Saint John wrote: 
Giving a tax break to an oil comapny will
create jobs where as giving one to someone that didn't have the foresight to be able to pay a fixed mortgage only perpetuates a problem. People need to learn to save!!! These home owners
need to suffer...just like the banks should, which is why I am 100% against this bailout and disagree with both candidates.
A few issues here:
oil companies
They're reaping windfall profits right now, while working no harder. Given them tax breaks will do nothing but increase net profit, potentially dividends (if they're paying them) and retained earnings. No more. They wont hire new people with the savings, because they wont have to. It's along the same lines as giving a tax break to the rich to stimulate the economy. It doesn't work that way...because the rich dont need to run out and spend it. It just goes into the coffers and they spend as they normally would.
Sorry, on the oil discussions, I do not agree with oil ceo's and conservatives. People claim they're not making great profits, but I firmly believe they are taking advantage of massive earnings management to shield the public from windfall profits in an effort to temper public opinion from hanging, drawing and quartering them. Variable costs used in petrolium manufacturing are measured on basis of volume, not final sale. The 8% you see, is the 'managed' number at the end. When you spend x number of dollars to refine a gallon of gas, that X number of dollars doesn't change when the price of gas at the pump goes from 2 dollars to 4 dollars. In fact, the theoretical 8% that oil companies make at say 2 dollars is actually far in excess of 16% at 4 dollars a gallon....it's probably in the 25-40% range.
Home Owners
Listen, some home owners were given full disclosure...but there are ALOT of home owners that were preyed upon. Hell, in 2001, when my wife and I bought our first house....during closing, my wife caught out of the corner of her eye a very small print section that outlined how our mortgage was really an ARM...and not the fixed rate we demanded that we get. Our real estate lawyer didn't catch it....but my wife did. She, on the spot, fired the lawyer and continued the process herself.
Let me also state, our mortgage company was not selling us a sub prime mortgage...it was a mortgage through one of the most reputable banks in the country.
If this kinda of shit almost got past a corporate attorney and a computer programmer, it could have easily raped and pilaged the family of joe six pack blue collar worker.
There *was* predatory lending going on....significant amounts of it. Sorry....people that got hoodwinked by these lenders need more help than wall street.
credit default swaps and the market
Keep in mind, most of the mortgage backed securities and credit default swaps are dependent on mortgages not defaulting. If you give immediate help to people so that they *dont* default on their loans, the market will snap back....hard. Bailing out home owners makes *good* sense.