The TARP plan was always a turd

I guess the good news for us hard working middle class U.S. taxpayers who pay our bills and debts is that Henry Paulson and the Treasury Department are no longer going to be buying the sub prime crap loans under the Toxic Asset Reduction Program. Which in my book should have been called TURD loans because that is what they are. The idea of using our good tax dollars to buy crap loans from the banks who gave them out does not sit well with this and many other taxpayers. I think Hockeymike 374 speaks for many of us taxpayers:


"How can people be so stupid. Does anyone in congress understand that if you reward irresponsible behavior you will get more of it? I feel like an idiot for paying my bills and living within my means. I would say write your representatives but the last time we did that we were punished by making a 700B dollar bill an 850B dollar bill. This is beyond outrageous. The worst part is this will do nothing to solve the problem. NO more bailouts for corporations or the greedy and irresponsible people who bought homes they could never afford."

Sounds like good advice.

Wall Street is selling it's sh$t! Guess who is buying it?

From today's Washington Post:

Congressional leaders and the Bush administration this morning said they
had struck an accord to insert the government deeply into the nation's financial
markets, agreeing to spend up to $700 billion to relieve Wall Street of troubled
assets backed by faltering home mortgages.

Yes Wall Street is selling it's sh$t and we tax payers are buying it! Hello suckers!

Full details of the plan were not immediately available.

That's because the devil was busy looking at it and try to find a way to climb into it.

There was at least one good piece of news the Republicans seemed to have been able to get the Democrats to drop their demand that suspect "social services" groups like A.C.O.R.N don't get hold of any taxpayer money since their record of corruption and voter registration fraud is one of the under reported scandals in this whole mess. Here is the money quote:

They also agreed not to dedicate a portion of any profits from the bailout
program to an affordable housing fund that Republicans claimed would primarily
assist social service organizations that support the Democratic Party, the
official said

Only time will tell how badly we taxpayers are being screwed by this legislation and those who negotiated it want this passed before the opening bell of Wall Street. So it looks like our time is up!

BAILOUT: The fix was in...

This BCP post from February is going into the I told you so file. All the hoopla about the administration officials coming up with this plan to buy up the toxic mortgages and bad sub prime debt and make us U.S. taxpayers pay for it is a bunch of B.S. The fix was in many months ago as I correctly predicted in February. It always seemed curious to me why the Bank of America would buy a failed mortgage broker like Countrywide with all it's bad sub prime debt. The answer is now clear Bank of America had a plan to unload that bad debt from the Countrywide purchase on us taxpayers from the begining. With the recently announced plan to have the government spend 700 billion dollars to purchase these subprime loans it looks like they succeeded. Here is exhibit A from my Post in February 2008:



"Bank of America, which is in the process of acquiring Countrywide Financial and has potentially huge exposure, has circulated a proposal to create a new federal agency that would buy vast quantities of delinquent mortgages at a deep discount and replace them with fixed-rate federally guaranteed loans."-New York Times 2/2008



That sounds very similar to what is being railroaded in in Washington this week. Just remember I told you so.

Sub prime suckers!

As the Washington Post reports today the other shoe is about to drop on the sub prime loan debacle and as I predicted it is going to fall on us taxpayers. In a cryptic speech yesterday Treasury Secretary Henry Paulson announced a "plan" to help bailout the sub prime loan borrowers and lenders. Details of which are supposed to be announce "later this week". Let's hope it is not in the dark of night here are some of the money quotes:

"Municipal housing authorities now offer mortgages at lower-than-average rates to credit-worthy, first-time buyers whose earnings are at or below the average household income levels, which vary by region. Cities and states can provide such advantageous loans because they sell tax-exempt bonds backing the mortgages to investors at lower rates, passing on the savings to homeowners. "

Translation: The loan risk will be slid off the banks portfolio and onto the taxpayers, Hola suckers taxpayers!

"The lack of details has made it hard to know how many homeowners the plan would help. In the past two years, about 2 million credit-challenged, or sub prime borrowers bought houses with mortgages that typically had interest rates of 7 to 8 percent. "

Credit challenged? What type of politically correct nonsense is this? The banks and lenders gave these loans out to these people. They are the ones responsible but, there is a slight of hand going on here and these "credit challenged" homeowners are about to become the problem of us taxpayers and not the lenders and banks who gave them the loans.

"Paulson's plan also faces a daunting task of figuring out who is eligible for mortgage relief, because many loans have little documentation of a homeowners income, said Douglas W. Elmendorf, a senior fellow at the Brookings Institution"

You can just smell the lawsuits beginning from those who don't get relief. I'm not even going to go into the number of illegal immigrants who have gotten sub prime loans which is the eight hundred pound gorilla in the room that no one wants to talk about.

" Whatever plan Paulson presents, "they are going to need the nonprofit community," said Kenneth D. Wade, chief executive of NeighborWorks America, who spoke at the housing forum yesterday. "

Oh yeah this is a good one. Let the "non profits" run the show. You can see the corruption beginning. The banks will be off the hook and by the time anyone realizes how much money was ripped off from the taxpayers who are subsidizing this bailout it will be too late. Get ready to open your wallets sucker taxpayers!