Who is the bailout really for? When you watch the global markets you can see evidence of what I am saying in prior posts. The world markets are shaken at the idea of no bailout agreement. Why? Because they benefit from the bailout and they are hurt from no bailout. I think the President and the Congress have done a poor job explaining how this helps the American tax payer. It helps a lot of other countries who have invested in American assets. But that is the risk they took. We are still bailing out rich people and main street expense.
Wizbang has a good article on another way to spend the 700 billion. Pay off 50% of the outstanding mortgages in America! That would help consumers.
What about waving the bank penalties for missed payments until loans could be restructured. I see rates for 30 year mortgages at 6%. Historically still low. It would have to be cheaper for the Fed to pay closing costs on revised plans even if they pay a point than the 700 Billion they are talking about now. And if they say $700B, its a Trillion.
The Fed could lower rates to provide an incentive to lenders. It could help restructure loans through rates as well.
The activity is more about politics than helping Americans - or even American Taxpayers. Realizing and being respectful that they are not the same group of people.
Extremely disturbing is that Dodd is not forcibly removed from being involved at all, that he doesn't have the ethical backbone to remove himself for conflict of interest.
McCain touches on the issue in this ad:
I've posted before that he received the most money from F&F with a link below to the stats, Obama was number 2. Dodd messed it up and now we let him sit in there to help fix it, or is just covering up what he did wrong?
Update: On CNN - No way. Economist explanation of why the bailout is bad: