U.S. Treasury Secretary Henry Paulson is talking about a Resolution Trust Corp-type solution to the financial crisis, CNBC reported, citing Wall Street sources.
S&P financial stocks were up over 8 percent."
In effect, all the bad and questionable loans would be backed by the government. So if your neighbor paid $200,000 for a house that is now worth $100,000, the taxpayers will pick up the difference. And since the government will want to get rid of that house quickly, the "going" price will decrease even more.
Should the taxpayers pick up the tab for bad purchase decisions?
http://uk.reuters.com/article/usMktRpt/idUKN1844149620080918
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4 comments:
lololol...like we have any choice in this.
Well, it is only a suggestion now. So calling your representatives in congress could change how it is done.
No use in doing that. He's a Republican.
As Amy Goodman said this is socialism for Wall Street.
http://www.commondreams.org/view/2008/09/18-5
Republicans are always against socialism for the poor but when it comes to the rich bail them out.
That two trillion to rescue Wall Street would be better spent securing the loans of the poor so they could stay in their homes and pay off their debts thus stabilizing the mortgage backed derivatives, it would have the same affect on the derivatives the only difference is the poor could stay in their homes but the fat cats on Wall street would not get their golden parachutes, because there would be no money for them cause it was give to the poor instead. Bush and McCain are socialists when it comes to their constituency, the oppressors not the oppressed.
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