I don’t know, but Bush will go down as infamous after this debacle. That and the money we have been spending $10b/month on Iraq war. You have to admit that the money spent on the war could have been used to shore up our own problem at home.

I do wonder if perhaps we aren’t going to “bailout” companies to fall back into the same trap. The only difference is that this time, people won’t have as much of a credit rating to get exotic loans.

It wasn’t poor, bad credit homeowners. A lot of people were young, well off, trying to get into better homes and “flipping” homes every year with their “equity”.

Actually I think if we let the free market correct naturally it will be quicker than if this bailout occurs. If that happes then I think we will be in this same situation in 3-5 years.

Sadly I wonder if regulation is just to late?

Before this administration mortgages even for poor/bad credit was standard 20%. Also the law passed by Clinton in 1999, was first passed and approved by a Republican congress. In fact the bill was proposed and Drafted by Republican Phil Gramm and James Leech. Which means that Republicans thought the deregulation awesome and the Democrats thought helping the poor great.

Estates should be taxed. Even Bush agrees. Obama will give you up to $3.5M tax free passed on but anything higher and you will pay 45%. Well that’s lower than what you would pay under Bush so WHY are you complaining? http://en.wikipedia.org/wiki/Estate_tax_in_the_United_States

See the top tax bracket is 55% on estates of $2million under Bush. Personally maybe Obama should keep it at 55%.

I am willing to support a non-intervention plan period. I am not willing to support a bailout plan without regulation, oversight, and a blank check!

The incentive was there for all parties involved. I’m interested in owning a home, and there is away to get me into one. The mortgage broker takes his cut, so he wants to put me into a home. The bank is going to sell the loan at a small profit but no risk, they want to put me into a home. Etc. Etc. Etc.

Then there is the unregulated credit swap market that could be as big as $60 trillion in size (according to a NYTimes report). AIG was the biggest player in insuring all of those swaps — if AIG goes down, the swaps go down. If the swaps go down, the companies holding those swaps go down. If those go down… etc., etc., etc.

This scenario happened in Sweden back in the late 80s or early 90s. It was essentially where they were being PAID to own a home, that’s how lucrative it was. Big explosion in the market, followed by a massive bust and all of the major banks failing. Result? Government opened up a bad asset bank and funded it with billions of dollars (probably equivalent to what we’re doing in today’s dollars).

Lack of regulation — allowing banks to sell off mortgages, allowing this unregulated credit swap market… have led to all of this.

That and institutions are now “too big to fail” because they are involved in everything. Another problem for regulators to tackle — don’t let the firms become that big. Period.

What I said about my kids inheriting 3.5 million dollars is that yes they will if I die right after I retire. What you are getting wrong is that I don’t believe in taxes, I do believe in them. I just don’t believe in raising the inheritance tax to 45%…that is ridiculous. Though I am sure that if it happens I will talk to my attorney and readjust my will/trusts.

All the bailout plan is going to do is delay the inevitable. The government needs to just stay out of this and let the banks fail. Our economy will be crappy for a few years but we will bounce back.

Even with excellent credit you were being offered loans without any documentation. My BIL made $20k/year, foreigner, and yet he was offered a $300k mortgage! Just because he had excellent credit and thus they said he could do a stated income, no documentation loan! It wasn’t for poor credit rating people.

I had friends doing mortgages in 3 different banks/brokers and all said people with great credit were doing balloon mortgages, option arms, etc because they had excellent credit. Thus they qualified for no-documentation, stated income loans. NOT poor credit risk who qualified for higher rates and had to pass the documenatation. These were normal people with excellent credit lying about income being $150k instead of $75k. Or being commission based and making sometimes $50k, sometimes $100k.

Exactly, but you really believe your children will inherit $3.5 Million in today’s dollars? I doubt my children will. Maybe my grandchildren will, but it’s not likely. I also think they should be paying some taxes on their inheritances.

Also I believe that with the irresponsibility of the public privitizing SS will be horrible. They will end up going back to a government system when it turns out people have no idea how to invest their money.

Realize people can barely invest a 401k or IRA. Adding a 3 choice to the mix is asking for trouble.

Reality is that medicare and SS need more money.

And no, not only the rich is paying for $700b. Just the portion of people who actually pay taxes, since about 40% of americans don’t pay any taxes.

NOT a huge deal, but like i said in my post today, I am all for the bailout under certain conditions. And if not, I’d rather NOT see a bailout then handing over $700B without regulation.

I’m not convinced that the Paulson plan is sound. I think there are lot of problems. Maybe even more than the bailout with regulations, doing nothing like many fiscal conservatives want is write.

I came from a poor family, so no I won’t inherit over 3.5 million. However, if I die right after I retire my children could inherit this much money. Sorry I would rather my children pay only 15%, not almost half of what I have earned throughout my career.

I don’t think the Democrats are entirely responsible for this crisis, I also don’t think the Republicans are entirely responsible either. As for SS being privatized, I hope it is. Then I can be in charge of my own money and retirement.

Clinton did pass the Graham Leach Bailey Act in 1999, so I apologize for the wrong date, it wasn’t 1997.

http://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Act

Second, you got the capital gains wrong. Here is a fact check article.http://www.factcheck.org/elections-2008/there_he_goes_again.html

Obama will raise capital gains only on people making $250k/year or more. He will not be be increasing taxes for the middle class.

Yes he wants to apply the inheritance tax. BUT until bush there was an inheritance tax and why not? Only rich benefit. Also McCain has an estate tax as well but it’s 15% instead of 45% and capped above $5 million instead of $3.5 million. Yes, how many people are worth over $3.5million in inheritance? Are you going to inherit $3.5 million? I’m not.

http://www.marketwatch.com/news/story/cch-details-candidates-tax-policies/story.aspx?guid={CB6AE055-AA57-49C8-BF32-ABF1E15D60D5}&dist=hppr

Also why not tax home gains of $500k? Who actually has home gains of $500k if not the rich? The average home price is $175k. Um, when will they ever reach $500k in profits? It will be like the previous laws where the profits just need to be rolled into another home! 95% of americans never profit $500k in home equity!

And Obama wants to raise SS taxes on those making more than $250k. Also, consider that John McCain wants to privitize SS, which in today’s economic market doesn’t seem like such a hot idea right now.

Obama is going to give you a home heating credit. McCain is going to give tax breaks to the oil company.

Yep Obama will raise your taxes. Well I’m glad for it. You are in the top 1% of earners since the top 5% is $100k or higher. $250k is top 1% of earners. You are out earning 99% of the country and keeping more of it than ever before. Even other republicans didn’t cut taxes as much.

And how are we going to pay for our $700B bailout package?