What are they hiding?

I watched CSpan this morning and listened to some viewers calling in.

There was one gentleman who called in and identifed himself as someone who works on Wall St. He seemed to feel the bailout was wrong, as it targeted the wrong group of people. The problem was that there was not enough money coming in to pay loans. An easy way to jump start the economy and system was to get those people making mortgage payments again. My summary of his comments.

Why bailout the people who thought they would profit from these loans? Did it make sense to give loans to people who could not afford the payments the day they signed the loan papers? What happened to responsibility? When did responsibility go out the window?

Who are these people that need to borrow money to "make the payroll"? I'd seriously like to know, who these people/companies are. Maybe the recipients of these kinds of loans will be the next bailout emergency?

Most folks I know with a payroll are self-employed, or employ just a few others. "Family businesses" - they work or go hungry, they can't afford healthcare. They have to practice common sense and frugality.

I would imagine they would never qualify for or think about a loan to make the payroll, I've never asked. It usually costs money to get a loan, something they just can't afford. And, if they could afford the fees associated with the loan, how would they ever pay it back? It's a slippery slope. jmho

IF the problem with these loans is that people have stopped making the payments, why not help people get caught up? Wouldn't that jump start the whole business from the bottom up? Trickle up, not trickle down economics in practice?

How could our government make this happen? This is a once in a 100 year event, which for most of us, is "once in a lifetime" (or so we pray). Seems like there should be a once in a 100 year solution.

Banks should know and be able to identify mortgages/loans in foreclosure, behind but not in foreclosure, or at risk (late payments, customer calls, etc.) for some other reason.

Why not allow these people the opportunity for a US government bailout?

There could be a review, to determine the ability of loan holders to afford the property in question. If someone has a reasonable hope of staying in the home, and making the payments, the government, within reason, could make the back payments, and work out a deal to keep any future tax refunds/rebates as a way to pay back this money to the taxpayer. IIRC, they do this with student loans, and other things to.

If the review determines that the borrower does not have the resources to repay the loan, the government could use bailout money to help that borrower walk away from the loan. Make arrangements for the borrower to return the property in good condition, and move out. The government has had VA/FHA/HUD housing for sale for many years. That is something the government has experience with.

If the government helped the little people, I think it would help the banks that are in trouble.

If the trickle up theory doesn't work for those banks in need, I have to wonder - Why? If you say the problem is that no money is coming in from bad loans, why wouldn't this fix it?

The U.S. government has offices and buildings all over this country. There are Tax, Social Security, Post Offices, and Veterans offices in every state, and probably every county/parish of this nation. No need to look for rental properties to make this happen.

I would imagine that are many banks, savings & loans, and mortgage companies that have a good track record. I am sure there are many people that make good decisions. The people are out there to help, I'm sure someone could organize this Financial FEMA team on short notice.

We live in the age of technology. Call in our resources. Start up the walk-in clinics for the distressed homeowners in two weeks. In my simple mind, it's just like a FEMA disaster team. FEMA has experience dealing with distressed homeowners.

I think government leaders need to start thinking of ways to bring the bailout to people on Main Street.

I think a "hand-up" loan to real people is a good way to jump start the economy.

just my humble opinions