What is with the Insurance part of the "bail out" the Republiocans insisted upon?

[Bandit]

Is it just another HUGE give away to the Insurance Companies? Banks and Mortgage Houses will be REQUIRED to buy Insurance (with Tax Payer money) I might add and those CEOs in the Insurance will not be held to the same limitations that Banking CEOs are supposedly going to be held to and then if the banks fail again and the Insurance Companies have to pay guess who will bail out the Insurance companies.. This should be a poison pill for this Bail Out bill but it will sail through uncontested..

[mmonk]

1. Insurance in this case would be taxpayers.

[Tallison]

2. No, banks themselves will be responsible for the premiums

It's to create a Federally-controlled fund from which liquidity can be drawn should this crisis repeat itself in the future. It's a form of regulation, and it's good.

[mmonk]

3. The question would be whether there would be enough

funding to stem a run. It will work as long as no one panics.

[Tallison]

4. Like most pools, it's a long-term project to stem long-term problems

Won't do much toward short-term stabilization, but would have if it had been established it 10 years ago.

And, yes, social psychology is a big variable in all of this and the one whose value economists can never ascertain for sure.

[madrchsod]

5. scratch the surface and you`ll find the real reason for this bail out

it`s the insurance scam/fraud that is what these guys are concerned about. they do not want to pay-out the insurance claims on the mortgages.