Sunday, September 28, 2008

"Emergency Economic Stabilization Act of 2008" - Draft Proposal for Housing Bailout

The draft proposal for the Bailout is available as a pdf here.

Many reasonable people feel this bill still gives too much unfettered power to Secretary of the Treasury Comrade Paulson, who will become Dictator Paulson. Additionally, it uses too much of taxpayers' money. It "rescues" Wall Street supposedly for the benefit of "Main Street." However, there's not enough financial penalty for the greedmongers that caused the problem, and the nationalization is too costly.

Read liberal view of Economist Paul Krugman, here.

Read the conservative view of Ben Stein, here.

*To contact your House of Representatives member by phone/fax/email, find the address here. The House is expected to vote on Monday.

To contact your Senator, find the phone/fax/email here. The Senate is expected to vote on Wednesday.

Meanwhile, even as we type this on Sunday night, there are banks going under, due to this crisis, across the Atlantic: B & B in Britain has been nationalized, and Fortis faces failure. Here iin the US, Wachovia may face seizure by the Fed, as WaMu did, if a buyer is not found.

WANT MORE INFO? Check out Barry Ritholtz's incredible "Bailout Linkfest" at The Big Picture, which includes articles, analysis, videos, interactives, Wall Street research, and so on.

2 comments:

jason said...

Here's another point of view from Wall Street:
http://www.cnbc.com/id/15840232?video=867490422

"...home prices are still going to fall. Bank of America is not going to change their lending standards to a consumer just because their balance sheet looks a little better today than it did yesterday. They're still going to want 20% down, they're still going to want you to document your income in order to get a mortgage, so that's not going to change...
this is a de-leveraging process that's going to happen no matter what, whether the government gets involved or not..."
Peter Boockvar, equity strategist at Miller Tabak.

Montpellier said...

That is exactly how this will play out, and that is why this bailout doesn't do anything for anyone but the big banks.

The housing crash is still coming and John Q. Public is still gonna be hurting.

At best, this bailout will simple be a return to status-quo-ante-1999. The only way we'd see a return to the '06 market is if somebody turned the money spigot back on WFO, and that's just not gonna happen. $700B is a drop in the bucket, compared to that.