Thursday, October 09, 2008

Who's Holding the Bag For The Banks?

 We're reliably informed that Senator McCain has decided on a plan of relief for people who are upside down on their mortgages.

The plan's simple. The Federal Government would buy up all these toxic mortgages, to the tune of $300 billion or more.

"B-b-but Sparky!" you say, "Doesn't that show the Senator c-c-cares?"

Of course. 

He cares about the bankers, because what that would do is allow them to slink off with their big fat bonus checks and get paid face value for the loans they made while you and I hold the bag for the toxic mortgages they wrote. 

Fact is, that'd also mean every Joe and Jane Doaks who live in a crummy apartment across the tracks owned by an unsympathetic landlord, who never have had a shot at owning the roof over their heads, and every other person who's paid their bills, lived modestly and scraped up a down payment for their little slice of la dolce vita. 

Rather than being a bailout, it's a pork barrel for the banks, their shady mortgage brokers, and their wastrel clients who would reap a windfall the likes of which old Croesus could only dream about.

And we haven't even talked about how it'd be paid for.


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