The first mistake and politicization of the Financial Recovery Plan is the misuse of the word “Bail Out”.  Any assets purchased by the Feds from any bank, will be at today’s current value, which can be up to and even less then one half of the loan amount- Meaning the bank loses one half of the loan they made.  Clearing this bad loan off of their books, will then allow the bank to free up their cash locked up in reserves to go out and lend again.  The only bail out being proposed or insisted upon by the left wing socialists, is insisting upon re-drafting loans so that the needy do not lose their homes.  My God!  Who the heck caused this problem if it is not the people who are not making the loan payments.  Okay, you got me, it could be the left wing socialists who mandated legislation to lend to these people in the first place. Go figure, under the Clinton administrations mandate to increase lending to economically challenged, HUD and FHA lower their lending standards, removing all prudent hurdles that home buyers have had to historically overcome, such as down payment, or, a verifiable job.  Most people losing their homes over committed themselves, bought too much of a home,  and eagerly sought out secondary financing to finance their need for boats and cars and toys.  So before we call it a bail out, look at who is really losing money and who has their hands out

W. Daniel Tate

Phelan

760-964-4976