I know the handful of people that read this blog are probably already following this, but I thought I'd post on it to see if we can spark some discussion, just for fun, not for making any enemies with differing opinions.
I'll start by saying I have no idea what's really in the bill, it's difficult to find out, but I've heard several things that bear some discussion.
One being that judges would be given the authority to look at a loan and somehow reduce the payments of the mortgagee. I'm not sure then if the government would pick up the tab of the monthly shortfall to the bank? If so, we would be effectively subsidizing someone's mortgage. I'm not sure how I feel about that. Feels a lot like welfare-not really much different than Metropolitian housing now.
Since the bill couldn't get enough votes to pass they have added specific items that would then make certain senators vote yes. These specific items add an additional $150 BILLION to the price (according to the news). I know how I feel about that!
One of the on-line information sources I subscribe to sent me a link to a Ross Perot website-haven't thought about him in a while. Here's an alternative plan to the $850 Billion bailout. I don't know if it's better or worse than the current bailout plan, but it's certainly worth looking into in my opinion.
Anyone have any thoughts out there?
I'm a big believer in the market. It will correct over time. I think we should do nothing-the banks that have a bad business model of sub-prime loans will fail, and sell their good loans to banks that have a good business model. Lots of people who can't afford the home they have will lose their homes and rent like they probably should have (not all mind you-I'm generalizing).
Now realizing that if the banks do fail, good money would be lost for depositors of those banks-and I think the government could step in with FDIC insurance and beyond to make those depositors whole.
I think we'll end up paying for it one way or another and I'd like to reward the banks and people who maintained good financial decisions when everyone else was all willy-nilly, instead of raising the failing banks and home mortgage defaulters to the level of the good business model companies and responsible homeowners who only bought as much home as they really could afford.
But hey, really, what do I know?