So 'Joe Tax' payer, who is actually providing the money' gets nothing. Hey, what about the guy who didn't get in over his head. You know, the guy who lived within his means and paid his bills. What does he get - except the opportunity to pay someone else's way. JUST LOWER THE MORTGAGE INTEREST RATE FOR ALL OF US!!!!!!!

Something doesn't seem right. The guy who is fiscally irresponsible and spends more than he makes gets a big bailout.
The guys who are responsible and live within their means are the ones doing the bailing out.
God bless America.

Can I puke? Obama is running this nation on a course to self-destruction. We can't keep printing money and pretending that the entire system won't collapse under the weight of his outrageously large bills.

I'm with you Ace. We understood our mortgages, decided, yes, we can make those payments for 30 years. Now, not only are we picking up the tab for those who made really BAD decisions, but now this 'stimulus' is going to act as an incentive for people to default on their loans intentionally so they can get 'bailed out'. This stimulus should be about preventing foreclosures, not about encouraging them.

The Bush deregulation of government controls over private banks and lenders caused the housing problem and therefore it is the governments fault and the government responsiblility to fix the problem. Bush was our president acting on our behave and consent and therefore we the taxpayers are responsible and must pay the price. We are the government, of course the rich ruling class own us. If you wish a better life then figure out how to become part of america's aristocracy like the Bushs.

As I said, most in Utah don't know squat, unless Rush Limbaugh tells em on AM radio. Fresh off the trillion-dollar porkulus bill signing in Denver, President Obama immediately launched into his next New Raw Deal expansion: a massive mortgage entitlement program forcing lenders to refinance at an initial cost of $50 billion to $100 billion. That's in addition to the bipartisan-supported $50 billion in the stimulus bill to bail out homeowners underwater on their mortgages and the $2 billion in neighborhood stabilization funds to alleviate the foreclosure crisis. In tandem with the White House Bad Borrowers Bailout, Obama's old friends at the Association of Community Organizations for Reform Now (ACORN) are launching a new campaign of their own: the "Home Savers" campaign. What a coinky-dinky, huh? As with most of the bully tactics of the radical left-wing group, it ain't gonna be pretty. They are the shock troops on the streets doing the dirty work while the Community Organizer-in-Chief keeps his delicate hands clean.

I agree wholeheartedly. I'm not against help overall, but really, I purposely did NOT buy more home than I needed, and certainly did NOT take the max loan amount offered to us by the banks! That would have been outrageous! But I, and many many other homeowners, could certainly use a refinance to a lower rate right now, and this in NO WAY helps me out. If my husband loses his job down the line, we could avoid a lot of trouble if we could lower our bills now. Not that we'd lose our house, but every little bit certainly helps. I cannot believe there won't be help to everyone!

So Rich, been drinking the Kool-aid again? Clinton was the president that decided everyone should own a home and started forcing these high risk loans on Mae and Mac but then you probably still think it was Clinton that caused the boom (but not the bust) of the Technology stocks at the turn of the century. Keep walking that party line but be sure to check back in with us in a year after Obama has completely devalued the dollar and brought socialism to us all. Until then, I'll be hard at work trying to figure out how to become part of "america's aristocracy" like the Clintons. I wonder if China and the Middle East will give me 100 million dollars for "speaking engagements" in exchange for favors from the Secretary of State...

About the rocket docket foreclosures in Florida. The judge said it best - "They haven't paid their mortgage in a year. What's there to discuss?" They've lived there, free, for a year.

This is going to be delicious. In order for the economy to spring back from a housing bubble, those mortgages HAVE TO be reconciled. They CANNOT retain ownership without paying. The areas where this is happening are starting to rebound.

Once those CDOs get broken apart, the houses contained within have to be reconciled. Period.

The delicious part here is that if they use TARP as it's intended, or create a "bad bank" (i.e. government bank), it'll be jack-booted storm troopers of the federal government that will sweep these hapless individuals out of their houses.

