Bailout and Punchout
Yeah, long time, no print, but let's get to it. We've had some serious financial problems. The US stock market has dipped below 10,000 and everyone is generally panicking. This comes after the biggest bailout in US history, an historic sum of 750 billion dollars. The details of the plan were noticeably lacking, other than targeting the firms that
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Here's the other big issue, the banks were greedy as fuck. They gave loans to people like my roommate, on these things called "ARMS" (adjustable rate mortgages) and when everyone else who they gave loans to started to not pay them back (because they could never afford them in the first place) they started to raise the interest rate on the ARMS to outrageous heights.
Jen's payment started around $1,300 a month. Within 3 years, Jen was paying $4000 a month on a house that had lost over $100,000 in value in one year, and the banks weren't willing to work with her to restructure the loan. They had no incentive to because they knew if it got bad enough the federal government would bail them out.
The bail out is the worst option ever, if the government was going to step in, they should have stepped in and forced the banks to work with people who wanted to work with the banks to restructure the loans. I mean, in this case, I benefited from the housing market collapse, as Jen is currently my roommate in a rental because she finally had to declare bankruptcy.
This plan is the worst possible plan at this point. It's not surprising, coming from Bush, and it's definitely not surprising the dems were all for it. They basically created this problem by their insistence that people have a "right" to own a house.
No, you don't have a right to own a house. You have a right to pursuit (aka work your ass off) and buy a house.
This whole situation pisses me off because I'm not even that great with money and I understand it. How come the idiots in Washington don't?
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