Michelle Singletary wrote the article "Bailout Bushwhack" On October 2, 2008 for the Washington Post. In it she says : "This bill, now passed by the Senate, brings to mind the now iconic Wendy's commercial with the tagline: "Where's the beef?" If you've got friends or co-workers or family members claiming you're the fool for not supporting this bailout plan, ask them if they've seen this classic Wendy's commercial that, for me, sums up the lack of details on how this bailout will actually work. Lots of fluffy bun, no beef!"
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Americans are worried about their mortgages, investments, pensions and social security benefits. I am just not seeing the safeguards that should be in this plan. I am particularily distressed that nothing is in there that automatically cancels the golden parachutes and outrageous salary add-ons for doing a poor job. There is a very wishy-washy segment on executive pay. What was the U.S. Senate thinking? Sweetners ... select projects is more like it.
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I'd also like to see more concrete ideas for Take-Over oversight agency. Is this going to be another bunch of traditional bankers who have no clue how to really use a computer to generate the types of programs to check on the accuracy of the servicing and the most likely lake of fexibility to re-negotiate the terms of the underlying assets and still keep them as part of the pool and changing the terms of the original loan pooling agreements.. Because the original investors are still expecting to see whopping returns after the buyout.
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How about some penalties to the originating underwriting firms and initial issuing banks? They can pay those over the term of the bailout life or within a set time frame? What rate of return will the government get to then add back into the budget.
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I see few teeth and little meat in this bailout plan.
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Comments: 25
In effect, they are holding us hostage until we pay off the people who screwed up and caused the problem, and might lose some money as a result.
I was watching The Business Channel when the House voted it down, and the talking heads were totally outraged! How dare Congress deny them what they demand?
And then, they were lecturing us, looking at the camera saying things like, "You've got to understand..." and "Failure to pass this will hurt you..."
Usually those guys just analyze the market, telling us why it went up or down after the fact, often with the same reasons for either direction. In other words, it's all BS.
But in this case, they were really energized! The American people had risen up and swatted down the arrogant bastards who think they run the country.
It was refreshing, even if it will probably all get turned around tomorrow when Congress caves and gives them everything they want.
Gather Broadcasting: Have it your way
This takes you in the front door, and this takes you in the back door. If you’ve been, don’t click again.
When someone is bleeding uncontrollably it's time to slap on a tourniquet. The diagnosis and healing comes later. It needs to get done. People looking for a turnaround in the markets may be disappointed, though, because now attention will focus on fundamentals, and they are not good.
The next few years will not be much fun for most people if he is right.
As for stopping the pay of the greedy politicians, that pay is probably a drop in the bucket compared to their under the table graft from the lobby industry ... etc etc etc ...
This in the end will do little more than add to the deficit. The market can do better at regulating itself than government ever has or will.
I just wanted to say I am finally going through my currently over 6,500 pieces of gather new mail that is in my inbox on here. So with that in mind I have finally come to a piece of mail that was addressed to me in regards this article submission you have created to share with the gather community. Thank you for taking the time and sharing your piece with us here at gather. :o)
I like the GM CEO who is taking a 10 million dollar cut in salary ($1 a year). The bank executives would be a lot more careful if they were being held responsible, as they should be.