December 04, 2007
– Comments (4)
That's pretty much what he's saying, except he wants to bleed us via proxy: by having Congress tell municipalities to issue bonds and use the proceeds to bail out the homedebtors out there.
Profits / winnings belong to the corperate few and losses are socialized on the public (I stole this quote, from a previous post).
GS made big money on buying, selling and shorting the FED created mortgage and real estate dissater. Now the head of GS, I mean "US Treasurer" wants the middle class Americans to bail out the stupid.
What was Paulson paid at GS and what is the GS employee bonus this year? $500k per employee average bonus? But "we the people" average pay $30k will pick up the losses. Awesome! I have to get my resume to GS.
Spot on, Seth. Government should stay the heck out of this mess. It's simply a terrible precendent. I think there's a market answer to this and that's forcing the banks to negotiate with their borrowers. A government bail-out also punishes smart (dare I say, Foolish?) borrowers who realized their low variable rate was resetting and got into a fixed rate before it was too late.
Paulson can't fix this mess, Wall St has over played their hand this time, the little people will go down, but they are going to drag a big chunk of the street with them. Deadbeats beat the Street!
I see Jim Jubak detailed another reason that this is going to cost taxpayers, even if local governments don't go out and issue bonds to bail out debtors. The rates they pay on bonds for everything are going to go up, because the outfits that guarantee them are sick from mortgage-backed dog food.