Irvine Real Estate Link, CA – The president and the $700 billion bailout

by Robert Mack on September 25, 2008

in Irvine Real Estate

I am sure most of us who are interested in the current US economic situation, particularly the housing situation and mortgage blunders, have heard the President’s address to the nation—September 24th 2008—which took about twelve minutes to explain to the nation as to what happened and what the feds should do to possibly correct it. The gist of his address, as I understood, was help us to help you.

That’s all fine. As I’ve responded to many blogs regarding the very subject of the economy, our current situation began brewing over a decade ago. Of course, he did not waste any time to stress the latter, because he was not the Commander in Chief then. Am I to understand that in the past eight years of his presidency nobody in his administration could foresee this problem coming? And now that it has occurred and everything is surfaced up they knew that potential problems existed a decade ago? He just told the nation why. Money was plentiful, people spent, spend and spent, credit approval standards were low, financial institutions made loans left and right, Freddie and Fannie got fatter and became gigantic dollar bombs waiting to go off. And, indeed, they did, along with many smaller institutions.

Here is the point: I am not quite confident if this $700b taxpayers’ money, when approved, to be a success in terms of stimulated economy. This may cost each tax-paying citizen $2,000 – $3,000 (figures are rough, maybe more). I know the situation is critical. What if it doesn’t help? Some folks can’t afford to part with this kind of money, it’s hard for them as it is, although the contributing taxpayer will be repaid.

The president’s address was simple and straightforward. He said that this is not normal economic circumstances. His reasoning was logical, but then again, name one politician that has sounded illogical when addressing the nation. I personally have mixed feelings about this massive bailout, but if it works, then I’m one happy camper. We’ve suffered enough in the past 30 months or so.

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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