Obama's Storm Troopers, from Obama's Bad Bank. Plus ACORN to.

I have a works project idea. To counter balance the lovely lady on the East Coast, we need to build a Statue Of Responsibility on Pacific side of this land which is so beautiful from sea to shining sea. Don't use any white male experienced construction workers to do the labor. In keeping with the Obama New Raw Deal Policy, let it be built by illegal aliens and non tax payers. In any event let it be built. If we had a Statue Of Responsibility, perhaps millions on vacation would flock to it and take a lot of pictures to share with friends and family. Perhaps tens of millions would have a replica of it on the living room mantle. Oh, as a special gift to BHO and the lovely first lady, present them with the first replica; I am sure they would cherish such a novel treasure as a "Statue Of Responsibility".

Does anyone get to actually read this portion of Obamas master plan to save Americans from themselves, or will Congress just be told to vote for it because Obama, Pelosi, and Reid told them to?

The sad part of this is that there are a lot of people hurting. A lot of us are angry, justifiably so about bailing out lenders and lendees. There is no easy fix, and no way to avoid some pain. We will pay for these problems in one form or another. If all of these homes did foreclose, we'd pay through neighborhood revitalization programs, increased law enforcement, temporary housing and food assistance. If we can help some people keep their homes, and avoid some of these other social costs, I'm OK with it. It's too bad we had so many irresponsible lenders willing to take advantage of individual's hopes and fears.

So the redistribution of wealth begins in earnest. I suppose that those who tried to follow the LDS Prophets' teaching us to avoid debt and not buy more house than we could afford are feeling a little foolish about now.

Those that have often over a long period of sacrifice and time will now have to pay for those that leveraged themselves to the hilt to buy more home, new car, or vacations. I now know how the brother of the Prodigal Son must have felt. What is next paying off credit cards and gambling debt?

For the most part, if it is corruption and it is Illinois, it is a Democrat. Once and a while a Republican get a chance. Blago and Burris. You do not need a Democrat after their names as Republicans are not that good at this game. Daschle (Ooops!) Geitner (Ooops!) and on to stuffing money in a freezer (Democrat) and ACORN (fraud) and Cook County Chicago and Obama's ggrowth as a politician. Wow! Can anyone name our Commerce Secretary? Do you want to see some more corruption? Wait till the Chicago cabal starts counting the population for the Census. Hold on until 2010 and get rid of these crooks. It would be nice if Pelosi was demoted and excommunicated at the same time.

Wow - the knowledge base of Des News readers is screaming loud by the posts here. You people know nothing about this economic catastrophe. Instead you are going to just stick to your partisan lines and argue false and tired statements.

Become educated. Then speak.

Oh come on!! Lets just punish those who are living way below their means just to pay their mortgages and now the King himself just though more of those people's taxes at their neighbors that refuse or wont pay their payments. Lets just give everyone the incentive to just stop paying their mortgages so they can get help from the Government. This is the most outragous load of junk since Tuesday!!! Lets just starve the working class and give it all to the poor that dont want to work. 75% of the people who live in poverty stay in poverty just so the dont have to work and waste any of their precious time. While we all work our butts off to pay for their lazyness and inabilty to give a care.

The US government may have to nationalize some banks on a temporary basis to fix the financial system and restore the flow of credit, Alan Greenspan, the former Federal Reserve chairman, has told the Financial Times.

In an interview, Mr Greenspan, who for decades was regarded as the high priest of laisser-faire capitalism, said nationalization could be the least bad option left for policymakers.

”It may be necessary to temporarily nationalize some banks in order to facilitate a swift and orderly restructuring,” he said. “I understand that once in a hundred years this is what you do.”

Mr Greenspan’s comments capped a frenetic day in which policymakers across the political spectrum appeared to be moving towards accepting some form of bank nationalization.

