Here are several ideas for the "bailout".

The primary focus should be on homeowners. Defaulting mortgages are what is causing the chain reaction, so we need to stop it at the source. The approach MUST be bottom up, and not top down.

Bad mortgages should be refinanced. This can include changes to the structure of the mortgage (i.e. go from Adjustable Rate Mortgage to a Fixed Rate Mortgage), massive interest rate reductions (to make paying it off feasible), and reductions in principal (to get people out of "reverse mortgages" where they owe more than the house is worth; these people are most likely to walk away and default). One avenue for a bailout would be for the government to partially subsidize the reduction in principal, while lenders write down the remaining reduction.

Next, we need to force foreclosures to go to sale. Here, another government bailout could subsidize the losses made by selling foreclosed properties. This makes defaulted debt liquid again, while providing lenders with an incentive to finally sell the foreclosed homes.

Further, mortgage payments for borrowers at risk should be tax deductible, helping to ensure that they can feasibly pay off their debts. Remember, the key to keeping the system from collapsing is to restore liquidity, and the key to doing that is to make sure people keep paying their mortgages.

There should also be oversight provisions. Over the counter derivatives, as well as the swaps market (the source of much speculation, including oil futures), need to come under the scrutiny of someone, be it the SEC or the CTFC. They need to be given teeth or their acronyms ought to be "Steal Everyone's Cash" and "Consumers Totally Fleeced Constantly".

There need to be some punitive measures, as well. Wall Street needs to be punished for letting the market run wild instead of free.

Just say NO! to the Hanky Panky Plan.

So far we've survived 5 whole days of what was supposed to have been our imminent demise.

This is something that I've never had a completely clear answer on: what happens if we do nothing and let the firms collapse?

I honestly don't care if some billionaires lose their fortunes and have to get real jobs. What will the likely REAL effects on REAL people be?

If the effects will be negligible to most of us, or if the effects are likely to be little better than if we do nothing, I suggest we do nothing. The big boys should know that playing the markets is essentially gambling. And when you gamble you sometimes lose.

I'm tired of being bullied -- with vague threats about the end of the world -- into giving the Kings of Wall Street a blank check to do whatever they want with taxpayer money, all while Real People like me still have to work 40, 50, 60 or more hours per week to make ends meet. I have almost zero sympathy for Wall Street anymore -- "THEY" are not "US."

McCain has just announced that he will suspend his campaign, that would postpone the Friday debate, and return to Washington to work the financial crisis.

McCain’s statement seems to be using the Washington return as a means of pushing congress into higher gear because "he won't return to campaigning until the legislation is passed and it should be by this weekend if we just suspend politics and work together for the sake of the American people."

I don't think that Obama can really say no and the debate on international relations wouldn't be on that subject anyway.

At 8:30am this morning Obama called McCain and asked that they put together a joint statement on the economic crisis and fundamentals that have to be in a bill. McCain called back at 2:30pm and said he agreed and the two camps are now working on the statement. Score another for Obama on biparitisanship.

It looks like Obama is agreeing to suspend and return to Washington although he has not made an official statement yet.

It looks like Obama is agreeing to suspend and return to Washington although he has not made an official statement yet.

-- Retired Military Patriot

This suggests the opposite -- that Obama won't agree to postpone the debate --

http://blogs.abcnews.com/politicalradar/2008/09/mccain-not-comm.html

However a senior Obama campaign official said Obama "intends to debate."

"The debate is on," a senior Obama campaign official told ABC News.

I think that's the right call, both substantively (definitely) and politically (probably). Tens of millions of Americans watch those debates. They're a vital part of our political culture. People think they're extremely important. I really doubt anyone will fall for the idea that "a few hours debating the vital issues facing the country" will somehow preclude John McCain from fixing our economy.

The short answer is that you could lose your job by way of reduced demand for whatever it is you do.

The long answer is that the country is fueled by a money river. Bank loans, home loans, car loans, loans to buy inventory for stores, and loans to other banks.

Banks currently are reluctant to lend these days, especially to each other. The reason is that banks don't know what kind of toxic material each has and how much it will affect the ability to repay. The trust factor.

Should this continue, we will enter a recession, that if not checked, will turn into a depression. Everyone in the country will be affected to one degree or another.

There's some kind of short circuit in your brain, isn't there? You see your sterling advice and knowledgable comments in (digital) print and Boom! you're Albert Einstein!

Thanks, anyway, for that succinct summation of the present financial bro-ha-ha.

and all these boats float by - and from time to time there is a boat who tries to make it upstream and it just looks like John Mc Cain.

...whose sound cut off about 6 min. in, and now the darn thing won't play?

I think, rather than a debate on foreign policy, the debate should be used to help hash out a good policy for handling the economic crisis. It would only be appropriate that the candidates have an economic debate during an economic crisis.

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re: Shooter, personally I'm prepared to see my standard of living tank. I'm okay with that. Such a horrible depression may be the only cure for the idiocy that led us to this day.

Suppose everything does go to hell in a hand basket. Will we starve? Unlikely; we can grow our own food. It would be difficult, yes, but this isn't the end of the world. Just the end of Wall Street's free lunch.