I find the proposal Bush/Paulson are pushing to spend 700 billion of our dollars to buy up bad mortgages from financial institutions extremely disturbing. The idea here is that this will boost the economy and the housing market because it will free up the flow of money and allow people to borrow again. Currently most financial institutions are hurting because so many people are foreclosing on houses bought with deceptive loans or loans that should never have been given in the first place.
Yes, the economy is hurting and the housing market is in dire straits but is this the answer? It seems like a way to prolong the pain and at the same time completely throw our free market capitalistic system out of the window. It was bad loans that got us in this mess and we want to free up the loaning process again? Personally I think it is best to bite the bullet, let the dust settle, and start rebuilding this nation on a sustainable, self-sufficient, and stable foundation. Greed got us into this situation and I am not too happy about forking out 700 billion to save these greedy fuckers.
Ultimately what is happening is that tax payers are paying for the mistakes of banks instead of them taking the losses they should be taking for doing bad business. Banking and loaning money is a risk and it is a business.
This is an excellent article that explains the situation better than I can
1 comment:
i agree - if they were rich enough to gamble on it, they're rich enough to dig themselves out of it.
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