Wednesday, October 1, 2008

Senate Passes Bailout

Well, the Senate passed the bailout bill. I still think it is a huge mistake if the house passes it too but only time will tell.

Both Kansas Republican Senators voted "no"....I'll give them that at least.

The Huffington Post says this:

This bill does not effectively address the issue of what the taxpayers of our country will actually own after they invest hundreds of billions of dollars in toxic assets. This bill does not effectively address the issue of oversight because the oversight board members have all been hand picked by the Bush administration. This bill does not effectively deal with the issue of foreclosures and addressing that very serious issue, which is impacting millions of low- and moderate-income Americans in the aggressive, effective way that we should be. This bill does not effectively deal with the issue of executive compensation and golden parachutes. Under this bill, the CEOs and the Wall Street insiders will still, with a little bit of imagination, continue to make out like bandits.

A Political Action ad plays the partisan blame game with the economic crisis, charging that John McCain’s friend and former economic adviser Phil Gramm “stripped safeguards that would have protected us.” The claim is bogus. Gramm’s legislation had broad bipartisan support and was signed into law by President Clinton. Moreover, the bill had nothing to do with causing the crisis, and economists – not to mention President Clinton – praise it for having softened the crisis. says:

A McCain-Palin ad, in turn, blames Democrats for the mess. The ad says that the crisis “didn’t have to happen,” because legislation McCain co-sponsored would have tightened regulations on Fannie Mae and Freddie Mac. But, the ad says, Obama "was notably silent" while Democrats killed the bill. That’s oversimplified. Republicans, who controlled the Senate at the time, did not bring the bill forward for a vote. And it’s unclear how much the legislation would have helped, as McCain signed on just two months before the housing bubble popped.

In fact, there’s ample blame to go around. Experts have cited everyone from home buyers to Wall Street, mortgage brokers to Alan Greenspan.

Actually, I think the blame game is pointless. Everyone involved is to blame. Wall Street, certainly, mortgage brokers, and even home buyers. Surely we are smart enough to know whether we can afford to buy a house whether we want one badly or not. If we do not have a down payment and cannot pay closing costs, we cannot afford to buy a house, especially if it comes with a balloon payment in a few months or years. Clinton is partly to blame as well as Greenspan. They should have known better.


Sylvia K said...

As you say, there's enough blame to go around -- several times actually, but I guess we just have to wait and see what happens next. Whatever, it's still one big mess!

Judy said...

I agree with you Margie. There are a lot of people today that believe they deserve the American dream whether they can afford it or not.
Just look at all the credit card debt out there. There are people living off their credit cards and robbing one to pay the other. I don't know where it all ends!

Margie's Musings said...

In 1996 I owed $8,000 on a credit card and was paying the minimum each month. I asked them how long it would take to pay it off at that rate and they told me 40 years if I didn't put anything else on it.

I paid it off completely in 2006. Then we tore them up. Never again! That's too stupid.