They say the financial system in America (and possibly the world) is possible in some sort of melt-down mode (I love grilled cheese sandwiches, I hope the meltdown smells like that... or roasted marshmallows). I say let it melt down, let these companies that took unnecessary financial risks pay the price, not us.. the average American taxpayer. Sure we are going to feel the effects of this no doubt, but I feel like we can't just print more money to make this all go away. The housing bubble was huge, you know something is wrong when hardly anybody can afford to buy a new house over the past few years. So we thought we had all this equity in our homes (some of us still do) but now that home prices have started coming back down to sane levels nobody has anything to borrow against. And now all these banks and institutions have all of these millions of homes that people defaulted on that were overvalued and now they now have to try and sell them for a loss (good luck selling them in the first place with nobody able to get a loan now).
I feel bad for the people losing their jobs and their homes... but I don't feel bad for the wall street execs or loan officers who over the past 10 years or so have given out shady loans for way more money than people could ever hope to pay back. I feel that if you bail these companies out, you negate the consequences of their actions. Say I decide to go to Vegas and blow my substantial fortune (har, har) would I expect somebody to come along and pay off my house and cars, put all the money back into my bank account and still let me carry on as if nothing happened?
No bailout
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Let's have a bailout. Let's get some fluidity back into the market. But let's not do it without some serious forethought and clear guidlines on how the tax payer will get their money back. I would alo expect that no bill would be passed without substantial aid to those who are hurting th emost in ths crisis (homeowners, small business, the average american)
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