My $700 billion bailout check..
My $700 billion bailout check seems to have gotten lost in the mail. Hopefully the post man brings it tomorrow.
But honestly, this is an atrocity to the common sense of the American people and a travesty to the goodwill we have towards others. The government plans to buy these Mortgage Backed Securities(MBS) with the hopes of jumo-starting the economy from the slow down that it itself precipitated. These mortgage backed securities will bring in payments for the Federal Government if these people make their mortgage payments. This begs a very serious question, however; if these people dont make their payments, why do they have a house? What happens to me if I dont make my car payment? I sure as hell dont get money to help me out or better terms on my loan, because if I did I would have no incentive to ever pay my loan. If I waited long enough maybe they would be paying me to own a car. My main point being: If you dont pay your mortgage, the house is not yours. Until you successfully complete the payment of your mortgage, you do not technically own a home. If you default on your mortgage, your home gets taken away, those are and always should be the rules of the game.
I have 2 main points....
1.) It severely bothers me that I frequently read of people who are afraid their homes might be taken away. If its your home no one can take it away. Until you pay the mortgage, its the banks home that they are letting you slowly buy away from them. If banks would grow a pair, we would probably not be in this mess. It all really goes back to leftism destroying our country. The Democrats for some time have been engrossed in the idea that if you help someone financially, they will get back on their feet. Decades of welfare and countless dollars later, we still have poverty, homelessness, and welfare grows tremendously each year. This same thinking has been given to bankers. As opposed to bankers giving loans to people who deserved them, the "rules" were changed so that practically anyone could buy a home, because "everyone should have a chance". No, everyone shouldnt have a chance. Everyone who WORKS, and can afford all of the expenses should have a chance. Everyone who does the things that enable the purchase of big ticket items should be allowed to buy a home, but not everyone total. Heres the math....
Everyone=(Those who work and make the money to buy a home)+(Those who expect handouts)
Now, as my simple math model shows, everyone does not deserve a home, and should not have been given the mortgages. This leads me to point number 2....
2.) If you are in business, you always have to accept risk. There is no business you can get into where risk does not play a factor. Either the risk of losing money, the risk of lawsuit, etc. These banks that are part of the bailout plan decided to take risks above and beyond what common sense would dictate, and lost money. Not only did they lose money, they lost a loooooottt of money, more money than I will ever see in person. Risk is admirable until a certain point, the point where risky behavior turns stupid. These banks and their stupid behavior were punished, by the very people they were trying to help. This is sort of the moral crux that befalls trying to help everyone, and its bite is much harder than its bark. These banks lost money and were failing, which is a great thing, because they were failing and it was no ones fault but their own. When a business fails, we should let it fail, as proof that doing the wrong thing leads to bad consequences for you. The bailout is following the same kind of logic that got these banks into this mess in the first place, and is kind of ironic in that fact. These banks got into trouble by wanting to help people, so that people could have things, and now they want help, because they dont want to lose the things that they already have. If I could draw a circle I would hope to indicate the circular reasoning they are using, which has continually proven wrong and will continue to do so.
We may not know for quite some time how bad this $700 Billion will hurt us, but when it hits it will hit hard.
P.S.-Sorry if this is rambling or incoherent, but I havent gotten a lot of sleep. :)