A) We don’t have any money.
We’re going to have to borrow to get the $700+ billion. This, on top of the money we’ve borrowed in the past, pushing our debt to truly insane levels. We already owe more than any other country on the planet, and this would nearly double that amount.
We are destitute.
We have no money.
And frankly, we need something like this to wake up. We don’t ask enough questions about things. We’re not cynical or skeptical enough by any stretch. We’ve been living off the kindness of strangers so damn long that we’ve forgotten how to earn a living.
i don’t want a bailout of financial institutions. If anything, i want the government to mandate a readjustment of home property mortgage values meaning that the $1.2m McMansion you bought 120 miles from the city is now worth $200K. (Take the Materials and Labor cost to rebuild from the insurance estimates, plus averaged land value, replace the gold lined bathtubs with standard, and ca-ching: proper home value) Lose money off the deal? Too bad, so sad, but you get to keep your home (and yeah, the amount of principal paid is likewise adjusted, so no, you haven’t paid it off in full yet either). This will mean that you (and i) will lose a horrific amount of money from various trusts and funds based off of real-estate. Gone like the unsecured, unguaranteed, past performance is not an indicator of future performance, funds we signed up with declared themselves to be. It also means that should you decide to opt into the government forgiving the greed part of your home purchase decision, that’s the max price you can sell the property for. Oh dear! Looks like you’ll need to find some other way to invest for retirement, doesn’t it? i recommend savings accounts
This is why i live in a three room ranch within city limits in a nice, quiet neighborhood. Yes, my home value has been hit, and probably will be hit again, but i guarantee i’m not going to lose as much as someone who “had to live in Stockton but man, what a house i got for the money!”
There’s a reason that Gran’ma used to keep her life savings in a coffee can. It’s because she, along with most of her generation, learned a really hard lesson. Because of those lessons, you’re not out selling apples on the street corner yet, but apparently, we hadn’t learned enough to keep from doing other really stupid things.
Perhaps it’s time we got schooled again.