Now it begins -- nationalizing the banks is the next logical step to stabilization (and rationalization) moving the country closer to more socialistic policies. Greenspan, once an advocate of the gold standard and specie currency, now sends a strong signal with yet another sign that the nation is slipping further and further down that slippery slope we're on toward socialism. So sad that the sub-prime experiment failed, now we own you. "It's only temporary."

Complaints from those in the state with the highest bankruptcy rate in the nation.

That didn't take long for Obama to want to dip into more taxpayer dollars in order to buy more votes for the democrats.

Teh thing that upset me about ALL of this. I lived within my means, I've had hard times, but was always able to put food on the table and a roof over my family's heads. Now I foot the bill for irresponsible spenders and people who like Mr. Obama, have no problem just throwing moeny around.

Utah, #14 among state bankruptcies. Seems Republicans can in over their heads too.

What in the name of insanity does he think he's trying to pull this time!? Has he lost it? You can't bail out every loser in the world! Goodbye united states of america, hello united bankrupt socialist america!!!

There is some good news:

From October to December 2008, "lending levels largely held steady and would have likely been lower absent capital provided to banks through CPP," the Capital Purchase Program, it said in a statement.

The CPP directly infuses capital into viable banks in a bid to stabilize the financial system and enable banks to continue to provide credit to businesses and consumers. Some 400 banks in 47 states have participated in the program since it began in October.

The 20 major banks hold about 90 percent of all banking deposits in the country, and include Bank of America, Citigroup, Wells Fargo, Goldman Sachs and JPMorgan Chase, the department said.

"In sum, loan activity was resilient in the face of the worst economic downturn in decades," Treasury said.

Make no mistake -- it's all taxpayer loaned money, but it's doing what it was designed to do -- "lubricate" the system.

The nasty part is that no one can forecast how long the Treasury will be involved in the process, how many banks will be nationalized, and how long the "temporary" extraordinary steps taken will remain in place. When "temporary" becomes the "norm" for doing business, bad things happen.

Don't blame me Utah, I voted for a true Republican, Sarah Palin. However, these are the ones you voted for. Not me. Here's what Ted Nugent would really say I'm just a hyperactive, over-souled greasy Motown guitar slayer, but is it really too much to ask for and expect the truth and demand this also here?. - Opinions with out stats is just that opinions. The Republicans are using the economic stimulus package to try to restore their image of fiscal discipline tarnished by a free-spending GOP Congress under former President George W. Bush. A message of fiscal discipline is a surefire energizer for the party's long dispirited conservative base, party faithful. The last thing they want is the economy to turn around. Once the economy turns around, Republicans could easily be cast as modern-day Herbert Hoovers who wanted to do nothing even though the GOP presented its own stimulus plans, which were heavier on tax cuts and lighter on government spending. Republicans also leave themselves vulnerable to criticism that tax cuts on the GOP's watch contributed to the recession. Live with it now in a FEMA trailor.

I wanted Obama to succeed. Once he won the election, I was behind him 100% because I love this country and want to see it do well. I really had hope he could change things. I jsut never thought that change would be baby steps into oblivion and ruin as a nation. How soon do you think he'll be dipping back in for even more money. Apparantly 800 billion isn't enough, he needs anoth 70 to 100 billion just a day later. What's he going to ask for next week, another trillion?

It's funny the areas of Arizona hit hardest by foreclosures are those areas where people used their homes as an ATM machine and house flipping (the illegal kind not rehabbing to sell again) and speculation along with more than a little greed ran rampant. Now those of us who do the right thing get to foot the bill for those who didn't.

To 'The Sad thing is', Told you so.

1977-Community Reinvestment Act: Banks must make loans they see as being risky.
1989-FIRREA: Savings and loans begin folding because of risky loans. Act gives added oversight to gov.
1992-FHEFSSA: Required Fannie and Freddy to buy at least 50% risky mortgages so banks wouldn't have to take the risk of sub-primes.
1994-RNIBBEA: Banks evaluated on CRA score to determine if they would be eligible for growth.
1999-GLBA: President Clinton said that it, "establishes the principles that, as we expand the powers of banks, we will expand the reach of the [Community Reinvestment] Act.
2007: Ben Bernanke suggested further increasing the presence of Fannie Mae and Freddie Mac in the affordable housing market to help banks fulfill their CRA obligations by providing them with more opportunities to securitize CRA-related loans.

