The BIG Bailout

[Useless]

Originally Posted by Mr Spock

I find it pathetic that all the politicians on Capital Hill are wringing their hands agonising over poor taxpayers and protecting them form greedy bankers, isn't it these taxpayers who borrowed above their capacity to pay and have now caused this

Oddly enough, no.

Second, according to what I hear from my betters in the world of finance, the most serious problems are not with the bundles of subprime mortgages themselves — a large but not lethal quantum as far as I can tell — but with derivatives contracts tied to subprime and other dicey debt.

http://www.nytimes.com/2008/09/28/bu...20stein&st=cse

But even if this crisis was the fault of a few hundred thousand foreclosures, would you blame the folly of the homeowners or the outright idiotic practices of the banks that would risk destroying themselves by knowingly giving those people the loans which they could so obviously not afford?

Also, our government is NOT "wringing their hands agonizing over poor taxpayers and protecting them from greedy bankers." They are working to keep the "greedy bankers" in business by using the money of the "poor taxpayers."