The Secret $1.2 Trillion Bush Bailout...and why we are broke.

[Tia Wood]

Sure, americans have more debt than ever, and more thant they should but whats going on in wall street and financial corps has nothing to do with personal debt. it has everything to do with the fact that they were selling bad loans two, three times over and knew full well the consequences. the banks didn't need a bail out because everyone was defaulting, they needed a bailout (well they didn't need one but claimed they did) due to bad investments.

That, too but it takes two to tango. Maybe it was our responsibility to not get into loans we couldn't afford? And why the high risk loans in the first place?...because those people had less than perfect credit, which a lot of Americans do.

[DomainsInc]

That, too but it takes two to tango. Maybe it was our responsibility to not get into loans we couldn't afford? And why the high risk loans in the first place?...because those people had less than perfect credit, which a lot of Americans do.

This is where regulation needs to step in. since banks in the states won't do it in their own, in canada, its very different, banks actually make sure you can afford the loan before giving it.

In a perfect world people wouldn't try to borrow more than they should but they do. Why? Many reasons. Some think they can swing it, some don't have a clue and some don't care but in the end the average person is not finance savvy and does not do the research required to find out what happens to a subprime loan or how fluxuating interest rates can effect their payment.

[Gerry]

This is where regulation needs to step in. since banks in the states won't do it in their own, in canada, its very different, banks actually make sure you can afford the loan before giving it.

That was the way it was here. A bill passed in 2005 making it nearly impossible for americans to file personal bankruptcy changed all of this. It was a win/win for banks and credit card companies...hand out all the money you want and your customer is on the hook for it.

Plus, you have investors that knew in advance that these "toxic assets" were going to collapse and fail. Thus, the short selling began. Even the companies making the loans KNEW it was going to fail so even they started short selling and betting against their own mortgage bundles. There was no way that any bank or investment firm was going to lose a penny by doing this, not to mention the bailout from the government.

As for bad investments, well...deregulation helped that. The US did not learn a thing from the previous bailout back in the 1980's when banks and loan institutions did the exact same thing...made bad investments and bad loans but got a bailout at the expense of the taxpayers.

There was even a saying going around that when it came time to qualify for a loan, all you needed was a pulse.

---------- Post added at 12:48 PM ---------- Previous post was at 12:38 PM ----------

I didnt say Obama caused it. Im asking why he doesnt do something about it. When does the first fat cat go to jail?

When the bailout plan (Paulson Plan) was first presented to congress in the fall of 2008, on it's first vote in the house, it did not pass. Why? Because many voting against the measure were voting NO because there was no provision or clause to remove the CEO's and upper echelon of these institutions that caused the collapse.

At one point, one CEO was so confident that he would be removed he resigned. Then, on the second vote the bill passed with no provision to have the hierarchy to step down, that same CEO was immediately rehired the next day. (sorry, I can not recall the company, but it was one of the major players in this foray).

So those that were at fault and responsible were given a free pass along with their billions in bailout money.

[ilovedomains]

So those that were at fault and responsible were given a free pass along with their billions in bailout money.

Thats the point. 300 million Americans ARE asking "Wheres our money". The two percent who really run the country are telling you to shut up and mind your own business. They dont care who you elect. republicans are as easy to buy as democrats.

[Raider]

Yeah, were not broke because of the $4 TRILLION + Dollars Obama added to the National Debt, or the more the $1 Trillion he's gone over budget year after year, or the half a TRILLION dollars Fannie Mae and Freddie cost us in the hands of Democrats, NOPE! according to the OP were broke because of the $1.2 Trillion Dollars Democrats in congress approved during the last years of the Bush administration...

Which I will honestly admit Bush should of NEVER suggested or even approved.

Interesting how the OP has nothing to say about the $1 Trillion dollar Job Stimulus Bill that was wasted away on states and public sector unions and did absolutely nothing to stimulate job growth in the private sector.

---------- Post added at 04:53 PM ---------- Previous post was at 04:42 PM ----------

Ask your president. You elected him to fix Bushes mistakes remember? Has he fixed any yet?

Exactly, unfortunately we still have those who after 2 1/2 years are still blaming Bush for all our problems.... Nice to see your more intellectually honest with yourself than the OP is.