Does anyone see a pattern here!
Why is it no one is even talking about repealing the CRA that seems to have caused all this misery for savings and loans and banks and the economy overall?

The more government tries to do social engineering through the financial system, the worse it gets.

So there were no republicans who voted for this thing, how many of them are going to refuse to accept the money? That's right, none. It's just partisanship for partisanship's sake. No real moral fortitude there.

I don't care for the stimulus myself, just pointing out the hypocrisy of our so called leaders.

Anonymous 11:44 tells us to get educated, then speak, but shows no education whatsoever.

let me shed some light

1993 - Clinton (D) justice department waives proscriptions in Glass-Steagal allowing Citibank and Traveler's Insurance to merge, creating what is now referred to by money.cnn as a zombie bank.

1997-99 range - high ranking treasury official raises alarm about unregulated derivative securities market. Robert Rubin, Clinton's treasury Secretary, and Arthur Levin, Clinton's SEC chairman tell her to shut up and quit stiffling market innovation.

1999 - Clinton (D) signs GLBA (authored by Graham (R)) allowing interstate branching and other bank 'modernization'.

1999 - Clinton (D) puts pressure on FNMA and FHLMC to lower underwriting standards so more people can get into houses.

post 2000 - Bush (R) appoints Chris Cox chair of SEC

about 2003 Frank Raines (appointed by Clinton to head FNMA [or was it FHLMC]) found to have grossly overstated earnings to justify paying himslef $90 million in bonuses.

2004-5 Senate republicans intriduce legislation to regulate FNMA/FHLMC, Raines lobbies Frist with support of all democrats and blocks bill.

see next post as it takes more than 200 words.

Spoc asked, "Why is it no one is even talking about repealing the CRA that seems to have caused all this misery for savings and loans and banks and the economy overall?"

The answer is that nobody is talking about the CRA because educated people know the CRA had almost nothing to do with causing the current state of affairs. Private demand driven by private greed, and private stupidity in the securitization world is what drove most of this.

Bailouts Work?

Didn't think so!

GM is asking for 39 billion more,
Shyster is needing 5 billion more.

Now that this animal is out of the cage we will never put it back.
It reminds me of that college kid at the football game holding up a sign that says:

"DAD- SEND MORE MONEY"

But.....

Thanking all of you in advance for making my future house payments.

***grin***

REPUBLICAN: BECAUSE NOT EVERYONE CAN BE ON WELFARE.

I can't believe that hard working, financially careful Americans are bailing out people who got over their heads in debt, many by buying new homes and stuffing them full of new furnishings. Many of these folks (some who I know) also purchased new cars, vacations, big screen TVs, video game machines, etc. We have never purchased a new car, an LCD TV or many other luxuries but we have about 60% equity in a modest home. We have 6 months cash on hand for a rainy day and another 2 years of cash that can be accessed if absolutely necessary.

How about subsidizing a nice new home for me and millions like me? This plan is packed with moral hazard and will only prolong the recession by keeping home prices from falling like they need to. It will keep young couples from buying a first home by keeping prices artificially high. It will increase our national debt, further threaten our nation's financial stability and the stability of the US Dollar. The Federal Government should have been awake on the front-end by appropriately regulating lending institutions. What they are doing now only puts us more at risk.

2004-6 thereabouts, Greenspan turns on money spigot by suppressing interest rates.

2004-7 TV shows abound telling people to get rich quick by flipping houses. people with good credit but little income get into houses they can't afford. bubble builds and no one pays attention. Repubs see little regulation, dems see more people in houses. neither party cares that people get houses because of liar and ninja loans.

