Wednesday, October 1, 2008

Straight from the gut.

Here is one take on the bailout crisis. What's scary is that it is frighteningly true.

-from the Daily Gut

See -whenever the economy goes south - we rag on Wall Street. But when we do this - we conveniently forget that these are the actual people who are creating wealth and commerce. Remember - it wasn't the rich who took out crappy loans from dodgy lenders for homes they couldn't afford. It wasn't the rich defaulting on these loans, leaving us with this mess.

Nope- it was the poor who borrowed and never saved. But you can't blame them. One, because you're Satan. And two: It's not really true. It's really the Democrats who are guilty. They not only embraced, but enforced, this phony Robin Hood philosophy -thinking that forcing banks to give loans to meth-heads would make the world a better place. The result? We all went to hell in a three bedroom condo.

And then who suffers? Whoever has their savings and retirement invested in the stock market. Sure, most of us have years to rebound. But what about those people within five years of retiring? Their investments might not have time to bounce back. Nobody seems to be thinking about those people who have paid into the system for 40 years only to lose most of their retirement right when they need it the most. Everyone is too concernced about a bunch of high-risk home buyers who never should have been given home loans to start with. Owning your own home is not the be-all end-all people make it out to be. There is nothing wrong with renting, if that's all you can afford. Needless to say, the high-risk home buyers who have defaulted on loans they never should have been given probably don't have much invested in the stock market.

So as much as I hate, hate, hate bailing out the banking industry, I think a bailout is a good idea, otherwise, we're going to have homeless people or, God forbid, renters, on both sides of the spectrum -- those that should never have been given home loans, and those that are about to lose their retirement savings in the stock market.



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