How do you feel about the bailout?

[Rapunzel]

Re: How do you feel about the bailout?

Well, this just drives home the feeling I've had that we need to get our mortgage paid off in the next 6 or 7 years. We can do it on paper, at least. And I get sick thinking about the interest we'll pay over the life of it. I'm not in a market that will see a downturn (and, has only slowed down a bit).

Re: How do you feel about the bailout?

I don't know how new this news is but I just saw the headline that the FBI is investigating Freddie, Fannie, AIG and Lehman for fraud.
http://www.usatoday.com/money/companies ... htm?csp=34

Re: How do you feel about the bailout?

Why aren't my kids as interested in hearing the news about this on the radio as I am? Anyway, from what I picked up, I like Schumer's idea to start with a draw of "just" () $150 billion or something like that. I guess that could prolong the time it takes for a recovery but that might be a measure against over-spending.

I need to go check this out but does anyone know if the AIG bailout is included in the $700 billion? I've been assuming that it is but now am not so sure.

[Sheherezade]

Re: How do you feel about the bailout?

Sadly, I believe this additional. I've heard that we've used 600 billion already in the Bear Stearns, Fannie and Freddie and AIG deals....and this would be an additional 700 billion to draw on if needed.

[Rapunzel]

Re: How do you feel about the bailout?

I just smacked my forhead.

Years ago (in college, to be exact) I worked for a vp of Bear Sterns. I remember having a conversation with him about the business (this veep was involved in mortgages to be exact). He told me how great the business was - that housing prices were just going up and Bear Sterns was making a killing, etc, etc. And, then I said, "Yeah, but doesn't everything that skyrockets up come back down eventually?" He looked at me very solemnly and said, "Yes. It is going to crash down eventually."

Holy smokes. I TOTALLY forgot that conversation until this moment. Good grief.

I remember that part of my job was to maintain contact with appraisers and we wanted as high an appraisal as possible, etc. Business was really booming! (This was mid-90's). Honestly, I didn't pay much attention to anything because I was having too much fun in college. That job was to fund my partying. Now I wish I had taken notes.