Friday, January 06, 2006

To Save New Orleans, the Feds Will Buy It

Here's the latest plan:

Under Baker's plan, Louisiana Recovery Corp. would step in to prevent defaults, similar in general nature to the Resolution Trust Corp. set up by Congress in 1989 to bail out the savings and loan industry. It would offer to buy out homeowners at no less than 60 percent of their equity prior to Katrina. Lenders would be offered up to 60 percent of what they are owed. To finance these expenditures, the government would sell bonds, and pay them off in part with the proceeds from the sale of land to developers.

About $80 billion. Note well the " them off IN PART with the proceeds from the sale of land to developers." Which part? 5%? 10%? 50%?

Side note: The "Resolution Turst Company" should sound very familiar--that agency was manipulated by X42 and Hildebeeste to bail out a S&L run by one of their close personal friends...

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