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Having lived in Grand Junction most of my life, I remember when people flooded the Grand Valley in the late 1970s and early 1980s (prior to Black Sunday 1982). They came here because Grand Junction was not having the recession problems that the rest of the country was suffering from. Sound familiar?
The idea of our federal government giving money to banks for loaning, and forcing mortgage companies to hold the current adjustable rates for those people who have not been late with a payment, and even the stimulus package is crazy. The recession problem is not just “We the People” our government is in over their heads — we can not keep funding a war, and just reaching into some imaginary funding account to stimulate the U.S. citizens’ spending.
It is time to suck it up. Be thankful for what you have and get out of debt. Dumb ideas such as imaginary help is why the country is in the mess it is in. There is no reason those who drive diesel-powered vehicles are paying more for a gallon of fuel than those who drive gas powered vehicles. A 1,500 square-foot house is plenty big enough to raise a family in.
But reality is we are a greedy society! We all need to realize this recession is not just in another part of the country. I have been told, “Why not build 3,000 square-foot homes? A person selling their smaller one (if they are lucky enough to have previously owned a home) can take the equity they have and get a larger home for the same payment?” Sure they can by way of one of the many adjustable-rate mortgages that has the rest of the nation in so much trouble.
People cannot tell themselves no, so why should our government bail them out? It will never work! Instead, of getting $300 from some imaginary funds, each taxpayer could contribute $10 to go against the national deficit (one trip to Starbucks) and work towards a real solution to the recession we are in.
Bill Clinton was not very popular when he cut military spending during his reign in office and redirected a small portion of those funds to help citizens gain higher education, but when he left office, our nation’s deficit was much lower than it is today. This is not a Democratic nor a Republican problem, this is an American problem. We are all going to have to fix this problem, “We the People.”
DEB WIEKER
Grand Junction
10 Responses to “We the People need to fix our problems, not seek bail outs”
Posted August 28th, 2008 at 4:42 pm Login to Send PM Report this comment
I dunno, Deb. I agree with you that bailing out the loan companies is not a good idea. But do you think it’s smart for taxpayers to give $10 each to the guys who misspent the money in the first place?
Posted August 28th, 2008 at 4:53 pm Login to Send PM Report this comment
People took out loans they knew in advance they couldn’t make the payments on that were presented by people that knew in advance that the borrows could not afford to make the payments on.
I support the American Dream of owning ones on home.
I also support the concept of “TRUTH IN LENDING”, which should have included the phrase:
“I’m sorry Mr. and Mr.s American, but we feel that you cannot make the payments on this home, perhaps a smaller, more financially suitable home would be your best bet for now.”
To reward both the borrower and the lender, and leave those who make their payments promptly stuck with higher mortgage rates and nothing for making good decisions is definitely not in the best interests of any politicians.
It’s those borrowers that will have the most clout in their political donations and support.
Posted August 28th, 2008 at 5:57 pm Login to Send PM Report this comment
love the article deb. Hey willis, who doesn’t support the american dream of owing a home?
Posted August 28th, 2008 at 6:17 pm Login to Send PM Report this comment
I can understand why folks who did not go out and take out a mortgage they could not afford, are upset that those who did might get bailed out.
Some of those folks were flippers, speculators, who were in there to make a quick buck. Others were convinced, either on their own, or by reckless salespeople at mortgage companies, to take out these mortgages in the belief that by the time the payments reached an unaffordable level, they would be able to, either refinance, or sell the house for a quick profit.
Let’s be clear. mortgage companies are not getting bailed out. Look at Indymac. Wall Street firms are not getting bailed out. Bear Sterns has disappeared and their shareholders (as well as those of Indymac) were wiped out. Fannie Mae and Freddie Mac may get bailed out (no choice there) but the stockholders will get wiped out.
So what to do about the homeowners? Many will lose there homes no matter what. But, if the government provides no help, the current debacle in the housing market will get alot, lot worse. And the consequences of that on the rest of the economy could be great. And that would cause folks, like the author of the letter, who had nothing to do with the crisis to suffer. Unemployment would go way up and many who were not involved will lose their homes. The economy would go into a deep and long recession.
The government is helping and needs to continue to help. And, most importantly, there have to be new regulations put in place to avoid this happening again.
Posted August 28th, 2008 at 6:40 pm Login to Send PM Report this comment
Good post, bullishfrog. Some self-regulation is already going on in a lot of mortgage companies, making it more difficult to get loans, making the local housing market slow down significantly. The real estate market here has been running pretty hot for the last 3-4 years fueled by the promises of easy financing.
I think a lot of Realtors drove the prices up because of the glut of buyers “qualified” for high loans. Still, many of Deb’s comments are valid as the market heated up fueled by buyers over-reaching beyond their means.
Posted August 28th, 2008 at 6:52 pm Login to Send PM Report this comment
XSBC, our area has benefitted greatly from the energy industry influx of new residents. And, of course, the easy terms available helped many get more expensive homes than they might otherwise be able to afford.
But, as you point out, the housing market is weakening here too. Inventory of unsold homes is rising fairly fast. Particularly on homes priced above $300,000. Nothing like you see in other parts of the country, but “for sale” signs are popping up, and staying up longer, than they have in the past few years. I think a lot of that has to do with the fact that folks are having a harder time moving here because they can’t sell their homes.
Posted August 28th, 2008 at 7:38 pm Login to Send PM Report this comment
bullishfrog,
“XSBC, our area has benefitted greatly from the energy industry influx of new residents.”
How?
Posted August 28th, 2008 at 7:42 pm Login to Send PM Report this comment
Willis - You said, “To reward both the borrower and the lender, and leave those who make their payments promptly stuck with higher mortgage rates and nothing for making good decisions is definitely not in the best interests of any politicians.”
All that is going to change when Barack HUSSEIN Obama becomes out President. He will heavily regulate the financial markets and banking industry to prevent the Republican-condoned and encouraged abuses from being repeated.
Posted August 28th, 2008 at 7:54 pm Login to Send PM Report this comment
RM, I was referring to the housing market.
Posted August 28th, 2008 at 9:16 pm Login to Send PM Report this comment
bullishfrog,
Ok, I understand.
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