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September 30, 2008

The Economy

President Bush is very wrong to push a bailout for those banks and institutions that have followed a badly mapped path to making everyone feel good about themselves.

The government should not be in the business of buying up homes that are in default. Those institutions and banks need to suck it up and deal with their own failures. Those people in Congress, both Democrats and Republicans, who changed regulations, starting with the Carter Administration, on requirements for getting a home loan, should own up to their colossal failure. I can't imagine why anyone should be able to buy a home with no money down. It ought to be 10 to 20 percent down. Fewer people will be able to get mortgages the second they want them, but they will have enough of their own money invested in those homes that they should be incented to pay their mortgages on time, and to buy a house they can fricking afford!!!

I have seen firsthand what happens when people buy homes that they can't afford with no money down. The neighborhoods rather quickly decline because these folks are paying so much in mortgage payments that they cannot afford to keep up the maintenance on the homes.

Perhaps getting rid of ARM loans for homes would be a good idea. If the President and Congress would make regulations about ARM loans and limit the amount those rates can bounce around, or just eliminate them altogether, I'd be all for that.

I am really happy to see that there is a lot of bipartisan action in the House - a lot of Democrats and a lot of Republicans voted against this stupid bailout.

Oh, and one more thing - I don't like that part of the bill that allows the Treasury Department to decide how to "bailout" the economy. Congress needs to figure out where money goes, not an unelected Treasurer.

Oh, and the 700+ down slide of the DOW is really not that awful. The percentage was about 7% - not that bad, and it can recover rather quickly.

And, I am very happy with my Congresswoman, Nancy Boyda.

She wisely voted against this ridiculous bill!

Posted by Beth at September 30, 2008 7:46 AM