Chip's Blog

I can not comment on the math side of this, and will not even try to.

However, I do not like "Create a government agency," this just opens another can of worms.

We need to get to the rootof all the problems, not just the Mortgage issues...we need to get rid of those that milk the system, figure out the "illegals mess," the Iraq cituation, the Oil dependency...once we fix all this, then we will see the financial rewards. And by that time my kids, kids may be able to reap the rewards and you and I will long be gone.

In short...there is no fixing this mess. And I am usually the optimist. This glass is half empty.

I agree that the companies should not be bailed out. This is my gut reaction to this whole thing. The market will adjust. Our whole reason for existing why America was established was for freedom. What most people seem to forget is that with freedom we may have freedom to make decisions etc. But there is no freedom from the consequences of poor decisions. Thus let the market adjust on it's own and let all those who made bogus loans experience the consequences.
I am almost a libertarian so the idea of another government agency that assumes mortgages puts a slight sour taste in my mouth. I like the "solutions" idea but the administration of it I think could be done by a non governmentally influenced business. A private non profit perhaps that has bi annual audits with a board of directors chosen from businesses that are above reproach. How would you find people like this? If it were a governmental agency that administered this program, who would you select to run it? What persons have the integrity and skills to not cause this to turn into another fiasco. Other than my objections I think it's a feasible plan.

To be honest, no I do not trust ANY government agency, or governement employee at this point.
Do we not see what a mess this goverment is right now?

Now I never said that tough cookies to those that have mortgages with the failing companies.

I am simply stating that to start a new government agency at this point is ludicrous.
Like the Captain stated above, who would you get to run this agency? And you KNOW if this did happen someones pockets would be getting lined. The Governemnt is overloaded with corruption. Why do you think we are where we are now, and that a plan has yet to be established? It is because they all do not want to give up there bread and butter. Think your plan needs some tweakin'

Good point chip. I think this is about finances. If the approach where purely accountability and bean counting going by the letter of the law in strict accounting practices we should be OK. If on the other hand your worried about special interest infiltration I really don't know the answer. People have to be dedicated and all on the same page if they are going to administer this properly. Personally I feel Mitt Romney would be the ideal administrator and anyone he selects would be qualified. He has excellent resources and talented associates in the business world. Guys like Marriott, Mr. Rollins of Dell Computer, etc. Just my thoughts.

The problem isn't the stock market, the problem is that the credit markets are incredibly tight. The LIBOR rate, which is the interest rate banks use to lend to one another is up around 4%, which is incredibly high, and as a result, GOOD companies are finding it very difficult to attain credit, which they often need to pay off short-term expenditures while revenue comes in. You ask your question, "What's the big economic problem if we do nothing?" thinking about the stock market, which while bad, would not be the disaster that strikes if we do nothing. That, as I said, is the credit market. Right now no one wants to lend ANYONE money, be they individuals or businesses. If nothing is done and that problem persists you're going to see massive pain throughout the economy, because businesses won't be able to pay their bills, including payroll. People will lose jobs, and not just the Wall St. bastards who got us into this mess, working-class and middle class people will be out on the street too.

Chris,

Two questions:

1. Isn't it safe to say that with three mega-banks, all the urchases are done and that other institutions will fall? Bankruptcy court may assign assest, but they then forgive unpayable expenses...like bad mortgages. They cannot order "no one" to rewrite a mortgage, if the lender has gone belly up, nor can they order a private enterprise to assume the debts.

2. If the Feds assume them, what do they do with them? That is my central point...why not create a win/win by having a fix that does that our front. It will surely free up money and will most likely lessen the LIBOR rate...

Theoretically wouldn't people feel better and have more confidence in the market if Mitt were the Republican candidate right now. I would love to know his feelings on all this right now. Has anyone heard?

Actually if you google Mitts name and go through some of his recent activities. Bain is buying solid reputable outfits that have fallen on bad times. Mitt is stumping for McCain in Wyoming right now.
From what I understand he is repeating what he has already said about the military and economy. That both need to remain strong for the US to continue to lead the world and be a bastion of democracy and strength. I haven't read anything about his position on government financing for wall street.

A turns out, NorthernObserver, after some rexzearch, and the assistance of our "MyFoxBoston Blogs Resident Expert" on mortgages, JuneInMa, I've learned that, in fact, all unpurchased failed mortgages end up owned by the FDIC anyway...quasi governmental.

I'm just looking for a way to take the property out of limbo and apply the money to the deficit....in a fair way...that also keeps people housed, and takes homes off the market...

Would you be happier if I said, "Used an existing government agency?"

Good choice Xantun...but don't we want to save him for Pedophile Island?

Chip & Okie: you will have to save as much as 33% of your income to get by and it won't be very hard to do, let me ask you this question do you both have stocks and bonds.

Hi Chip,

Well that will keep you both going at the same time. and Casimir has a retirement plan through work too.