My biggest concern of the $700 billion bail out is 700 BILLION DOLLARS.

Our money to fix their screw up,that is hurting us. Nadda.

I’m still mad!

Please call your Congresshack and tell them NO ACORN. It’s still on the table.

I’d really like us not to cut off debate on a bill so quickly, but this seems a good adjustment to what’s on the table.

I’d also like to emphasize the last sentence:

“And if the financial sector is to escape the excesses of regulation that are likely to follow the recent period of under-regulation, it is extremely important that any rescue been seen as fair.”

When thinking about damage to the financial markets, don’t forget about the draconian legislation that will surely be passed in ’09. The more market forces can be used productively now, the less we’ll move towards socialism then.

Mortgagors that bought homes gambling they would appreciate with hopes of re-fis of homes they could not afford must NOT be allowed to be saved from foreclosure. PERIOD!

The July deal allowing ARM mortgagors to re-negotiate based on the fiction they were ignorant dupes of predators was bad enough.

…and feel like maybe we could just start by lowering the mandatory amounts of money banks are required to keep on hand by the Federal Government, that would ease liquidity.

But what’s really got me pissed is that they are going to give 20% of any potential profits to ACORN the very people who got us into this mess to begin with!

WTF!!!!

to read through some of my posts, as I explain this issue specifically. First, let’s start with a recent post from Greg Mankiw, which I commented on yesterday, which outlines the fact that while many academic economists do not like the Paulson Plan, the majority of economists within the financial sector support it as being the best means to address the short-term liquidity needs for the crumbling credit markets. Earlier this week, I commented on the letter to Congress from the University of Chicago professors, and while this is relevant to the discussion and I respect the academic economists’ viewpoint (indeed, I am very close to some of the top ones, at least in the UK), their ability to understand what is happening in the markets at any given time is not as good as the market analysts and financial economists working in the ‘trenches’. These folks are notorious for looking at the economy from a theoretical vaccume, and again, I am not being critical, because I respect these economists very much. But, even Mankiw has agreed that the viewpoint of these individuals and those working firsthand in the markets is different. Finally, I commented on an earlier post by Doug Diamond (who I have studied extensively and who wrote the book on financial crises) that looks at why some of these events have transpired and even though they don’t like the specific plan, he and more economists would agree that a liquidity injection will be required to stabilize the markets, and whether it’s $700b or a little less or a little more, everyone knows in the end it will cost much more to resolve this crisis.

The point here, and a key distinction you leave out of your analysis is that the bailout is not meant to ‘fix’ the crisis. Again, it will end up costing much more than $700 billion and will easily be in excess of $1 trillion. However, a bailout is needed to restore stability to our financial markets and it is the Fed’s role as the central bank to intervene as a lender of last resort when the markets are on the brink of collapse. So, this is a short term liquidity injection that is focused on equilibriating the markets, not completely fixing anything. More will have to be done and indeed we are still a long ways out from turning this thing around. Crises take capital, time and changing patterns to be turned around. Don’t expect anything to fundamentally improve until at least halfway through 2009, but the first step will be stabilizing the financial markets. If we don’t do that, then the costs of systemic risk will be much greater and not only will the price go up, but the timeline will be extended as well.

Maybe I’m missing something or just STUPID but 0.7 trillion dollars is an increase in the budget (2.65 trillion dollars) of 26.4%. How can the federal government come up with this kind of money without further devaluing the money already in circulation. I haven’t heard anyone address this issue. A 25% increase in the supply of anything is going to reduce it’s value. Isn’t that pretty basic? And let’s be honest, it’s actually going to be well over 1.0 trillion dollars. That’s more than 33%. Are we going to need suitcases full of money to buy dinner?

Granted, the most conservative and the most vulnerable GOP House members will be allowed to vote against this bailout. Still, the leadership in the House will have to put the GOP seal of approval on this thing. House Republicans would love to tap into public anger on this thing. How many House Republicans will be willing to go home and justify a bailout vote?

if it means bringing down the entire economy so be it. That is a non negotiable deal. ACORN has to go.

I am furious that all the attention is goig to not letting CEO’s benefit, but I don’t want the unions nor ACORN to beefit from this extortion of the taxpayers. I sent these letters to my representatives for all the good it will do;

To all Washingtonians,
The current panic in Washington DC is being exploited for controversial benefits to groups like
ACORN and labor unions. Please let your representatives know what an outrage this is to
straddle the American taxpayer under extortion measures forced by crisis situations.
This message was sent to Washington State Senator Maria Cantwell by one of her constituents;
Contact Senator Cantwell about Issues by E-mail
You can e-mail Senator Cantwell about legislative issues from this page. Washington residents who include their full name and address will receive a written response. If your e-mail regards a request for help from Senator Cantwell, visit the services section. If you wish to contact an office by phone or mail, visit the office locations page.

Senator Capwell,
I am very unhappy with Congress (both Republican and Democrat) with their complicity with Fannie Mae and Freddie Mac which I believe started the downward spiral that got us in this mess. I think too many legislators are influenced by the money from the likes of Goldman Sachs and AIG. I am very opposed to ACORN or the unions or CEO’s getting any benefit from this bailout.
Please Senator Cantwell, keep us taxpayers in regard to this situation rather than ACORN or the unions or the CEO’s. I am copying this e-mail and forwarding it to the media and various political forums to see if the rest of Washington agrees with me. After what happened here with ACORN, I think that there will be quite a few people that will be infuriated to find out that these groups are involved in taking billions from the mouths of our families because we are in the furor and desperation of the current crisis. It is opportunism at it’s’ worst.
Shane Davis
L*Y, WA sent on 09/27/2008

This message was sent to Congressman Norm Dicks;
Congressman Norm Dicks (D-WA),
I am very concerned with the current bailout of the financial market. I would rather see a workout that is being suggested by House Republicans. I am furious that groups like ACORN would even dare be included in any future benefit of the taxpayers sacrifice and monetary extortion. That is what this amounts to. Every man and woman in America will be forking over money to fix this monstrosity that is the result of Wall Street greed and Washington ineptitude. Do not insult and defraud us by giving away potentially billions of dollars to such controversial groups as ACORN, especially in light of the fraud they perpetrated on us Washingtonians. I will forward this e-mail to others of interest that will be looking out for the taxpayers.
Shane Davis
L*y WA sent on 09/27/2008

Whatever solution(s) are settled upon should include the FairTax.

What this country needs is not a massive “bailout” which amounts to financial socialism (as one Senator put it), but rather an across the board taxpayer bailout. With this looming economic crises we need an “AMERICAN” solution (pun intended) that derives from the American value of individual liberty, rather than the Marxist value of centralized control, or the archaic rule of an elite aristocratic class that knows better than the rest of us. We need a long-term solution that amounts to financial freedom. The time for the FairTax has come. HR 25 already has about 80 sponsors. Check it out:

www.fairtax.org

Figures they’d find a way to tax Wall Street. Especially sneaky how they’ll leave it to the Treasury to figure out how it wants to do it.