I have been very critical about the proposed economic bailout by the Federal government and nothing over the past week has changed my mind at all. Clearly, I am not the only person with strong reservations. The House failed the original bailout proposal this week but the Senate came back today with some revisions. The question remains: were the revisions great enough to actually help the homeowners of this country?
The piece of legislation that calls for a $700 billion bailout currently being reviewed by Congress is supposed to play a large part in reducing the amount of foreclosures by working with loan servicers such as Countrywide, Wilshire, and Ocwen in an attempt to aid them in modifying the terms of existing loans. However, many housing experts question whether the bill will actually do anything to help struggling homeowners refinance into more affordable mortgages or even modify the existing ones.
The truth is that the economy cant truly begin to recover until buyers are found for the millions of foreclosed homes that are currently on the market. Bailing out the banks and giving them more money to lend will only put a temporary band aid on this gaping bullet wound. Property values are continuing to drop because more and more communities are being burdened by vacant houses that are not being cared for. Association assessments are draining the current homeowners and encouraging more and more people to just walk away from currently occupied homes.
As the stock market continues to fail, and less and less banks are lending money, more and more foreign investors and current American tycoons will begin purchasing the properties facing foreclosure at pennies on the dollar. The free market always corrects itself and this economic crisis is no different. Whether or not you are one of the lucky homeowners who finds a buyer for your home before the foreclosure judgment is entered against you and your house is taken from you at public auction cannot be left just to chance. There are ways to delay the bank from foreclosing for as long as you need to find a buyer. The true solution to the problem facing the individual homeowner can be found at www.ForeclosureDefenseSecrets.com. The only people being bailed out by the current proposal are the politicians facing reelection that let this disaster occur. American homeowners have to be willing to defend themselves.
This video is a bit long at 8 minutes, but it really gets the point across that the mortgage crisis is just getting started. As was stated in the Presidential debates last week, we are not at the beginning of the end, we are merely at the end of the beginning. This video was originally recorded in March of this year and it predicts the failure of Lehman Brothers and the bailout of Fannie Mae and Freddie Mac. The third prediction is that the mortgage crisis is only going to get worse, no matter if this $700 billion dollar economic bailout bull bill passes or fails. Property values have only dropped about 12%; the market will correct itself when they drop another 20%. Do you think you should just sit around and hope that happens before the bank takes your home, or would you rather fight for your home and save it from foreclosure yourself? Decide to fight and then learn how to do it at www.ForeclosureDefenseSecrets.com.
While no one would ever confuse the presidential terms of Franklin Delano Roosevelt with those of George W. Bush, the overwhelming amount of government intervention in what should be a purely capitalist market had me thinking about the last time the government was this intrusive: the 1930’s.A world war costing the country all of its savings, a stock market so volatile that it could crash any day, and unemployment numbers that forced families to the streets are just some of the staggering similarities.
Over the past few months, the Federal government has continued to regulate the “free market” because they say that they are protecting us.However, the band-aid on this bullet wound is actually making the wound worse.If the Federal government is bailing out privately owned companies, who is going to bail out the Federal government?The last time I checked, our national pocketbook wasn’t in the best shape to be lending money to a bunch of organizations that just defaulted on the loans they took out in the first place.I guess it’s better than our usual technique of lending all of our money to other countries that have no intention of ever paying us back, but not by much.
The problem is that the economy is in the toilet, unemployment is through the roof, and more people are losing their homes by the hour.Instead of focusing on the causes of the problem (namely a government that frivolously misspent over three trillion dollars over the past eight years), the geniuses in Washington have decided to employ a temporary ”solution” that actually exacerbates the problems we are trying to solve.Giving lenders more money now would be rewarding the bad loans they approved over the past three years and encouraging them to continue the grossly negligent business practices that they have been employing.
If the Federal government really wants to overstep its bounds, it should spend money on creating more jobs and building more homes instead of saving corporations.The stock market and the publicly traded companies that compose it will be fine.The market will work itself out and some companies will fail while others will remain strong.Who is going to care for the worker?Who is going create jobs?Who is going to save your home for foreclosure?The fact is that the Federal government is not coming to our rescue.We must be willing to fight for ourselves because it is clear that no one else will.In 1928, President Herbert Hoover promised a chicken in every pot.Today, most people can’t even afford the pot.
Much of the media coverage surrounding the continuous government bail outs is focused on whether or not the Federal government should be stepping into the private sector and altering the market when a true capitalist society needs to be free from government intervention. It is true that in a free market system, the market needs to care for itself without interference from outside sources. Supply and demand tend to even each other out in the long run with those that work harder and smarter benefiting in the end.
Whether or not the actions by our government in bailing out these corporations is the first sign of a socialist society is not the issue that we should be focusing on. The true issue is that none of these bail outs help the borrowers; they only help the corporations. Everyone who purchased AIG stock last year has still lost their money. Everyone who has a mortgage owned by Freddie Mac or Fannie Mae still owes more than their house is worth. The Federal government has decided that the corporations need to be bailed out even though their own poor decisions put them in these circumstances.
The Federal goverment has no plan to bail out the home owners who have taken out loans that they can no longer afford. The only way to save your home is to fight for it; there is no time to wait and hope the goverment will bail us out. They couldn’t if they wanted to. Learn more about how to fight for your home at www.ForeclosureDefenseSecrets.com.