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.

[Blitz]

Found this article from September 30, 1999

http://query.nytimes.com/gst/fullpage.html...mp;pagewanted=1

Some quotes:

''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''

In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.

''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''