{"id":75,"date":"2008-09-10T08:04:42","date_gmt":"2008-09-10T15:04:42","guid":{"rendered":"http:\/\/marketriders\/weblog\/?p=75"},"modified":"2016-12-21T07:33:04","modified_gmt":"2016-12-21T15:33:04","slug":"the-700b-mortgagewall-streeteconomic-bailout","status":"publish","type":"post","link":"https:\/\/www.marketriders.com\/investing\/the-700b-mortgagewall-streeteconomic-bailout\/","title":{"rendered":"The $700B Mortgage\/Wall Street\/Economic Bailout"},"content":{"rendered":"<p>Treasury Secretary Paulson and Federal Reserve Chairman Ben Bernanke faced intense scrutiny over their proposed $700B bank bailout today on Capitol Hill (and rightfully so).<span> <\/span>Let&#8217;s take a look at the facts:<\/p>\n<div class=\"entry-content\">\n<ul class=\"normal\">\n<li class=\"MsoNormal\">Paulson presented a 3 page plan that would give the Treasury a blank-check (ok, well ~$700 billion) and absolute authority over the bailout<\/li>\n<li class=\"MsoNormal\">There      are few details in the proposal about what the bailout actually is<\/li>\n<li class=\"MsoNormal\">There      are no proposed measures for accountability for executives of banks who      got us into this mess<\/li>\n<li class=\"MsoNormal\">There      is no clear mechanism for the taxpayer recouping the money invested in the      bailout<\/li>\n<li class=\"MsoNormal\">It appears as though the bailout will really only help banks that are carrying loans as already low prices on their books.<span> <\/span>Many banks that have not yet come clean about true loan values would still<br \/>\nface substantial write-downs and the need to raise capital if they off-loaded these loans.<span> <\/span>Even if some banks decide to hold onto the loans, they may be forced to write down their values when other banks sell and actual market values can be determined.<\/li>\n<\/ul>\n<p class=\"MsoNormal\">\n<p class=\"MsoNormal\">Finally today both Republicans and Democrats found something to agree on &#8211; dislike for this bill.<span> <\/span>Even Vice President Cheney&#8217;s lobbying wasn&#8217;t enough to dissuade House Republicans from voicing their displeasure en masse.  Paulson and Bernanke are not doing anybody any good by telling everyone that if we don&#8217;t pass legislation this week then the sky will fall.<\/p>\n<p class=\"MsoNormal\">\n<p class=\"MsoNormal\">I want to applaud both sides of the House for thinking this one through.<span> <\/span>Granted, we&#8217;re close to election time and nobody wants to make an unpopular choice, but this is a one-shot bailout and we must get it right.<span> <\/span>Here are the things I would like to see as part of the bailout plan:<\/p>\n<ul class=\"normal\">\n<li class=\"MsoNormal\">Eliminate      excessive golden parachutes for executives who blew up their banks<\/li>\n<li class=\"MsoNormal\">Ensure      the tax payer gets a return on their investment.<span> <\/span>I&#8217;m not sure I like idea of the taxpayer getting equity in participating institutions as this sounds a lot like socialism.<span> <\/span>However, there needs to      be some guarantee.<span> <\/span>We cannot allow      banks to profit at the taxpayers&#8217; expense.<\/li>\n<li class=\"MsoNormal\">Provide      a comprehensive plan for assisting homeowners in trouble.<span> <\/span>The bailout only works if we can stem      the tide of foreclosures.<\/li>\n<\/ul>\n<p>To concluse, let&#8217;s all remember that the goal here is to bail out the American taxpayer.  It is not to bail out Wall Street or bank executives.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Treasury Secretary Paulson and Federal Reserve Chairman Ben Bernanke faced intense scrutiny over their proposed $700B bank bailout today on Capitol Hill (and rightfully so). Let&#8217;s take a look at &hellip; <a href=\"https:\/\/www.marketriders.com\/investing\/the-700b-mortgagewall-streeteconomic-bailout\/\">Read more <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":8,"featured_media":1379,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_wp_rev_ctl_limit":""},"categories":[45],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The $700B Mortgage\/Wall Street\/Economic Bailout | MarketRiders<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketriders.com\/investing\/the-700b-mortgagewall-streeteconomic-bailout\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"The $700B Mortgage\/Wall Street\/Economic Bailout | MarketRiders\" \/>\n<meta name=\"twitter:description\" content=\"Treasury Secretary Paulson and Federal Reserve Chairman Ben Bernanke faced intense scrutiny over their proposed $700B bank bailout today on Capitol Hill (and rightfully so). 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