Irvine Real Estate Link, CA – Bailouts by the federal government

by Robert Mack on September 21, 2008

in Irvine Real Estate

I do Irvine real estate in Orange County, CA. Although my concentration is predominantly focused on Irvine homes, however I (I should say, we, because my wife is also working with me) keep myself in touch as to what’s happening nationwide regarding the housing market and the general economy.

Today, September 20th 2008, I was looking at The Los Angeles Times, the real estate section and came across a real estate blog concerning bailouts by the government.

I am not against a bailout of an institution (being financial or otherwise) that if left to the claws of bankruptcy may have adverse socioeconomic effects to you and me. But it seems that nowadays such bailouts of mismanaged institutions, in particular the financial kind, are nothing short of finding Uncle Sam’s hand in our pockets in the form of temporary increase in taxes of some sort. And the irony would be that neither you nor I can do anything about it. What does it tell us? I leave the reader to draw his/her own conclusion.

The XYZ financial corporation is going bankrupt. So what? Why should the feds bail them out at my expense? If the XYZ mismanaged its spreadsheets for, perhaps personal gain, why should I pay for it? Would dear old Uncle Sam bail me out if I defaulted on my mortgage due to illness and being out of work? Or just simply being laid off? No way Pedro! Then why should I concern myself with Lehman, AIG and F&F? BECAUSE THEY ARE BIG—Thanks to the big shots working for Uncle Sam. You fatten them and they fatten you, and you and I get screwed. Get my drift?

The economic hardship that we are encountering today is not the result of what happened last year or the year before, but many years earlier. The financial problems that we are having today have been brewing a decade ago, even earlier. We did not notice them because at that time we were all happy and content and seemingly we did not see any problems—latent problems—and money was plenty, market was good (save after 9/11) and housing up-and-down cycles were short and mostly on the up side. America was busy buying property, spending and spending. We never complained.

People have brains, they can think by themselves, they can analyze situations by themselves without having a hot shot from the Hill to explain things to us via the standard media, besides, nobody would believe him, anyway.


Views, comments, responses and constructive criticisms are welcome.

Make it a great day.
The Mack Team
Robert & Tania Mack
Century21 Professionals
Irvine, Orange County, California.

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