to get the housing market restored within the next decade.

I support this move. I agree that it has to be done.I am not sure that it will work, but we had to try.

I view this bill as more of a placebo treatment, than an actual solution. It is still all based on the trickle down principle: if we purchase a large portion of the fat cats' bad purchases, then they will trickle down the money we paid them, to the little guys.

I sure hope so, but I have my doubts. Here is why:

Why will they rush to give a lot of credit, to people who can not get it now, after they have been burned with a lot of bad credit, and just have lucked out by offloading it to the government. Are there requirements in the bill that forces them to lend the money, trickle down, if you will. or are they free to opt to treat it as profit, which will improve their stock profiles and quarterly earnings reports.

I have heard a lot about limiting the golden parachutes for the CEOs, but what about their stock options rewards. Do they get to keep them. If they do, then that would tempt them to hold on to the new cash influx, improve their assets profile, and thereby boost the value of their stock options. Is there anything in the bill that prohibits them from doing that.

As for all those housing mortgages that the government will be taking ownership of. There is no way that those homes are going to return to their full market values within the next ten years.

The reason why I say that is: Supply and demand. The reason why there was a housing bubble is because too many people, who should never have been ruled financially qualified to own a home, got one, and now have left those homes empty. So you now have a situation where supply far exceeds qualified demand. On top of that, getting a mortgage  approved will be almost impossible. Only those with the best credit ratings will be capable of being approved,  and the vast majority of those people already own homes,  and if they wish to move, they will not be able to sell their current homes.

The housing market is going to be in the doldrums for at least a decade, and only those with impeccable credit ratings will have any chance to get a mortgage.

I support the bill, because we had to give it a try, and maybe it
will provide a modest placebo boost to the economy, but that is the
best we can hope for. It is not going to change the dynamics of supply
and demand, and we are stuck with far too many houses on the market,
compared to the qualified demand numbers.