Bailouts Continue for the Big Boys

Many of us have blogged in vain thus far, as Congress and the Fed continue to dole out billions to bail out the mortgage companies and investment bankers, while ignoring bankruptcy law reform that would cost the taxpayer nothing.

And the Fed, who caused the sub-prime crisis with Greenspan’s bubble, and Treasury Dept., are using the crisis to, guess what? increase their powers.

Bankruptcy law reform would allow judges in some Chapter 13 cases to write down the mortgage balance to the value of the home and change ARMs to fixed market interest rates.

Bankruptcy judges already have this power with every other asset, farms, second homes, virtually every asset, other than principal residences.

President Bush first tried the HOPE now program, call your mortgage company to see if they will “work something out.” By all accounts, this has achieved next to nothing. All is not lost. The bankruptcy reform provisions survive in the Senate, but will probably need 60 votes to pass there.

Kentucky Senator Bunning shared some thoughts on the bailout bill on CNBC.

Please contact your Senator to support this change, which costs taxpayers nothing.

If you have something to tell the Senate about the $30 billion dollar guarantee for

J. P. Morgan to bail out Bear Stearns, by all means do so.