So how exactly are we going to pay for this bailout? (bankrupt, loans)
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I know they say our taxes will go up but is it our income taxes? They say this is going to cost every American $2300 including our children. So how excatly are they going to pay for it? I am a little confused so if anyone can explain this to me I would appreciate it. Over how many years is this going to be paid off? I hope these aren't stupid questions but I really don't know the answer. Thanks!
They're going to run the printing presses in Wash D.C. 24/7 to print all this money. People in China, Dubai and other places are becoming hesitant to loan us any more money.
I know they say our taxes will go up but is it our income taxes? They say this is going to cost every American $2300 including our children. So how excatly are they going to pay for it? I am a little confused so if anyone can explain this to me I would appreciate it. Over how many years is this going to be paid off? I hope these aren't stupid questions but I really don't know the answer. Thanks!
$2300?? These bailouts are going to cost the American taxpayers much more.
Bailout type
Cost to taxpayers (Source: Reuters (broken link))
Proposed Treasury Department legislation
$700 billion+
Bear Stearns financing
$29 billion
Fannie Mae and Freddie Mac nationalization
$200 billion
AIG loan and nationalization
$85 billion
Federal Housing Administration housing rescue bill
$300 billion
Mortgage community grants
$4 billion
JPMorgan Chase repayments
$87 billion
Loans to banks via Fed's Term Auction Facility
$200 billion+
Loans from Depression-era Exchange Stabilization Fund
$50 billion
Purchases of mortgage securities by Fannie Mae and Freddie Mac
$144 billion
Okay, everyone, go get your Monopoly sets and take out the money. Now, go buy what you need with this since this is essentially what the fed is doing...
I know they say our taxes will go up but is it our income taxes? They say this is going to cost every American $2300 including our children. So how excatly are they going to pay for it? I am a little confused so if anyone can explain this to me I would appreciate it. Over how many years is this going to be paid off? I hope these aren't stupid questions but I really don't know the answer. Thanks!
No, The feds are buying the portfolio( thousands and thousands of them!) of "iffy" mortgages that have yet to go into foreclosure.They (democrats of Congress) are also adding in trying to give the buyers who lost money on there mortgage investments their money back! ) The "hope" is that because they buy these loans from the banks and other holders of these mortgages so the banks can keep lending money which will hopefully make the economy strong enough to enable those with mortgages they currently are barely able to afford (those mortgages they are buying with our money) will be able to afford so they will continue to make payments and the portfolio will eventually be profitable.
The alternative to the Gov NOT buying these mortgages? No more banks loaning money. Which means no capital for businesses to run on until there accounts receivables come in. No more small business start up loans. No more buying of houses except with cash which means business going out of business and people not being able to move to where work is and if they do foreclose and are able to move, no place for them to rent because no more loans to landlords to build more rental houses. No loans to developers to build apartment buildings. And so on and so on.
Is this bailout a good plan? I have no idea but I sure don't want to see the alternative either!
Borrow from other countries and pay 10% interest and then print the money... leads to inflation.... leads to billions more each year JUST FOR INTEREST ALONE... and then everything costs more and then taxes are raised and after everything is paid off, the taxes STAY THERE so that government can use it to do some stupid thing latter... like putting it in their pockets by colluding with businesses AGAIN to offer more social services... if you forget it was the Clinton government "social service" program to give more mortgage loans to the poor when they couldn't afford it... when Democrats come to office you can expect the SAME thing again.. we are so deep in it...
congress needs to explain why the taxpayers had to get involved. why couldn't the government shift money from their other idiotic programs if they think it is such a great idea? maybe they don't want the risk or maybe they just want more money! as well, mortgage length could be extended and the banks could have to work it out. after all it was their lack of due diligence that got our country into this mess in the first place. of course, then they would not be able to sneak in their earmarks for ACORN and la raza.
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) The "hope" is that because they buy these loans from the banks and other holders of these mortgages so the banks can keep lending money which will hopefully make the economy strong enough to enable those with mortgages they currently are barely able to afford (those mortgages they are buying with our money) will be able to afford so they will continue to make payments and the portfolio will eventually be profitable.
