SW FL Real Estate

How does this action - if eventually passed help the masses?

In theory:

lt allows the banking system to literally hand over all their bad decisions to a federal entity that will just burn the paper.  75% of the total that will be spent is just simply bad paper - not property.  The people won't get anything back from it.  How often have you seen the U.S. Govt. sell something at a profit?  Right - never - they think profit is a four letter word.

It will not do anything for the 2,000 people that had their homes forclosed last month in Lee county.  It won't do anything for the 2,000 people that will be forclosed this month either - nor will it help anyone next month.

The only tangible effect the common person sees is thier 401k is going away more rapidly than it did last year.  Will the Govt. put the properties they take from lenders on the market?  Yes. Will they do so at a loss?  Of course.  Will they flood the market so real estate doesn't actually benefit? Certainly

Does something have to happen?  Yes  Wachovia was purchased today.  Washington Mutual was purchased last week and nobody has been hurt.  Someday the buyers wont' be there - if some type of legislation isn't passed.

That's what I think.  What do you think?

According to an interview I saw on TV -

• I won't tell you who was making the statements - so as not to taint your view:
• The Secretary of the treasury (obviously appointed to serve at the pleasure of the President)
• Who was also the former CEO of Goldman Sachs (one of the two investment banks left)
• The "deal" made to bail out AIG was spearheaded by the Secretary of the Treasury  (Paulson)
• That same Treasury Secretary had only one private sector person in the meetings to finalize the agreement
• That private sector person was the current CEO of Goldman Sachs!
• By the way - Goldman Sachs has a 20 Billion $ investment stake in AIG!
• The former CEO of Goldman Sachs and current Secretary of the Treasury (Paulson) spearheaded that investment in AIG!
• This same man is the one that put together this $700B bailout and;
• It gives him complete autonomy on how it is spent! and on whom!
• There was legislation passed in the post Enron scandal - I don't know the name of it but it is called "mark to market" approach to acocunting that basically forces your last product sale to be the "mark" for valuing all your inventory and or production and
• Hence, as the value of your stock/sale/inventory for example, all stock and all valuation is immediately repriced at that price and;
• That is what is causing the banks and the large institutional business' in this country to fall so rapidly.
• According to the person producing this info., their contention is = that single regulation alone is responsible for 70% of this devaluation of companies.
• The presenters' contention is: the president and two other persons can eradicate or suspend the use of this rule with the simple announcement and stroke of a pen.  Their contention is: if they would do this, they would solve this melt down in 3 hrs.!
• The person being interviewed isn't a radical of any kind.  Actually, he is a former politico but not in officeof any kind
   
  If he they are right - and who knows - this is all b.s.!!!!!
  He contends: the Treasury Sec. wants to have complete autonomy for being allowed to spend $700B and take care of all his friends and buddies on wall street
   
  Also: Did you know:
  The name "wall street" was coined by NY'ers in the 1800's because - at that street location - the community built a wall (4' high) to keep the wild pigs out of the area!  The area was so overrun by wild or ferrel pigs that a wall was built to try to keep them out of that area of town.  Now, you have one more irrelevant piece of information in your brain stopping you from remembering shit that matters.