700,000,000,000

[BornBad]

Daym! I guess I do not follow politics enough, just caught CNN. Who gets the money? US population 301,139,947 (July 2007 est.) and that breaks down to about $2324.50 per person. However, I get the feeling this isn’t about the people, it's about those who already have substantial assets but don't wont to loose their chit . I need to review some political chatter on this.

[Warmouth]

Mortgage companies buy sell and trade mortgages as part of their bidness. The deal is, that such a high percentage of the mortgages being traded, were from deadbeats that got in over their heads, and had no way to pay what they owed. The big companies ended up with so many of the bad/worthless notes, that they were to a point that they couldn't cover their ass with either hand financially. The government will give/loan the money to the faulty mortgage companies holding these loans, so that they don't go broke, and can have enough time to figure out what to do with these worthless mortgage papers/loans.

Suposedly, it is a loan, and the banks will buy back the notes from the government within 10-15yrs.

The bad part is, what is there to keep other big banking businesses like credit cards, from running the ragged edge and fall into oblivion, with knowledge that the Feds will bail them out to keep thhe US from falling into a depression?

Banks shouldn't loan what can't be paid back, and people should ask for what they can't handle. Both were happening, and now they fell into the chit pile.

[BornBad]

Thanks, warmouth. So there is the very real chance a good chunk of it could just end up being bonuses for the already overpaid CEO's?

[Warmouth]

Doubt it. The CEO's already took their cut from the failing companies, so they don't need another cut.

What will be interesting is seeing what other pork the congress tacks onto the bill, since their signing out 700 billion anyway/