Main Street gets to bail out Wall Street for bad decisions.
Not so fast, you can hear the outcry. We are sick and tired of this type of fear mongering. We have been living this way the entire decade. We are about ready to see the Great Depression part II according to the government.
What the heyull is going on?
It's not greed, it's economic terrorism. Our manufacturing sector has been destroyed by "free trade", our real estate sector has been destroyed by "cheap money" and our energy sector has been destroyed by selective contracts. The value of our dollar has been destroyed by a soaring deficit.
This didn't happen overnight, folks. This happened right in front of our eyes. Some of us have been feeling it already, for years:
Major real estate price declines have cut my income in half. (Oh boo hoo for me, us RE agents don't even earn it to begin with, huh?)
Enron and other energy wholesalers manipulated the electric and natural gas markets out west and helped kill the credit ratings of our utilities and we are STILL paying dearly for that one (remember that little silly debacle, anyone?)
Gas prices have skyrocketed via oil FUTURES and people just don't travel or have very much spending money left when they get their paychecks.
Do I even need to explain why Ohio has one of the largest mass exodus from their population? Free trade and our lust for cheap goods killed our manufacturing sector.
Our dollar has lost it's value because we allowed our deficit to soar.
Why do we take this? We let them hit our right cheek and then turn to the left so they can hit the other! We continually vote the same politicians in office that stab the people who pay their salaries so they can get a little (no, a lot) of special interest money.
Main Street is hurting in a big way, folks. Gaming is down in our city. This is our bread and butter. Oh boo hoo for big gaming, huh? Yea, until the layoffs come and the management bonuses stop. I know, boo hoo again for management bonuses. Those are the people who usually hire weekly landscapers, maids and pool people for their homes.
We already started tightening our belts. People have laid off those landscapers, maids and pool servicing companies to save money. Some of us stopped eating out frequently and scrutinized & adjusted our phone, cable, cell and other "frivolous" services. Some of us set the AC at 85 to save a couple of extra dollars a month. There is NOT much more we can do to clean up our monthly budgets. Yea, I could work more than the 14/5 and 6/2's I have been working, NOT!
I looked at Lehman's website. They have many offices. Some of them are sitting on some PRIME NY real estate. Have they tightened their belts? Have they laid off workers and downsized? Are they expecting salaried workers to work long days? Have they cut expenses down to the bare bones? Have they cut off corporate credit cards? Are they running their businesses like some of us HAVE to run our lives?
Buffett threw $5 Billion at Goldman. I bet if some of these companies are salvagable, you will see the Trumps and the Buffett's snatching up bargains and allowing the free market to take care of this mess!
In all the turmoil and stife of this decade, We, as Proud Americans, want to do what is right for our country. Right now we don't know if we are dealing with Chicken Little or the Little Boy Who Cried Wolf.
I did see this coming in the last several months as I have watched noteholders dumping properties on the free market for WAYYY less than what they were currently going for, and they were moving too! What that has done is killed future value of those assets and hurt more American's "equity" worth in their homes. It has been a double edged sword and I do not trust these institutions (nor the GOVERNMENT) to properly package these "assets" and sell them on the free market.
This will just cause more foreclosures when people see their home's value go down.
Want to REALLY stop foreclosures?
Spend a couple billion on fighting the fraud and encouraging these institutions to go after deficiency judgments. I bet the equity skimmers and people who took out fraudulent loans (lied on apps) will think twice and do what it takes to keep their home if they had to spend a little time in the pokey. Get some hotlines and websites set up so agents, lenders, noteholders or normal everyday people can send in "tips."
It wouldn't hurt to encourage these noteholders or asset holders or whatever the term du jour is to start accepting short sales which come at higher prices than they allow them to go at trustee's sales. How about working with people who want to stay in these assets that call those assets "homes" and give a slight rate reduction. How are people supposed to absorb interest rate increases and juggle things with gas doubling in the last year and energy/natural gas tripling in the last 6 years?
How do I really feel?
I don't think 1 trillion is enough to stop the bleeding. I do think we need to allow corruption to just die. Who knows if it will be slow and natural or if we will put it on life support to extend the inevitable.
Just my 2 cents but I don't think I am alone. I think we all need to step away from the red kool-aid and blue kool-aid and drink some tea this election!
Hi Marie
One of the great things about the United States is the right to vote. Everyone who are edible should express themselves by voting for the candidate of their choice.
Good luck and success
Lou Ludwig
::::clapping::::: I'd vote for you!! Go get em' girl!
Its weird. Not more than 3 weeks ago or 2 weeks ago I thought I was the minority on here. I guess the majority had stomped all over everyone for so long. But in reality its a small number doing the real damage and its a small number perpetuating everything. I am glad more and more people are coming out.
