Paul, you didnt read my post - I said nothing about teaching anyone a lesson. The US market works much differently to the Aust system, and government intervention in their market is only going to push back the time of the hurt. I believe that their system needs to crash properly and let the intracacies rear their heads, in order for them to have a chance to rebuild a new system that has more integrity (and I am not talking personal integrity, rather a system with in-built checks and balances which appear to be missing in the current climate). Australian markets are still much more conservative, with more regulation, and thus government interference is generally seen in a better light, and therefore tends to work more effectively.

As for cutting off my nose, no such thing. I am just prepared to be realistic and acknowledge that I am owed no relief just because I'm a nice person. If we dont let this get fixed properly now rather than a bandaid patch, its going to hurt worse later. I'm still young enough to rebuild if I lose everything (which is the attitude I would still have even if I were 50).

It's all so simple, if you think about it.

Yes, where must be a bailout, but that bailout must be used to buy the heads of the bankers that caused the problem.

Unfortunately, we don't live in the times of John the Baptist, so we can't expect their heads, in the physical sence, but their resignations could be part of the deal. Getting a new bunch, with a bit of fear, in there will help for a while, but the system must change.

Phoenix, it doesn't work like that in the US. The loan defaulters just hand back the keys. They have no further responsibility for the arrears, & that's where the problem lies.

Ludwig, you will get your desired cut in population that way, millions will die in the ensuing turmoil.

Gal, a bit less self centred thinking would be more suitable. "Even if you were 50", & almost dead was left out of your selfish, self obsessed statement. How about if you were 60, or 70, or even 80? Not much thought for those who have wasted their lives, & money, paying for people like you, to be educated & supported, in your youth. It appears that they are now expendable, now you have had your use of them.

Did you just shoot your mouth off, with out thinking, or is that really your attitude?

It seems to me that the fault lies in two areas.
The first is the mortgage brokers who lent to anyone with a pulse.
They then passed the loans back to their finance source and then
disappeared over the horizon.

The second was the finance companies/banks who then took the mortgages
and sliced them up into little bits and put the bits together into
random packages. They then flogged them off as AAA rated instruments.

Then the banks, local government etc bought them up on the S&P rating.
Now it is difficult to know the worth of a package.
So now that the holders do not know the value some are going broke
because they have no backing for their own borrowing.

If the government buys the packages, but at a price that saves the holder but end up with toilet paper.
If they pay what they are worth they will still leave the holder in
the you know what. Later the government may be able to work out how
much they own of what house and sell it off.

Its is a mess.

*"Even if you were 50", & almost dead was left out of your selfish, self obsessed statement.*

Whoah Hasbeen, I think that CountryGal should be applauded for her
matter of fact and realistic way of dealing with her problems,
rather then want Govts to bail her out. Good on her for paddling
her own canoe!

Nowhere did she mention your canoe, which is what you should be
paddling.

"Some" people don't understand that the necessary bailout does NOT mean business as usual for the people who made the mess in the first place.

The regulatory controls will be much more stringent.

This bailout vs no bailout is not about ideology or revenge, except for the stupid. It's about saving the American economy from a deep and long depression. And who's that going to hurt the most? That's right, NOT the rich, but the ordinary taxpayer. I guess some people don't care about that.

Hopefully there will be some lessons for the anti-regulation brigade here. Australia has cushioned itself to some extent because of regulation (albeit minimalist) and the role of the Reserve Bank.

Like Graham Y I oscillated for a while on either side of this debate but for the benefit of a longer term perspective I vote no bail out.

http://www.votenobailout.org/

Let the banks sort it out. Some will go bankrupt but others will be bought out like Merrill Lynch by the Bank of America.