WHY? Why should the American people "Bail-out/Rescue" big business? There is no good reason to do this. By providing funds to the tune of 800 billion dollars sets precedence that making bad decisions on Wall Street is a good thing. Rather than saving AIG and the like why not, dissolve those companies and place all holdings on an auction block for the general public to bid on.

I think it is absolutely horrible how the rich have decided the average Joe should bail them out. I have known too many people who have lost their homes because of improperly explained loans, lost their jobs because of management that haved not managed their monies well. I say we have no bailout at all and let the chips fall where they may. I am one of the people who want to retire in 2 years and now not sure that it will be feasible. But I still don't prefer the bailout.

What makes anyone think that this plan of buying bad debt will free up credit. The financial community will still raise their standards to give a loan to anyone or any business. With the poor economy they will raise their interest rates. People will not be able to refinance loans unless they have the money to pay down the loans to the value of the properties. Explain to me how any bank is going to take any chances that might be risky under these conditions. I'm sorry but these are controlled by people that will not want to get burned and they will also know that there is no other option since the government will only help once. By the time the congress makes new rules for the financial sector, there will be so many added auditing requirements that the costs of loans will rise to pay for the added administrative requirments.

Yesterday's vote by the Congress to reject the latest economic bailout proposal was a HUGE VICTORY FOR MAIN STREET. FINALLY, the voice of the the regular hard working citizen was supported IN A BIPARTISAN MANNER which we have not seen in a very long time.
I applaud Congress for taking a step back to contemplate this dilemma by voting against this current “Plan”. The Bush Administration is attempting to bluff, threaten and bully Congress using scare tactics AND MORE IMPORTANTLY, THE PEOPLE WHO CONGRESS IS SUPPOSED TO SERVE AND REPRESENT. Congress is using reason and logic and is not succumbing to the Administration's fear tactics.
We the people are calling the current Administration’s bluff as represented by yesterday’s vote and our Congressional leaders that had the backbone to vote AGAINST IT.
I believe the people on Main Street are willing to see if “the sky will fall….” as the current Administration warns and not to rush into this "Bailout Plan" prematurely. It took this Administration eight years to get us to this place and we cannot expect to fix it in a week or so. There is a long and hard road ahead to economic recovery for our Nation and Main Street is ready to pick ourselves up by our bootstraps with the help of Congress and get going. THE DEFINITION FOR ECONOMIC RECESSION IS: "A slowdown in economic activity marked by less consumer spending and often also by higher unemployment." WE ARE ALREADY IN A RECESSION (AND WE HAVE BEEN LIVING IT FOR QUITE SOME TIME NOW SO THAT SCARE TACTIC DOESN'T WORK...THINK UP ANOTHER ONE, BUSH).
I want NO PART OF ANY VERSION OF A BAILOUT PACKAGE THAT DOES NOT TOTALLY ELIMINATE GOLDEN PARACHUTES, HELP THE HUNDREDS OF THOUSANDS OF PEOPLE WHO ARE IN FORECLOSURE AND THE MANY THOUSANDS MORE WHO ARE UNEMPLOYED IN THE U.S.A. TODAY.
Congress needs to approve a “Rescue Plan” that rescues from the BOTTOM UP……..NOT FROM THE TOP DOWN.
And we don't want Treasury Secretary Paulson to have sole control over the provisioning of the 700 Billion Dollars. That would be tantamount to "having the fox watch the hen house". Let's give that responsibility to the FDIC who has done a great job throughout this fiscal mess.

Anna Luna - San Gabriel

Bush passed a law in July stating the banks can refinance borrowers at 90% of current market value. (This is only if they choose to participate).

