Main Street, what do you think?
READ DAVE RAMSEY’S THOUGHTS CONCERNING THE FINANCIAL CRISIS.
The financial crisis has me asking a lot of unanswered questions. When the government talks about spending an additional 700 billion dollars, I have to wonder how bad things really are. How many people are really going to default on their mortgages? What will the repercussions be? Most importantly…
Am I going to be feeding my family cabbage and beans for the next 10 years? Am I going to have to turn my yard into a garden and get a milk cow?
Seriously — I would like to hear from my readers. What are your thoughts on the impending economic crisis and the government’s role in repairing it. So, for the next few days, I am turning off my comment blocker and asking you to sound off.
I’ll tell you what I think. I think the American people don’t have all the facts. In fact, I doubt anyone has all the facts. I don’t think there are going to be any good decisions or outcomes. Apparently, a lot of people have let their representatives know that they are not in favor of this “bailout.” That doesn’t necessarily mean they are in favor of the alternative, either.
What frustrates me is that a lot of prudent, frugal, financially careful and wise folks are going to end up footing the bill for a lot of foolish, careless, people who took on more debt than they knew they could handle. I’m one of those prudent, careful people and it really makes me rather ill to think that I am going to have to pay more taxes to rescue people who should have known better.
What also frustrates me is that the government thinks it can take taxpayers’ money and “fix” this. Face it, the government is rarely able to fix anything. Our government is too big and continuously steps in where it really doesn’t have the constitutional authority to do so. We forget the this is a government “of the people, by the people, for the people.” Usually it seems we are focusing on the “for the people” part and ignoring the rest. Where do we think the 700 billion is going to come from? More international loans and more taxes. And, by the way, future taxpayers will be responsible for those loans. I’d like to see the national debt being lowered, not raised.
On the other hand, I don’t want to see the economy crumble — high unemployment, high rates of inflation, sagging dollar, etc. Small businesses failing, large businesses failing. I don’t want another depression - who does?
I’d like to know what the rate of failed mortgages is really going to be. Are that many people in trouble? Are the banks in that much trouble? Would it help if they offered incentives for financially able borrowers to pay off their mortgage early? How about incentives for investors who buy troubled property, with cash, of course? That would cause an influx of money.
I’d also like to add that blaming the government or the current administration for this is just wrong. I won’t say that the current administration is perfect, but I’m pretty sure it’s the lenders and the borrowers who are at fault here. I’ve applied for a mortgage, I know the routine. They try to convince you to buy about twice as much house as you can really pay for. I always want to roll my eyes and say, “Hey, I can do a budget and I know what I can pay for, and this ain’t it.”
Add comment September 30th, 2008