The Bottom Line

Here is the deal.

You have a rabidly unpopular bailout plan that 33% of folk hate because they feel like they are getting stuck paying for a party they weren’t even allowed to attend and 33% of folk hate because someone told them too, even though they have only a passing idea of what it actually means.

John McCain made a BIG deal this morning about how he saved this thing and got it done.

Except it ain’t done.

Barack Obama made a point of layin low and trying to stay out of the foolishness,  supporting it tepidly at best, because near as I can tell, he KNEW it was ricketty and after watching McCain run out on the plank so far, he decided the safest plan was to simply mind his Ps and Qs and stay on his grizzle.

So, here we are, no bailout, Dow down 700 600 575, a Jewish holiday tomorrow, and pretty much nothing good has come from this so far.

And whose fault is this?

Pick a name out of a hat, and you would probably be right.

3 comments

  1. thepoliticalassistant

    Try 777 points, try NO DEAL, try are you effin kidding me?!? I’m not going to overreact to this as I have always felt the market is extremely overvalued (600 dollars for 1 stock of Google????) This is not going to be well. Who do I blame? Who knows, I’d blame the republicans, but then that would ignore all the idiots that defaulted on home loans they couldn’t afford. UGH!!!

  2. FreeMan Press

    The only people who should be mad is the people who didn’t get too greedy in the past couple of years. I didn’t buy a house, nor did I ride the stock market. I just kept my money in the bank (Wamu) and switched out before it went belly up. Now people are mad they have to bail out the rich folk who ran everything how about being mad at the millions who bought a house they couldn’t afford. It’s the pot calling the kettle black.

  3. Jonzee

    As a housing finance expert, I am really annoyed at this whole notion that a whole bunch of Muufuucas went out and blatently bought houses they could not afford. While there was some of that, the data has never demonstrated that shit to be true. As a matter of fact 2006 and 2007 data demonstrate that nearly 40% of mortgages delinquent were held by owner/investors. i.e. folks who just want to get paid. Additionally, the reason a lot of folks homes are unsellable or have mortgages that are upside down is because they were overvalued by who? The banks and mortgage brokers. Appraisers have been warning about pressure to appraise upward and the problem it might cause as the market got to costly for new buyers to enter. This is especially true in hot markets.

    Many people are losing their shirts because of over valuation not imprudent home purchases. As a matter of fact nearly 25% of the folks who are currently in pre or foreclosure are there because of other economic conditions–not sub-prime loans.

    Lastly, once again this thing most vastly effects minority homeowners. Financial literacy is key to buying a home. It is easy to say, that people were being greedy. But once again, financial literacy among minorities and lowincome individuals makes it difficult for homeowners to understand how to work it out when they get into trouble. Its always easy when you have the knowledge to think that others should too.

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