Monday, September 29, 2008

Bail Out

Ok people - let's talk bailout. As you may, or may not, know Bailout, Take 2 went down in defeat again today. The information tends to lend itself to the fact that many of us called to denounce the plan in its current form. The Republicans are reportedly the ones who tipped the scales with the school of thought being they didn't want to upset voters 5 weeks before the election. Fine and dandy - I'm just glad it was blocked and here is why:
This bailout is not designed to help you and me, Mr/Ms Average Citizen. This will in no way help us in any real manner. Sure, it could bolster the economy with a short sighted fix but I think "We the People" are demanding a long term fix for the price tag they are placing on it.

I do not care one stinkin' bit about the big financial houses who are struggling (and clearly they do not care about us). It won't help me if the government buys up the bad loans. I am sick and tired of "trickle down economics". We need "trickle UP economics". Help the little people down here in the middle and lower income brackets who are struggling to pay mortgages, put gas in our cars, buy groceries and pay for all the other millions of necessities (insurance, power, etc). Give US the help so we can afford to live and afford to put some of our hard earned money back into the economy. Let's use me for an example: if they would roll back mortgages (let's just say they take Whoopi Goldberg up on her idea of taking all mortgages taken out since 2003 and slicing them in half and writing off 50%) that would leave more "pocket money" and with that I could hire a guy to come in a weed our gardens. He would take his few hundred bucks and buy things for himself or his family (helping big business). I could afford to take the kids to the zoo more often thereby adding to the funds to pay caretakers who will buy things (again, taking care of big business). I could put my daughter in preschool which would pay teachers and building maintenance. Donate money to help my son's school and other very important, and underfunded, causes. The things we could do with the money could make a difference and then add to that the other people who would no longer be struggling to make ends meet and who could add their money to the economy. Trickling UP (probably more like pouring up as many of us would love to buy non-necessary things or take trips or splurge on something) instead of every so painfully and slowly, down.

Bailing out corporations isn't the solution. Reworking the loans into affordable terms for people - that's a good move. Buying down mortgages - that's a good move. But the government buying up bad mortgages? What good does that do the people who had the bad mortgage? None. They see nothing in return for that - they are still out of their home and struggling to make it.

It's probably true - some people over bought when they entered the housing market a few year ago. They were greedy, some might say. Sure, ok, let's go with that. But the majority are good, hard working, well meaning people who got into an adjustable rate mortgage they could afford for the first year, maybe even the second. Then the payment went up...and then gas...and then food...and then insurance...and then medical cost...and then the special dog food that is needed to keep their dog from getting sick again....and then..and then..and then. The rise in cost for everything is absolutely endless - unless you are talking about income. That has not gone up.

Is it any wonder some people have to walk away from their houses? When it becomes an either/or between mortgage or food for your children - what are most parents going to choose? And the thing is - it should not BE an either/or. Houses should be affordable and the fact that home values skyrocketed (some might say incorrectly so) is a huge factor in people getting in too deep.

So the bailout for big business...not the right move as far as I'm concerned (and I'm not alone). A bailout for the average American citizen is a MUCH better use of our (read that again: OUR!) tax dollars. And once WE are bailed out, people will be able to pay their mortgages, et al, thereby making the economy solid once again.

So politicians are afraid to vote for something the American people are saying is the wrong move but when, oh when, will they see what we are saying? I called all my representatives and left messages and according to articles everywhere, millions of us are doing the same thing.

Use out tax dollars to help US. And in turn, we will help big business. But use it to bail out big business and I'm afraid we are all in even more trouble than we are right now.

6 comments:

A Jersey Girl said...

Good to know Pay Pal caught that so quickly. I am glad it all worked out. I always worry about that.


Emily

Tanya said...

I've been wondering all day, what will happen to us personally if the country goes into a depression. I still don't know the answer, but I think in one aspect you're right, help the little people! However I must disagree with your thoughts about helping people with mortgages purchased after 03. Granted you may not have meant ONLY help those people, but it did sound like that. I'm struggling too and I purchased my home in 99. I think I deserve as much help as anyone else who decided to buy a house at a later time. Had I not already had a home I would have never purchased one in the last few years because I know we would not have been able to afford it. That being said if I could have gotten one at half the price they were going for I would have upgaded in an instant. So...let's just talk about helping people in general, not just the people who got the crappy mortgage deals. Because what about all the people who have already lost their homes and their credit? And yes, we were super lucky to have met a mortgage broker who looked out for our best interest and steered us away from an appealing variable rate even though we struggled every day to make those payments and often still do.

Jen said...

Even renter's are being affected by this whole disaster....More people are being foreclosed on, which in turn means more people are renting. Supply and demand might make you think that would mean rent would go DOWN, but just the opposite is happening. Rental companies know more people have no choice but to rent, so they're jacking up rent left and right. We were in Santa Barbara in the midst of all this, and in six months, our rent went from 1700 a month for a two bedroom apartment, to 2500 a month.

So, everyone is being affected. And chances are? No one will be helped except Wall Street, and all we'll see is higher taxes to help pay for this mess.

Casey said...

Tanya: I totally agree with you that EVERYONE should be helped out. Every. single. adult. I think people are talking of 2003 because that is where this crisis began but honestly, the housing market has been over inflated (esp in CA) for years and years before that. Believe me, we are right there with you in the struggling part.

Income increases has not kept pace with inflation. And now, the gap is becoming a real, and life altering, issue.

Jen: I agree wholeheartedly. I am witnessing the renters living in homes that are in foreclosure first hand and it's scary.

I fear for everyone in the lower and middle class. Everyone is affected and the bailout of Wall Street doesn't even come close to helping the rest of us.

Tanya said...

And maybe it's that, the fact we are in CA. I always tell R, if we move out of CA we will never be able to move back because we will have instantly priced ourselves out of the market. And, not a day goes by that I don't think "man I should have sold in late 04/05 and gotten out of here while I still could."

I work for a subcontractor who works directly with the major home buiders and I wonder every day if it will be the day they say "can you show us where everything is, we just can't keep you anymore". Not a good feeling, but since I'm just a measly office worker I would hope that I could find another job, even if for less $.

Heck if I had extra cash I would buy one of those houses right now and rent it out. And I was hoping that's what investors would do. Start buying up some of these bank owned homes and get them off the books, thus helping the housing situation.

Monogram Queen said...

Hell Casey I would vote for YOU for President! Seriously