You were probably thinking to yourself, “I wonder what W.E. thinks about this ‘bail out’ thing that is all over the news.”
Well, I’ll tell you.
I was sitting at lunch today, and saw on TV that the House passed the Senate’s “bail out” bill 263-171… which confirmed my suspicion about Monday’s vote. Monday’s bill failed in the House because all those politicians needed to be able to say “I voted against the bail out.” A few days later, with a little pork thrown in to sweeten the deal, everyone piled into the bandwagon.
This really isn’t a “bail out” anyway… it’s the government buying a bad investment in hopes that it will not turn totally sour. The truth is, the government is the only entity large enough to (gulp) consume these securities and hold on to them indefinitely, if necessary. I mean what other major enterprise in this nation can run its books into the red by trillions of dollars, and still be running like everything is peachy? Only our precious government!
So do we need this bail out? I guess. It appears the credit markets are dry as a bone, and the effects are starting to trickle down to the real people out there. (I dare you go try and get a mortgage right now, or even some unsecured debt… yeah… just try it…)
Did the bill go far enough to punish the corporate executives? Maybe not. But really, the American people wouldn’t have settled for anything less than someone’s head on a pike. Really, revenge is what we, the people, wanted out of this thing. We wanted a pronounced punishment to be placed on Wall Street for getting us into this mess. I don’t think we got it. Instead, they’re getting someone to take their problems away from them. Pretty sweet deal, if you ask me.
What needs to happen now? Sweeping legislation for reform, oversight, and regulation! It’s gonna hurt. It’s not where I want the country to go, but we need to be taught a lesson. And we need to set up rules for everyone to play by so we don’t get into such a big mess again.
What is the lesson for we common folk here? Live within your means. Save some money. Don’t get caught up in the fake/play money (i.e. equity you didn’t put into your house, soaring investments, or monopoly money you stole from the bank while I was reading my Commuity Chest card (BEN!)).
6 thoughts on “My Take on the Bail Out”
AMEN!!! I am so grateful I have not debt and my house is paid for.. I can’t retire -but I can at least live.
I agree with almost everything. Except for the monopoly money. If you can, DO IT!! Especially when younger siblings are so easily enthrawled with not so bright colors on monopoly money and cards… GO BEN!!! Oh and I heard on the radio that in at least 5 states you can still get unsecured loans, one loan agent at a bank actually solicited loans on the radio!! It is sad that a lot of people bought in on the get rich, or get into debt, quick schemes, so the truth is that the money has already been treated like monopoly money for a while now. Not to worry though, soon, all monopoly money will be green… and you won’t have to worry about loosing yours by being distracted. But I’m sure Ben will figure something out.
The problem is that the Bush Administration tried to increase oversight on Fannie and Freddie, but Democrats stopped him each time. Check out my blog for a few YouTube videos with the facts and figures all laid out. This whole mess started with trying to provide “affordable housing.”
Watch out when the government tries to provide affordable anything. Prices will go up. That is where the housing bubble came from. That is why college is so costly. I am terrified of “affordable” healcare.
I think Tony is right, housing would have stayed much more steady and affordable had the gov’t not meddled in all the pushing of creative lending etc. Pretty ironic how they destroyed what they were trying to create… Good call on the health care… I am not an economist but I think more people need to drop their health insurance and let the free market re-stabilize. I was just offered to insure my family on 70 percent coverage plan for $1080 a month! Only 6 years ago I could insure them for less than 200 a month with 90 percent payment.
I don’t know anything about economics, but I can tell ya the media over here was pretty ticked when the House rejected the bailout the first time. For some reason, the American housing crisis trickled over to become the British housing crisis. I’m just glad we never bought property over here, or we’d be in trouble trying to sell it!
P.S. Socialized health care is NOT what it’s cracked up to be. Just because it’s free doesn’t mean somebody isn’t paying for it! (And just because it’s free doesn’t mean it’s always good…)