The Bailout in Plain English

	September 25, 2008
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The plan calls for the government to buy from firms up to $700 billion in troubled assets — mainly mortgage-backed securities — whose values declined as the housing market imploded. The goal is to stabilize the companies and prompt them to lend again.

So the taxpayers give $700 billion to these unstable companies to “unclog” the market. These companies now have $700 billion dollars and whatever assets that were “clogging” the market. Now with that $700 billion in hand they can be free to sell those assets.

Assuming that the assets are worth $700 billion; when the companies sell those troublesome assets, they get to keep the proceeds. So not only are they getting $700 billion from the taxpayers for free. They are getting an additional $700 billion from selling them later on (not counting price inflation).

So the taxpayer is paying twice. How does that make sense? Why are they getting away with this? It is thievery plain and simple.