Now, I know that many people didn't qualify to even purchase a home using the "Stated Income" program, and if they never made any real money in the first place, and planned on refinancing every 6-12 months to make their payments, then they deserve to lose their home. Others that had a rate jump and who also purchased a home in the last 2 years not knowing the property values would decrease by almost 1/2 in the past 18 months, (in some cases), and want to keep their homes and can afford to keep them, should be able to take advantage of this law Bush passed. Instead of using the $700 billion for buying foreclosed or deliquent properties, they should use it to allow the American public to refinance at 90% of current market values and at a max 6% rate, full documentation, of course!. The banks already made their money with the 2-5 year prepayment fees in the past and all the YSP (Yield Spread) brokers and Loan Officers made over the last 7 years charging us between .025 to 1% more in rate, only so they can get $5k to $18k for being our friend and getting us our loans.

I have been unemployed since 10/07, I look for work almost every day, but I am not able to find something outside my job history or job description because if it is seen that I was in the Mortgage Industry, I am black-balled because some feel it was everyones fault who ever worked for a mortgage company that this ever happened, or they are afraid, once they train me, I will leave once the mortgage industry turns around. (It's not going to turn around or be anywhere the same as it was from 2001-2006.) My bills are paid and my mortgage is current, (for now knowing this was going to happen in 7/06), but if I had not dropped over $200k in remodeling after I paid the highest price for my house at the time I purchased it, I would have walked months ago. A same model house as mine sold for $680k in 11/06. That house went into foreclosure in 10/07 and sold for $320k in 5/08. It doesn't matter what I have spent on my house, values are determined by comparitive sales so I have lost thousands of dollars of equity that will take over 10 years to recoupe.

The Republicans and Democrats as well as the Senate & House need to focus on helping the AMERICAN PEOPLE NOW, now helping big business. Who is more important and who pays their salaries, We do, don't we?

these people are idiots. We the people are being screwed by our Congress, Senete, President, and all of Government like we are stupid. Some of us are not. We need to maybe trow away Congrees and Government especially the D.O.T. who defiys Crongress and lets the Mexican trucks keep getting the price of transportation so low that the trucks are getting neglected and are getting dangerus. We are in a rutt, Losing our homes and some like me our trucking business, so big Government gets paid. Lets put the working person in the whitehouse. As I said befor you show me a man that says if I vote for him or her for Presidentr and they are just in it for themselves and arnt worried about me then I will vote for them. At least there up front (Just like Wallace) at least he was telling us like it is.

these people are idiots. We the people are being screwed by our Congress, Senete, President, and all of Government like we are stupid. Some of us are not. We need to maybe trow away Congrees and Government especially the D.O.T. who defiys Crongress and lets the Mexican trucks keep getting the price of transportation so low that the trucks are getting neglected and are getting dangerus. We are in a rutt, Losing our homes and some like me our trucking business, so big Government gets paid. Lets put the working person in the whitehouse. As I said befor you show me a man that says if I vote for him or her for Presidentr and they are just in it for themselves and arnt worried about me then I will vote for them. At least there up front (Just like Wallace) at least he was telling us like it is.

Sorry i am forgeting. Let the goverment become partners with the home owners and give the money in a way it forgives the distrest homes and forgives the late payments and therefore gives to the people by the people. I would not mind paying a little more to help my niebor but why pay a bank.
If weare going to bail out mortgages then lets help our people not other banks in other countries. give it to the people

My two cents...

In the past week or so, urgency has taken over our nation's capital.

I wonder where common sense was lost in many decisions that were made.

My husband and I work hard to provide our family with shelter, food and simple pleasures to enjoy together. We chose not to buy a home when prices were high and mortgage rates low because common sense told us we could not afford it and would exceed our budget. We were offered interest only loans and told the market would stay "reasonable" to insure equity and then sell. Common sense and recalled lectures from college business courses kicked in telling us something was not right. So we stayed where we live to assure we could one day afford the American dream of a home and a picket fence within in our means. We save what money we can looking toward the day we can proudly accept the keys to OUR home.

Others lived outside their means, bought homes and jumped onto the instant gratification bandwagon - then the "bubble" burst.

