You can’t believe how hard it was to find this. Everyone talks around this bill, but there are precious few details.
I scanned the document, but I am no lawyer. It seems that the Secretary of the Treasury will be given a maximum of 700 billion dollars to buy up bad assets from financial institutions. He then can make deals with the home owners to lower interest, pay less, or just about anything to provide relief. There is language about unreasonable executive compensation, but I doubt if it will mean anything.
Basically, the government is buying up all the bad mortgages, including all the unpaid interest and penalties on them, and then probably forgiving them. There is no down side for the financial institutions. They do not lose any money on the deals. They will make a hefty profit on items they were expecting to write off.
In order to get this bill passed, they had to include $150 million in tax breaks to rich people.
My question is this: how do I get a piece of that $700 billion. Is it too late for me to get in line?