Wednesday, September 24, 2008

The Mortgage Meltdown and Proposed Bailout

The grand plan that started, encouraged, and literally caused the current problems in the economy. Read the article!!! I don't care if you are democrat, republican, leftie, rightie, moderate, or a moonbat. Educate yourself before you start spouting rhetorical bullshit like Kevin Lynn.

While the policies that led to this crisis are clearly spelled out in the article, I want to go a step further. Specifically, those policies led to a new breed of financial derivative called Credit Default Swaps. Google the term yourself so I don't have to write for an hour to explain it. You see, the loans to people that should never have got them is the catalyst. Greed by derivatives traders was the implosive device. Now, the government wants to step in and bail them out, and that is wrong.

The size of the problem before add ons(bailing people out of mortgages they can't afford, etc.) is about $250 billion. While a staggering number, it is not nearly large enough to tank our economy. Not by a long shot. The real question that needs asked is why the gov. thinks it should be in the mortgage business. Why is it the taxpayer's responsibility to bail out those companies? Why is it the taxpayers responsibility to bail out people that bought houses they couldn't afford? People that should never have been loaned money in the first place? The answer to all is the government and the taxpayers should mind their own business and let the chips fall where they may. People get foreclosed on all the time. Businesses fail all the time. Market corrections happen all the time. This is nothing new and this bailout will do nothing to stop those things from happening.

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