This young person doesn't have anything like that. In fact, my parents got their house in a foreclosure of a "young" person who lived WAY above their means. My friend's parents sold their house about 4 years ago to a young couple. Recently they found themselves in middle of foreclosure, but something very shady went on with the removal of the as-is-where-is clause during the sale (He agreed to use the buyer's title company) and they got out of it due to foundation issues. So now my friend's parents are stuck with a messed up house with crappily done improvements.
You're describing a Depression, Salty. My folks grew up during The Great Depression and that generation was scarred for life. They never forgot it even during the good times. A Great Bailout is not the answer for sure, but there is plenty of middle ground between that and doing nothing and letting another Depression happen. It almost broke us last time and led to dictators rising all over the world in charge of despairing populations. We've learned a lot since then, and if there are things that can be done to prevent a Depression, short of bankrupting the country, we should do them. But it must be done smartly and it will take time to get it right. This One Big Fix solution won't work because we just don't trust our government with that kind of unchecked authority anymore. They need to establish the parameters by regulations and then let the markets adjust and fluctuate within balanced limits. I hope it's enough. If the market goes down to 7,000 points, our retirement savings, 401K's, securities, etc., will all be worth a small fraction of what we counted on. Pensions, Social Security and Medicare could be wiped out by this. And inflation will eat up everything left. It could be far worse than missing a Disney trip and cooking at home more. Far, far worse. It could be growing a garden and raising chickens because food prices are sky-high and the dollar is not worth much. It could mean mass unemployment and the resulting high crime. It's worth trying to prevent a Depression but I think it can be done better by making individual decisions that benefit the nation, not necessarily the lenders or the borowers, or the stockholders. A mass bailout is rife with possible problems from graft, corruption, and basic incompetence.
Passing or not passing this bill doesnt solve the problems that have been created...And i also expect the market to post a gain today and probably throughout the week.,although i doubt they make up the 700 plus point drop from monday...this gain would be a "dead cat bounce". The problem is this isnt the first of the bailouts and it won't be the last ...there may be as many as six more needed before the Election. This thing is the Titanic...MY advice ,grab a life preserver and get on a life boat,cause this ship is sinking.
Off topic but I just watched a 40ish, well dressed individual buy 2 plate lunches, 2 root beers and 3 cinnamon cakes and paid with his food stamp card. That still pisses me off. That is all.
not my point. certainly i agree with you that its not your house til its paid for (with some caveats), but the point is that the situation is the same for businesses and investment homes. except that the law should protect the residence more because that is one's home. as it stands residences arent even given equal billing.
i dont get it. if the govt gets these mortgages for 30 cents on the dollar it seems like a reasonable investment. are you saying that home values will never rise near the discounted price the govt will pay for them.
coulda been worse. he could have "bought" K-Y and maybe some armor all, or something. im with you though, sort of. i dont think they should be given stamps to buy almost anything they want (i think there are restrictions). the govt should hand out rice and beans and peanut butter, etc.
They (the bonds and CDOs) are not worthless if one plans to hold until maturity. You will receive par value or SLIGHTLY less. The current default rate is around 3%. The problem right now is that nobody knows how to calculate the present value of the debt. Therefore, they don't trade. And, if you're a bank - and there is a run on your money, and you can't sell any of your AAA-rated debt, and other banks won't lend you money......uh oh. I consider this less of a bailout and more of an investment in our banking system that will create cashflow and, ultimately, a positive return for all.
Yet another reason to stop this madness... Foreign Banks Hope Bailout Will Be Global http://www.nytimes.com/2008/09/22/business/22global.html No way, no how....screw this idea.
