Congress feels its time for taxpayers to bail out billionaires again. This time it's wealthy mall owners who borrowed too much and have been bribing con-gress to save them.

Posted by freedomforall 4 years, 11 months ago to Government
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"While any struggling commercial borrower that was previously in good financial standing would be eligible to apply for funds to cover mortgage payments, the facility is designed specifically for CMBS borrowers.

It gets better, because not only are taxpayers ultimately on the hook via the various Fed-Treasury JVs that will fund these programs, but the new money will by default be junior to existing insolvent debt.
which means that if there is another economic downturn, the taxpayer funds get wiped out first while the pre-existing debt - the debt which was unreapayble to begin with - will remain on the books! So then the taxpayers can bail them out AGAIN because the corrupt con-gress made this idiotic deal.
The entire con-gress should be placed in prison for life for this treasonous rubbish.

LET ALL THESE INCOMPETENT BUSINESSES FAIL!
LET THE PRICE OF COMMERCIAL PROPERTY FALL TO THE REAL MARKET PRICE.

All Comments

  • Posted by $ 25n56il4 4 years, 11 months ago in reply to this comment.
    Banks in Texas are so tight they squeak. A friend is buying a property at $220K (4br3bath 3600sq ft). They noticed he had an outstanding loan of $1.5 m. What the heck he owns property valued at $10m? I will keep you posted.
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  • Posted by $ 25n56il4 4 years, 11 months ago in reply to this comment.
    We don't do business his way in Texas. If he's over-extended...too bad...we don't care if he should fail. What makes him so special?
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  • Posted by amhunt 4 years, 11 months ago in reply to this comment.
    Yes indeed and the banking cartel might pull off this massive theft only because of the brain dead notion that it is proper for government to intervene in the economy.
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  • Posted by freedomforall 4 years, 11 months ago in reply to this comment.
    It is a "solution" that worked from 1788 to the mid 20th century because success should be rewarded and failure should not. The banking cartel and their government stooges have almost destroyed America by rewarding sloth and failure, and punishing success and productive work.
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  • Posted by Lucky 4 years, 11 months ago
    Giving money to owners of failed businesses- that is the conservative approach!
    The socialist approach is to give money to the ex-employees. Better? But-
    What should a halfway Objectivist do , nothing?
    Take another hard look at laws and regulations hindering new businesses starting up, and causing established business to fail...

    FFA's solution is right, actually the kindest, fairest, most ethical, policy for everyone including the economy.
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  • Posted by freedomforall 4 years, 11 months ago
    Some in the industry have warned that an attempt to rescue the CMBS market would disproportionately benefit a handful of large real-estate owners, rather than small-business owners; it is because they are precisely right: roughly 80% of CMBS debt is held by a handful of funds who will be the ultimate beneficiaries of this unprecedented bailout; funds which have spent a lot of money lobbying Messrs Taylor and Lawson.

    It's time for TAR and FEATHERS and a trip to Guantanamo for the con-gress.
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