(Community Matters) Hot Damn – Democrats have put Paulson and Bush on notice that they won’t “hand over a $700 billion blank check.”
Obama issued a “statement of principles” regarding the bailout plan. One principle it emphasized was that the plan cannot bail out Wall St. and ignore the troubles on Main St.
They plan to insist on provisions to provide for taxpayer recouping of our investment (i.e., sounds like warrants), require firms participating in the bailout to limit executive compensation (including severance pay) and simultaneously provide legislative provisions that would allow sound & justified modification of mortgage terms for homeowners.
Of course, we shouldn’t be providing relief for either bad faith lenders, investors or home buyers. This bailout should be limited to those caught in the financial meltdown and circumstances as a result of bad faith sellers or issuers, whether lenders or taxpayers.
Community Matters 