by lwoolley on Fri Nov 14, 2008 9:01 pm
Lynn-
I have a question that perhaps you will want to explore on your show Monday.
As Congress was debating the buyout question, one of the ways they "sold" this to US citizens was with the story that, once the US government purchased the assets of the bad mortgage loans, they could hold those until the situation improved and the status of the now at-risk loans improved. At that point in time, the loans could be resold at a much higher price, resulting in the fact that the $700 Billion expenditure would be a much lower actual liability for the US taxpayer; in fact, it might actually become a profit source.
Now, of course, the focus has changed. The government is not going to purchase those bad loans; instead they will be giving money to banks with no oversight as to what they are doing with the bucks, credit companies like Amex, insurance companies like AIG and the Big Three auto makers. Heck, as you suggest, maybe even DISD will get some relief.
Now, NOTHING in the current list looks to me to be able to provide the payback the bad home loans were purported to be able to provide. Now, it looks totally like the $700,000,000,000 bailout (I think sometimes you just need to write out the number longhand so we can see just how many zeros we are talking about here) will be nothing but a drain on the budget that is funded by taxpayer dollars.
I think that is a serious question that needs to be asked of Mr. Paulson now that he has decided to spend our tax dollars differently than he told us he would.
What do you think?
Thad