When I read about this bailout, I have to admit I have mixed feelings on it.
On one hand, I don't think it's right that people who were in over their heads gets a handout at the expense of others who are financially responsible.
However, at the same time, it does seem like this will at least sort of bring some stability to the financial markets. It seems like it's a strategy to just buy time, and string out the pain, so that less of it is endured all at once. As such, I'm thinking (hoping) that this helps stabilize some of the equities market. I think the consequences of not doing that would hurt a lot more people who have 401k's, investments,etc who are financially responsible. Also, I have to say, these people that are overstretched- we sort of need them to keep spending to prop up the markets. Either way, they're going to loose in the long run. At least if gives the rest of us time to make the necessary financial adjustments to weather a bigger storm in the future.
I guess we can't have it both ways.
As far as picking up good investment property, it looks like I'll have to wait longer. It's a little disconcerting. My wife and I have 800+ credit scores, never missed a payment on anything and have a fixed rate mortgage at 5.625%. On the other extreme, you'll probably have <600 people scores that will get the same temporary fixed rate mortgage. Also, are taxes are going to go way higher to subsidize these people.
