Folks this is serious......we must have this bailout!!!!....Period

I have to disagree Bo. I am not certain we need THIS bailout. Act in haste, repent in leasure is too often the case with our Congress. Yes we have a problem, but throwing money at it may not be the best answer.

I read the post/letter Mauldin that you link and really believe that this is his expert opinion and what he truly believes. His logic seems undeniable but then he dismisses to the 200 economists that Shelby has out of hand. His disparaging of them actually weakens his argument and throws his logic into question. I do not understand why his logic is the logic and that these other economists are pie in the sky, ivory tower idealists. I think I will write on this very topic on one of my outside blogs.

Bo, I Know that we are in dire straits. However, It pisses me off that these bastards that got us into this mess are getting away Scott free with millions of dollars and now we are having to pick up the pieces of this mess...

I recently received this in an email. Don't know if anyone else saw it. I haven't done the math myself, but it sounds good to me. Thought I would pass it along. Enjoy!

The Birk Economic Recovery Plan

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 bona fide 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 have $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 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 I do the geniuses at AIG or in Washington DC.

And remember, The Birk plan only really costs $59.5 Billion 

Because $25.5 Billion is returned instantly in taxes to Uncle Sam.

Bo...

I like your posts because you say what you think based on your experience! We all want a stable economy, and something had to be done. I just hope that at some point the bleeding stops!

Spoken like a true liberal. I have to disagree with you and polls show that 80% of the America people want NO bail out. Just think a large number of liberals even agree, amazing. But left side Congress doesn't agree as they are working so hard to find ways to put any kind of socialist program in place that they can point too. This is a capitalist country and it needs to remain that way. Look at Japan they have bailed out many banks and they have more problems than you can imagine, socialist medicine and long lines to get health care service and bad medical service. When it starts it is hard to stop,

None of this has anything to do with the credit markets and yet it is being used as a game by our Democratic controlled Congress to mislead the American people. So, I totally disagree. 

It's over, Bo. Put on your liferaft. The economy is killed. The banks will not have money to loan now because of the failed secondary mortgage market. Even the 700 billion, which they're lying about, would never blanket the losses. The thought of the bailout is media propaganda designed to thwart ensuing panic, to stave it off, to change the direction of the inevitable. The Wall Street Journal predicted the loss at 600 billion last October under the federal Home Loan Disclosure Act. Many laughed then. I don't think they're laughing now. Bush couldn't funnel Social Security funds to invest, so he went after the housing market. And destroyed the economy. America is in trouble, my friend. But I want you to have a fine day, in spite of the bad news, and let the sun shine on your heart. I think I'll just have a nice, cold glass of iced tea, play checkers with my computer and read what our friends are saying now.

Bo,

Apparently even our elected officials believe in it yet......the House just voted it down.......ow what?

Bo,

My warehouse line is still available with a small commercial lender who is not exposed to the mortgage mess. I have a number of backups and they can all borrow directly from the Fed unless their capital ratios go out of whack. Smaller local banks aren't being hurt nearly as bad. It's the banks that stretched their necks out that are failing and should fail. Will this result in tighter credit standards, darn right.

But remember the depression was the hangover form the roaring twenties. We have been riding too high, too long, should we pay the piper now or make it worse for later?

Gerry Suarez, Jr.

Your HUD Loan Pro!

@ Hollis - Your comment is an unmitigated and uncivilized attack on reasoning people. Name calling and finger pointing is useless. It was useless when both Pelosi and Boehner did it yesterday and it remains useless. While I agree that this is an opportunistic move towards socialized banking, your point is lost in your vehemence. There is a saying, you get more bees with honey than vinegar, similarly your point would carry more wight and perhaps given credence by a wider audience if it were not wrapped in this packaging.

Bo - I am glad you are feeling better about our ability to weather this storm. Can I have a scotch on the rocks please? BTW, the math in Lauren's proposal is wrong by a factor of 1000; each American would get roughly $425.