Bailout to Cost $5,354 per Tax Payer…

I didn't get the impression that they're sending out a one time "due in full at time of receipt" bill?

.

I originally heard it was going to be approx. $10,000/taxpayer.  However, since most people wouldn't be able to pay that all at once, I would imagine it will be stuck to us via higher tax rates?  There is not enough info in that brief article to comprehend how it's coming out of us.

Regardless, I'm a little p-o'd that the greed and stupidity of some is going to cost me more in the end.  Here I am, lower middle class, one income, managing a mortgage, car payment, and no other debt getting screwed over once again. My local radio station calls it BOHICA - bend over here it comes again.  Guess we should all by stock in the company that sells KY jelly so this doesn't hurt as much.

 i thought W said last night that the US gov't was going to sell off the mortgages they buy when the market improves and hopefully it will not cost the taxpayers anything in the end?

"The government is the one institution with the patience and resources to buy these assets at their current low prices and hold them until markets return to normal.

And when that happens, money will flow back to the Treasury as these assets are sold, and we expect that much, if not all, of the tax dollars we invest will be paid back."

http://www.nytimes.com/2008/09/24/business/economy/24text-bush.html?pagewanted=3&_r=1

BlackLabbie

Is anybody else scared of this?
http://westcoastsuccess.wordpress.com/2008/09/24/bailout-to-cost-5354-per-tax-payer/

I can't even imagine how the average household family is going to pay this!

I think it's criminal that this is being called a "bailout" when the real criminals, the mis-managing, greedy, unethical CEOs are walking away with their big fat paychecks and golden parachutes and the bailee doesn't even have the option of revoking the bail and putting them back in jail!  This is total BS!!!  Put these b@stards in jail and pay part of the recovery with their seized assets!   

BlackLabbie

I can't even imagine how the average household family is going to pay this!

They aren't going to send you a bill. The money is coming from taxes, so taxpayers are footing the bill, but it's not going to be due in full or anything.

To me it's scary that our government is stepping into this. Where will it stop. I'm more in the school that the government should stay out of civillian affairs.

the mis-managing, greedy, unethical CEOs are walking away with their big fat paychecks and golden parachutes

i dont think one of the stipulations of the bail out should be that the top people at the companies that get gov't assistance should have to forfeit their yearly salary this year. there has to be some kind of penalty for the people who helped cause this mess.

BCMixs

I think it's criminal that this is being called a "bailout" when the real criminals, the mis-managing, greedy, unethical CEOs are walking away with their big fat paychecks and golden parachutes and the bailee doesn't even have the option of revoking the bail and putting them back in jail!  This is total BS!!!  Put these b@stards in jail and pay part of the recovery with their seized assets!   

I totally agree! This mess is beyond anything I could've ever imagined and it's going to take a very long time to get out of it. I hate that there's a need for this bailout but it scares me more to think of what might happen if we don't do it. I'm just disgusted by the whole thing!!

BCMixs

BlackLabbie

Is anybody else scared of this?
http://westcoastsuccess.wordpress.com/2008/09/24/bailout-to-cost-5354-per-tax-payer/

I can't even imagine how the average household family is going to pay this!

 

I think it's criminal that this is being called a "bailout" when the real criminals, the mis-managing, greedy, unethical CEOs are walking away with their big fat paychecks and golden parachutes and the bailee doesn't even have the option of revoking the bail and putting them back in jail!  This is total BS!!!  Put these b@stards in jail and pay part of the recovery with their seized assets!   

I agree.  I hate this kind of stuff so I admittedly know very little about it, but I *hope* to doG that the assets from these people/companies are being used FIRST!  I mean, you are a big company and you make big mistakes...YOU pay for it, right?

I'm just keeping my head in the sand for now.  I don't have any debt besides student loans, I have a marginal amount of money in the bank, no investments or assets, no accounts besides checking, savings, and flex (which I already cashed out), I'm not in the market to buy or sell a house, so......I'll just remain blissfully ignorant. 

 i found this article...

http://www.nytimes.com/2008/09/23/business/worldbusiness/23krona.html?em

i thought it was an interesting read. hopefully, our gov't will at least listen to advice from someone who has been through this already. i particularly liked what was said in this quote...

