...the solution to falling asset values (i.e. home values) is for the government to step in and by securities that the bank's hold whose value is dropping? Why should we, the taxpayers, take on these assets? at what price? for how long? For every winner, there's losers. The government saves a few banks but at the cost of investing taxpayer dollars in overvalued assets. Not to mention that anyone shopping for houses right now is HOPING for falling prices.
It's also apparently irrelevant that we don't have 700billion to spend, i think our rainy day fund was tapped...who am i kidding, we don't have a rainy day fund. We'll have to borrow the 700 billion.
Brilliant
So this "bailout" passed the house wed night, but the dow fell about 300 pts. Maybe the "market" isn't so convinced on this bill after all.
Oh, and remember this gem?
http://en.wikipedia.org/wiki/Housing_and_Economic_Recovery_Act_of_2008
This took effect Oct. 1. This little piece of legislation (agree or disagree with it) has the potential to prop up home prices much more effectively then the new bill. But politicians and the media seem to have forgotten about this bill.
Friday, October 03, 2008
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