The following is a response I made when the bailout idea first came to light.
I was on 550 AM WSAU this morning and we were discussing this issue and thanks to the callers I have formulated what I think should be done regarding this situation.
What we are seeing is the result of congress messing with the free market. In the 90s there was a huge push to help people to buy their own homes. Congress partnered with Freddie Mac and Fannie Mae to remove those hurdles that prevented people from getting loans. Contracts were made simpler, down payment requirements were lowered and interest rates were kept low. They felt that this would boost the economy.
Today Congress is faced with trying to undo what they themselves caused. Fannie Mae and Freddie Mac were led astray by Congress and we, the taxpayers, will suffer for it.
If there were a plan, which could ease the potential damage this is causing, I would consider voting for it. Presently the solution they are trying to put through deserves a no vote.
A bill I would vote for must contain all of the following.
If this were humanly possible, I would vote for such a plan. If not, then I would suggest that we back out of the mess and let nature take its course. I am open to other suggestions and ideas, but at the present time this is my position.