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Bailout plan passes Senate, moves to House

October 2, 2008 — 7:30am ET | By Jim Kim
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Is there any doubt that the bailout plan has become a political issue now? Substantively, the bailout plan that passed the Senate was really not much different from the one that was soundly rejected just days earlier by the House. But Senators had a few inducements that their House counterparts did not: Tax breaks for the middle class and businesses, and a new law requiring insurers to treat mental health conditions more like general health problems. (Not really related to the financial crisis, now is it?) There was one notable related inducement: a boost in the amount of FDIC coverage for individuals from $100,000 to $250,000, an increase that was not funded. Essentially, the new bill gives lawmakers in the House cover for a shift: they could always claim they did so to provide tax breaks and more account protection. We'll see if this works. It's coming down to politics vs. principles.

For more:
- here's a Washington Post article

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By A. Yung | Posted 3:52pm | October 2, 2008

Does $700 Billion dollars worth of toxic assets sound absurd to you? (THE 7-YEAR TAXPAYERS BAILOUT PLAN)

Look no further.

What the Federal Reserve is imposing IS NOT the only way to solve this crisis. Instead of shutting Main Street out of the equation, this proposed plan lifts the heavy weight of mortgages off of homeowner’s backs temporarily while covering all mortgages (Freddie, Fannie, Bear Stearns, Lehman, WAMU, etc.).

It’s a plan where the Government and the Homeowner work together to funnel revenue back into the economy.

1. Revise mortgage loans at 75% of the original value, with a new 30 yr, 6.5% fixed interest rate.
(Current average monthly payment: $1,389)
2.
The Government pays the difference of new mortgage and old for 7 years (NEW average monthly payment for YOU: $846)
3. Original debt held by Government as a second note. Then a 40 year note with payments starts after the seven years. You can pay this debt off at anytime, but can not refinance without paying down.

It’s simple.

It gives the economy 7 years to recover. It relieves the heavy mortgage debt on YOU. It cost CONSIDERABLY less on YOU and the Government than this $700 Bailout plan. Think about it. Less cents equals MORE SENSE.

LET ME KNOW WHAT YOU THINK... POST COMMENTS

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