I have recently written several articles about my support for the Housing Rescue and Financial Bailout Package that is now weeks into effect.
I believe it is an important piece of Legislation that does 2 important key things to add support to the ailing housing and credit markets.
It creates badly need liquidity in the credit .
Opposition was strong in many camps arguing to block grants on the grounds that "the principal beneficiaries of this type of plan would be private lenders - who are now the owners of the vacant or foreclosed properties - instead of struggling homeowners who are working hard to stay in their homes."; Fear of the public mentioning the dreaded "bailout" is not something Republicans ever mention or want to hear.
I argued that this is not a Democratic issue or a Republican issue. This is an American issue. I believe that we could face a prolonged recession and economic crisis.
A scenario that that the Government needs to act quickly to avert.
Even Republican nominated Treasury Secretary, Henry Paulson said about the theory of such a quick and strong move by the Federal Government is , "(the bill is) of a magnitude more important to turning the corner on the housing correction and supporting our markets and our economy".
Even more resounding statement came from Rep. John A. Boehner, R-Ohio, the minority leader who voted against the Bill, and "It's a bill that I cannot support.
However, It's a bill that the market clearly needs .."
However, I received a variety of criticism and backlash which as you know, I always welcome and encourage.
The main and understandable point of contention is what the ultimate cost to the good paying US Taxpayer.
Other detractors commented that the cost to the Treasury, and the American taxpayer, could reach a Trillion dollars .
The House of Representatives' Republican whip Roy Blunt objected to what he said would be "a 700-billion-dollar bailout of mortgage lenders, allowing them to offload their worst loans onto the Federal Housing Administration. " and stated unequivocally that he "believe rewarding, encouraging and reinforcing risky investments should not be the role of the government - and certainly shouldn't be financed by taxpayers," Blunt said.
There is little doubt that this legislation will be costly to taxpayers.
I agree it is not our responsibility to bailout business and consumers at every turn and for every decision that turns out unexpectedly.
However, I still believe this is more than a financial issue that could spiral to a National Crisis if the government fails to act. And I do believe the Government has some role in protecting our national interests personally and financially.
Events have transpired and conspired in an unprecedented way that no one could have imagined to cause a financial calamity. An economic disaster. A Financial ‘Perfect Storm".
The government must act.
However, the question is fair, "At What Cost??"
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Contact James Wexler (480) 221-8080 for all your Phoenix | Scottsdale area Real Estate needs
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I am skeptical and cautiously optimistic , if you can be both ?
the sad reality, is that the plan is expensive and equally a cost that we cannot do without. The other option, doing nothing, is much much worse
Jason - i think you said it as clearly as you can.
This is a plan that no one wants, but we desperately need !! The option of doing nothing is not an option!
Whether we like it or not, Bara Obama is going to be our next president.
Whether we like it or not he is a very liberal guy. some might say socialist.
We are in a different age when the government takes money from taxpayers to pay for everything esle.
Scott - you may be right, long gone are the days ofgood old american capitalism.
Profits are passed back to the government by the 40% of people who pay taxes to cover the losses of people and now businesses
Hi James,
I too remain skeptical at this point. It's a complex issue at best, and I do agree there is plenty of blame to go around, not just one party and not the other.
Lynda - its frustrating as we wait , as consumers , and as taxpayers, ...
for the (our) money authorized by uncle sam to go into effect , as we watch home prices slide, foreclosures mount and the stock market crash
james , this is not a political issue. this is an issue of national importance that has to do with all americans and the future of our kids. We need a plan.
If this is the best we have, then we have not choice to go with it. Doing nothing is not an option
Barbara - I have to second you on this one. There is no other option.
and as the old saying goes, failure is not an option. So we are in the unfortuante situation of having to do what we do not want to do , but what is necessary.