Flood Of Protests against Foreclosure Bailout Bills

Posted on October 14, 2008
Filed Under Foreclosure Homes |

There has been a flood of protests against foreclosure bailout bill involving a whopping amount of taxpayer’s money. The e-mail system of the White House had to be shut down due to this flood. Obviously phone calls were close on its heels.

The bill has been revised and been given the green signal. It plans to raise the FDIC limits covering each bank to $250,000 from $100,000. Who will care about this increase? The ordinary American has an average savings that is less than $4,000. This extra of the FDIC is going to affect them. It is going to be taken from those accounts that are sleeping. If one is so rich that this kind of money is kept in one place then amount above $100,000 will be lost.

Right now the government does not have $700 billion. It means the government will either have to borrow or print money. Either way the country goes deeper down the hole causing foreclosures to worsen. Printing will increase inflation. Borrowing means worse. The value of the green buck will go down. The crisis is far from over. The foreclosure increases are just the edge of the desert. People are losing jobs, federal and state governments are facing cash shortage causing them to cut down on services and raise fees. Desperate measures are being taken to make up for the shortfall.

Another crisis is looming large – sizeable numbers of seniors are waiting to start drawing on their social security. Another issue is the management of hedge funds. Here again, once the precedent has been set, losing out investors will pass around the begging bowl to the government.

The bill gives scant attention to the average house owner to see that foreclosures do not gobble up the houses that are their homes. The slump in the economy is likely to push more people in the foreclosure risk zone. It will further mire the problem before there are any hopes about betterment.

A strong opinion is that Wall Street should not have interfered but allowed the market to find its level and correct itself. What was the necessity of pouring millions to those who still have millions stashed away in places from where it came from? The $700 could have been used far more positively and fruitfully – if of course the government had that kind of money. The CEO’s of these financial institutes should not be given a golden parachute to leave safely the crashing vehicle.