You Suck, sir!

In an age of the Internet, preserved news bits, and YouTube we still have a mindset in Washington that thinks the world revolves around them.

Bush, Bernanke, Paulson, McCain, and Palin are all in this crowd of leadership. Karl Rove is one as well. But, let's get to some points. Bernanke, as head of the Federal Reserve, he and Treasury Secretary Paulson were the primary architects that reported with Bush on the initial "no strings attached" $700 Billion bailout plan. Well, with Bush attached to that news everyone knew that was going to be a farce. Congress told them to come back with a real idea...

So, their idea was to buy up the toxic mortgages and package them in order to help alleviate the stress on homeowners that are balancing on foreclosure. Well, still with no oversight or strings firmly in place, Congress gave them the money they asked for. Then, immediately, Bernanke and Paulson decided to spend their allowance a bit differently than they had expressed by giving it to all of their white collared friends on Wall Street. Then, something happened on the way to the forum...NOTHING!

The economy got worse, way worse.

The story goes on, but we'll cut to the chase. Bernanke announced an idea yesterday. It seemed as if he thought it was a new idea...It seems to be a similar idea that I espoused to be the program a while ago. He said to bring down the mortgage pricing for those struggling. Bring it down to the 3 percent level for about 5 years or so, with the government helping out on some of the back end.

Wait, hasn't the government already helped out on the back end? I mean, they have given banks hundreds of BILLIONS?!!

Then he came out with a great idea! He thought another option would have the government purchase delinquent or at-risk mortgages in bulk and then refinance them into the "Hope for Homeowners" or another government program that insures home mortgages. Uh, didn't we hear this one before?

Then he called for more action from banks to help in this time of crisis.

Uh, Ya Think?!

How about mandating them to do something. Banks have been taking our future tax dollars and doing NOTHING!

This is insane!?

After his great speech, the Dow dropped over another 200 points. It opened this morning another 150 points lower.

Good job with helping. Let's see, we as a society it seems agree that most of the execs on Wall Street should lose their jobs for failure. Paulson should lose his job for failure, Bernanke isn't doing shit and should go, the heads of the big three could leave and things would be fore the better...oh, and that Bush guy should have been gone a long time ago. In fact, he should go to prison for all that he has done, but that is another story...

Bernanke stressed the importance of curbing the foreclosure mess because it is so inter-linked with the economy's health. "Weakness in the housing market has proved a serious drag on overall economic activity," he said. "Steps that stabilize the housing market will help stabilize the economy as well."

Uh, Ya THink!?

Back to the initial plan that I was touting about a month or so ago. That one plan backed by the now heavily refinanced financial industry, the Treasury would seek to lower the rate on a 30-year mortgages to 4.5 percent by purchasing mortgage-backed securities from Fannie Mae and Freddie Mac. It's unclear exactly how much the plan would cost. It is possible that Paulson will ask Congress for the second $350 billion installment of the $700 billion financial bailout package to bankroll the effort. Maybe, if the first round of money went into this idea in the first place we wouldn't be needing the second round of money...

But, I said that every loan out there should be able to be refinance into the 4% rate. Some will and some are still in loans that might be fine for them and lower than this, so it would be their choice. It needs to be available for EVERYONE!

Then, Sheila Bair who heads the FDIC chimed in saying, "Getting mortgage rates down is positive, but it doesn't help people that currently have unaffordable mortgages because it doesn't help them refinance. Low interest rates help some consumers, but the ones that really need help and can't refinance are not helped."

Ah, helping everyone! What a great idea!

Paulson has been opposed to tapping the bailout pool to fund a mortgage-relief program championed by the Sheila Bair at the FDIC. The $24 billion FDIC plan would use some of the rescue money to help back refinanced mortgages that would lower monthly payments.

Let's see, Paulson or Bush aren't keen on giving the blue collar folks in Detroit any fund either. Bush...you know that guy. The man with the amazing disappearing act in times of trouble. When the towers were being blow to shit, he kept on reading a book to the children...upside down. I don't think that that specific book was printed upside down either...Now, with the worlds worst economic crisis since 1930's depression, he is working on his library and his public view of his term.

I can give him a hint...You Suck, sir!




This, the 213th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!


(c)Copyright 2008 Doug Boggs