October 2006 - bank regulators issue guidance telling banks to underwrite adjustable rate loans at the fully indexed rate, meaning if the rate will balloon from 2% to 8% evaluate the borrower's ability to make payments at 8%.

fall 2007 - FNMA/FHLMC cease buying loans not conforming to regulatory guidance issued 10/2006.

Summer 2008 - Barney Frank (D) tells news media FNMA/FHLMC are sound, they fail two weeks later, taking a couple commercial banks with them.

fall 2008 - TARP passes, and has failed so far.

Today - BO rewards irresponsible homeowner wannabes by bailing them out, slapping the rest of us in the face.

rewarding irresponsible behavior breeds even more irresponsible behavior.

It turns out you don't need a job to afford that $900,000 house!

Again D News Under The Reality Check and Heat In the Kitchen pulls a Topic.

I am going to have to get off my high horse and end my boycott of the news and Obama being mentioned in my home, under the promise of all media leaving my home if his name is even heard in my home. The reason is I am missing to much.

My main wish other then he, had not been elected in the first place, is that he had not attacked Gitmo and Abortion #1 and #2. If he wanted to get the Pro Life Peoples Attention he got it.

We should be yelling at the top of our lungs, not burrowing in our Rabbit Holes, hoping not to be Dinner.

The Best I have been able to do was Cancel my Newspaper Subscription because they Supported, Obama, Abortion , and every person running for Office that supported the same.

There are to me No! other issues. However there are in Reality Many Other Issues and he is addressing them, some good, some not so good.

I do not like Bailouts but we need help to Stop Foreclosures. Put a Band-Aid On The Bleeding etc.

Boi, anonimus, u sur duz no hows to speeck!

Me wishin eye cood git mor edumukated like urself!

Ur brilyent!

I think it's for another revolution. The Declaration of Independence informs that we have the right to throw out a government that is destructive to the people. I think this current administration is destructive to the people.

Not happy about this scamulous porkage. We're a family of 6 renting 1300 square feet because that's what all we can afford. I'm not happy about paying taxes to keep my neighbors in their absurdly priced condos.
Where's the tragedy in a foreclosure that puts you in a place you can afford?

I did not agree to take an ARM, because I knew that they would in time want a Leg also. I took a Fixed at a slightly higher rate. I refinanced once and went to a lower rate. My home is worth about 50% more then what I owe. We lost a little but its on paper and this is Hawaii and we will get it back. A New Sub and New Striker Brigade will ensure that. Plus Leeward Westside is Booming.

I realize that many people got caught up in something that they thought would continue to expand, and even that (my house will make me rich idea),always foolish.

As a Retired Direct Marketer I can assure you where people have money there are other people to take it away from them. The nature of Money is to spend it Not Save it. Which is why many NBA People and Song People are Broke.

There is a saying in Mormonism " that which is sufficient for our needs" James and John told Satan that and it holds true today. That’s all you truly need.

When crowded you must learn to Scream Silently, both in anger and delight.

"But I was the good son!"

Bush didn't force anyone to borrow more money that they should have. Some people have no common sense that's why they are in trouble. Not because of the evil lenders. I'll admit there are some bad lenders out there but bottom line it was stupid borrowers who get greedy and borrow more than they should.

Wouldn't it be cool if we could get ourselves elected to power, I mean real power to print money. Then we could throw all that money out there to millions of ignorant people who don't know how to use a budget and need a hand out. Then they would like us so much they would vote for us again. And in the same bill where we print the money we could reward all those who got us elected in the first place. Yes we can. That is change we can believe in.

I am a fiscal conservative who, like many of you, has taken great efforts to live well below my means and build savings. I am also not a fan of the bailout. However, as to this housing assistance, many people here are missing two points.

