Didn't the banking institutions learn from the S&L crisis in the 80's? Oh, that's right they got government assistance.. The U.S.government is taking assuming big business pensions and now we're getting buttered up to take losses from the big banks once again. They had record profits last year, why didn't the goverment tax them? Our out-of-control credit company in Washington will once again bail them out somehow.  Proof positive that if you're big business, have a large lobbying presence you can get the taxpayer's kids to pay for your mistakes. Dispicable. Soon to be $9 trilliion in debt and growing. Those don't tax and spend conservatives, got to love 'em. Every single American owes over $34k in debt! Maybe that will keep the tide of illegals illegal. Time to hyperinflate and pull a Brazil or Mexico maybe we'll be recovered when Social Securty is exhausted.

The government is already bailing out the banks.  By dropping the fed rate to 3% the yield curve steepens and the banks "print money" by buyiing long term tbills.  TSame thing happened in "91.  The bailout is well underway like it or not

another prime example of consumers being someone responsible of the problem is this:  I am a broker who has lost more loans that most over the years because I have been extremely upfront and not used the typical bait and switch tactics.  30 year fixed rate were lower last week than they had been in almost 4 years yet borrowers who are currently on ARMs wanted to wait and see what happened after the FEDS meeting to see if rates would get even lower.  Rates did but the bond insurer's announcement offset the rates cuts.  So, the people who could have lowered the rates last week gambled.  And now they want to wait again.  Who's fault is that?

TOO BAD THE BANKERS DON'T AND THE GOV'T DON'T LISTEN TO THE PEOPLE THAT IN MY ESTIMATION ARE SMARTER THAN THE EXPERTS. FIRST OFF OUR MONEY IS ONLY PAPER THERE ARE NO STANDARDS ANYMORE,(GOLD,SILVER,OR ANY OTHER PRECIOUS METAL), JUST PAPER. WE SHOULD ELECT PEOPLE THAT HAVE OUR INTERESTS AT HEART, NOT THEIR POCKETBOOK OR LOBBIEST.

I SAY REWRITE ALL THE MORTGAGES FRESH AT 5.5%INT. AND 85% WOULD BE SOLVENT. GET RID OF THE BRAIN DEAD EXECS AND GET SOME HELP WITH SOME COMMON SENSE. SAME WITH PROFESSIONAL POLITICIANS.

How about bailing out the citizens who will eventually be thrown out on the street along with their children simply because our beloved government and banking institutions rather see us drown in dept and eventually foreclose on our property

opposed to finding a middle ground on adjustible mortages.  This would at least help both parties from losing their investments, its definitely not in the best interests of the bank to have a customer default on a loan.  There is no respect

for the middle class anymore.  A changes is needed.

Let the banks and mortgage companies, along with sub prime borrowers and investors eat cake. They were all foolish and should share the cake equally. Give a slice to each and let them enjoy the fruits of their stupidity and greed.

ditto, ditto.  they made their bed, now lie in it.  one S&L bail-out was enough for me.  what happened to free-market capitalism and paying for your own stupid mistakes?  if individuals are supposed to be resposible for their actions, why not here?  what about investigating the criminal conduct that may be involved?

What did we get when we spent upwards of $350 billion bailing them out last time? Another opportunity to do the same! If we bail them out again, we will get the same reward. The banks, these insurers, home buyers who couldn't afford what the bought, Enron employees who put all their retirement funds in Enron stock, farmers who pay too much for land then whine about their low returns (all the while collecting welfare checks each year)...all acting out of greed, expecting to get something for nothing, and when instead they get nothing, or less, they expect someone else to pay.  If taxpayers are expected to bail them out, I say the taxpayer then should have claim to all of their future earnings and assets.  Why does the taxpayer only get to participate in the downside, without any possibility for sharing the gains?

There is a term in the banking world "too big to fail", which means that the government will not let big banks fail or go bankrupt because of the implications to the whole economy. If a big bank such as citigroup or B of A fails, it could create a massive and havoc bank run where people will panic and draw out their money from their other banks in fear that their banks will fail too. When a large number of customers withdraw their savings from the bank simultaneously, the bank will become insolvent. Imagine the implications to the entire financial system. If many or most banks suffer runs at the same time, then the resulting chain of bankruptcies can cause a long economic recession.

A lot of very good points posted and I agree with most of them.  The question is when are we going do something about it?  The concept of "government for the people" seems more like a government for big corporations.  What's going on in this country is a crime.   Printing paper money, issuing tax rebates and hoping the average American will spend it on nonessentials to rescue the economy and allow corp executives to continue to lie, steal and then retire with outrageous packages is mind blowing.