Bush's latest bail out - 700 billion dollars
The tab for financial bailout: $700 billion
".......The dollar figure alone is remarkable, amounting to 5% of the nation's gross domestic product. But the most distinctive -- and potentially most controversial -- element of the plan is the extent to which it would allow Treasury to act unilaterally: Its decisions could not be reviewed by any court or administrative body and, once the emergency legislation was approved, the administration could raise the $700 billion through government borrowing and would not be subject to Congress' traditional power of the purse.......
.........But House Speaker Nancy Pelosi (D-San Francisco), speaking after an hourlong phone conference with fellow Democrats, made clear that they were not prepared to abandon their proposals to broaden the scope of the plan to include help for homeowners and others, as well as at least some regulatory provisions to prevent a repeat of the crisis....."
Still not furious? Read this: WaMu loaned millions to OC home flippers with a history of fraud
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9/26/2008 7:19 AM
Los Angeles Real Estate Blog wrote:
The proposed bail out plan that was initially submitted by the U.S. Dept. of the Treasury last Friday has received numerous revisions and additions. Angered Americans made their opinion known regarding the bailout and the proposed plan continues to be “tweaked”. As proposed it would allow the U.S. Dept. of the Treasury to purchase up to $700 billion in troubled residential and commercial mortgage-related assets, including mortgage-backed securities and loans; which should prop up the U.S. financial markets.One of Congress’ primary goals is to minimize the financial impact of this rescue on taxpayers. The current revised proposal calls for ...
I am very pessimistic about this bailout package and its ability to save us from a major downturn (which at this time seems inevitable).
About the effect on home prices: We can already see that home prices are depressed 10-15%, however this is without the trickle effect of the mess on wall street. Once we take that into account the real estate market doesn't seem to have any choice but heading down.
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I don't disagree with you.... the good news is that with each price decrease more people can afford homes (truly afford them).
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