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C.C. bailout package I am a mortgage trader. This bailout off 700b will not work as you have stated. Instead of buying up dead cmo or cdo’s that are dead asset’s now flow of funds because the homeowner will and cannot pay. Instead of trying to get mortgage rates to 5.00% the homeowner cannot refi. Banks will not lend to him anyway. Take down the wamu, countrywide etc signs and put up federal govt 2009. How much can you pay mr. smith to stay in your home $500, $1,000 whatever. Ok we will PAY OFF the existing mortgage. That amount that you can pay comes to 2% 3% 1% whatever. Done. The old mortgage now in a cmo or cdo’s shows cash flow into the dead assets as a trader I can analyze flow of funds (speeds) and know dead asset’s show some life, have value. The man on the street stays in his or her home and the economy shows life. Banks have lending competition with the govt, won’t be under pressure to lend what they do not have, money. Buy just buying up assets and giving citi 100b of the 700b they are not being forced to lend it out. The main on the street already in under pressure how can he refi with say 20% down. Another bailout package is being floated. What will another $600 do? Get the money into the hands of the people that need to stay in their homes. The govt will make money on anything over 1.5% and the dead asset’s mr. Paulson is buying will have value if they show movement within the various traunches that make them up. Modification of the loans just reduce the value of the traunche that that loan is in and makes them more worthless not more valuable . so the 20 or 40 cents on the dollar the govt is paying will just cause the govt to lose money. As traders we need to look at cmo’s or cdo’s with cash flow. Then we can trade them. Why would I participate in a market of worthless assets. Get the flow of funds into them and then a trader can spot value at a price. The housing market will never recover with more and more foreclosure’s. in the short run a homeowner will have a mortgage rate, rather a payment he can pay. The govt is already the largest land owner thru fannie mae and freddie mac. Let the govt back into the rate. The mortgage market can never get mortgage rates low enough nor can the homeowner ever get the necessary down payment to refi his exsisting mortgage. just a tired old mortgage trader G.P.

Cheryl, would you think it would be a good idea to not take any quick or rash action with one`s investments until after the election? I notice there are some people that are getting to the verge of panic and have been persuaded that a new and different leadership would be a bad thing. It might be wiser to remember that our country was in reasonably good shape eight years ago and was trashed by six years of total control by that change of leadership. The Democratic party has restored the country in previous times and might do it again if given the chance. It does not seem that more of the same destructive philosophy would offer much hope for improvement, and if that is the way we go, many more of us may get panicked.

Greetings, Now that the people's trust has been betrayed by Rep Barny Frank,(D) Mass, and Sen Chris Corruption Dodd (D)Conn. I'm play finacial self defence, I have no debt except the house, should I be investing in the stock market (Mutual Funds), or just pile up cash via money markets. Enjoy the product you (FOX) Produces, and assisting the folks, hopeful CNBC people are watching and learning, you guys are great mentors to the freshmen team over there.

I have a suggestion for getting both the housing and financial markets moving. How about requiring all banks and mortgage co.s that receive government bailout money assistance to convert all their 30 year mortgages to 35 or 40 year terms and reducing monthly payments accordingly? This would reduce forclosures and put more cash in the hands of loaners, borrowers and buyers/spenders.

We have 1000 share of Wachovia. Is Wachovia Bank and Wachovia Corporation the same or are they separate shares. How is this merger going to work? Are we going to get the price of Wells Fargo stock shares at the time of sale? Are we going to wind up as shareholders in Wells Fargo? I'm very confused about the whole situation. Please help!!

What I do not understand is why are the very people Democratic Senators Chris Dodd & Barnie Frank with Nancy Pelosi and the bunch who caused and lied about this mess still in charge of the Freddie Mac & Fannie Mae ? They used it as a cash cow and donated millions to Obama campaign and funded ACORN. Sadly our mainstream media have also sold us all out by not telling us the truth. They have not looked into any of the associations or work Barry (Barack ) Obama has been involved in. Say what you will at least you can look up McCain's record and see not earmarks or lobbyist to pay back. The fact is this election has been stolen by ACORN, ABC,CBS,MSNBC, NBC and the mainstream newspapers and media. They have truly done a disservice to all Americans. Here we are in our 2nd yr of retirement and watch our life saving vanish our home value in half and No accountability by anyone in the Senate & Congress. What do we do? stay in mutual funds risk more losses or take little left and penalty and taxes due. It will sure cost alot to withdraw the balance. I am really scared,most of all Ameerica is still asleep or watching American Idol and believe the outright lies by omission of our TV anchors. We will have no chance if Obama is elected since we will have lost the slim checks and balance. It will be a Democratic House of Rep & Democratic Senate and President, Who do you think they will be helping? It should not be that way with any party in full control. Life will change as we know it and sadly some will not believe it.

