Some people cheered today, some didn't. Many taxpayers saw
today's decision as no more debt added to our economy. Yeah, hard
time will come in the future, but who knows economy will bounce back
somehow. That was what is written all over the web on many blogs and
articles.
So who didn't cheer today? Who else, Wall Street and rich
people as they saw their income and investments plummet. But why
didn't cheer isn't just because of them being selfish with money, it
is also because this affects everyone.
Not many people realize that if your bank cannot longer lend
money, you cannot qualify for car loan, student loan, business loan
or almost any kind of loan. The credit market will be frozen and
banks will not lend money any more. And we will be in a deep
recession that who knows how long it will take time to get out.
Banks will be scared to lend money, what if borrower does not repay,
we cannot afford more debt as it is now.
The most important is how we got here at the first place and
yes everyone blames banks and their "special loan programs" such as
interest only loans and adjustable rate loans. But these loans were
made by banks to help homeowners to get that house they wanted.
Banks never pushed you to get these loans, remember you as a
taxpayer were the one signing the paper that you want this loan.
Education was missing how these programs worked and now many people
simply could not afford to repay their mortgages. So therefore,
banks went down, bankrupt.
Or look at it from perspective of your business or even your
boss. What if your boss needs financing to continue daily operations
or your boss needs money to make payroll and he or she cannot
qualify for a loan. What happens than? You lost your job. Economy
will suffer because of this.
Even we will have more debt, and yes many will disagree that no
more bailout, our economy strives on credit and that is what is
missing right now. The credit has been frozen and banks do not want
to release any more capital. It will slowly start to affect everyone
that has loans and mortgages to future homeowners who cannot qualify
for loans.
But many people do argue that they do not want to cover someone
else's mistakes just because Wall Street screwed up. They do not
want to be paying that huge debt in the future that even their kids
will be stuck with it. Situation is difficult as of right now, and
problem is that we are in this situation today, this minute, this
second. We cannot wait any longer before economy goes to deep
recession. We have to act now even though a huge billion dollar debt
will be added. But however, this allows credit markets to open up,
start lending money and keep economy going so you can keep your job
and get that loan for your car, education or even business.
Remember, if this bailout is not approved, your
investments, 401K or any other investments you have will go down.
Your hard earned money will disappear slowly and it will take years
before your 401K and maybe even stock market will gain the strength
it used to have. Everyone will loose and unfortunately, the bailout
is needed to keep things going.
Or would you rather not have bailout and see what happens? This
is your future and your decision.
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