Thoughts on the economy and advice from DirtyLaundryDiva
DirtyLaundryDiva Well Monday was a major day in stock market history huh? The 778 point drop sent many people in a tizzy, the bail-out plan was not passed and we’re all just buzzing about what and who we think is to blame for it all.
I was amused to watch this MSNBC video titled “McCain Incompetence Crashes Stock Market 9-29-08″. When he wanted to suspend his campaign I was rolling my eyes and now that his presence did absolutely no good I am really laughing it up!
We are in quite a mess here in the USA right now and it is all a result of greed. The subprime mortgages and risky lending practices are what got many of the failing banks in trouble. The banks were being greedy and don’t even get me started on how much those shiesty CEO’s make! (WAMU’s CEO, Fishman makes $20 million for 17 days on the job … and his company failed.)
People who opted for subprime mortgages were also to blame. They were either acting out of greed or desperation and now they are suffering foreclosure, it sucks but why are we rushing to bail those banks out?
Do we really think saving those banks will turn the economy around? Wasn’t it just a few months ago when the government thought those measly “economic stimulus” checks were going to turn it all around? I used mine to buy food and gas. Did it stimulate the economy like they thought it would? Nope!
Besides, I thought the whole idea of the free market system was to keep the government out of it all. So, businesses can do what they want and people are free to choose who to do business with. Don’t you think those banks should be left to crumble after royally screwing so many people? I do.
Additionally I think we need to make it possible for people to dig themselves out of the financial mess they have gotten themselves in once the shitty lenders crumble. Perhaps some special refinancing of homes to prevent foreclosures or a 90 day loan freeze or maybe whomever insured those bad loans could void the loan (instead of traditional foreclosure) and just let people continue to live in the houses as long as they pay rent…
The lenders shouldn’t be the concern right now, they aren’t the only lenders in the country you know. There are plenty of banks and credit unions that have’nt not gone shady and aren’t in danger of falling. It is the people that should be our concern.
DirtyLaundryDiva’s advice to you: Make sure your investments are “conservative” in this shaky economic time. Got a 401K or IRA? Make sure they are in super conservative investment plans.
Then get your damn money in insured accounts! Got more than 100,000 in a single account? You are a jackass, split it up in multiple accounts so it is fully insured! Get your finances in order and be smart about things right now guys. If you do that you’ll be okay.
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I agree that the shady banks should just be left to crash. We were offered the subprime mortgage 2 yrs ago and it all looked good until you read the part that your payments would balooooon way up! Those people that took those loans have many of the luxury items that I would like to have but I took a loan without the balloon at the 2-3 yr marker. I am glad
Instead of our payments being 300-500 a month, we pay 1500 for the length of the loan. I feel safe that I will not loose my home.
Can I go back to putting my head in the sand?? Please??
The elephant in Washington’s room isn’t the President so much as the Congress.
The economic bailout is a case on point: Once “Bailout” was mentioned the focus shifted from “how to correct things” to “how do we get this bailout done.” All other options effectively disappeared. Then to get the bailout passed - bribes in the forms of riders that added 100 billion dollars to the package had to be attached.
What if we took a look at how Congress worked, and somehow, got rules passed that only allowed one issue for one bill - no riders, no sweeteners - Bills would actually have to pass on their own merit - what a concept. Then it becomes a lot easier to determine who is working for the good of the people, and who is working to keep his job in Congress.
The other idea I think would make a tremendous difference in how Congress works is enact a “pay to play rule” –For every hundred million dollars that a congress person wanted to spend, what if they had to kick in a hundred bucks of their own cash. Not lobbyist cash, their own cash money. I imagine a few would have thought twice about a 700 billion dollar bailout that cost them EACH 700,000 to pass it.