First, all of our home values are being hurt by the foreclosures. If we can help people stay in their homes, it will help your home retain value. Yes, it stinks that we have to help people who may not have been responsible (although not all foreclosures fall in this boat--how well would you be off if you were out of work for a year or more?)

Secondly, yes, people made bad decisions. But I think many (not all), are having a crash course in personal finance, as well as shame and stress associated with losing homes. Some owners were simply never taught how to handle personal finance. If you made a mistake, would you not hope people would be more forgiving? Most will come out of this much wiser; let's show a little compassion and quit the where's-mine attitude. These are real people. We all make mistakes. What goes around....

Today - BO rewards irresponsible homeowner wannabes by bailing them out, slapping the rest of us in the face.********************

No!

Slapping you rich Republicans in the face.

Maniacal laughter.

BWHAHAHAHAHAAA.

Three years ago my neighbor refinances house of dubious value. Takes equity and buys a new truck (not just a utility vehicle but obscene big-tire, lots of chrome, etc), new car (special model, limited production), takes wife on extended vacation to Hawaii, buys new front-load washer and dryer, new BIG flat-screen TV, builds a designer fence around his property and buys a honking barbeque-sink-refrigerator combo from Costco. (Those are the obvious purchases I know of.)

Last year neighbor tries to sell house at amount he refinanced; realtors tell him house is listed at least 35% over current market value. Spends 8 months trying to prove market wrong. House on market waiting for a miracle that never comes....until now.

Who should arrive, in his flaming chariot, standing tall and mighty, a wad of play money in one hand, in the other hand a whip and reins to the horses pulled tightly? Why, of course, it's Obama the annointed one here to save the day, for my neighbor and profligate louts like him.

Who provides the wad of cash? Who are the whipped and lathered horses pulling the wagon?

Honest, hard-working saps like me.

yeah, I forgot to respond to Rich before. I guess all the big banks put guns to the heads of all the irresponsible idiots out there and forced them to take out loans with payments they couldn't afford. I guess it was bush's fault for not protecting those idiots from themselves and their own greed.

Actually much sorrow was brought about by unscrupulous and unregulated mortgage brokers; those brokers were no more regulated under Clinton than they were under bush.

also, please see my earlier posts outlining laws, regulations amd government actions under the TWO prior administrations as well as the knuckle-headed bill BO just signed. there's plenty of blame for everybody on both sides of the aisle.

Whether or not you agree with the bailout, the following is worthwhile to consider.

According to his biography, when Ezra Taft Benson was serving as Secretary of Agriculture, there was a horrendous drought in TX that hurt farmers there deeply. As I remember it, Secretary Benson dispatched his assistant to go and distribute aid from the government. He gave these instructions: "If you err, err on the side of mercy."

What's about to happen might not be fair, but would I like to switch places with anyone who will get this hand-out? Absolutely not. Would you? Didn't think so. Let us speak a little kinder of those in trouble. What's done is done and foolish choices were made; now how can we help our neighbor? I don't know if this hand-out is best way to proceed (have my doubts), but I do know that calling names and being cold-hearted and self-righteous won't do it either.

Here is a question..........when I built my house in 1991 the banks were just starting to add on a new fee for loans that had a 80% or greater loan to value..........called the mortgage insurance fee...this was supposed to protect the banks from delinquent loans (didn't do anything for the person paying for it, so for 18 years they have been taking in this money. Now for the question, where is all that money now?

There is blame to be laid on both parties for the mess we are in. People were able to get into home with no money down and just assumed that they could use their homes as ATMs because home values would always go up. My wife and I saved we did take out a second to pay for our daughter's adoption from Russia but repaid that as quickly as possible. We refinanced to a fixed rate 15 year mortgage 6 years ago and have always lived within our means. Now I will be paying for others who have no equity because they never put any money in their homes but would have been happy to take the windfall if prices have kept going up.

Please tell me the people receiving a bailout will still be paying for their homes. Please please please. Not sure how this works but hopefully they will still be liable to pay off the mortgage. How is this going to work exactly?