Government Bail-Out – Risk & Reward
Some folks took risks on buying homes 2-3 years ago with the thought that home prices would continue to increase and they would make off with a good ROI (sometimes with no money down at all). Others took the risk of not buying and possibly seeing the prices of housing running up to a level that those individuals could be priced out of the market forever (like the 1970's steep increases). Paulson/Bernanke are making it sound like they are alleviating risks took by investors -but this can only be done at the expense of others that took risks (and, should be rewarded accordingly when markets show favor to their strategy). Those that have saved money are being robbed through purposeful devaluation of the currency by those that believe that some folks risk taking is more important than others. This is not right -it can not even appear to be right. There is rhetoric which can be used to try & justify such events -but, even the rhetoric doesn't feel right.
So, when a neighbor doesn't pay his VISA card bill at the end of the month, we should all chip in? VISA factors in potential losses -if they do a bad job of this, they might go out of business and people with use AMEX or other companies will pop up instead. In fact, when folks don't pay their credit card bill, VISA (well, via the banks that actually hold the debt) sell that "bad debt" off to collection agencies. Check into it -there's a whole industry out there around bad debt collection. And, guess what, it doesn't involve the debt holder knocking on a few neighbors doors asking them to chip in. I hope that many adamantly oppose both the bailout bill and the whole theory around this anti-capitalistic crap -and specifically harass their elected officials until they get the idea.
What I do KNOW is that Bernanke said quite emphatically at his confirmation hearings that we were not in a housing bubble. How he could reach that conclusion, even in 2004 is a mystery. And he was clearly right on this wasn't he.
Why don’t we distribute the bail out money to every U.S. citizen over the age of 18. We could pay off our home loans. and pump the money back into the economy. Good luck to all of us.
Northern California Attorney
They’ll do all there complaining, put on a nice show for the viewing public but we all know there going give them what they want. The worse thing is long term they have no idea if this will make things better or worse. Then again that’s been the norm for the last 8 years so why change now.
San Diego Real Estate Broker
It’s always the same thing. When the big money boys have a problem, they start shouting “the sky is falling”. Let’s step back and take a deep breath and look at this thing for what it really is. The world will not end in the few weeks it will take to iron out the details. The guys that created this have to be held accountable and somebody should probable go to jail for fraud.
Tijuana Dental
That’s what helped us get in this mess is government distributing money we don’t have. We have got to pay the price and change our ways! This comes from a 55 year old divorcee with 2 children in college that makes $12 an hour! It’s called responsibility and priorities!
San Diego Attorney
The Fed, Treasury, and Wall Street took more than a year to finally come clean and start disclosing just how serious the mess was that they created. Now, with everyone seemingly pinned to the wall, they want the general public to accept the horrible truth and agree in five days to a bailout plan which the biggest perpetrator, Wall Street, has developed, and which Wall Street will steer and control as it evolves. What a crock. What unbelievable arrogance.
San Diego Eye Doctor
From my window prices of property is going up at a ridiculous rate and there are help wanted signs in every window. I want a new house, but they are all being held by investors who bailed out of the market when it went down (flip this house – no money down) Have not seen anyone thrown out of house, but might if gasoline keeps going up. The government said buy stocks – it is not gambling (churches even said so). Time to pay up. I have my retirement in2.4% CDs. Why should I help people that expected double digit returns. I can not stand more inflation and a weaker dollar that buys what I need from abroad. There has to be a correction, and now will be better than latter. To Hell with socialism and to Hell with this bailout.
Southern California Surgery
This is gloomy news. Corrections happen. While this mess is going to hurt someone, its a correction that needs to happen. Bailing out someone or something every time they get in trouble is just going to make it worse next time.
Clinical Researcher
Let’s get real Wall Street is not the only reason we are in this mess. Sure big mortgage companies offered housing loans at 110 percent to everyone who signed up but what about the Americans who took out those loans? Okay so you can’t pay for gas anymore, well then why do you drive your SUV’s to do you running around. The American mentality is out of date, we cant have it all nor can we have it all right now when we dont have the means to pay for it. How many Americans have a SUV, a house, a vacation home, and boat…lots of us…how many of us actually own these items? In America we use, buy and waste as much as we want whenever we want and that mentality is only just now starting to change. The housing bubble isn’t the only bubble that is going to burst. A 700 billion dollar bailout or any bailout is useless without addressing the way our economy works. Unsustainable growth is going to be hit by a recession.
Bail Bonds
San Diego Bail
Great post. I don’t think all the blame lies with the White House.
Have you seen this You Tube video–posted on AR?
http://activerain.com/blogsview/710781/Financial-Crisis-video-how