Federal Bailouts to Date Could Have Paid Off 90% of All Residential Mortgages
Bloomberg reported February 9 in U.S. Taxpayers Risk $9.7 Trillion on Bailout Programs that the total federal government direct bailout loans and guarantees to date, mostly to banks and Wall Street firms plus AIG and auto makers, could have paid off 90% of the $10.5 trillion in mortgages on residential properties in the U.S.
This underscores the tragedy of ineffective government efforts to date to stop the dramatic slide in housing values, prevent the crash in the stock markets, or resolve the paralysis in credit markets. Taxpayer resources and guarantees have been misdirected toward the symptoms of the real problem, the excess mortgage debt, and other types of consumer debt, rather than toward the problem itself. Until Congress, or the President acting under his emergency economic powers, does something to directly relieve consumer debt, especially upside down mortgage debt, the crisis will continue and worsen. One very effective, fair, fast-acting and comparatively inexpensive way to do that is our AllStreets Bailout Plan."The $9.7 trillion in pledges would be enough to send a $1,430 check to every man, woman and child alive in the world. It’s 13 times what the U.S. has spent so far on wars in Iraq and Afghanistan, according to Congressional Budget Office data, and is almost enough to pay off every home mortgage loan in the U.S., calculated at $10.5 trillion by the Federal Reserve."
Posted by The Mortgage News at 2/10/2009 7:52 AM 
Categories: bank bailout, Main Street bailout, Credit Crisis, foreclosure crisis, Wall Street bailout, AllStreets Bailout Plan, upside-down properties, TARP funds, government bailouts, economic stimulus, mortgage crisis, Mortgage Legislation
Categories: bank bailout, Main Street bailout, Credit Crisis, foreclosure crisis, Wall Street bailout, AllStreets Bailout Plan, upside-down properties, TARP funds, government bailouts, economic stimulus, mortgage crisis, Mortgage Legislation
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