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Originally Posted by wiphan
The companies that made the bad loans have already been hurt and they are paying dearly for the fiscal irresponsibility that lead most of them into the situation. The problem is that there are no investors for very good, creditable consumers/businesses due to the issues and problems in the market place. Without the government stepping in and buying a lot of these investments, good honest businesses and consumers will not be able to obtain the financing that they normally could get. The government could actually profit by buying up these securities and some estimates are anywhere from $1-3 trillion yes trillion dollars in profit, by buying and holding these investments; however this depends on what price they buy them at. There is a liquidity crisis in the market that is affecting all financial institutions no matter if they ethically or unethically offered financing. The bailout is not all about letting bad businesses out of their fiscal irresponsible decisions.
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Fundamentally "toxic mortages" are toast and some feel why do taxpayers have to bail out a credit mess they had nothing to do with to begin with. These things should have been foreseen by the Fed long before it got to this point, I agree with alot of what you said but fundamentally I disagree with a Bailout.