The bailout billed failed to pass, because polls indicated the American people overwhelmingly did not want the bailout bill, and House of Representative members coming up for re-election in 36 days did not want to go against the wishes of their constituents.
I'm please with the outcome, because it avoids yet another government bureaucracy, and put the burden of the sub-prime mortgage mess back on those who are responsible for it. The bank that are holding notes to REIT and other mortgage companies that are under collateralized, because of the fall in home real estate values, will now be forced to make a decision. The can call these notes, payable on demand under margin call provisions, and force the REIT and mortgage companies into bankruptcy, but the underlying collateral, (eg real estate), when sold will not pay off the notes, because the real estate market has tanked right now. It would be better for the banks to work with the real estate industry by giving them more time to clean up the mess they have made. This would require the holders of the mortgages to foreclose on any non-performing mortgages, and re-sell the properties to new owners at a price in line with the purchasers income level to insure the real estate is affordable to the purchases and the mortgages will begin to perform again. Once the mortgages begin paying again, real estate value will go up providing the banks with the collateral they need based on margin call provisions, and things will return to normal. There still will be some loses along the way, but its better to allow more time for things to work themselves out than to panic and force REIT and mortgage companies into bankruptcy while foreclosing on mass numbers of home real estate. In the big picture this is a private sector problem, and historically the private sector has been much more efficient in working through its own problems, than turning them over to a government bureaucracy that creates a larger centralized government. Regards, LelandJ Michael Madigan wrote: > Get used to saying "President Obama". > > These guys decide that they would rather have the stock market tank rather > than go along with a 700 billion bail out. > > The bail out would have probably wound up costing taxpayers at most 200 > billion since they're getting real estate with never goes to a zero value. I > didn't hear any of these bozos complain about earmarks, the Iraq war, > Medicare, or any of the other bills that heaped a ton of debt on the budget. > But here they're taking a stand. > > So now instead of 700 billion, the US consumer just lost 5% of its net stock > market value in one day. > > Brilliant. > > I didn't hear anyone go on the TV news channels complaining about Fannie Mae > when it was happening, but now they're taking a stand and sucking trillions > of net worth out of the stock market. > > Not only that, they've just assured Obama, not only winning the election, but > winning in a landslide. > > What a bunch of morons. > > I'm sick to my stomach now. > > ************************************************************************ > On Wednesday, November 5th, Vote for Barack Obama > > Right Wing Mike > http://www.cafepress.com/rightwingmike > > [excessive quoting removed by server] _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[EMAIL PROTECTED] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
