Does Anyone feel like Bailing

[dar512]

My mortgage is now owned by J.P. Morgan Chase & Co.

http://online.wsj.com/article/SB1222...googlenews_wsj

I'm getting anxious.

[dar512]

http://www.miamiherald.com/news/poli...ry/701956.html

[Pico and ME]

Originally Posted by dar512

My mortgage is now owned by J.P. Morgan Chase & Co.

http://online.wsj.com/article/SB1222...googlenews_wsj

I'm getting anxious.

Our mortgage has been sold twice so far.

[tw]

Originally Posted by dar512

My mortgage is now owned by J.P. Morgan Chase & Co.

Your mortgage, from your perspective, is completely irrelevant. Your mortgage is now something like a bond - traded like any equity. If Washington Mutual went down, does your mortgage disappear? Of course not. Either the government buys WaMu, or makes a special deal for other company (JP Morgan) to take over your mortgage, or it is sold to another bank, or it is bought by foreigners. Yes, then is where the real rescue is coming from. Even if the government takes over a bank, the money to do so comes (in part or whole) from Treasury Bonds sold to foreign nations.

Remember, economic forces are taking revenge. The bills are coming due. We must pay the rest of the world OR borrow more for assets that were mostly fictions. Bean counter types making money without even looking at the underlying product. That does not affect anyone's existing mortgage. Bankruptcies are so good because the assets (ie mortgages) are sold to others who will be more responsible.

[xoxoxoBruce]

From Big Shot Bob

The following items must be included in any bailout bill:

NO BLANK CHECKS for the banking industry.

PROTECT THE TAXPAYERS. Taxpayers should get ownership in a company equal to any amount paid in excess of the value of the bad debt. This will prevent profitable firms from using this bailout to get rid of their bad debt. It will insure that if the bailout works and the firms become profitable again, taxpayers - not simply bankers - benefit from the upside.

HOLD CEOs ACCOUNTABLE. Any firm that wants a bailout must agree to hold CEO's and Boards of Directors accountable - by firing them. Those held accountable should NEVER be given millions of dollars for overseeing failure.

PUBLIC OVERSIGHT. An independent watchdog should oversee the public ownership of failing companies to ensure taxpayers recoup their investment. Members of this independent oversight entity should include workers and consumers and be approved by Congressional vote.

ENACT REGULATIONS TO PREVENT THIS FROM HAPPENING AGAIN. Any bailout must contain stronger regulation to end the "casino culture" of Wall Street. Financial products based on speculation with no collateral of tangible assets should be prohibited.

AID THE VICTIMS, NOT JUST THE PREDATORS. Since everyone is better off when working families avoid foreclosure, bankruptcy judges should be able to adjust the terms of the mortgages for families facing foreclosure so as many people as possible can stay in their homes.

INVEST IN THE REAL ECONOMY. Any bill to bailout the big corporations should include major public investment in development of new sources of energy and energy conservation, rebuilding schools and infrastructure, extending unemployment and food stamps, and helping states avoid crippling cuts in police and health services.

PROTECT CONSUMERS. Commercial banks that accept taxpayers' money should be compelled to accept tough new restrictions on credit card and banking fees, credit card interest rates and predatory credit practices.

Makes sense to me.

[tw]

Originally Posted by xoxoxoBruce

requoted: " Commercial banks that accept taxpayers' money should be compelled to accept tough new restrictions on credit card and banking fees, credit card interest rates and predatory credit practices. "

Which commercial banks are accepting taxpayer money? Washington Mutual was driven into bankruptcy while WaMu executives were on a plane - unaware they had been removed. Investments banks are on the dole. But the big commercial banks - JP Morgan, Citigroup, Chase, Bank of America, Wachovia, etc - I don't believe any are taking taxpayer bailouts. But then they also had to conform to restrictions such as limited debt to equity ratios.

Hedge Funds. Are we still to see hedge funds come running for rescue? Auto loan companies might be struggling soon?

Commercial banks can be sold to foreigners who did not have financial people playing money games by purchasing deregulation and would be happy to own banks in America. After all, America that needs cash must sell assets to foreigners - government bonds, mortgage backed securities, companies, real estate - to pay for the eight year party.

Did you have a good time at the party?

Those were the days my friend.
We thought they'd never end.
... a song describing the roaring twenties. We did not have flappers. But we did have Britney Spears without underware and Paris Hilton taping sex. "This is the craziest party there would ever be ... Mama told me not to come...."

[xoxoxoBruce]

The news tonight is predicting Wachovia may be the next to topple.

[Yznhymr]

Originally Posted by xoxoxoBruce

The news tonight is predicting Wachovia may be the next to topple.

Jeez, really? That's not good. The economy is going to take both parties to work together to fix it, else we will pass recession into a depression and a possible crash.