Yes this is about the Bailout…again….but lets face it this is going to be thoroughly discussed here, especially when you have Politicians throwing out rhetoric about the housing/mortgage crisis on a daily basis. So what does a housing bust look like in an election year, well it looks like this, from Fortune;
“As Paulson today unveils a plan he brokered to freeze rates on some 2 million troubled mortgages, economic conservatives are issuing a new round of warnings about the unintended consequences of his well-intentioned tinkering in the housing market.
Economically, their warnings could be right, but so is this political truth: With a heated presidential contest moving into full-swing, an activist Paulson is in the Republican Party’s best interest.”
Steve Leisman of CNBC is talking about a Fed Gov bailout superfund, so I take it that is what is being floated around Wall Street. Now here is the good news
“New Poll Finds Americans Skeptical over Proposals to Rescue Subprime Borrowers”
“When asked which statement most closely reflects their views on plans allowing federal agencies to “increase the size of the loans they can insure and purchase, and to reduce down-payment requirements,” 66% of respondents agreed that “these proposals are nothing more than a taxpayer-funded bailout of banks and lenders that provided and profited from these risky loans.” Thirty-four percent believed “a taxpayer-backed refinance program is necessary to avoid an increase in foreclosures that could reduce home values across the country.”
So far the public is not buying into this. That will throw water on many aspects of this bailout. Wall Street bankers and Joe Public are at odds on this one so this will be very interesting to watch. If you feel strongly about this be active, write your congressman let your position be known. Being active in politics in todays world is a good thing regardless of where you stand. Personally I think we will see alot of grandstanding on this issue but not much action, by the time Gov puts together a comprehensive bailout package and gets it passed it will be way too little too late and could possibly prolong the downturn when it would be naturally hitting a bottom.
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