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Mike M. · 10-02-2008, 05:32 PM

It all comes back to personal responsibility.

No one was forced to take a mortgage for more than they could afford to pay back. From the push of too much government regulation we have created part of this mess. A quote from the article sa_meredith shared:

“Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.”

This lifestyle of living beyond our means is unfortunately unsustainable and quickly coming to an end. This problem is not isolated to the housing market; it is visible in all parts of the economy. Car leases, credit cards, loans for everything. Everyone is over extending themselves and one day these bills will all be due.

To put it simply we are maxed out.

What is the problem with the housing market, why aren’t homes selling?

Housing values kept getting pushed up by easy credit during the housing bubble. Now we reached a point where the housing market is trying to reset itself to there true market values.

Regardless of what we do now it’s going to be painful but I believe we need to let these assets reset. In addition to giving Paulson unchecked powers to spend our money, the bailout is going to prop up the housing market and the same banks that practiced poor lending practices in the first place. These are the same people who led us into this mess and now we are going to trust them to give us the solution to get us out of it?

Besides what the 850 billion dollar bailout will cost us on the surface, we need to consider the cost it will have to our dollar. Very few people are considering the effects this bailout will have on our buying power. This is going to affect the poor and people on fixed incomes the most.

The Federal Reserve (Private bank, not elected by the people, taxation without representation?) is going to create this money out of thin air like always, further debasing our dollar and driving up the price of everything in the process. The inflation tax in addition to the close to a trillion dollars is something we can not afford.

If we don’t bailout the banks what will happen according to the president?

The credit market will freeze up and it’ll be difficult to acquire credit.
-It will be, but easy credit is the reason we are in this mess.

If we don’t pass the bailout our 401k will suffer and our retirement will be in jeopardy.
-If we do pass this bill it is going to lower the value of our buying power with our 401k anyway. Without addressing the actual problem that caused this mess, we can expect we will have to bailout more companies in the future, further lowering the value of our 401ks.

Until we address the bubbles we create from the Federal Reserve and fiat money we will not be able to solve our economic problems. We at the very least need to have some congressional oversight of the fed to make sure they are making the best decisions for us.

Every time the fed puts more money into the financial system they are devaluing our money.

The bailouts solution to the problem is to pump-in (create) another 850 billion into the system to cover assets that are essentially worthless. If these assets had any true value we wouldn’t have to bail them out. (The whole idea of these assets giving us a return in the future is faulty. The reason we are bailing them out in the first place is because of a credit bubble that drove the prices up over true market value.) So the bailout is going to save the system by means of more fiat money, driving our living standard down more?

We need to allow the free market to work this out without government interference. If we keep patching the problem rather than fix it, we are only going to enlarge the bubble and make it that much more painful when it finally does burst.

An appropriate quote from Thomas Jefferson:
“The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered.”

10-02-2008, 05:32 PM	#45
Mike M. Member Join Date: Sep 2004 Posts: 40 Thanks: 3 Thanked 2 Times in 2 Posts	My 2 cents It all comes back to personal responsibility. No one was forced to take a mortgage for more than they could afford to pay back. From the push of too much government regulation we have created part of this mess. A quote from the article sa_meredith shared: “Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.” This lifestyle of living beyond our means is unfortunately unsustainable and quickly coming to an end. This problem is not isolated to the housing market; it is visible in all parts of the economy. Car leases, credit cards, loans for everything. Everyone is over extending themselves and one day these bills will all be due. To put it simply we are maxed out. What is the problem with the housing market, why aren’t homes selling? Housing values kept getting pushed up by easy credit during the housing bubble. Now we reached a point where the housing market is trying to reset itself to there true market values. Regardless of what we do now it’s going to be painful but I believe we need to let these assets reset. In addition to giving Paulson unchecked powers to spend our money, the bailout is going to prop up the housing market and the same banks that practiced poor lending practices in the first place. These are the same people who led us into this mess and now we are going to trust them to give us the solution to get us out of it? Besides what the 850 billion dollar bailout will cost us on the surface, we need to consider the cost it will have to our dollar. Very few people are considering the effects this bailout will have on our buying power. This is going to affect the poor and people on fixed incomes the most. The Federal Reserve (Private bank, not elected by the people, taxation without representation?) is going to create this money out of thin air like always, further debasing our dollar and driving up the price of everything in the process. The inflation tax in addition to the close to a trillion dollars is something we can not afford. If we don’t bailout the banks what will happen according to the president? The credit market will freeze up and it’ll be difficult to acquire credit. -It will be, but easy credit is the reason we are in this mess. If we don’t pass the bailout our 401k will suffer and our retirement will be in jeopardy. -If we do pass this bill it is going to lower the value of our buying power with our 401k anyway. Without addressing the actual problem that caused this mess, we can expect we will have to bailout more companies in the future, further lowering the value of our 401ks. Until we address the bubbles we create from the Federal Reserve and fiat money we will not be able to solve our economic problems. We at the very least need to have some congressional oversight of the fed to make sure they are making the best decisions for us. Every time the fed puts more money into the financial system they are devaluing our money. The bailouts solution to the problem is to pump-in (create) another 850 billion into the system to cover assets that are essentially worthless. If these assets had any true value we wouldn’t have to bail them out. (The whole idea of these assets giving us a return in the future is faulty. The reason we are bailing them out in the first place is because of a credit bubble that drove the prices up over true market value.) So the bailout is going to save the system by means of more fiat money, driving our living standard down more? We need to allow the free market to work this out without government interference. If we keep patching the problem rather than fix it, we are only going to enlarge the bubble and make it that much more painful when it finally does burst. An appropriate quote from Thomas Jefferson: “The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered.”