Homeowner bail out plan to cost 75 billion
By lilwonders
@lilwonders456 (8214)
United States
February 18, 2009 8:45am CST
Obama's homeowner bail out plan is said to cost 75 Billion and could help up to 9 million homeowners. Well if these numbers are right......divide 75 Billion by 9 Million and see what you get. Is the average american home really worth that? Also it is not paying off the houses. It is going to lower the payments. SO is this plan really cost effective? I have a hard time understanding how it is going to cost that much to help 9 million people. something smells here.What do you think?
1 person likes this
1 response
@Arkie69 (2156)
• United States
18 Feb 09
I see what they plan on doing now with the housing market. This is the first thing anyone has done in the United States in a ling time that I agree with. It looks like they fully intend to drop the price on houses. Either by lowering the interest rate or just flat dropping the price on houses that have been foreclosed and now belong to the banks.
Over the past 10 years or so the real estate market had gone through the roof. New houses were being built everywhere you looked. They finally saturated the market just about the time the people had to cut their spending. The housing market is being blamed for this economy crash and they are not the ones that did it. People not being able to pay their monthly contract on the new houses is what caused it.
Look at what did cause it. The price of food and gasoline going so high is what caused people to have to cut back on their spending. The American people have been buying way too much junk for some time now. They have had to stop buying so much junk and this is putting people out of work. Every job that is lost drops the demand for more junk even farther. The loss of jobs is what caused this crash and nothing else. New jobs outside of production is the only thing that will cure it. At this point you cannot hire more workers and increase production because there would be no demand for the products.
Art
@lilwonders456 (8214)
• United States
18 Feb 09
What caused the housing bubble was irresponsiblility on the home buyer and the money lenders part. The lender did not properly qualify the poeple for the house and also in some cases in do not explain to the people exactly what their loan was and what it was going to do (rates go up ect...). There was predatory lending going on. The lenders gave out a lot of loans to people that never should have gotten one. They know it was high risk...they took the risk and it back fired.
The homebuyers did not proper research their loans before they signed on the dotted line or they bought more house than they could afford. there were a lot of people that could not afford a reg. mortgage but wanted a house...so they took out a subprime mortgage thinking in a few years they could cash in on the equity to get a better deal. Well that was a gamble. It back fired.
Either way for some reason now the rest of us are having to pay for those people not being responsible and making bad decisions. How is that fair?
@Arkie69 (2156)
• United States
18 Feb 09
That isn't fair at all but a lot of them could have stayed in their houses if everything else had not gone so high. The root of the problem is we were simply buying too much junk we didn't really need. A lot of ot is produced here withing the US and when we stopped buying it American jobs were lost. It is still going to get a lot worse. Watch the super market shelves and you will see products starting to leave the shelves. We simply don't need 10 different kinds of a single product and also a lot of this "Easy" food will drop off the shelves. Truckers can tell you real quick they don't haul the loads they did a short time ago. Super markets and other retail outlets are not buying as much stuff as they did. They are not buying it because the demand is down and that is going to get a lot worse with every job that is lost. The price of food, clothing and shelter has got to come down before our economy can ever start to repair kit's self. We can't repair it, it must do it on it's own. We sure can screw everything up trying with these bailouts and cause ourselves a lot more problems a lot longer than necessary. It would be a lot better is people just backed up and let everything crash and then start making jobs with our tax dollars.
Art

