Economics: The 700 Billion Dollar Bailout
September 25, 2008
Well, last night our out going president on his television address to the nation noted that a recession is quite real, more banks will fail, and the likelihood of more Americans loosing jobs is not far fetched. So what’s new? The 700 billion dollars the government plans to inject into the stock market to attempt to avoid a recession. Way to go Mr. Bush. My taxes will increase because of the greed of mortgage lenders, brokers, and Americans who wanted to live in homes they knew they could not afford. But the sad fact is that if money is not injected in to the market, the American economy will crumble and hard at that. So you are right? However, what I don’t get is that top ecomomic advisors couldn’t anticipate the impending future a year ago or did they and choose to do nothing at all? I think the latter is more in line considering the simplicity of problem.
It’s basic economics 101. People put zero down on a 600K home, without having any collateral in the bank, and earning 40K a year, something is bound to go wrong. While banks were underwriting these high risk loans and raking in the interest, all was well in the land. But these loans were difficult to maintain because people were working harder and longer hours to keep up with the payment and then they couldn’t after a few years or months. Thus, foreclosures swept the land from one neighborhood to the next and banks were forced to expose their financials which led to falling stocks and bankruptcy filings.
So it is with regret, that I support the 700 billion dollar initiative by the government to keep the economy afloat. There are no alternatives as I see it. If the economy fails, working Americans will face an extremely difficult future.
Andrew
- There are no related posts.
People who read this, also read...
Comments
One Response to “Economics: The 700 Billion Dollar Bailout”
Got something to say?
IT”S NOT THE PEOPLE”S FAULT!
Trace the money trail. Where is our money right now? It is economics 101. Will explain my point later. We are being forced into a “BAILOUT” like the “PATRIOT ACT”. Only when we have a crisis can these extreme solutions be an only option. Normal times/people would not go for this type of minipulation of our freedom(s). I don’t even (fully) understand the “PATRIOT ACT” or this “BAILOUT” - but I know it’s not good!
I bet they’re going to name this BAILOUT a flashy “OPERATION SAVE AMERICA” moniker . The M.O. remains the same.