Lately the DOW has dropped by a pretty large number of points and is leaving many Americans unsure what to do or what to think. This is basically because of all of the reckless buying of expensive houses. The banks were doing so well they thought they could loan to anyone, without caring about their credit history. For people who could not afford luxury houses, the bank decided that they could start them off with a really low payment plan then in a few years drastically raise the payment plan. Finally people would get so in debt they they would default on their house payment hurting the bank and all of it's stocks.
Now shame on these companies for not thinking this through, but how foolish could you be to invest in a $650,000 house while making $25,000 a year. To me that is one of the best things to do to get finaceally screwed.
So now, after all of this and many more scandalous things we have a dilemma, to pay for this stupidity of the bank and certain Americans by way of taxes (about $3000 a person) or do nothing and pray that another great depression doesn't happen.
This is the way I see it. Now even if some Americans messed up it doesn't mean we should totally turn our backs on them. I agree with the government taxing us to help the economy; now I know it is an extremely socialist thing to do (especially for conservatives) but this is an extreme time. I don't want to do what my Great Grandparents did, working for many hours to make mere pennies then buying a meal for your family to last all day. I don't know about you but I pray that it never happens, so preventing it through these taxes, in my eyes, is the best thing at the moment.
Please comment and tell your opinion.
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2 comments:
It's all about the money Chris. That's why the banks just easily loan people money, regardless of a poor credit history. Then they just increase the payment plans of the house and they don't care if you can pay it or not. I agree with you that people need to be wiser and use better judgement in investing in houses worth so much more than one could afford.
It really is frightening. I think you have some good points here. People should have known what they were getting into. On the other hand, bankers and mortgage companies clearly got greedy here.
The thought of this bailout frightens me. Yet, it does seem necessary.
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