November 21, 2024

Henry PaulsonIn the Bloomberg News Historian John Steele Gordon, talking about Henry Paulson’s plan to ask Congress for free-reigning powers to buy $700 billion in bad mortgage investments from U.S. financial companies said:  “It sounds like Paulson is asking to be a financial dictator, for a limited period of time.”

San Diego real estate

10 thoughts on “New Govt. Financial Dictator

  1. Dummies should have made sure they could afford houses before buying them. Lenders should have been more analytical is choosing borrowers who really had the capacity to repay loans at whatever the maximum interest rate could be after any teaser rate ended. Fools–all of the players in this drama are fools.

    San Diego Realtor

  2. Thanks for this information. There have been a number of published studies or reports that there are expected to be more foreclosures in 2009 because of the high number of “exploding type” loans set to go off next year. So predicting exactly when this phase will slow down or come to an end is, therefore, very difficult. We have had a number of students advise they have loans which will “explode” in 2009 and 2010 (it hurts to see this, as most of these folks could have avoided these types of financing deals had they only bothered to learn something about real estate before diving into it without the knowledge they’d most likely have picked up in any good Real Estate Principles course.

    Eye Surgeon

  3. Congress this week is scheduled to discuss an unprecedented $700 billion plan, submitted by the Bush administration, to use taxpayer money to buy up a mountain of bad debt. No one knows whether this will be enough and most Americans doubt that Washington leaders will be able to solve the crisis, according to a Zogby poll taken after the plan was announced. The survey, of likely voters in November’s elections, said 83% wanted those responsible for the practices that led to the crisis to be held criminally responsible. That’s not part of the plan. San Diego Real Estate Investment Group

  4. I have heard the Bush Administration tell us how “robust” our economy was and how strong the “fundamentals” were. That was until a few days ago. Now, we are being told that if Congress does not act immediately and approve the $700 billion Wall Street bailout proposal these “free marketers” have just written up, there will be an unprecedented economic meltdown in the United States and an unraveling of the global economy. San Diego Downtown Real Estate Specialist

  5. In an article on FinancialSense.com on September 9, Daniel Amerman maintains that the government’s takeover of Fannie Mae and Freddie Mac was not actually a bailout of the mortgage giants. It was a bailout of the financial derivatives industry, which was faced with a $1.4 trillion “event of default” that could have bankrupted Wall Street and much of the rest of the financial world. To explain the enormous risk involved, Amerman posits a scenario in which the mortgage giants are not bailed out by the government. Ft Lauderdale Bail Bondsman

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