Renee, I feel you girlfriend. I pray every day and night that we can stop at this crossroads and make a turn for the better. I pray that we make a choice based on solution driven thinking and not fear based (denial) thinking. Though most people think we are helpless and we can do nothing: The opposite is true. We got a lot of work to do. You're right in a lot of what you say amiga. God bless you and take care.
Carolina.
Renee, I'm your second vote! Right on!
Renee, great post, glad to see there are people waking up to what is going on.
Lou: edible? :cringe:
Shane: I have been saying over and over that the independents are the silent majority. Repubs used to think they were but not so fast :)
Carolina: We need to bail this sinking ship somehow but it ain't gonna get done with the same ole same ole. We have to turn it around somehow and we need to do it through our voices this election season. Can't help but think, is this our "October surprise?"
David and Dez: I am not running for anything but I do appreciate the votes of confidence :blush:
Matt: THanks :) I tried to steer clear of politics on my blog but the anxiety and night sweats and hives prevent me from being neutral like switzerland anymore!
You'd think a libertarian could really shake things up this election season. Ron Paul sure has been quiet.
Amanda: Barr would have a fighting chance if he would have picked Paul as his running mate.
Hi Renee. Thank you!! You just said what a lot of people are thinking. Its ridiculous!!
Renee, I like you as straight shooter. $700 billion in bailout is staggering. I am still speechless.
We are certainly in a mess and it just seems to keep getting worse. I just don't trust the judgement of our current leadership. Nothing has gone as we were initially lead to believe. This 700 billion dollars amy not do the job. We do need more regulations. If a company is too big to fail, then it is just too big.
Renee- I like how you just let out how you really feel? Whether others agree or disagree we all have a right to our opinion.
I do believe that in a capitalist society we need to have free markets to preserve entrepreneurship but I also know there need to be some oversights.
I do not believe that our country will do well as a socialist country. When we begin to nationalize every big company we are not exersising faith in free markets. We need a cleansing. People need to live within their means.
I don't want to bail out these big banks and I don't want my tax dollars to go to bail out people in foreclosure. I pay my mortgage payment. I should not have to pay for my neighhor next door who should never have bought that house to begin with, living beyond their means and then those who use their homes as ATM machines, why do I have to pay for them. Where is my bail out for being responsible?
We sell a lot of short sales, many of these people have real hardships. But these hardships no matter how much of a loan remodifacation they get will still not be able to pay their mortgage or the upkeep on their homes.
This bail out program is a farce and is only a bandaid that is not going to last long. If we were not dependent on the foreign oil to the tune of 700 Billion we would not be where we are today.
Now, talk about a crooked mess. The FBI needs to investigate not the little guys who said they made more than they made, they need to go after those like:
Senator Dodd who accepted the most money out of any politician from Freddie Mac or Fannie mae. And this guy is the one who is writing this bill? Please! Do you think he wants it in the bill to investigage him and his buddies! How about giving back all the money that was donated to Dodd, Obama and Clintons and every one else on the list? How about they help out the bail out by giving the money back! Katerina
Incredible writing Renee. These are insane times. KUDOS.
Renee - I have read (and writte) a lot about this topic. This is the best and most honest opinion I have seen.
I am as frustrated, I know something needs to be done. However, giving the banks a free pass at such a huge cost to taxpayers if it doesnt work is not the answer.
One question: When are you running for public office?
Wow. What an excellent read AND excellent thoughtful points.
Renee, I can only say one thing and that is I agree with your emotions in the post and agree with your frustration. Of course we in MI have been going through this for so long. I've been reading Matt's take on everything it is just unbelievable. We are so heading into a socialist country and people don't have a clue.
Keep it up, we all need to shout out.
Renee,
The government really seems to have higher priorities which is really sad...if they really want to help then they should enforce less wait times on these issue. Short sales have major problems because the people that are our only means of getting them done aren't willing to cooperate. I feel like every time these attorneys send out the judgments that they are just licking their chops waiting to get paid. If they all would want to really help then they need to expedite or escalate the process. It's costing the tax payers money and they just got their hands caught in the cookie jar. These big bank executives are being paid large amounts of money and they aren't doing anything but going to the media with the flip flop stories.
They keep saying they want to help but they are hurting more than helping.
Hey Renee thanks for the early morning reminder of everything that is wrong in our country:( I have a feeling it will get worse before it gets better. The election and what follows after will certainly be interesting.
Pamela: You're welcome!
Gary: Scary times we have lived in!
Wayne: Love your commentary. The bigger they are the harder the fall?
Nestor & Katerina: Agreed with the investigations. The problem is, how are they going to agree to the investigations if they are part of the problem? Most properties that have gone back (in our area) were clearly bought for speculation purposes. I have slowly seen the tide turn because people have lost value in their homes and energy bills have squeezed their pocketbooks to death. There are people who HAVE to leave (due to job relo) and can't sell their homes because REO have diluted our market!
