Will The Democrats Endorse Hank Paulson’s Mortgage Bailout Plan?
By: Brian Brady,
MillionaireRealEstateLender.com,
Post Archive,
RSS FeedPosted: Friday, September 19th, 2008, 8:21 am MST
Category: Real Estate
This Presidential election campaign is exciting to watch. Team Obama benefits from the continued free fall on Wall Street. Sean Purcell reminds us that folks on that side of the aisle like to say “I’m from the government, we’re here to help you” yet the other side is the one proposing massive government intervention by purchasing defaulted mortgage loans from troubled banks.
This is a rework of the RTC plan. I speculated that it might happen, after reading this article, on Wednesday:
There is something we can do to resolve the problem. We should move decisively to create a new, temporary resolution mechanism. There are precedents — such as the Resolution Trust Corporation of the late 1980s and early 1990s, as well as the Home Owners Loan Corporation of the 1930s. This new governmental body would be able to buy up the troubled paper at fair market values, where possible keeping people in their homes and businesses operating. Like the RTC, this mechanism should have a limited life and be run by nonpartisan professional management.
Sounds like a plausible emergency stabilization plan, right? Will Congress fast-track this through or will we see Nancy Pelosi go against what Congressman Frank believes, and start saying that the government should not be interfering in financial markets?
Disarray favors Obama. Stabilization favors Mc Cain. Will Congress do everything they can to delay this emergency plan until after the election. After all, they are the government; they’re here to help (if you vote for them).
Point of Disclosure: In all fairness, Barack Obama conditionally endorsed the Paulson Plan this morning. The question is , “Can he get Pelosi to play along?”
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Related posts:9 Comments so far
If Pelosi doesn’t, the Republicans have one right in the wheelhouse.
“The do nothing Congress skipped town as your pension plan, your 401K and your savings account melted down. Give me a Congress I can work with.”
Savings account is a little dramatic, but if WAMU goes, the FDIC is broke.
The Senate majority leader has already admitted he is over his head.
it’s hard to object to the government’s mass bailouts as similar debt-producing methods were put into action to bring the U.S. out of the Depression… our economy has been supported and driven by debt ever since
Brian,
After all, they are the government; they’re here to help (if you vote for them)
That pretty much sums it up doesn’t it.
Wait til Monday.
Is this plan on the internet? I would like to read it. Can someone point me in the right direction?
I dont know about you guys but I am very concerned that we arent being given all the details.
This is really, really serious now. If there was any way our government could have put this bailout off until after the election — they would have.
There is so much that hasnt even been said about this crisis. I would like to know the entire plan.
How will this plan affect the credit rating of the U.S.?
When our credit rating goes down the cost of capital will increase… that is not good for the U. S. consumer. I dont know how to fix it but I am very uneasy with the amount of details coming forward.
Eric, last Friday’s version of the plan is here.
There have been additions though and this thing is extremely fluid.
Here is the Treasury Fact Sheet dated 9/20/2008.
Note that it allows foreign banks to use the resue plan, confirmed by Paulson here.
Senator Dodd submitted the initial counter from the Democratic side of the aisle.
[...] Hold off on that Pasadena mortgage rate lock. The government is here to help. [...]
[...] Hold off on that Pasadena mortgage rate lock. The government is here to help. [...]