Bailout Bill Fails House Vote

[AGDee]

Not to mention that the credit market is frozen so there is no credit going out.. want to buy a house? Oh well. Want to sell a house? As if it weren't hard enough already? Sorry, your buyers can't get a loan because there is no money to loan. New car? Hope you have $24,000 in cash to pay for it because there is no money to loan.

[madmax]

Originally Posted by AGDee

Not to mention that the credit market is frozen so there is no credit going out.. want to buy a house? Oh well. Want to sell a house? As if it weren't hard enough already? Sorry, your buyers can't get a loan because there is no money to loan. New car? Hope you have $24,000 in cash to pay for it because there is no money to loan.

How does that compare to lending money to people that can not afford to pay it back?

[AGDee]

Originally Posted by madmax

How does that compare to lending money to people that can not afford to pay it back?

I know we're in a very different situation in Michigan than in most parts of the country, but the people that I know personally who have foreclosed on their mortgages *could* pay it back at the time that they obtained the mortgages. Some lost jobs, one lost her husband (and therefore, his income), etc. On my street, more of the people who are walking away from their homes are either unemployed or they have to move and cannot sell their house for what they owe on it, so they're walking away from it. If you bought your house for $180K and financed $140K and had a family income of $100K, that wasn't an irresponsible buy. The problem is that now the family income is $30K and the house is only worth $120K so they're screwed. I don't know anybody who was foolish enough to do the interest only loans or other crazy loans that were being offered, personally. I'd be very curious to see that breakdown with foreclosures... the "why" of it all. What percentage is due to unemployment, what percentage is due to bad loans, etc.

[awkward1]

I own a home furnishings store. Now that people can't buy/sell their homes and many are facing foreclosure they aren't purchasing home decor items. Sales are off 55% from this time last year and I can't recall ever having seen business this bad. Now, if we do experience a credit crunch I won't be able to meet payroll within months. I could loose my business because of the free wheeling dealers on Wall Street and the mess they have created. Where is my bailout? Seriously! I understand the logic behind supporting our financial markets, but the reality is that it is the small business owners that are suffering and barely meeting their monthly obligations. The nations largest Chevy dealership closed it's doors last week, and I feel like that is just the first of many retail closures to come. Right now my financial life is at risk on so many fronts....retirement savings, stocks, my income, my insurance.....I'm pretty much hating our congress right now and hoping that the FBI prosecutes as many Wall Streeters as possible..

[moe.ron]

Man, I was up till 4 in the morning to watch the vote and see what move can make to protect mine and my client's money. Soon as the vote was in, I immediately shorted on Dow Jones future and went long on Gold. It was still a nasty fall, but I was able to recover some of the lost. Oh well, today I'm being hammered in the Asian market.

Crazy days ahead.

Good time to start looking for cheap stocks for the long term.

[Educatingblue]

Originally Posted by awkward1

I could loose my business because of the free wheeling dealers on Wall Street and the mess they have created. Where is my bailout? Seriously! I understand the logic behind supporting our financial markets, but the reality is that it is the small business owners that are suffering and barely meeting their monthly obligations. The nations largest Chevy dealership closed it's doors last week, and I feel like that is just the first of many retail closures to come. Right now my financial life is at risk on so many fronts....retirement savings, stocks, my income, my insurance.....I'm pretty much hating our congress right now and hoping that the FBI prosecutes as many Wall Streeters as possible..

I feel very sorry for small business owners who are caught in the middle of this mess! My husband and I were talking this morning and I think the predatory lending/mortgage crisis was just the beginning of our economy's downward spiral. I understand both sides.

I was watching the Today show this morning and they mentioned how difficult it will be to get credit in the future not to mention credit lines could be decreased to minimize liability.

This whole thing should be a reality check for people who have always lived above their means and buy crap they don't need!