What repercussions will the individuals representing the institutions, handing out risky loans as if they were blindfolded, face? To this moment I have not heard it being addressed. I guess I should not hold my breath.

We pay our taxes, make decisions with moderate financial risks and are now being asked to support a piece of legislation that financial supports and "relieves" bad financial decisions being made by respectable established institutions. No thank you!

Lawmakers: postpone your break, get back to the drawing board and find a way to resolve this situation with MINIMUM financial involvement from the ordinary taxpayer - me.

People: Regardless of party lines, this situation deserves our input - we are the constituents being represented and spoken for. If we do not speak, we cannot complain about decisions being made by those that represent us. Based on what I have read so far, we do not support this proposed act.

A lot of people seem to not realize that "Main Street" is directly linked to "Wall Street." If Wall Street collapses, Main Street will take a bigger hit and things will get worse for us working folk. The Congresswoman did bring up some valid points, i also agree that CEOs should not be receiving any taxpayer money for their salary, and that the oversight committee needs to have some power to regulate.

People also need to take a step back from their emotions and actually look into the details of the plan. $700 Billion doesn't mean it will all be used. It's just making it accessible to the Treasury for when they need it, and it's spread out over the next few years. This isn't a reward for people who lead Wall Street and made the bad decisions. No one wants to do this, but it must be done if we are going to stabilize the economy and recover from it quicker.

And also to the people who think it's all Wall Street's fault - If you got a subprime mortgage that you thought you'd be able to afford, you're just as much to blame. We all live on credit these days which is not healthy, and now it's come back to haunt us.

Anna - I think Congress yesterday told Bush, Paulson and his Administration "foxes" that they aren't going to get free reign of the henhouse anymore. Maybe it is better nothing gets approved especially while the current administration is in charge.
If any rescue bill does pass soon, it should be a "loan package" to the financial institutions that they would have to pay back to the government and taxpayers when the economy starts recovering that includes no "golden parachutes" for the fleecing CEO's that caused the mess but a "livable severance package" like any other American gets when we are laid off from our jobs. Also, some oversight committee or board appointed independently by the FDIC not the Administration to keep abuses in lending practices from getting out of control again. Otherwise to "Herman Munster" Paulson and "Silver Spoon" Bush, "The party's over gentlemen! Congress and the public are not buying your B.S. anymore!!

While I do agree with some of you that some people got greedy and got in houses they really couldn't afford but took advantage of the sub-prime loans, I do think it is more costly to let these home continue into foreclosure. Each home that gets foreclosed cost the government almost $250,000. The poster that used to underwrite mortgages had an idea there, let them bring the documents in, and help them refinance at 90% of current market value - a fixed rate mortgage at a maximum of 6%.
My wife and I were smart enough not to go for those loans and had refinanced several years ago our townhouse at a fixed rate of 5.8 % to keep our payments at a rate we could afford. We would love to have a regular single family home someday but are grateful for a roof over our heads and jobs to pay for our home and two cars and food and a little bit to save and to enjoy some recreation time. It's getting harder but we've played it smart but even for people who might have played it smart, they could have lost their job because their employer failed or took their plant overseas to obtain cheaper labor. Not all people who have lost or are having trouble keeping their homes have done so by greed, so please don't judge all people the same. Catastrophic diseases or injuries to a family member and huge health care bills have sunk many a family also! I'd rather help the middle class and poor get back on track than the crooks and speculators on Wall Street with any "rescue bill" myself right now.

Just as a general question, why would we trust the people who created this problem to solve it and stick us with a $700 billion bill for it? That is insanity! Why is no one, including KTLA, talking about the Community Reinvestment Act, the campaign contributions that Obama got from Freddie/Fannie, Barney Frank's love interest at Fannie (no pun intended), etc.? And then you let that dolt Loretta Sanchez come on the air and explain ... what exactly? Was there a point in anything she said? Her mumblings about Social Security privatization were worthy of ridicule, never mind that a) it's our money to start with, not hers, and b) the market has consistently outperformed trusting the government return.

