Friday, 03 October 2008

• Bailout anyone??

  This whole bailout thing has left me up in arms. As I have stated previously, hubby and I did not purchase a home during the recent "hey, if you can misstate your income high enough, we will give you a loan". We played it safe, continued to rent and waited for the bubble to burst.

  The bubble has indeed burst and we are still being affected. Our landlords made a poor business decision and that has left us in questionable standing with regards to our home. The really ironic thing is, my landlord happens to be realtor. She is so upset because she fell into the trap of adjustable rates without fulling realizing what she was doing. I think she summed it up best when she said, "This is what I do for a living and even I was confused about terms. How do they expect the average home buyer to understand this?"

  While I don't enjoy having to pay the price for others poor decisions, I do realize that the average American is the one being hardest hit by this economic crisis and unfortuantely, we are going to be the ones to pay the heaviest. This bailout is a joke. When our landlords attempted to refinance their loan to get it to a fixed rate, the banks pretty much brushed them off. This a couple that does not want the home to go into foreclosure, they realize they made a poor decision and are doing their best to make it right.

  The big banks are the real problem in this whole scenario. Greed won out over common sense and they just kept handing out loans on houses that were not worth near what the inflated market was saying they were worth. Now, we as taxpayers are forced to bail them out to the tune of 700 billion dollars. Had that been some low level executive with a small banking firm, they would have been convicted of fraud. The big boys however just have to put their hands out and ask for help. My problem with that is, they will not trickle that help down to the little guys.

  Based on what I have heard from our landlords, the banks are simply waiting this out until the bailout. They have no intentions of working with the thousands of people that are in danger of losing their homes. My feeling is they will still foreclose, take the loss, and then resale at another inflated price to recoup the funds. All of this at our expense so that they do not have to sell one of their jets, or one of the three mansions they own.

  While Hubby makes a  good living, in So Cal, we are still struggling with the increased price of everything. If they want to bail someone out, how about giving it to the working class that is simply trying to stay afloat? I can assure you that we would all be a bit more responsible with the funds than Big Money is being. I know we are not the only people feeling the crunch. Too bad greed is winning out once again and it is business as usual in Washington.

  So, are you in favor of this bailout? Do you really believe it will help the working class or do you think this is just another smoke screen Washington cooked up to cover their own behinds? Has the economic situation been a strain on your finances as well?

  • 9:04 AM
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