with the money, although if you are bullish on America in the long run, there is reason to hope that the tab will be less than $ 700 billion. After the Treasury buys up those troubled mortgages, it will try to resell them to investors. The Treasury’s involvement in the crisis and the speed with which Congress is responding could generate long-range optimism and raise the value of those mortgages, although it is impossible to say by how much.
So it would not be correct to think of the federal government as simply writing a check for $ 700 billion. It is just committing itself to spend that much, if necessary. But the bottom line is, yes, this bailout could cost American taxpayers a lot of money.
Q. So is it fair to say that Americans who are neither rich nor reckless are being asked to rescue people who are? What is in this package for responsible homeowners of modest means who might be forced out of their homes, perhaps for reasons beyond their control?
A. Yes, you could argue that people who cannot tell soybean futures from puts, calls and options are being asked to clean up the costly mess left by Wall Street. To make the bailout palatable to the public, it is being described as far better than inaction, which administration officials and members of Congress say could imperil the retirement savings and other investments of Americans who are anything but rich.
But it is a good bet that the negotiations between the administration and Capitol Hill will include ideas about ways to help middle-class homeowners avoid foreclosure and perhaps some limits on pay for executives. And it should be noted that neither party is solely responsible for whatever neglect led the country to the brink of disaster. (2008)
Cain and Gingrich are on face the nation and Newt blames the whole bailout on Obama.
Cain said his 9-9-9 plan wouldn’t raise taxes on the poor and he couldn’t explain how. It sounds like they will in fact be paying more taxes (while the rich pay less).
Is the right really going to suck up more lies from thir leadership?
Best answer:
Answer by Sadcat
From the moment Obama took office, the GOP has tried to rewrite history by acting as if the economy was great in late 2008 and that Bush didn’t have anything to do with the first and largest set of government bailouts.
McCain even wanted to cancel a debate so he could go and vote for the bailout. There’s no reason in hell to think that if McCain had been elected, the government bailouts would have gone any differently.
Add your own answer in the comments!
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There was two bailouts, and I think neither politician proposed it(although Bush signed the first one). I think some shady deal behind the scenes happened where these companies told them to do it, and since Wall Street owns the politicians, they obliged.
I think the Federal Reserve came up with the plan. Mainly to prevent a Drastic Economic collapse, which happened anyway. Go figure.
Both, Bush and Obama were just reacting from what they were being told and if they new differently, then I think both would have ordered investigations to begin.
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