CC Just wanted to pass an FYI. Well last weekend sometime or before Saturday Night Live aire its own fun saticial skit on the bailout. Now guess who got mentioned in the process of satire. Herbert and Marion Sandler who sold thier bank in 06 to Wachavoia. At the sametime when this acquisition was made Wachavioa inadvertly inherited thier toxic subprime loans. Now NBC.com yanked the skit from their site for "legel reasons." I can tell you from the Nikki Hollywood blog where I comment on the film and entertainment industry commentors aren't buying it. Now its time to make the Sandlers the villians of the subprime mess. I believe every jornalist hound should freak them out. Freak them out becouse of the mess they're part of. Bill O'Reilly complomented SNL for bring it all to light.

I have an annuity with River Source should I take out? What should I do, I have 90K on credit cards, one mortgage of 530K,(6.75%) (house valued at 785 two years ago) own a commercial building which is worth around 600K, 6 time shares fully paid, one piece of land which is worth around 50K, another piece of land worth 90K, paying for 3 automobile loans, one 2.9% interest,(owe 6K) 2nd 3.9%(owe 5K, and the other one 8%,(owe 20K. MY plan is- either refinance to pay the credit cards, or finance the commercial building pay off the cars and credit cards. Please help me I am in a mess. (There have been many circumstances) I know that a FHA loan in NY only gives a jumbo fixed loan up to 443K, so that may not be possible, the commercial building is in PA the FHA in Pa lends you up to 747K. What can I do or should do? I have a couple of dollars on two IRA'S, only has 1,600 in one, 7K on the other and 30K on the annuity.My credit cards are all cuRrent but the finance charges are ridiculous. PLEASE HELP

We had bonds in WAMU and Lehman Bros. and suffered a tremendous loss on those bonds. We still have Credit Suisse, Genworth Capital and GE Capital bonds in our portfolio. It appears those bonds are also in serious trouble. Two questions: How could the Federal Government take over the WAMU's of the world and NOT protect the bondholders? What should we do with the previously mentioned remaining bonds?

Hey Cheryl, I have a $250,000 life insurance policy with AIG. If AIG, would of went under, what happens to these life insurance policies????? Who pays the benefit amount, if anyone???

where is the best place to put your money in inflationary times?

The root cause of this panic is because our Government has abandoned governing within our Constitutional principles which have been the guiding rules for America and the world. There are no longer any rules to steady America. This causes no order, fear and then panic. Our past history and our recent movement to Socialism has caused this. I would like for any conservative representatives we have left, both Republican and Democrat) to sign a NEW CONTRACT WITH AMERICA to return to governing only within our Constitutional laws. I think this would restore some order. Brenda C.

Greetings! Why would the Feds not declare a national emergency and close the financial markets while they figure "next steps". It was done during the 9/11 crisis and foreign markets have done it recently.

What would be a good book to read to understand in depth what these people are saying.....

Cheryl I have been watching Saving the Economy almost three weeks now. Well you and the other anchors are like professors of the new econ101. But personally it has been a learning experince. Also I've watch BloomburgTV and CNBC too. On the weekends CNBC doesn't do this for thier viewers and investors. I listen to the calls too. I emailed a question earlier in the week a question about Interest Rate Cutes. Well I'm not in a panic. Some talk of a depression. Some talk of a global recession too. But I've been learning as much as I can. When one's eye open fear fades away and knowledge takes over. For instant the some of the negative press comes from NBC and others to get Senator Obama elected. Some believe now that this selling going on now in the marketplace is related to Senator Obama. One weakness that Obama has. He doesn't KNOW JACK ABOUT ECONOMICS. Now the narrative is emerging about the elite democrats,ACORN,and how they're tied to the financial crisis. Things are emerging crystal clear. Case in point: last night I was watching SKyNews Business and two Aussies in the banking business chastized our politicans for exploiting economics for thier populace purposes. Even the Senate was criticized as well. So even overseas the Bailout isn't playing to fair. Drop me an emai sometime.

I am the mother and trustee of a grown (35) handicapped daughter's trust.(Money awarded her because of the incident that caused the handicap.)The entire trust, which has to last her the rest of her life, is in mutual funds. We have ridden out some rough times before and been ok, but I am near panic now about losing the only income this girl will ever have. The trust lost 99,900.00 of it's value last month alone and this month it looks worse. Should I sell her investments now to protect what she has left or ride it out in where it is? Please help me with this because,as I said, Iam near panic.

