Why should taxpayers have to foot the bill of bad investments by banks?

Deal Score0

I have a different idea for the bail out.

1) Freeze all CEO and upper management salaries and bonuses of the affected companies until we can determine who was at fault. Confiscate any funds that were illegally earned. Obviously, if we can re-write capitalism with a stroke of a pen, we can re-write legal contracts, too.

2) By the mortgages at 60% of their value. There is no reason that we should guarantee the value of the real estate in question, as it has lost value from the bubble “highs”.

3) Insure that individual living in homes are not foreclosed, but, make no special conditions for investors/speculators who were flipping homes for a quick profit.

4) Raise lending rates by 1 – 2 %(Prime) in order to put a premium upon loans.

  1. Reply
    Chupate esa!
    May 4, 2011 at 12:24 am

    They have been passing down their taxes in the price of good and services why not their loses too. You know they work hard…

  2. Reply
    May 4, 2011 at 12:39 am

    Indeed.. I’d much prefer it if they just took back ALL that money those CEO’s walked away with. Pull in those Golden Parachutes.

  3. Reply
    olin h
    May 4, 2011 at 1:15 am

    I agree handing money to CEO’s who made a mess is just wrong — take the company and the loans but don’t make new loans — and let the new companies that take their place do that

  4. Reply
    May 4, 2011 at 1:22 am

    A good plan except for the pay freeze. If you did that most of those people would walk away from their jobs. They may have done a bad job and need replacing, but if everyone walks at once it would get a lot worse.

  5. Reply
    May 4, 2011 at 2:05 am

    You make an excellent suggestion, if this was the business world you were describing. It’s not. It’s the world of politics. Freddie Mac & Fannie Mae are government brokerage houses of which they pay for influence of politicians through the lobbying. The top 3 receivers of this money?
    1) Chris Dodd – D Connecticut
    2) Barack Obama – Presidential candidate
    3. John Kerry – former presidential candidate.
    Fat chance for reform here!

    Well done on the others. First class thinking…comment on the last.
    By raising the prime, you will tighten money supply. This is not good if you want to stimulate the economy. You want make keep the prime low to make it easy for businesses to get money. Well done though!

  6. Reply
    Kiran C
    May 4, 2011 at 2:49 am

    Taxpayer get the bill when banks become too big to fail. All your plans will take too long to implement. For number 2, who will do the buying?

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