Monday, September 29, 2008

BAILOUT BAD BUSINESS!

My previous advertisement has me compelled to expand on the idea of a federal bail out of the lending industry by sharing some further opinions.


“The sky is falling…..The sky is falling!!!”….. “London Bridge is falling down!!!”….Indeed, these little old childhood catch phrases can certainly apply to what is happening in the current financial and real estate market! What a reeling scenario we are witnessing in the news. Lenders have often loaned when they should not have loaned, and lendees have borrowed and over extended themselves!

Lenders lending out of greed, not altruism, to collect commissions and on outlandish interest rates---And known weak credit worthy borrowers who have run into their fair share of troubles in the current economy, such as job loss, has now resulted in the financial industry begging for a 700 plus billion dollar bail out! This, on top of what we are spending on a war which is causing this country to go broke!

Most people cannot even fathom just how much 700 billion dollars is. Let’s place it into perspective. According to various estimates which can be found on the web, if we looked at the number 700 billion in seconds, that puts us back to a time in history when humans were first migrating into the America’s via the Bering Land Bridge some 22,000 plus years ago!

Personally, I do not feel that the financial institutions should be totally bailed out for their irresponsible lending practices greatly contributing to creating the current mess. How can a bail out help stabilize the economy when this ‘bailout’ is money that will be taken from already financially struggling taxpayers. For too long, we have been living in a ‘false economy’---one which appears like all is healthy and people are buying, and owning---but in reality, nothing is really paid for, and all that is being bought is being bought on credit. Now, even the lenders have over extended lending money that really wasn’t there in the first place…and if they are bailed out by the US tax payer, it is not only corporate welfare, but it is also levying a tax burden on generations to come. The current estimate to pay for a bail out is $2,000 plus for every man, woman and child in the US. Hmmmm… ALL would have to contribute but the last time I checked, babies weren’t working good paying jobs!

We are warned that if the financial institutions are not bailed out, then indeed, as mentioned at the beginning of this article, the sky will fall, the bridge will collapse and the economy will sink even further in the river below. Maybe it should. Maybe this will teach the mega corporations a lesson---like people who file bankruptcy learn a lesson---that sooner or later the buck stops and we all have to act with responsibility when spending or lending! If I handed out a blank check to strangers on the pretense they’ll pay it back and they don’t, do you think I’d get bailed out by anyone? Probably not. So, if the corporations want to be viewed as ’individuals’ as is part of their PR agenda and as they are given the same constitutional rights as individuals, then why should they be bailed out so easily by the public without consequence?

Alternatively, if we really want to help the economy and the people, then for those who are worthy and showing they‘re really trying to avoid debt problems, let’s clean their credit records and cut the debt in half with no interest or penalties and let the lenders bare the brunt of the loss so that just maybe, more people would have some extra money to keep their homes, fix them up and spend a little money back into the economy! This is better than having neighborhoods become abandoned crime magnets! On another note, a lending industry desperately whining for help should not be able to have their cake and eat it too by collecting high interest rates and penalties from those already in insurmountable financial trouble! A truly wise and progressive society would see the insanity of bailing out such interests with federal monies from the taxpaying public!

Lastly, for too long, the lending industry's larger profits have depended upon people remaining in debt and not paying it down---so, perhaps it is time they fashion a different way and embody a different vision as to how they will profit in the future--one where people, will actually pay off debts and really own something free and clear! Hey! I have an idea...instead of giving blank checks to big lenders so they can do whatever they want with it and continue irresponsible lending practices.... Why not give it right back to the people so they can pay off their bills or spend it back into the economy? Of course, there'd have to be stipulations, but think about the possibilities!

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