Why should taxpayers have to foot the bill of bad investments by banks?
I have a different idea for the bail out.
1) Freeze all CEO and upper management salaries and bonuses of the affected companies until we can determine who was at fault. Confiscate any funds that were illegally earned. Obviously, if we can re-write capitalism with a stroke of a pen, we can re-write legal contracts, too.
2) By the mortgages at 60% of their value. There is no reason that we should guarantee the value of the real estate in question, as it has lost value from the bubble “highs”.
3) Insure that individual living in homes are not foreclosed, but, make no special conditions for investors/speculators who were flipping homes for a quick profit.
4) Raise lending rates by 1 – 2 %(Prime) in order to put a premium upon loans.