Financial Bailout Plan Not The Right Bucket
by James from Eureka, California USA
Regarding Financial Bailout Plan Not The Right Bucket: In my opinion the new government financial bailout plan is not going to be successful. I think it is targeted at the wrong location to improve liquidity in the long run. I think it will only kick the can down the road so to speak until after the election so that the conservatives can blame the new administration for all the problems.
If they were truly interested in preventing recession, they should have attacked the liquidity problem directly by providing loan guaranties rather than offering to buy up worthless assets.
The amount of the toxic assets out there is what dooms this idea. Removing a few hundred billion from a pool of 50 or so trillion will not have the desired effect. It may allow the people on their way out to escape with their golden parachutes but the house of cards will still eventually collapse as consumer demand falls causing layoffs.
This will lead to another round of foreclosures and continued collapse of the housing market the source of the disaster in the first place.
We will no longer be able to pull money out of housing to finance consumer spending so we need to revitalize manufacturing for a true recovery. --James from Eureka, California USA
Return from Financial Bailout Plan Not The Right Bucket to Get Your Best Mortgage Rate
Click here to add a comment.
You can also ask Kate about your mortgage at The Ultimate In Mortgage News.
Aug 06, 18 11:58 AM
If you lock mortgage rates over the phone, how do you protect against excessive points and hidden closing costs? Learn what to do when your lock is threatened.
Aug 06, 18 11:53 AM
Getting a low down payment mortgage: Learn the first two steps to financing niche properties in resort areas. Tip: It's not about timing the real estate market!
Aug 06, 18 11:45 AM
Ask Kate's secrets to low mortgage payments help homeowners understand industry lingo related to refinancing. Learn how to get your best mortgage rate!