Did congress continue the poor credit decisions with bail out?
The reason we are in financial difficulties is because of 2 things.
1. Government required banks to extend loans to uncredit worthy people. 2. Fannie and Freddie allowed the poor credit people by buying the loans from the banks. The banks would not loan to uncredit worthy people because they do not want the risk. But because of fannie and freddie they could without taking on the risk (until they bought up the fannie/freddie prepackaged loans.
With the bail out, congress has perpetuated the practice of making bad loans. This means in 10 to 20 years, we will have a bigger bail out necessary than now. They should have let the banks go, and banks would again start loaning money to those who could pay.
Julie H2008-10-03T14:38:40Z
Favorite Answer
You got it. I like how you think. Now with the new bill, some judge will be able to force a bank to lower the interest and raise the length of term of a mortgage for some bum that can't afford to even be in a home. That will pretty much put an end to ever getting a mortgage. Good old Liberals messing up the free market again.
I purely finished a fifteen hour day and have not had conceivable to maintain up on each and each of the files. I examine something about the Fed pumping 660 billion into the banking gadget earlier the bailout became rejected, yet do not take my be conscious on that. It were given me wondering that in the journey that they could try this what's the bailout for, yet i'm only a operating classification human being in the present day.
Yes and NO If they follow threw with the whole plane no. but as we know they are not known for following threw. Also at this point I don't think they really had a choice to much damage was done. I personally do not want millions more desperate jobless and poverty stricken people walking around planing to rob me or brake in my home or steal from the stores so they go up on prices for the rest of us to pay in the end no matter how you slice it tax payers PAY.
Personally, I think Bush is trying to make the U.S. into a feudal, two class nation before he leaves office. Apparently Wall St. and the House and Senate like the idea.