By the way, after that hit-job MF did on Sarah Palin, in concert with the LA Times, we know who your station is rooting for. That was the shabbiest, most transparently biased bit of cheerleading I've ever witnessed on TV ... you all should be ashamed to even attempt to call yourselves journalists after that.

Let the chips fall where they may; there is virtually nothing that the federal government can do that private industry can't do faster, better, cheaper, and more efficiently. The last thing we need is a $700 billion dose of Marxism right now.

I find it humorous that the Bush haters are once again seeing this only one way.

Ironically, a bailout plan that would rescue the corporate giants that the left
supposedly hates is being shot down 2 to 1 by the Republicans over the Democrats
and STILL you manage to see things only one way. It's all Bush's fault. Do some
research and see what you find out about Bill Clinton's policies on how many
Americans he thought should be "helped" into being able to afford the American
dream of home ownership. If someone can't afford a home, "helping" them into it is
basically teasing them with just a taste of it. Those who have scrimped and saved
and sacrificed to get into their homes on their own, they know what it means to have
achieved the American dream. Once again, people have been led to believe that they
are ENTITLED to this dream on a silver platter. We have the freedom to pursue this
dream. Nobody should have it handed to them. It's meaningless otherwise.

Ask yourself people, are you fiscally conservative? You want a loan package, not a bailout?
That's so un-bleeding heart of you!

No bailout! Republicans and Democrats united for a cause, finally. Who'd have thunk it?

am i too late?

so, it failed once.
the fear mongering has begun.
house reps are being pressured at all sides.

they will do this again and it should pass.

but it is going to be a waste of money.

they should try, again, even though its a waste of money.

using this situation as an election tool for both parties is gambling, but thats politics.

there will be a winner in the house... unfortunately, the economy will be the loser.

the american people will bear the heavy burden for along time.

this is precedent setting, how many OTHER bail outs, will the american people handle?

a house of cards with a crumbling base.

sometimes their are to many chiefs and not enough indians.

This is meant somewhat tongue-in-cheek (don't want a midnight visit from Homeland Security!) but maybe it's time for another "tea party"?

Annmarie - good to see you (Mary T)

The government voted no because they wanted the public to be scared of what could happen if we don't bailout these companies. If they vote Yes on the bailout it won't be because of me or the people I know, we think it's plain and simple. All of the companies that have belly-flopped were paying someone to watch their budgets, and it’s very obvious that they weren’t focused on it. They were focused on the commissions they had planned to get from all of these loans. I blame these companies for this mess; I blame them because they dropped the ball by not informing the public on the loans they were giving. They should feel ashamed because their ethics as a company should have been to conserve their customers and not to take advantage of them. After all it was their neck on the line. The government, no wait WE now have to “help” these greedy companies, no thanks. Just as I passed on all of those loans I will pass on having to bailout anyone.

excellent post Arlene!

I couldn't agree with you more!

BTW to all the fans of the Birk plan..

I read it thought it looked good also.. but I didn't check the math. I sent it to my husband this is what he said:
____________________________________
Does anyone know how to do math? $85 billion divided by 200 million is 425. Everyone would get only $425. If we use $700 billion, everyone would get $3,500. Maybe we should take a few dollars and invest in math education. - Mark
___________________________________
Sorry usually if it sounds too good to be true it usually is!

PLM

I'm against the $85,000,000,000.00 bailout of AIG.

Instead, I'm in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.

To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up..

So divide 200 million adults 18+ into $85 billion that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend.

Of course, it would NOT be tax free.

So let's assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes.

That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket.

A husband and wife team has $595,000.00.

What would you do with $297,500.00 to $595,000.
00 in your family?

Pay off your mortgage - housing crisis solved.

Repay college loans - what a great boost to new grads

Put away money for college - it'll be there

Save in a bank - create money to loan to entrepreneurs.

