But...I will admit there is a lot going on right now that I don't understand. And no one seems to be willing to go into a decent explanation. I've thought about calling the financial adviser, but I don't know if I'll still get decent advice? I understand that risky mortgages, bundled into other investment vehicles and sold to investors has moved some banks from moderate risk, to under capitalized risk?
So...the government is trying to tell me $700 billion of these instruments exist? Wow. That seems to be a lot more than I ever realized. How did they come up with that number, which we all know is going to grow into over a trillion. If there is any kind of bailout, shouldn't it be in regards to the core vehicle. I mean the real estate still exists, no? After that the gamblers on Wall Street should lose. I know I invested fully understanding things were not FDIC insured and may lose value. Like I said there is much of this I do not understand. The amount is just part of it.
Second, congress wasn't asleep at the switch. The Bush Administration has tried over a dozen times to get congress to address this looming issue. He was actively rebutted at every attempt.
Third, after all this bailout hoopla is signed into law, we the people need to demand a hard evaluation and reworking of the legislation that created this problem in the first place. And that means some people can't afford homes and will live in rent their whole lives. Affordable housing needs to change from homeownership to having a safe secure place to live, be it a house/condo/apartment. Affordable housing should mean the mortgage is given to those who can afford it. The whole system that got us here needs to change.
Lastly, the President talked about this being a credit issue and repeated the phrase credit market. Fine, it has to do with credit...but what does that mean to you or me who doesn't use credit or uses it modestly?
Put simply, the rich young prince crashed his uninsured Ferrari, and he’s crying to Uncle Sam to get all the Chevy Nova drivers to buy him a new one.
Have a mortgage? Yea that’s right, you can be asked to pay it off now! How about an employer? What if he has to barrow on receipts to pay you? Will you be able to eat with an IOU?
What spooked everyone last week, Thursday, that they haven't told you is that bank to bank over night lending seize - do you have any idea what that meant?
Banks were not covering each other because they didn't trust getting the money back the next day! I think you can use your imagination from here on out!