***LIVE*** Senate Debates Housing Rescus Plan -

[gateley]

link on front page


www.cnn.com

[jazzjunkysue]

1. What happened to the 1% doctrine?!?! Remember, if there's 1% chance they could strike..

We invaded Iraq on the 1% doctrine: If there's a 1% chance Hussein could attack the US we have to pre-emtively go in and remove his entire government along with their water hospitals, schools, electricity, roads, you name it. It all has to go if there's a 1% chance they could throw a rock at us and hit us. From the middle east. Right.

Now, the government has decided 50% doctrine is fine. If there's a 50% chance the government will have to pay for these bad loans, we'll do it. Let's go! Oh, and don't worry, because the chance that this could cost the government $100Billion, that's with a B, is only 5%. That's pretty close to 1%, isn't it? I trust them. Don't you?

"Create home-buyer credit. The bill includes a tax refund for first-time home buyers worth up to 10% of a home's purchase price but no more than $7,500."

"The refund, however, serves more as an interest-free loan, since it would have to be paid back over 15 years in equal installments."
So, on top of bad credit and the inability to pay, we'll just add more incentives to get into that loan by removing $7500 from the initial down payment. Let's get more bad loans going. Good idea.

"The Congressional Budget Office on Tuesday estimated the potential cost of a rescue could be $25 billion. CBO said there is probably a better than 50% chance that Treasury would not need to step in. It also said there is a 5% chance that Freddie's and Fannie's losses could cost the government $100 billion"

This is wealth re-distribution for people who don't handle their money well. And they raised the limit to over $600K. So, you can buy a luxury home with bad credit, a reduced down payment and the government will bail you and your bank out.

Where are the real conservatives? They should be hanging this idea by it's neck.

Problem? Bad loans, you say? Bad credit?
Answer: More bad loans for more people and more credit.

How in the world is this going to get us "out" of this problem? It just digs us in deeper.