CNN Has One of the Best Tracking Lists for Total Government Bailout Loans, Guarantees and Spending
CNNMoney.com recently published a list showing the total government dollars allocated and spent since December, 2008 as of February 10, 2009 for various loans, guarantees and direct spending for economic and financial bailouts Economy rescue: Adding up the dollars. The list shows $10 trillion allocated and $3.8 trillion actually "spent" (actually most of the "spent" is loans not spending, and most of the "allocated" is guarantees or authorizations that may never be spent).
We can't help noticing that very little of that money is for programs to provide direct cash aid or loans to help homeowners or other individual Americans. How can anybody justify that the taxpayers should be bailing out large corporations with almost $10 trillion of their funds and then pay the resulting future tax bill when over 2 million homeowners have been foreclosed since 2006, 25% of homeowners have zero or negative equity in their homes, 8% are unemployed and some analysts think almost 4 million more will lose their homes in the next four years? We also note that total mortgage debt on the U.S. residential properties is estimated at $12.2 trillion as of the end of 2008 according to Freddie Mac ("Freddie Mac Update, January, 2009"). So the $10 trillion in bailout money allocated since December, 2008 could pay off 82% of all residential mortgage debt in the U.S.
Unfortunately, while the $10 trillion will do much to save lenders and investors from their mortgage losses, hardly any it will do anything to relieve any of the excess mortgage debt of consumers that is the heart of all the financial and economic problems. So, the taxpayer spending won't do much for most individual citizens, for the housing market or the economy in general. Meanwhile, lenders' mortgage loans and investors mortgage securities will remain devalued assets. Wouldn't it make much more sense for the government to dedicate $4.7 trillion to lend to homeowners and lenders as proposed by The AllStreets Bailout Plan, that would actually solve all the problems for consumers, lenders, investors and governments?
We can't help noticing that very little of that money is for programs to provide direct cash aid or loans to help homeowners or other individual Americans. How can anybody justify that the taxpayers should be bailing out large corporations with almost $10 trillion of their funds and then pay the resulting future tax bill when over 2 million homeowners have been foreclosed since 2006, 25% of homeowners have zero or negative equity in their homes, 8% are unemployed and some analysts think almost 4 million more will lose their homes in the next four years? We also note that total mortgage debt on the U.S. residential properties is estimated at $12.2 trillion as of the end of 2008 according to Freddie Mac ("Freddie Mac Update, January, 2009"). So the $10 trillion in bailout money allocated since December, 2008 could pay off 82% of all residential mortgage debt in the U.S.
Unfortunately, while the $10 trillion will do much to save lenders and investors from their mortgage losses, hardly any it will do anything to relieve any of the excess mortgage debt of consumers that is the heart of all the financial and economic problems. So, the taxpayer spending won't do much for most individual citizens, for the housing market or the economy in general. Meanwhile, lenders' mortgage loans and investors mortgage securities will remain devalued assets. Wouldn't it make much more sense for the government to dedicate $4.7 trillion to lend to homeowners and lenders as proposed by The AllStreets Bailout Plan, that would actually solve all the problems for consumers, lenders, investors and governments?
Posted by The Mortgage News at 2/16/2009 12:13 PM 
Categories: bank bailout,Credit Crisis,debt crisis,Wall Street bailout,TARP funds,mortgage crisis,government bailouts,AllStreets Bailout Plan,economic stimulus,Main Street bailout
Categories: bank bailout,Credit Crisis,debt crisis,Wall Street bailout,TARP funds,mortgage crisis,government bailouts,AllStreets Bailout Plan,economic stimulus,Main Street bailout
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