DWCAP….
Good points…Problem is so many people blindly swallow what is fed them in the media. And unfortunately most people don’t bother to do a little searching for the real truth. I have and will continue to talk to my friends/co-workers.
I know that there is economic danger out there especially with these damn investment banks that took on so much risk. The counterparty risk is real and that became evident when Lehman failed. However, this will not have an effect on the real problem and further it STINKS to high heaven. Giving Paulson (former CEO of Goldman Sachs) absolute control over $700 billion of tax payer money without any oversight is ludicrous. He is already recruiting his old friends to take part in the auction oversight process (wonder how much they are making for their “work”). Further, has anyone noticed that we are effectively creating a monopoly in the banking sector?
I can’t remember which senator said it, but he stated that he was voting “no” in part because he and others had received a letter from 400 economists, 3 of which were nobel laureates warning him that this was the wrong thing to do. Even Roubini states this is not the way to handle the situation. Why in God’s name are these idiots listening to Paulson over scores of highly educated economists. I’m not saying something shouldn’t be done, I am just saying that we needed to do this the best way, after careful consideration. In the end this will not effect home prices, nor should it. We absolutely need a correction in the housing market.
Lastly, I know that people have gotten hurt in the housing correction, however I have no sympathy for those that took out loans that they knew they could not repay, the speculative flippers, or those that cashed out with HELOCS to buy toys they otherwise could not afford. It is a painful lesson, but one which we, as a Nation, need to learn. The previous generations whose parents lived through the Great Depression understood the value of money and saving. We are now one of only a few nations that actually has a negative savings rate. Maybe we need a severe recession/depression to finally hit home the folly of our ways…
