I'm not sure it matters what we think when many who are in control of such a bailout may also be deeply invested in the greedy turned needy.
Each and every one of those companies pay professionals to produce projections of losses. The bottom lines are tabled, quarterly, and poured over and over and over by other professionals, suits and company investors, and these figures are presented to the board, and the books are audited and their figures are produced to the board.
Any investor/auditor could/can walk into a finance office and ask for a printout of every penny on the books, both profitable and delinquent, since most banking and finance companies also have intricate computer finance systems which produce any and all figures with the press of a button.
each financial institution, by law, has a reserve for losses in place, prior to the grand opening, prior to the first loan ever made, and it is fed by every loan payment made, directly out of profit, and then it fits neatly into the fund that isn't taxable, isn't that nice? And then when there are losses, those are neatly deducted, per IRS allowance. If such advantages for the banking industry doesn't help them stay afloat, then the officers are simply not qualified.
When the percent of delinquencies becomes more than the allowable percentage set in place than that of the reserve for losses, it doesn't take a genius to figure out how belly up the company is. It's simple math.
If your office is only allowed 2% delinquency a month and your prestomatic-uber-expensive-financial-program has just printed out a bottom line of 4% with $600,000 in delinquencies, well, guess what. It ain't damn time to go play golf.
I guaran-tee you, a lot more sweat was shed on a betting golf shot or a company bar tab, than over the bottom lines.
I say No. No bail.
They didn't even have to do the damn math. It's done for them.
There are too many people involved, too many state and fed audits to pass, too many pieces of investigative information, too many legal forms, too many policies, too many inspections, and too many signatures required, for the company and the signing party to NOT know the risks involved with each and every penny or piece of property they signed on the contractual line for.
Though if I had to pick a bail term?
I say give the banks a balloon note of 5 years at 2% interest then roll them at 20% interest on the balance at term. If they fail to meet the balance? Liquidate them.
Let the tables be turned.
Bush can take the loan out of the millions of dollars of taxes the IRS has sitting there, from stolen identities and illegal aliens who pay taxes but have never claimed them.