We won't get our house in order by putting another $2-4 trillion on the national VISA card.
Where are you getting those wild numbers: It wont be that much. Work the numbers right and the paulson bailout will be net cost of zero. Like cost is $100-300 billion, about what 5 years of farm bill cost, and less than the housing bailout already passed.
I would prefer a free market approach but the predictions of cost are just wrong.
COmment on seeking alpha:
1.Mortgages that default are not worth zero.
2.Mortgages that pay are not worth ‘par’.
3.There is no real market for these mortgages.
4.Just because there is no market (today) does not make the assets valueless.
5.Mark to market pricing is a disaster. Your house is not always worth what you could get if YOU HAD to sell your house in 24 hours.
6. Yes, the taxpayers will take a hit. Some % of the bailout will not be recovered.
8.If 1/3 to 1/2 the financial institutions in America go insolvent, and business lending and consumer lending grinds to a halt, the tax payers will take a hit as well.
9.The plan is not perfect, but the alternative is mighty scary!