Aaron: I changed my mind from our conversation in regards to the political post :) Just once, for now!
James: WOW! Thanks! Yes, much needs to be done and there seems to be no real solutions on the table. Just more problems for our future. I can see this making our dollar go down while the stock market makes a temporary (week or two perhaps) climb. I don't even think all this money can ride us to the election.
Kris: One answer: NEVER, LOL! THanks for your comment.
Missy: At this point I see it as economic fascism, not even socalism. I don't see how main street can benefit from this in the long term. They are using patriotism (read nationalism) for us to climb on board.
Neal: Agreed. This bailout is not going to help the people. Like I said, if these companies started tightening their belts a while back, they would be ripe for takeovers.
Bill: VERY INTERESTING INDEED! Like I mentioned above, I believe that this is an October surprise. A neutral committee should have been appointed last week when Houston discovered there was a problem. This lame duck president should keep his administration and paw marks off of this if they want to be taken seriously.
Renee - Great read! You Go Girl!
Renee - Tell us what you really think. Stop holding back, we want to know.
I agree with you that it's corruption that causes a lot of our problems. For many years, congress has found a lot of ways to make themselves and their friends rich. Al Gore is a perfect example of how you use you power to make $100 million dollars in 7 years. He used his influence of congress to get big paying consulting jobs. Then he win a Noble peace prize for a powerpoint presentation. We need to require our elected officials to be successful business people before they can hold any office. Why do we think they can manage the country if they have no experience managing a business. I would never hire anyone for a management job without experience, but we do it every 2 years.
Ok - now you have me ranting.
Renee, the guys who say we have to have a bail out right this minute are the same ones who told us there were weapons of mass destruction in iraq. Yeah. Right. And we don't know if this is calling "Wolf" or not.
Renee,
I feel you - it is rough.. the plan is nasty and it sucks. I agree with Jim Cramer though - it should not be called a bailout but more invest in America plan... the other ideas are good but without the plan, our financial system can collapse which would make the foreclosures worse... I believe with the plan... even though it is brutal, is the best plan and will allow more folks to stay in their home.
Notice Warren Buffett did not make his investment into Goldman until after the plan was announced ?
Renee, If you've only lost 50% of your income you are a lot better off than a lot of us.
I've posted a slightly different take on all this:
Are Foreclosures Good For America? Part 2
Are Foreclosures Good For America? Part 3
Bill Roberts
BTW I would like to meet you the next time I'm in Vegas. I come up about once every six weeks or so. Let me know.
Renee, I am right there with you.
I have an idea: Kingdom of Renee, Ken Cook presiding. Active Rain as the Senate. You retain executive power. Ready?
spoken like a true pro - well done Renee...
Renee - Great post, you have beautifully expressed the frustration many of us are feeling right now. I'm sick of all the politicians. In November, I'm planning to vote out anyone who is currently in office. This includes Chris Dodd, I have been voting against him for years, about time he lost.
Well - said Renee. Thank you!
Renee..... some very good valid points. One of the biggest is making the current lenders to do a rate reduction.... I guess they like to try and collect the legal fees for a foreclosure? AH, wait.. how about limiting what the legal department can collect. Have you ever noticed that these fees are extremely high? I will be writing about this tomorrow. Secondly... how about making short sales easier and quicker, than just being greedy... we are so backwards right now and have been for 2 years, it's scary.
Mike: awww shucks thanks :blush:
Larry: Sorry to get you ranting :(
Patricia: EXACTLY!
Christopher: Why make the investment when the feds are bailing ?
Ken: :cringe: not ready :)
Steve: Thanks!
Sandra: I am curious what he is polling at ?!?!
June: Most definitely welcome :)
Jeff: I gotcha about scary. Halloween is just around the corner but the nightmare is going on too long!
Renee, I can't disagree with you, not that I wanted to. We're going to have to get back to common sense in this country, and the sooner the better.
I agree a lot with what you are saying. There are a couple things I think our adding to the problems:
The banks have outsource a lot of the decision/skill positions and are have outsourcers using rule based decisions. The problem is these systems were developed prior to the volume of cases increased and now they are just call centers.
In the 80's the instituion were concerned about trying to control the drop in vaules because they were concerned about other people going in default on other homes. In the 80's there were teams of people that were out to contact people to assist them to solve the defaults. Today these concerns do not seem to be there and the functions to contact the people have been outsourced.
The banks are frustrating the mortgagors because the banks indicate they are trying to do a loss mit deal while they are foreclosing on them and are not giving the mortgagor statuses of there loss mit deals, so people give up and get foreclosued on.
They should go after everyone who caused fraud but only after they resolved the case to take it off the inventory. The longer these cases are default last, the longer it will take to recover. The banks and the governments have to start making decision and taking action and spend less time talking about it. The HOPE plan was a good idea but it has no power to force a decision! Everyone is just processing paper!