the LYNCH report

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Bailout to Cost $5,354 per Tax Payer…

with 3 comments

The monumental “bailout” currently being proposed (and hurtling toward approval) carries with it an estimated price tag of $700,000,000,000. That breaks down to $5,354 for every person who filed a personal income tax return.

Notwithstanding the fact artificially increasing the supply of credit (via Fannie and Freddie “guaranteeing” otherwise poor mortgage risks) was responsible for the current mess in the first place, it seems there is wide-spread agreement among Washington politicians that socializing the US economy is somehow necessary, and fast.

The original proposal consisted of just three pages, scant on details and absent any oversight provisions. The figure is also essentially a guess: no one really knows just how much the proposed bill will cost.

How taking $5,354 from the pocket of each and every tax paying American in order to pay a purposely inflated price for assets no one is willing to freely purchase will lead to prosperity is more than a little difficult to comprehend, however today’s question is this: what do you plan to forego in order to pay your $5,354? Will you put off buying that needed new car? Will you continue renting, rather than buying a home? Will you cut back on food?

Written by westcoastsuccess

September 24, 2008 at 7:29 pm

3 Responses

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  1. I feel like throwing up. All of these mortgage brokers gave loans to people who they knew did not have the means to pay. Collecting huge commisions. All the while the banks allowed this behavior. I told my husband there would be trouble 5 years ago. We were approved for a $350,000.00 mortgage and I said no more than $190.00. I do not want to be robbing Peter to pay Paul. Don’t get me wrong many borrowers also knew they could not afford their loans but we are a get now pay later society. I pray for our children and grandchildren. We are just putting a band aid on the problem. Maybe we all need to learn to stop using credit and suffer the consequences.

    Heidi Dauer - MN

    September 25, 2008 at 11:18 am

  2. This whole thing makes me sick. After all the fat cats on Wall Street got their giant bonuses and salaries, now WE the taxpayers have to pay up?


    September 25, 2008 at 3:42 pm

  3. This has to be a ultimate shamefull act on part of our government. We, the middle class has to bail out thiese big companies who made millions in profits and did not even blink. How do we know that this will not happen again? We should have an ability to get this fat cats to return the profits and assist in bailout. What a shame!!!!!!


    September 29, 2008 at 10:33 am

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