Republican anger at ‘financial socialism’

FT.com / In depth - Republican anger at ‘financial socialism’

I too don't like this idea... I don't know the details, but the idea stinks..

If these are bad loans, then they need to be sold at significantly less than face value... the people that gave out these loans need to be taught a lesson, the same with the people that bought them. I know the 2nd part is harder, these loans were hidden in bundles with "A+" credit ratings. The system failed and no government regulation is going to fix it. The companies that rated these loans too highly NEED to go out of business. The NEW companies that take their place will have stronger rules... other investment companies that survive will have stricter rules on what they buy.

In other words ALLOWING these companies to fail will correct the market more and anything congress can do. Primarily the mortgage compies that gave out these bad loans should be allowed to FAIL, anyone that invested in them should loose their money. Also the credit rating companies and their stock owners should be allowed to fail.

Finally, people and compianies that bought over rated bad loans should be helped out, buy the loans back for 80% of its value or something like that... then the government can work with the borrowers to pay back only 75% or something like that. (some people would still pay 100% of their loan back, maybe that's unfair, but I'm paying 100% of my loan, so others can too, there are no real "innocent" victums here)

Most People get to keep their houses, the broader market gets most of it's money back (enough to keep them afloat) and the government only pays the different (what they by the loans for plus whatever they can get from the homeowners).

This can be done without costing 700 Billion if it's done right...