Hi Cheryl, I would like to see someone explain the LIBOR. We know the LIBOR is up because the banks aren't lending. Is this because they don't trust each other or because they want to hold onto their money, or both? What do we risk by injecting capital into the banks and on the flipside what could we gain?

With all the negative news, what do we have in this economy that's good? Call me blind, but I see trucks on the highway, traffic in the morning, Panera and Subway crowded at lunch time, hospitals still treating patients.

There was talk of gauranteeing money market mutual funds. Did they actually do that and are money market funds safe?

Why did the government extort 700 billion from the American tax payer to give to their banking buddies on wall street? When this "credit" crisis has blown over, what will result from the world's central banks printing up trillions upon trillions of dollars?

Should I hold AMD? How will the fannie mae and feddie mac bailout affect the stock market?

As physically held gold is the only asset which is no one else's liability, when troubled financial institutions with distressed paper assets seek a merger to forestall a collapse, what prevents the destruction of capital in the merged banks balance sheet ? This condition appears even more exagerrated when counterparties holding credit default swaps merge. For further discussion of this topics, please see www.ProfessorFekete.com Thank you

I want to know all the people that created, voted for and continue to push this financial mess! It's time to name the names and their political parties. Let the chips fall where they may! If we allow this to continue without punishment and/or it is allowed to happen again; then we, as a country, are finished! This is a matter of right and wrong. Fair and balanced does not have a place here.

CC: When will the Congressional investigations start on why Congress allowed Fannie Mae and Freddie Mac to be a honey pot of lobbying money? When will heads roll...people going to jail? Why isn't the public outraged at Congress? What happens when student loans and car loans start defaulting?

Cheryl, Everyone says the banks need more capital so why don't they raise interest rates on savings accounts? This way a lot of us who have money sitting on the sidelines or buried in the backyard or stuffed in an old mattress would deposit for the higher rate. I'm through with the stock market, I don't like going wondering every ten years if its time to get out of the market and as usual it seems like I get burned more often then not.

We've known about the U.S. economy struggling for quite a while, but it seems that only recently has the entire global market begun to go into a downfall. Why are so many countries' economies suddenly nosediving all at the same time? Do all of the foreign markets depend on the United States for stability?

Cheryl, what would be your advice for someone with no debt and considerable gains in their investments of stocks and stock mutual funds? Would the best plan be to continue to hold at this point rather than take big losses and put proceeds into cash or bonds? It seems that with the extremely low interest rates and chance of even lower rates, the people holding cash are to be the next victims of this debacle, especially lower income seniors without many other options. Thank you

The Root of theis problem is that The wages in the USA since 1978 have been about the same rate as wage increases.

I HEARD ALOT ABOUT MARK TO MARKET ACCOUNTING PRACTICES AND I NEED TO KNOW WHY THE POWERS THAT BE, DON'T DO AWAY WITH THIS PRINCIPLE. IT IS NOT AS IF THESE INVESTORS ARE HOLDING STOCKS, THEY ARE HOLDING TANGIBLE ASSETS THAT MAY NOT BE WORTH AS MUCH AS LAST YEAR BUT THEY ARE CERTAINLY NOT WORTH ZERO. IT WOULD MAKE SENSE TO HAVE THESE ASSETS APPRAISED AT TODAYS FAIR MARKET VALUE, THAN WE WOULD THERE TRUE VALUE. THANK YOU: JOSE TAVAREZ

Should I pay my 10,000 credit card off with part of my 20,000 savings. also have 25,000 for my 16 yr. old daughter's college. 50,000 owed in a helco..payment of 450 monthly. 400,000 in retirement. house worth 950,000 with 300,000 mortgage. son in college and pay 800 for his rent and 1800 for our mortgage. husband thinks we should keep money in savings. take home 5,500. try to put a little aside money in the savings....about 400-500.

To pay off the national debt, would it be a good idea to have the 26 to 35 million illegal immigrants become legal or something, in order for them to start paying taxes and start contributing to the debt. If 26 million illegal immigrants paid an average of 900 dollars a month, that would add over 2 TRILLION dollars to this countries tax revenue. Since these people were not paying taxes to begin with we could just throw that money at the debt until it is completely paid off. Just a thought, and wanted to know what you thought. You guys are doing a great job by the way. Thanks, Rich

i have a portfolio with corp bonds and ny munis bonds ......are my munis save

I have an annuity with AIG, should I keep it or cash it in? It's the bulk of my estate

what like to know if my tax free new york muni bonds .will be ok