Programmer by day, comic nerd by night. My official job title is "Director of Janitorial Engineering"
I am adamantly against the bailout (was on Friday when everyone else was for it...now you are all on my bandwagon after having a weekend to think about it).
But here is why they say we need it. The loan markets have basically dried up...they are not loaning people any money because they are saddled with debt. People that need to sell their house cannot because no one can buy. They lower their price, and the cycle continues.
It is thought that if the debt was no longer on the banks books (they sell the debt to the Gov't for pennies on the dollar) that they will then be free to loan more money and thus restarting the housing market somewhat.
But you know what...if I am a bank and I was just "saved" from having to billions in writedowns on these "assets" I wouldn't do a thing. Sure the Gov't could eventually sell the debt and make some more money but that will take years, if not decades.
Sure we can blame the banks for the lending practices...but you know what...I blame the home owners. It is a simple thing called budgeting. I was once approved for a home loan (shocked, but still approved). I was excited and told my wife. I then calculate our income and our bills and realized that I could not afford the payments...SO I DIDN'T take out the loan.
I am sorry for those that are losing their homes...truly am. Hopefully next time they will learn to budget properly. I am not sorry for the banks/firms that are losing their shirts.
I am also kind of sorry for Obama. He is in a no win situation. If he opposes it and it does not go through, then the Democrates are to blame. If it goes through then the Republicans can be the "saviour". Sad...really sad.
Of course if it does go through and he still wins he loses because he has to deal with this burden for a long time
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