by Author Name Withheld 96

Created on: January 24, 2009   Last Updated: March 31, 2009

The first thing that the bailout package should address is the rising level of foreclosures within the United States. The Congresswoman from Toledo, Ohio Marcy Kaptur told about how some foreclosed properties within her district were selling for less than forty three hundred dollars at these autions. These banks need strings attached that call for heavier regulations for any future loans that they give out. There were horror stories being told about how people were able to get a home loan without even doing a basic credit check. The fact that folks end up getting a loan without having to show any of their financial history means there is a problem. There is indeed a possibility that some predatory lending practices were going on as lenders were looking for that commission in accordance with every deal they close.

As far as the auto industry goes in regard to the rest of these TARP funds there needs to be at least change at the top of General Motors. The Chief Executive Officer of General Motors needs to resign at General Motors before we take these auto companies seriously when they speak about real reforms. It is hard to say whether Bob Nardeli or Alan Mulally need to resign at their posts with Chrysler and Ford respectively. I say this because both of them seem to have a pretty good track record at Boeing in Mually's case or Home Depot when referencing Nardelli.

There will have to be concessions on both the side of labor and management when it comes to the auto industry. It seems like the President of the United Auto Workers and Senators like Bob Corker of Tennessee appear to just merely be readying themselves for a showdown. The key is to how effective this newly appointed auto czar and the new Secretary of the Treasury Tim Geinther can manage these funds and get concessions from the Congress. It appears that the House of Representatives has already blocked the release of the second half of the TARP funds. The removal of former Secretary Henry Paulson is not the magic bullet that so many people in the House think it will be to solving the problem with the TARP program. One positive thing about this auto industry restructuring is that it will more than likely lead to more fuel efficent cars and potentially this will lead to lower gas prices.

One good thing about the bailout structure is that the FDIC insurance has been increased in case of calamity. The biggest part of this that has helped the banks and thus will help the every day American is that it has freeded up lines of credit for people to keep their buisnesses a float. The restructuring and merging of banks may help folks work their way through bank bureaucracy. The merging of Wachovia and Wells Fargo is a perfect example of this. Sometimes having these banks dump their bad assets is truly a positive for the average taxpayer. Citigroup was reportedly not very happy about this merger, but they and Bob Rubin a former prominent member on their board have been wandering around in a sort of malaise to begin with lately anyway.

In a sort of ironic and not so humorous way all this trouble that people are having with their assets could create more job openings in the arena of debt collection. This could potentially lead to a greater patroling of financial companies which are privately held so they don't end up leaving their small time investors with nothing to show for their investment.

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