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Programmer by day, comic nerd by night. My official job title is "Director of Janitorial Engineering"
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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.
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