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?
5 comments:
I don't know much about the bailout. It is way over my head and gives me a headache to think about. But I do know that any bailout done by the government in my opinion is not going to fix the problem. I assume it may make it worse in the long run when we continue to let people do what they were doing to get to these problems. I did read about Dave Ramsey's solutions and I totally agree with this! http://www.daveramsey.com/media/pdf/the_common_sense_fix.pdf
I followed the link and read that. It sounds totally do-able to me. I don't understand why the govt doesn't try something like that first-I'd much prefer $50 billion to $700. His solution allows for the market to correct itself, which is the way to go, if you ask me!
I was also going to post Dave's plan. As coordinators of his Financial Peace University and living proof that his Baby Steps work, we always seek out his opinion first when deciding on matters like this. And once again, we're all about Dave's plan.
I wrote our legistlators asking them to vote NO on the bail out--hopefully the House will make the right decision tomorrow.
I don't see that this bail out plan will correct anything--it's like putting a Band-Aid on an amputated limb. It'll stop a little of the bleeding but it won't really help heal anything. And it's BAD NEWS in the long-run for the economy.
In the 232 year history of our country, we've never needed a government bail out to survive. It's unfortunate that this has all come to a head during election season--I suspect that the appraach would be drastcially different if it wasn't such a tumultuous election time.
Okay, so now that Congress has really screwed things up--what can we expect???? I'm so disappointed with today's decision.
May your troubles be less
Your blessings be more
And nothing but happiness
Come through your door. GOD does provide. Let us choose to pursue wisom. It is not something a person stumbles into or acquires automatically. It must be sought out diligently.We must seek GOD's plan. We apply wisdom to our lives. We'll walk feeling responsibility for our actions and use of time.Our lives should be spent in a way that produces the greatest amount of good.
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