BAILOUT PLAN, Too much, too late? Options

[Hellfighter]

I'm not worthy to even get into the details of what's churning beneath this economic catastrophe looming ahead compared to the gurus we already have here discussing it.

But is it just me in thinking why are Repubs and some Dems in congess/ negotiations holding the US and world economy hostage just to save their political backsides.

As I understand it a massive meltdown like we've never seen in nearly a hundred years is only a step or 2 away, but we have Dems in Congress saying "no-no we can get this bailout plan launched ourselves but we want Repubs taking the plunge with us" and the we have Repubs acting like pussies because several hundred constituents are phoning opposing the plan - are the phone calls multiple calls from a few people, or do the hundreds of calls represent thousands saying 'no' to the plan.

Point is, in the face of a catastrophe shouldn't there be a realization to stave off the crisis at hand and later iron out the wrinkles.
I'm asking the gurus here -is this Global economy Russian Roulette of the worst kind?

So far today the market is showing meltdown fear over this bailout uncertainty.

[Robert]

Remember how Bush got the blame for the housing subprime meltdown even though he called for more oversight and closer regulation of Fannie & Freedie in 2003 and 2004.
Here is a letter from all the top Democrats asking him not only to stop criticizing fannie and freddie but also called for him to recommend even more "inventive" types of loans.
http://financialservices.house.gov/LtrBushGSEs.pdf
I guess Pelosi forgot about this

[HammaTime]

It strikes me that you are engaging in a smoke and mirrors argument.

Maybe I'm misreading your post, but it appears as if you are continuing to try to pin blame for the current crisis on Democrats when it has really been all of Congress and President Bush. To top it off, you use false evidence to push a weak argument.

In 2004, home mortgages only accounted for 25% of the GSE's. EVERYONE was trying to boost credit so all sectors of the housing market could continue to grow at its blistering pace. Seeking additional credit for home finance was a worthy cause.

GSE's are hardly the evil you seemingly are trying to assert. Certainly, you are familiar with the long, successful history that GSE's have had in this country, at different times since they first came on the scene in the early 1900's they've been essential for pushing credit to regions of the country that were cash starved. Essential sectors such as farming, college loans, the automobile industry as well as home finance have all benefited from the flow of credit brought by the government's use of "government sponsored enterprises."

That letter you linked to starts with a KEY LINE:

We urge you to reconsider your Administration's criticisms of the housing-related government sponsored enterprises (the "GSEs") and instead work with Congress to strengthen the mission and oversight of the GSEs.

Later in the letter, they state very clearly:

We appeal to you to agree to work on legislative proposals that foster sound oversight and vigorous affordable housing efforts instead of mounting assaults in the press.

That strikes me as a sensible thing, arguing to strengthen the oversight of GSE's while focusing the credit on an overlooked sector. Isn't this the very root of the problem? There are those in the government who worked very hard (Gramm, McCain, et al) to eliminate oversight and regulation. That's the very thing that brought about this crisis.

Without the oversight, we had predatory lenders who pounced like vultures onto the low-income areas where first-time home buyers were easy prey. Additionally, thanks to lax oversight and regulation, those predatory lenders weren't concerned about properly evaluating assets as they could pass their risk on through credit swaps ... cough ... Gramm ... cough.

I'm all for government getting out of the way of private enterprise, but I sure as hell want government to continue GSE's so that our country can have access to credit when they need it. We just have to be sure that we are electing folks who are interested in proper levels of oversight so that the predators are driven from the system.