Wednesday, September 24, 2008
I've acquired a new source of rage. I already have consumer rage (i.e. rage towards the devil that is cell phone companies and other consumer providers that piss me off) and various other sources of rage but now that I have 1 1/2 hours to be the car everyday, NPR has provided me w/ a new source of rage. I thought avoiding the bs pop-music radio stations would bread a healthier and happier commute but nooo, NPR has just fed the beast.
Now, let me first say with the utmost clarity that I am a firm believer that people should stick to what they know. The receptionists in my office should not provide therapy just as certainly as I should not be talking about this topic but when 700-billion dollars is on the line, I think my readers will have to forgive the fact that I am completely ignorant about fiances and economics and allow me to share my opinion.
In case you haven't figured it out by now, I'm talking about the 700-billion dollar financial bail-out the Bush Administration is asking of Congress. My understanding of the problem is this--during that lovely mortgage boom (which i am now grateful Todd and I missed out on except for the fact that when this is all said and done no one will be able to get a dang loan) financial lenders and banks started taking major risks with whom they lended to (it seems that having a pulse was hardly a criteria) and with what sort of "bets" they made on the prospective value of assets. SO, when the market started slowing and then declining, people on the tail end of the boom (06-07-ish) became unable to make the hike in interests, thus defaulting on their loans rendering companies out of business or into the hands of larger, more cut-throat companies. Asset values also started to decline so that, as an analogy, a dollar wasn't really worth a dollar. Kinda like if the property value on your home goes down and you owe more that what that value is you're SCREWED
That's the problem--so why do I care? I don't own a house. I care because we're all interconnected that's why! Our money markets--what I used to think of as a glorified savings accounts could easily be effect by this nightmare. The economy at large is very much at risk bc of this.
The rage however, does not come from this alone--it comes from the "plan" proposed to fix it. I want to know HOW in the bloody world you can ask for 700-billion dollars and provide "terms"-- for how to execute this money that is as well defined as a teenager's romantic life. Seriously, did you know that there is nothing in place (since last I heard) to define who will even have access to these monies? Meaning, the very buggers who got us into this mess (those that lended to non-pulse people and then hiked their rates at two years--knowing good and well they would default) could easily have access to this money and reexecute the same bullshit loans?? We as taxpayers are also being asked to pay taxes on assets that have not yet been assigned a value. If this value is below par and we've agreed to the bail then what?
What if this money is not enough?
Who's to say the same thing won't happen again?
I listened to one loan expert who said that the only way to ensure that we don't again fail is that every lender who has access to this federal money would have to call every borrower and ask them if they were meeting their loans and if it was likely that they might default. For every person identified as "at risk" the terms of their loans would need to be adjusted to make it work--or something along those lines. Also, the treasury has been saying all along- we're okay. The market will recover blah blah and then one day basically said "oops, never mind". Why should we trust them now?
Basically, I have rage. I listened to a transcript of the court processing--it said the republicans have questions but are more ready to give out the money. The democrats want to know who will be getting this money AND they want a tap on the salaries of the CEO's of these companies. Now that's what I'm talkin about! At least somebody isn't wanting to feed the beast (the other beast---big business)
Anywho, I know this topic isn't that scintillating, I know I don't have all the facts, and that there is more to the other side (and that I didn't highlight that very well) but my point is that I'm concerned. And outraged. And old--for listening to NPR that is.
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