THE BAIL OUT OF FANNIE MAE AND FREDDIE MAC
Why can’t Fannie Mae and Freddie Mac be allowed to fail? The mortgage defaults and foreclosures in the US will hit the Asian central banks among others. The defaults on Mortgage Backed Securities by Fannie Mae and Freddie Mac will be looked upon the world as almost equivalent to a default by the US government on US treasury bonds. This would have a global effect, not just here in America.
AND NOW THE REST OF THE STORY
Recently our government bailed out Bears and Stearns the biggest bank in America. You remember that. Now we’re getting hit again with Freddie Mac and Fannie Mae. This is going to cost us BILLIONS OF DOLLARS. Truth of the matter is by the time this is all done and over it may be more like TRILLIONS.
Wait more good news on the horizon! The big three have also asked for help from the government and American Airlines may be in need of a life jacket! My question is this, if we as Americans keep bailing out industry without anyone taking responsibility for what is happening where will this stop? And, if they (our government) is willing and able to help out the “Big Boys” shouldn’t they be willing to help out those small business owners and the middle class Americans also?
Is there a fix? Of course there is. The common sense approach, (woops, does that exist)? Here it is in a nutshell. If they have enough money to continue to bail out all the Big Businesses, they certainly would have enough to bail out you, John Q. Public. After all this is YOU’RE money were talking about. This is what you and I are paying taxes for.
Fix number one; get rid of the previous CEO’s of these corporations, and Oh, by the way, that million dollar severance package. Well, I think that could be used somewhere else to help our American citizens. Second fix, if they can give the Automobile industry a low cost loan, why can’t they do this for our American public? Isn’t this what got us into this crunch in the first place? If the lending intuitions were able to “Offer” Americans a low interest rate to get into a home, and their paying it ok, why not keep that interest rate the same instead of raising their interest rate and throwing them out of their home? I’ll tell you the answer to this if you haven’t figured it out, GREED!
All of this could have been avoided IF lending institutions would try and “help” instead of “hinder” our people. Given a chance most Americans will elect to sit down and try and salvage what they have. And if the Lenders were able to give a “low interest loan to get into a home” why can’t they just keep this loan at the low interest? Well, we know the answer don’t we? Banks and lenders would still be making money just not at a rate they expected. All the while keeping the American Dream of home ownership alive and well in America and employees on the job.
The second part of this is to get co-operation from our local government not to raise new home taxes to an outrages extent. Does this take work? Of course it does. But American’s have always come together to help one another in a crisis. Why not this and now?
As the housing market continues to decline and more Americans are taking on a heavy burden I’d just like to ask you one thing. Who is going to make the Property Tax Payments on all these foreclosed homes? What about the Condo dues if it’s a condo? Oh, and by the way, insurance (if elected) and maintenance on these homes will also need to be done.
Now I want you to know, I’m not a politician, however I do know that if I was I would be taking care of the American People’s money like I take care of mine, by balancing. I’d be making sure that we had a nice balance with every check written. I know that I can’t just turn around and MAKE MORE MONEY. Does our government understand this concept?
Last week American People took out over 14 Billion dollars from Wall Street. This tells me that our people do not trust the financial gurus’. Frankly, I don’t blame them. I think that I would rather have what I have left in my pocket than to give it to someone that I don’t know or trust All said and done, I just want you as Americans to be informed. That when it comes down to it, government spending is on the rise and middle class America can only take so much before it fails, if it hasn’t already.
Katie Creek
727-415-4669
Florida Luxury Realty
www.FL-WaterFrontProperty.com
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