Yup, The total bail out is now $1.5 trillion. Holy sh!t!.
I am glad to see the money going to the rich, irresponsible, and ultimately disinterested in common society.This $800 billion is to “un-freeze” the credit market and provide loans to people for school and mortgages. Now, that’s great but…
…but we are giving it (more or less) to the same people who screwed this thing up in the first place. I understand the ‘trickle down’ effect from the bad mortgages (loans written, sold as commodity, picked up by insurers, resold in packages…banks hold the bag). But, what are the guarantees we have lending will be responsible?
Think about it, bad lending practices provided the “bump” (cocaine reference totally applicable) to the economy. But the “high” is short lived.
Now the credit market is frozen. Infusing more money into the market will not help if either of these 2 scenarios occur:
- Loans are made to the same people and situations that are going to default again
- Loans are made to financially stable areas
Splained:
Scenario 1 is just the same broken cycle. Not much to be understood there.
Scenario 2 is the population who can and may do well with this credit. But they are also the people who need it least.
The people who need credit the most are, in my opinion, the people who are maxed out and least responsible or deserving. Is there really a good solution?
The banks, lending institutions, and others in the trade have proven over the years, and with absolute certainty in recent times, that they are bad gatekeepers of the credit and money.
If they are not drinking from the punch bowl (the money) they are letting people drive drunk in a borrowed car sipping from a huge straw placed in the punch bowl sitting on their lap as they swerve through traffic.
If less than $30 billion can save Iceland, $750 billion should save us.
Apparently no, we are now up to $1.5 trillion.
Don’t forget, we may actually buy the bad debt. Hmm, our government buying bad debt most probably at the gain of the bank executives. That is only a prediction, but I smell bad stuff.
/scared random link to this story: http://www.miamiherald.com/news/politics/AP/story/786895.html
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Comment by Bad Credit — December 4, 2008 @ 4:42 am
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Comment by Bad Credit Lending — December 20, 2008 @ 8:40 pm
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Comment by Banks That Help People With Bad Credit For Car Loans — December 25, 2008 @ 10:27 am