[MathDoc]

Contrary to predictions from some supporters of the bailout plan, Whitney said on CNBC that the continued slump in housing prices will make a profit from the bailout unlikely. "I think you definitely lose money on this $700 billion structure," Whitney said. "There's no idea where house prices bottom, and as a result how can you make money on this transaction.

Of course the bailout is a money loser. If this was a good investment, then willing buyers would purchase the bad mortgages to obtain a profit. The only reason for a bailout is that it is a losing deal. The question is who should lose money on this deal: (1) the borrowers and lenders who made the bad decisions in the first place, or (2) those taxpayers who managed their money wisely. It looks to me like Congress has chosen.

[misterrob]

They are trying to buy a floor for the market and that’s not going to work since confidence comes from transparency and full understanding of risk and reward.

The government should be telling the market that good banks with good balance sheets will be supported. Tax breaks for business and consumers will be offered and spending will be held or reduced.

[Hop A Long Cassidy]

>>>Of course the bailout is a money loser. If this was a good investment, then willing buyers would purchase the bad mortgages to obtain a profit. The only reason for a bailout is that it is a losing deal. The question is who should lose money on this deal: (1) the borrowers and lenders who made the bad decisions in the first place, or (2) those taxpayers who managed their money wisely. It looks to me like Congress has chosen.

Such cold truth this early in the morning!