Buy a new car - create jobs

Invest in the market - capital drives growth

Pay for your parent's medical insurance - health care improves

Enable Deadbeat Dads to come clean - or else

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And, of course, for those serving in our Armed Forces.

If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ("vote buy") economic incentive that is being proposed by one of our candidates for President.

If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!

As for AIG - liquidate it.

Sell off its parts.

Let American General go back to being American General.

Sell off the real estate.

Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't.

Sure it's a crazy idea that can "never work.
"

But can you imagine the Coast-To-Coast Block Party!

How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion

We Deserve It Dividend more than do the geniuses at AIG or in Washington DC

PLM, your husband is exactly right! Each person would receive only $425.00. I guess ll those zeros fooled people.

Start over. We've got to come up with some solution. We can't depend on Washington. Look what they've done to us so far.

Meant to read: I guess all those zeros fooled people. Some times my spellchecker doesn't work. (Along with my fingers.)

Idaho - I've been telling people the same thing, that if they passed this bailout with a blank check and a golden parachute - they might have faced the biggest TAX REVOLT in 230+ years! People might have sent in their tax returns with no checks but letters of protests instead! Instead of just Boston, we could have symbolic "Tea parties" all over this land. However, it would be with burning our mortgage notes or tax returns instead of tea!! HEAR THAT WHITE HOUSE, CONGRESS, STATE REPS!!! STOP SCREWING WITH US TAXPAYERS, ENOUGH IS ENOUGH!!!

Frank, I sent this email to Eric also. We need to really start getting our government under control.

“One of the classic mistakes we all make--and this is true of political leaders and average citizens alike--is to accept unquestioningly that the choices we're being presented with are in fact the only choices we have.”

Possible solutions:

First, CEOs that were in charged when the bank failed receive no compensation, they should be replaced by federal CEOs. At present, they are receiving 1 million to 5 million a month.

Second, the government should freeze all loans at entry rates until re evaluated by federal sources based upon real value. See Step four.

Third, the government should mandate that banks in trouble cancel all dividend payments.

Fourth, Freddy Mac and Fanney Mae should work directly with homeowners in trouble like FEMA to evaluate and restructure loans for individuals.

Fifth, the government should acquire a percent ownership of all banks they help. To be paid back with the first profits.

The above steps would eliminate the need to invest billions of taxpayers dollars to fix a problem created by the lending companies themselves.

A final and radical solutlion that the Japanese did in the 90’s would be to nationalize the banks.

with the trucking at the ports. we are going to find out that since we have to up grade and by newer trucks,that the fuel high and the loads paying less the truckers are going to start losing thier trucks in a few months. we cant afford or fuel, insurance, truck payments with the low paying friegt. especialy at the port has always been the lowest paying trucking jobs before the change and they are not any better today.
We can thank D.O.T. for not obeing Congrees for this also.
Get rid of D.O.T. and all thier crap.get rid of big Government and give it back to the people. We sure can't do any worse then them.

You have an opportunity to actually explain what is going on and be the only one on TV to educate the public about the actual problem that we all instinctively feel - that there's something deeply wrong with our economy.

This financial crisis is just a symptom of a deeper fundamental problem with our monetary system - underneath all the layers of smoke and mirrors the core problem is that we have a debt-based economy, all the new dollars (the M1 supply - not talking about currency/dollar bills/coin) that comes into the system comes in as expanded debt. Since the creation of the Fed Reserve system and the end of the gold standard, no Actual NEW Money is created, so only expanded debt capacity will allow the economy to grow (so we get more credit cards, refinancing, wall street scams, etc). But there is no New Money to ever pay off anything, only more debt to juggle in a mass-delusional Ponzi scheme that occasionally falls apart until another layer of smoke and mirrors is added and everything 'looks' OK for another couple years. The only person who is talking about this is Dennis Kucinich, but of course the oh-so mature American public will never listen to him because he's "funny looking" so WE ARE SCREWED. But you could be brave and have him on or find a true rarity, an economics professor who understands this issue.