Is it just me or did it sound like McCain was saying the government needed to buy up the bad loans? I wonder where “the government” could get so much money from? Does the government produce any income? Does the government make payroll due to their profits? No. Taxes. So let’s say it like it is – He is saying the American people should be forced, by the government, to buy up bad loans. I am no expert and maybe I am missing something here but that is what it sounds like to me.
They are also saying homes hanging in the forclosure balance should be reappraised and the mortgage reassessed to the current appraisal value so the P/I is lowered due to a new, lower balance on the home. I just have to say this…buying a home involves risk. Buying stocks involves risk. Anything you do when you make a major purchase involves risk. Missy and I bought our first home two years ago and it scared us to sign that contract at closing. We can afford it. We even planned that if she had to stay home we could still afford it. It still scared us to death to committ ourselves to paying for something that cost over $100,000. And it should scare someone to sign into such a big contract that spans nearly half the life-expectancy of the average adult in the U.S.
The government is trying to take risk out of the markets. That is a bad move. Go after corruption. Go after evil doers who knowingly sunk the average investor for his or her own gain. But don’t try to remove risk from the markets. People need to learn to diversify. The government needs to learn that just about any major task it has taken on it has failed miserably at. People need to learn to spend less than they make. We all need to hold on tight and watch this thing rebound.
Something tells me we should have bought a $250,00 home we couldn’t afford so that the government could now reassess it to the value of our current home and we would have broken even on our payments (I say that tongue in cheek)…Oh, and I am really wondering…they are saying that the middle class needs help paying our bills. I am honestly wondering when I will get a call from a congressman or a staffer asking if I need help making my light bill. That will never happen. At least not until we go 100% socialist and then I won’t need to worry about bills any more because the government will hold my hand from the cradle to the grave.