DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Boehner and GOP Cave????... $1 trillion in tax increases

**RozzyLiu** · 10-07-2011, 05:15 PM

The TARP bailout would have been about the same had the Federal government simply just funded the principal of all the bad mortgage loans, then Congress could have turned around and set a penalty income tax rate to all those who got forgiven mortgages along with forfeiting any gains on the sale of their homes. Those getting a rescue would get targeted with a penalty that would stick with them for as long as they stayed in that house and would give up any gains if they sold the house, WITHOUT affecting other innocent taxpayers. That would have kept the banking industry intact and there wouldn't even have been a stimulus bill (wouldn't need one), Lehman would have survived, Bear Stearns would have still collapsed, but Fannie and Freddie would have existed unchanged, and nobody would even know what the words "credit crisis" means.

Yeah that moral hazard thing. The trouble with moral hazard is that the suggested antidote for it: moral righteousness, is a very bitter pill that you force innocent people to swallow (all those layoffs of renters who didn't even participate in this crap), and the recovery costs are now orders of magnitudes larger than the problem that existed in the spring of 2008.

So here we are, the 3rd year of this saga... and the Medicare retirement age is gonna shoot up when it otherwise wouldn't have, so far 200,000+ gov't employees have been flushed down the toilet, mainly at the state and local level, the population has increased but tens of thousands of teachers have been tossed on the street so far and it looks like we got another 30 to 50 thousand more to fire---we are basically going to follow the same "Austerity Prosperity" cycle that Greece is in right now which so far hasn't been working. Greece is set to tighten their belts again, and I bet in 5 months the drama will come back and the market will be screaming for more cutbacks.

Of course we have plenty of idiots that blame all the jobless on "Obamacare". LOL private employers were already screaming mad before Obama care at private payors and their jacked up premiums. Anthem tried to pull that 13% rate hike a while back and got bitchslapped.

So that's what's going to happen to us. Watch most of the GOP party scream bloody murder when the proposals come along for a 20% reduction in Defense spending. Because you know the core RNC doesn't EVER want to see a reduced dime of defense spending.

Oh by the way, the defense contractors know what is coming down the road. The Lockheed office over in Yardley/Middletown in Bucks County is gonna get slashed. They grew that office out before Obama took over, now they're probably gonna shutter it down. Same is going to go on all over the defense space. Koch will probably start layoffs next year I imagine.

Your proposal to have the government pay down the loans to market value sounds good but how would market value be determined in a rapidly falling market ? My father a real estate broker told me that all real estate brokers and sales people are whores. He was wrong whores have much higher morals. If there is a hole they will exploit it. In many, if not most of the underwater loans the paperwork is not worth the paper it's on. This would involve a new appraisal on every loan with the appraiser trying to predict the future value, good luck with that. With the bad paperwork people who will be given money when they will not even be able afford the reset mortgage which is the problem with a lot of the existing loans. There is no easy fix.

One of the problems with heath care is we can now give people a few extra years on the planet for a ton of money. Now we are starting to make body parts out of stem cells, that will be cheap. How can that be controlled ? Now it's sort of self limiting because there are only so many organs but soon we'll have lots. Ya want a windpipe ? That will be 10 million for the part and 10 million for installation. Bill Gates will be OK but Bill Bates is going to die.

The solution is easy and cost almost nothing, only make well documented loans to people with good income and credit.

Your posts always make me think.

10-07-2011, 05:15 PM	#28
RozzyLiu Join Date Oct 2005 Posts 375 Senior Member	The TARP bailout would have been about the same had the Federal government simply just funded the principal of all the bad mortgage loans, then Congress could have turned around and set a penalty income tax rate to all those who got forgiven mortgages along with forfeiting any gains on the sale of their homes. Those getting a rescue would get targeted with a penalty that would stick with them for as long as they stayed in that house and would give up any gains if they sold the house, WITHOUT affecting other innocent taxpayers. That would have kept the banking industry intact and there wouldn't even have been a stimulus bill (wouldn't need one), Lehman would have survived, Bear Stearns would have still collapsed, but Fannie and Freddie would have existed unchanged, and nobody would even know what the words "credit crisis" means. Yeah that moral hazard thing. The trouble with moral hazard is that the suggested antidote for it: moral righteousness, is a very bitter pill that you force innocent people to swallow (all those layoffs of renters who didn't even participate in this crap), and the recovery costs are now orders of magnitudes larger than the problem that existed in the spring of 2008. So here we are, the 3rd year of this saga... and the Medicare retirement age is gonna shoot up when it otherwise wouldn't have, so far 200,000+ gov't employees have been flushed down the toilet, mainly at the state and local level, the population has increased but tens of thousands of teachers have been tossed on the street so far and it looks like we got another 30 to 50 thousand more to fire---we are basically going to follow the same "Austerity Prosperity" cycle that Greece is in right now which so far hasn't been working. Greece is set to tighten their belts again, and I bet in 5 months the drama will come back and the market will be screaming for more cutbacks. Of course we have plenty of idiots that blame all the jobless on "Obamacare". LOL private employers were already screaming mad before Obama care at private payors and their jacked up premiums. Anthem tried to pull that 13% rate hike a while back and got bitchslapped. So that's what's going to happen to us. Watch most of the GOP party scream bloody murder when the proposals come along for a 20% reduction in Defense spending. Because you know the core RNC doesn't EVER want to see a reduced dime of defense spending. Oh by the way, the defense contractors know what is coming down the road. The Lockheed office over in Yardley/Middletown in Bucks County is gonna get slashed. They grew that office out before Obama took over, now they're probably gonna shutter it down. Same is going to go on all over the defense space. Koch will probably start layoffs next year I imagine. Your proposal to have the government pay down the loans to market value sounds good but how would market value be determined in a rapidly falling market ? My father a real estate broker told me that all real estate brokers and sales people are whores. He was wrong whores have much higher morals. If there is a hole they will exploit it. In many, if not most of the underwater loans the paperwork is not worth the paper it's on. This would involve a new appraisal on every loan with the appraiser trying to predict the future value, good luck with that. With the bad paperwork people who will be given money when they will not even be able afford the reset mortgage which is the problem with a lot of the existing loans. There is no easy fix. One of the problems with heath care is we can now give people a few extra years on the planet for a ton of money. Now we are starting to make body parts out of stem cells, that will be cheap. How can that be controlled ? Now it's sort of self limiting because there are only so many organs but soon we'll have lots. Ya want a windpipe ? That will be 10 million for the part and 10 million for installation. Bill Gates will be OK but Bill Bates is going to die. The solution is easy and cost almost nothing, only make well documented loans to people with good income and credit. Your posts always make me think.
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