Friday, September 26, 2008

Why Spend $700 Billion?

I know there are people out "there" that are much smarter than me. Please, someone, tell me why we have to spend $700 billion dollars?

From the numbers that I have seen, there is about $100 billion of bad mortgages. The rest are okay. The bad mortgages are ones that people cannot pay and the value of the property does not cover the value of the loan. That doesn't mean that the value of the property is zero. Even if the property value is only half of the loan value, then there is "only" $50 billion loss money. Hell, according to some sources, wall street paid out over $120 billion in bonus between 2000 and 2006.

Help me out here. Where is the crisis? Looks like another Bush ripoff to me. AND THE DEMOCRATS ARE GOING ALONG WITH IT!

1 comment:

  1. Agreed.

    I think the extra is a bit on top to smooth the banks' feathers in persuading them to play nice again and extend credit to the poor minions

    It makes me sick - here in the uk another bank is being nationalised to save it from insolvency, but I am reading all the time at the moment that there are people dying from cancer who need drugs which the NHS wont pay for to the tune of 40k - these are people who have paid their taxes all their lives. There is no government assistance/bailout for these people. It always has and it always will be about keeping the banks sweet.