Comments on: The Mother of All Bailouts

By: Cliff Carson

Cliff Carson — Mon, 16 Mar 2009 22:52:02 +0000

River-Wind. What got my attention was that the interest on the $300 billion for the year the money was allocated would amount to around $15 Billion. Someone is raking that in.

And just as bad is that if the 400,000 mortgages had been saved at the cost of the $300 Billion the cost would have been $750,000 for each saved mortgage!!!

That’s obscene. Those people ought to go to jail.

By: Ferenc

Ferenc — Mon, 16 Mar 2009 22:15:22 +0000

I believe every government program to be a failure no matter what the economic result. why? because to make one company or one group more profitable, they have to take that same money from someone else.

I call that stealing.

By: river-wind

river-wind — Wed, 25 Feb 2009 02:20:31 +0000

Thank you, Cliff Carson. I’ve taken a look at that article and a few others based on some further searching.

The reality does seem to be that the program was a failure so far, though the good news is that by failing, it hasn’t used much of its $300M budget yet. I have not, however, found any estimates of how much *has* been spent, to get a better feel for the actual dollar/mortgage ratio at this time.

By: Cliff Carson

Cliff Carson — Tue, 24 Feb 2009 03:48:59 +0000

River Wind-I pasted you a link about the $300 Billion Bailout.

By: Cliff Carson

Cliff Carson — Tue, 24 Feb 2009 00:19:47 +0000

http://dailyme.com/story/2009020300005359/

River-Wind. Here is a story about it. In this story the number of loans closed is 25.

By: Cliff Carson

Cliff Carson — Mon, 23 Feb 2009 23:55:11 +0000

River-Wind. Sorry to be so late to respond. I too have looked for articles. None to be found. But I did see the Senate Hearing on C-Span. I’ll look and see if I wrote anything down that might show the when, I will let you know.

By: Frank-O

Frank-O — Mon, 23 Feb 2009 23:33:54 +0000

I wonder if we’re going to see “mother of all bailouts” version’s 2, 3, and 4 coming out of the Obama administration. all they know how to do is borrow and spend – way beyond our means, and it’s not going to fix anything. So, will they add a few trillion next year?

By: river-wind

river-wind — Thu, 19 Feb 2009 18:49:07 +0000

Cliff Carson: do you have a reference to how much of the allocated $300B was actually spent, or a link RE: the 13 homes saved?

I can’t find any good references. Thanks!

By: Cliff Carson

Cliff Carson — Thu, 19 Feb 2009 02:57:05 +0000

So many have said that Larken’s piece is ludicrous. And I agree to a point, however, from my view he was demonstrating how ludicrous the bailouts are.

I didn’t see it mentioned but I watched a Senate hearing on C-Span two or three weeks ago, where the subject was the $300 Billion bailout for 400,000 homeowners approved last April.

I had divided $300 Billion by 400,000 and the result revealed to me that if 400,000 were helped and the total $300 Billion were spent, then it would cost the taxpayer $750,000 for every mortgage saved. If less than that were saved, and the entire amount spent, it would cost more than $750,000 for each mortgage saved.

So I wrote an article about it on this blog.

Well anyway in this Senate hearing, the question was asked “How many mortgages have been saved by this bailout since April. The answer was 13.

I figured that $300 Billion @ 5% Interest for one year would yield $15 Billion of earned interest. So if my math doesn’t fail me
the cost of bailing out those 13 mortgages exceeded a Billion each ( that’s 1,000 Million ).

See Larken’s story isn’t so lubricious after all. Because what I have reported here has actually happened. It is not speculation.

By: Dave Anderson

Dave Anderson — Wed, 18 Feb 2009 23:46:13 +0000

Wow, that’s just jaw-dropping, river. Glad you came back with a follow up on that. Even if it were just 33, it would be far too massive. Hope to see you on some other posts around here soon!