"Putting taxpayers on the hook without anything in return could be a mistake, said Urban Backstrom, a senior Swedish finance ministry official at the time. “The public will not support a plan if you leave the former shareholders with anything,” he said."

well said.

I still dont understand why so many people thought getting subprime loans was okay or taking out loans that they knew were too big for their paychecks.  Despite everyone telling DH & I to get an interest only loans for these homes we knew were out of our price range, we did not buy anything.  I realize the mortgage industry may not have been upfront about everything, but come on, no fore thought at all on the part of the people?  Generally if it sounds too good to be true, it is.

Not that I don't think these big CEO's shouldnt be held responsible for this mess.  They should. Same with the people in charge of the CA State Budget.  They can't reach a budget, so they start paying hourly workers federal min wage??  They should be the ones taking min wage because they can't do their jobs!

jenn52

 Same with the people in charge of the CA State Budget.  They can't reach a budget, so they start paying hourly workers federal min wage??  They should be the ones taking min wage because they can't do their jobs!

AMEN!!  Though I think they finally got the budget signed ... dang near three months late.  Really though, if the tax papers are going to be "bailing out"  I'd rather see some of that money go toward helping the people who got talked into some of those wonky loans in the first place and lost their homes. And I do believe the lenders worked pretty hard at talking a lot of them into it because my understanding is that the lenders make more money from loans for people with "iffy" credit than they do from people with high FICO scores.  If your credit score is high, you can wind up only paying maybe $2,000 in costs and fees, but if it's in the mid to low range, your costs could be as high as $8,000 t $10,000. Lenders are going to jump through hoops to make those kinds of loans.

Joyce

I agree Jenn.  I don't understand how the gov't let a federally funded agency do this.  Private or commercial banks, I can see a hands off approach and let the "invisible hand" manage things, but when it's our butts on the line???   It's unfortunate that the free market idea gets corrupted by the Enrons, FreddieMacs, etc of this world and those of us who manage our finances responsibly are left footing the bill while the executives of these companies get to walk away with millions of dollars! 

fuzzy_dogs_mom

AMEN!!  Though I think they finally got the budget signed ... dang near three months late.  Really though, if the tax papers are going to be "bailing out"  I'd rather see some of that money go toward helping the people who got talked into some of those wonky loans in the first place and lost their homes. And I do believe the lenders worked pretty hard at talking a lot of them into it because my understanding is that the lenders make more money from loans for people with "iffy" credit than they do from people with high FICO scores.  If your credit score is high, you can wind up only paying maybe $2,000 in costs and fees, but if it's in the mid to low range, your costs could be as high as $8,000 t $10,000. Lenders are going to jump through hoops to make those kinds of loans.

Joyce

Honestly Joyce, those are the people I feel the least sorry for...sorry if that is anyone here.  I have several friends that knew what they were getting into, but they wanted bigger and better and gambled and lost.  They would brag about how their 3500 sq. ft house that cost $400,000 (that's alot around here) was only giving them a $1500/month mortgage for now (interest only).  They would go on and on about how their house value would double in the next 2 years and they would refinance, etc. etc. They gambled and they lost.  They knew they could never afford a mortgage on a $400,000 home with zero to little down payment.  While we are sitting in our relatively small house with our manageable mortgage payment they thought we were crazy.  Now whose crazy.  I feel bad those that are losing their homes because they lost their job and can't make their regular payments, etc. not so much for those that wanted the world, couldn't afford it, and bought it anyway.  Yes, shame on the lenders for selling them something they couldn't afford, but it is a person's responsibility to know what they can/cannot afford.

The people across the street from my parents lost their house...but for some reason they bought a pool all the while they weren't paying their mortgage...I just don't get it.

Good article, Bradley.  I'm with everyone else - the CEOs who let this happen should pay in a big way.  Unfortunately, the rich seem to be able to get out of paying their fair share of the burden for anything in this country. 

I also agree that the little people who got suckered into these loans really need to learn how to read and not be afraid to ask questions.  There is no good excuse for not knowing how much something you're buying will cost and what your obligations are when you borrow the money.  I'm sorry that so many lost their homes but good grief, how dumb can one be?