Bailing out foreclosures and not jobs

[Life Long Dem]

does nothing for ones losing a job, and having no jobs to climb back up from the 3 part time jobs that don't put the food on the table.

Oh it's all comfy when your sitting pretty with a hunky dory job. But for how long? Yeah... how many loss of jobs a week? Don't go with the "failed" limps.

[Trajan]

1. EXACTLY ....

IF working families have decent paying jobs : NO Mortgage goes unpaid ...

Yet: There is a mighty rush to the exits by American corporations this very moment ...

How UNPATRIOTIC and UNAMERICAN of them ....

[KharmaTrain]

2. Without Credit There Are No Jobs...

Many jobs that are being lost these days is due to the inability of companies to borrow the money they need to keep going...to buy inventory or meet payroll. Yes, dropping consumer demand is hurting business, but without the fall back of credit they're unable to weather the ebbs and flows we're currently expeiencing. It also prevents new businesses from starting up and existing ones expand. The lack of credit has stagnated this economy.

The credit crisis will remain tight as a drum as long as their are defaulted loans all over the place. This is forcing banks to horde their cash and that's made the problems even worse. The government has to figure a way to wipe out or negate a lot of this debt...keep people from losing homes and going into bankruptcy and then open up the credit markets again. Once that happens, jobs will be created, new opportunities will follow as well as people are willing to invest again. Right now with the strong chance the banks will default or you'll lose on the investment, what's the incentive?

[AllentownJake]

3. Bull Shit

The banks were handed $350 billion dollars to unfreeze the credit markets and the fuckers used it to buy other banks and give themselves $18 billion in bonuses. Let the banks fail and investors sue their executives.

The governement would have been better off spending that $350 billion in starting new banks than working with the fuckers who created the problem in the first place.

They asked the government to take a risk in bailing them out than took no risk themselves. Fuck them and Fuck the people in the executive suite.

[KharmaTrain]

4. And This Is Whose Fault?

I was and am extremely critical of how Commandant Klink Paulsen handled the bailout. He was mandated to use some of that money to be made available to go toward foreclosures and other personal debt...he ignored it. Banks became all but insolvent and used the cash to prop up whatever assets they could...or, yes, paid out obscene bonuses or who knows what. My hopes are Attorney General Holder will have an investigation up and running (if it isn't already) into all the fraud that happened. But that has little to do with how we work our way out of this mess...

You are right, I'm of the belief that sooner, rather than later, the government will have to nationalize the banks to get a real handle on what's going on here. The fact Paulsen gave the money to the same goons who made the mess and told them to clean it up is worthy of bringing him up on criminal charges...but some of that money did go to prop up savings accounts (many held by "regular folks", retirees and non-profits) from totally vanishing that would have compounded the problem. But few are seeing those affects and it did little to stop the downward slide.

There needs to be an RTC of other government entity set up...the "bad bank" that will take the toxic debt...and also a "good bank" that will help people with balloon loans and large debt to be able to reschedule it at lower rates. The banks have to eat the interest owed and a cap is placed on those rates...back down to the prime rate rather than the double digits that is strangling millions...and then outlaw both predatory lending and repeal the obscene bankruptcy bill of 2005.

And that's part one...stopping the bleeding. The day for accountability is sure to come to those who led to this fall...if the government doesn't get them, the stockholders will.

Cheers...