Not having a degree in national enconomics, or basic mathematics, or a firm, knowledgeable grasp of the current mess, I was a bit leery about broaching this subject. Then I ate a Nut Log (mmmm, damn, love those Nut Logs!!), and realized...at worst, I would be wasting 5 minutes of your time, not $1 trillion dollars. I felt better, and more confident, and with the Nut Log salty-sweetness tanging my tongue, I ventured forth to spout MY ignorance on the subject.
These past few weeks, we have all been, once again, whipped to new heights of stupidity by fear-mongering and dense economical skullduggery to think that giving corrupt and terribly managed "businesses" $700 billion dollars was a good idea. This is going to end up closer to 1 trillion dollars by the time we are done. It is just starting.
Some facts did not get communicated very well. See, all this bailout is doing is paying off intangible, pseudo-debt created out of vapor. Not being content with your paltry 5-8% a year interest, your bank borrowed against your mortgage to make even more. So, if a $100K 30-year mortgage would earn your bank $150K in interest, guess what? They were able to borrow that against your $100K house. Funny money? I am not laughing...much.
The thing is...you caused this mess. Yes, you. I wish you were here right now so I could smack you hard, and not in that fun way. I'd smack me too but that causes a totally different response.
Problems started when you lost your job, or when gas prices went up, diverting money from the mortgage payment, or Barkles needed cheek implants to bolster her self esteem. Suddenly, you could not make make payments on that house. Suddenly, that as yet to be materialized $150K was in jeopardy. And the $150K that was borrowed....was invested in something else.....to earn more...which had to be pulled....to be paid back....not to mention...foreclosing on your house....where was the money to do this? Money that did not exist was earning money that did not exist either...and it all started when you bought that house.
Well,omnivores....that money was no where. It didn't exist except in the ether. So...the bailout was proprosed to make the past-due $150K real. Which paid whoever had the $150K to loan in the first place, thus increasing their happiness...and freeing the bank holding the mortgage from having to pay its debts that its greed had driven it to, and leaving it with the resources and means to evict you because you missed one or two payments.
Do you see, anywhere, in this bailout, a provision or funds to help you to retain your house? Your job? Pay for Barkles to resolve her self-esteem issues? No. Oh, wait, sorry...your mortgage can be resold and re-structured so that you can take longer to pay, or play with the payments to keep your house...maybe. Depends. This country could use a big pair of Depends right now...
If you got kids, and grandkids, call them into the room...and apologize. Because they are going to be paying for this.
If there had been no bailout...you'd still be evicted. The bank would have had to take it in the shorts. The source of the $150K would have been out $150K....but we would not have a $1 trillion sword of Damocles hanging over our heads.
And it gets more interesting...because...the source of the $150K varied. Funds. Rich bastards. Republicans. 401Ks. Stock market. That $10 of yours you put in your retirement is in there somewhere. Suck up that $10 loss next time...
So, where is this bailout money going? Mostly to buy worthless, virtually non-existent "assets". It is no accident in this case that there is an ass in assets...
...because we have been made collective asses of....this bailout is not going to make a difference. Only time will. If we had remained calm, eaten a Nut Log, and if our "leaders" in Washington had managed to scrape up enough ethics to at least pretend to be working for the greater good....the market would have self-corrected eventually.
It reminds me of that time that I just had to have that Steve Austin action figure or I would have died. I got it, and his bionic eye sucked, so I lit him on fire and danced around him screeching at him to break loose with his bionic arms and whatnot. Afterwards, I felt stupid and empty....
...just like now. Is it just me or is it warm in here?
1 comments.:
Hey Deaf,
Long time no read. Thanks for the education, Deaf style. Right now all I can think of is Poor Steve doll! What did he ever do to you? His eye was cool if you had only made believe. Keep up the writing buddy. Nets
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