The Mind Wobbles

So many things to absorb, think about, deal with and put up with - it simply makes the mind wobble...

Wednesday, September 24, 2008

The Bail Out

If you don't agree with the Paulson bail out plan, write to your Senators and Representatives. It's your money!

My problems with "the plan" as presented by Paulson and Bernake:
  • The lack of accountability and oversight for which Paulson and company are asking
  • It needs a solution for people who are losing their homes - I like the idea of a moratorium on foreclosures
  • I don't want golden parachutes for executives who basically messed up in doing their jobs




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2 Comments:

Blogger IslandPearl said...

Agree with 0 parachutes for the execs that let this happen.

But define moratorium on foreclosure -- does that mean that if I can't keep up the payments I can't afford on a house I shouldn't have been allowed to buy in the first place, I can just keep living there rent free?

That's hardly fair to the rest of us who choose to live responsibly.

7:32 PM  
Blogger Hilda said...

Pearl writes:

"But define moratorium on foreclosure -- does that mean that if I can't keep up the payments I can't afford on a house I shouldn't have been allowed to buy in the first place, I can just keep living there rent free?

That's hardly fair to the rest of us who choose to live responsibly."


Well, the moratorium wouldn't be forever.

While I understand the reaction to not want to bail out people who "should have known better" - we need to consider what would happen once those people are foreclosed and eventually must leave their homes.

* The neighborhood property values will go down because whoever owns the foreclosed mortgage wants to unload the property, so they'll sell cheap
* Property taxes will either not be collected on foreclosed homes and even when someone else buys them, the lowered assessed value will lower the property tax on the homes - for Florida where we don't have income tax and therefore rely on property and sales taxes, that will be a huge blow to education and infrastructure
* The people who lose their homes will probably wind up renting homes, eventually making the rental prices increase to where at some point people won't be able to afford them - where are those people going to live? What will the cost to tax payers be then?

I think it behooves us as a society to want to see these people be given the opportunity to refinance their mortgages at an affordable rate and allow them to either make payments they can afford or at least sell the homes they can't afford.

Now, having said all that, consider the source - I could be completely wrong on this, since until now I had never thought about this stuff.

7:51 PM  

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